Pleasanton Considers $16.5 Million Bond for Critical Water‑System Upgrades

The Pleasanton City Council is set to debate a fresh round of water‑revenue bonds — up to $16.5 million — that could finance everything from brand‑new wells to smarter meters and emergency‑power upgrades.

It’s not just a feel‑good project. Back in 2022 the city had to shut down three of its own groundwater wells after PFAS chemicals showed up, cutting off roughly a quarter of its historic supply. Since then, Pleasanton has been buying all its water from the regional wholesaler Zone 7 Water Agency, which is reliable but comes at a price.

To regain some independence, staff have sketched a $27 million plan in partnership with Zone 7 to drill new wells. The proposed bonds would cover a chunk of that cost, plus the rollout of advanced water meters, upgrades to the distribution network and a boost to backup power systems that keep the tap running during outages.

While the council can borrow as much as $16.5 million, the actual principal is projected at about $14.15 million. Over a 25‑year repayment schedule, the city expects to pay roughly $1 million a year in principal and interest, adding up to about $24.65 million in total debt service.

All of this comes as residents brace for four consecutive water‑rate hikes – 15 % in both 2026 and 2027, followed by 8 % in 2028 and 2029. S&P Global gave the bond an “AA” rating with a stable outlook, but flagged that Pleasanton’s cash reserves sit well below the median for similarly rated utilities – about 200 days of cash on hand versus the typical 649 days.

In short, the bond could keep the water system humming, but it will also add to the financial juggling act that homeowners are already feeling in their monthly bills.