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SUPPLEMENTAL MATERIAL <br />capital improvement programs or projects that must move forward on a specific <br />schedule. <br />Pleasanton and similar agencies often evaluate both options and may pursue the <br />public financing option as necessary to ensure project delivery certainty, timing, and <br />flexibility to meet the City's water system needs. <br />6. How much was Pleasanton's water revenue bond issuance? <br />A. The Pleasanton 2024 water revenue bond issuance was for $19M. <br />7. Are we still paying for the 2015 recycled water project loan, or did that get paid off <br />before the issuance of the new debt? (P31 of the water rate study)? <br />A. There are two loans associated with the Recycled Water Fund. The City is still <br />paying the loan with the State Water Resources Control Board. The City paid off the <br />2017 Recycled Water Bonds in April 2024. <br />8. How much new bond money are we planning to issue in the work plan? <br />A. Based on the water rate study, the City plans to issue new debt totaling <br />approximately $35.7 million over the four-year study period, which will be used to <br />fund $35.0 million in capital projects. The difference between the issuance ($35.7 <br />million) and proceeds ($35.0 million) is due to the cost of issuing bonds. <br />9. How much do we expect the total cost of the bond issuance(s) to cost rate payers? <br />A. The total cost of bond issuance to ratepayers depends on three primary factors: total <br />principal borrowed, interest rate and term of repayment, and issuance and <br />administrative costs. The estimated debt terms used in the water rate study are as <br />follows: $35.7 million borrowed, 6% interest rate, 30 year term, and 2% issuance <br />costs (which are capitalized and included in the amount borrowed). Actual costs to <br />the water enterprise can be calculated when the City issues bonds in each year and <br />will depend on the debt terms specific to each issuance. <br />N <br />