CITY COUNCIL SPECIAL MEETING AGENDA PACKET 8-11-26

Page 1 of 5 Item #9 CITY COUNCIL AGENDA REPORT August 11, 2026 Finance TITLE: RECEIVE A PRESENTATION ON DEBT FINANCING REGARDING WATER IMPROVEMENT PROJECTS AND ADOPT A RESOLUTION DECLARING THE CITY'S INTENTION TO REIMBURSE EXPENDITURES RELATING TO CAPITAL IMPROVEMENT PROJECTS FROM THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS SUMMARY The City is undertaking various capital improvement projects for the Water System, collectively referred to as the 2026 Water Project, which were previously approved by the City Council through the 5-year Water Capital Improvement Program (CIP). The 2026 Water Project will improve water system capacity, reliability, and supply diversification, including advancing the City's efforts to restore local groundwater production by developing new wells. Staff will be recommending that the Pleasanton Joint Powers Financing Authority (PJPFA) issue Water Revenue Bonds in the principal amount not-to-exceed $16,500,000 to finance all or a portion of the planned improvements to the Water System. At the August 11, 2026, City Council meeting, staff will present a debt-financing overview and recommendation with the City’s financial advisor, PFM, and bond and disclosure counsel, Jones Hall. A resolution declaring the City’s intent to reimburse expenditures relating to capital improvement projects from the proceeds of tax-exempt obligations will be submitted to the Council for approval. Staff anticipate returning to the City Council on September 15, 2026, to seek approval of the bond sale. As planned, the City would sell bonds around the fourth week of September and close (money would be in the project fund) during the second week of October. RECOMMENDATION Adopt a resolution declaring the City’s intention to reimburse expenditures relating to capital improvement projects from the proceeds of tax-exempt obligations. BACKGROUND 2024 Water Revenue Bonds In 2024, the City issued $19 million in water revenue bonds, including premiums, through the PJPFA to fund critical capital improvements to the water system. Bond proceeds are anticipated to be fully expended or legally encumbered by June 2027. The 2024 Water Revenue Bonds were allocated to fund the Near-Term Water Improvements Project, the feasibility and design phase of the Groundwater Supply Project, the design and initial construction of the Emergency Power Improvements Project, and other water system infrastructure improvements. As of the end of June 2026, the Near-Term Water Improvements Project is approximately 92% complete and is expected to be fully complete by the end of Page 223 of 373