Human Services Commission Meeting Agenda Packet 10022024

i TABLE OF CONTENTS Page INTRODUCTION ...............................................1 FINANCING PLAN.............................................3 The Project.....................................................3 Estimated Sources and Uses of Funds..........3 THE 2024 BONDS.............................................4 Authority for Issuance ....................................4 General Bond Terms......................................4 Redemption* ..................................................5 Registration, Transfer and Exchange ............7 SECURITY FOR THE 2024 BONDS ...............10 General; Limited Obligation .........................10 Installment Payments; Pledge of Net Revenues.................................................10 Receipt and Use of Gross Revenues under Installment Sale Agreement.....................11 Receipt and Use of Revenues under Indenture..................................................12 No Reserve Fund.........................................13 Rate Stabilization Fund................................13 Rate Covenants under Indenture.................14 Parity Debt ...................................................14 No Senior Debt ............................................16 Casualty Insurance and Eminent Domain Proceeds..................................................16 THE AUTHORITY AND THE CITY..................17 The Authority................................................17 The City........................................................17 City Pension Plans and OPEB.....................17 THE WATER SYSTEM....................................23 General ........................................................23 Service Area.................................................23 Physical Assets............................................23 Management................................................24 Sources of Water Supply .............................26 Regulatory Requirements ............................27 Historical Water Purchases..........................29 Customer Base ............................................29 Water Rates and Revenues.........................30 Billing and Collection....................................34 Capital Improvement Program.....................35 Outstanding Indebtedness...........................35 Funds and Reserves....................................36 Pro Forma Debt Service Coverage..............37 BOND OWNERS’ RISKS.................................39 Revenues; Rate Covenant...........................39 No Debt Service Reserve Fund ...................39 Maintenance and Operation Costs; Third- Party Sources of Water Supply................39 Limitations on Remedies Available to Bond Owners.....................................................40 Seismic and other Natural Disasters; Climate Change ....................................................40 Loss of Tax-Exemption ................................41 Proposition 218............................................41 Environmental Regulation............................42 Cybersecurity...............................................43 Initiative Measure Relating to Water Revenues.................................................43 Secondary Market for Bonds .......................44 Future Parity Debt........................................45 TAX MATTERS................................................45 CERTAIN LEGAL MATTERS ..........................46 NO MATERIAL LITIGATION............................47 RATING ...........................................................47 CONTINUING DISCLOSURE..........................47 UNDERWRITING.............................................48 MUNICIPAL ADVISOR ....................................48 EXECUTION....................................................49 APPENDIX A: SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS APPENDIX B: AUDITED FINANCIAL STATEMENTS OF THE CITY FOR THE FISCAL YEAR ENDED JUNE 30, 2023 APPENDIX C: FORM OF CONTINUING DISCLOSURE CERTIFICATE APPENDIX D: GENERAL INFORMATION ABOUT THE CITY OF PLEASANTON AND THE COUNTY OF ALAMEDA APPENDIX E: FORM OF OPINION OF BOND COUNSEL APPENDIX F: DTC AND THE BOOK-ENTRY ONLY SYSTEM Page 276 of 448Page 285 of 557