|
<br />
<br />
<br />35
<br />Capital Improvement Program
<br />
<br />General. The City adopted a comprehensive four-year plan for capital improvements in
<br />June 2023. This four-year Capital Improvement Program (“CIP”) is for Fiscal Years 2023-24 to
<br />2026-27. These are set forth in the following table, together with the expected sources of
<br />payment for the items in the CIP. The following contains estimated projects and project costs,
<br />which may vary considerably from actual results.
<br />
<br />Table 9
<br />Capital Improvement Program for Water System
<br />Water Improvement Projects and Available Funding Sources
<br />Fiscal Years 2023-24 through 2026-27
<br />
<br />PROJECT 2023-24 2024-25 2025-26 2026-27 Total
<br />Annual Recycled Water Repair &Replacement, CIP 24133 $50,000 $50,000 $50,000 $50,000 $200,000
<br />Annual Water Distribution System Improvements, CIP 24183 0* 1,000,000 1,000,000 1,000,000 3,000,000
<br />City Groundwater Supply, 24174 500,000(1) 3,500,000(1) 11,500,000(2) 11,000,000(2) 26,500,000
<br />Bernal Avenue 18-Inch Water Main, CIP 24172 2,205,420(1) 2,205,420(1)
<br />Near-Term Water Improvements, CIP 24171 10,641,025(1) 10,641,025(1)
<br />Turnout #4 Pre-package Booster Station 1,300,000(1) 1,300,000(1)
<br />TOTAL COST $14,696,445 $4,550,000 $12,550,000 $12,050,000 $43,846,445
<br />
<br />Summary of Available Financing Sources
<br />
<br /> 2023-24 2024-25 2025-26 2026-27 Total
<br />Pay As You Go Funding $1,050,000 $1,050,000 $1,050,000 1,050,000 $4,200,000
<br />2024 Long Term Debt Financing 13,646,445 3,500,000 17,146,445
<br />2026 Long Term Debt Financing 11,500,000 11,000,000 22,500,000
<br />TOTAL AVAILABLE $14,696,445 $4,550,000 $12,550,000 $12,050,000 $43,864,445
<br />_________________________
<br />* $1,000,0000 of FY23.24 Funding re-allocated to CIP 24171 & 24172 Projects
<br />(1) Anticipated loan expenditures.
<br />(2) Future loan.
<br />Source: City of Pleasanton.
<br />
<br />Outstanding Indebtedness
<br />
<br />The City has the following outstanding long-term debt related to its Water System.
<br />
<br />California Clean Water State Revolving Fund (SRF) Loan. In June 2015, the City
<br />entered into an agreement with the California State Water Resources Control Board for State
<br />Revolving Fund project financing in the amount of $19,875,720 to fund the City of Pleasanton
<br />Recycled Water Project. The loan is secured by and payable solely from net revenues from the
<br />ownership or operation of the City’s Water Enterprise. The agreement also requires that the City
<br />maintain and fund a separate account in an amount equal to one year of debt service. The City
<br />satisfied the debt service requirement by maintaining $438,935 in restricted cash balance. The
<br />agreement was amended in September 2015 to reduce the project funding to $11,317,177. The
<br />project was completed in October 2016 and the City had drawn a total of $11,088,917. The loan
<br />bears annual interest of 1.0 percent, and principal and interest payments are due October 31 of
<br />each year. The outstanding balance on June 30, 2023, was $9,238,640. The note is secured by
<br />a lien on and pledge of the Water Enterprise Fund, net water revenues and any water reserve
<br />fund on parity with the Installment Payments. In addition, the agreement contains a subjective
<br />acceleration clause that allows the lender to accelerate payment of the entire principal.
<br />
<br />Water Revenue Bonds, Series 2017 – Recently Paid Off with Interfund Loan. In
<br />February 2017, the City issued $7,100,000 of Water Revenue Bonds, Series 2017 to finance
<br />certain improvements for the expansion of the municipal recycled water system of the City. The
|