Finance and Management Committee
October 27, 2026
RECOMMENDATION
AGENDA REPORT
Staff Recommends That The City Council Adopt An Ordinance Authorizing The Borrowing Of Funds And The Issuance And Sale Of Remaining General Obligation Bonds (Measure DD, Measure KK And Measure U)
EXECUTIVE SUMMARY
Pursuant to Section 219 of the Charter of the City, an ordinance is required to authorize the borrowing of money. Adoption of the proposed ordinance authorizes the borrowing of funds and the issuance and sale of bonds under the City’s remaining general obligation bond authorizations which may be issued across several series or years. The terms and provisions of each bond issuance, along with the specific projects to be funded by each bond issuance, will be brought to Council by separate resolutions.
The remaining bond authorization will be issued per the Oakland Trust for Clean Water and Safe Parks Bond Ordinance approved by voters at the November 5, 2002 General Election (“Measure DD”); the 2016 Infrastructure Bond Ordinance approved by voters at the November 8, 2016 General Election (“Measure KK”), and the 2022 Affordable Housing and Infrastructure Bond Ordinance approved by voters at the November 8, 2022 General Election (“Measure U”), all of which were approved by more than two-thirds of qualified voters. To date, $35,755,000 of bond authorization remains under Measure DD, $32,465,000 of bond authorization remains under Measure KK, and $463,800,000 of bond authorization remains under Measure U. Therefore, adoption of the proposed ordinance will authorize the borrowing of an aggregate amount of $532,020,000.
Proceeds from bonds issued under the remaining authorizations will finance Lake Merritt and water quality improvements, parks and clean-up, youth and recreation facilities, streetscaping, transportation projects, City facility preservation and improvement, energy and seismic improvements, and affordable housing acquisition, preservation, conversion, and new construction. Principal and interest (i.e. debt service) on the bonds will be payable from ad valorem taxes levied upon all taxable property in the City.
TO: Elizabeth Lake FROM: Bradley Johnson
Interim City Administrator Director of Finance
SUBJECT: General Obligation Bond Measures
DD, KK, and U Remaining
Authorization
DATE: October 5, 2026
City Administrator Approval Date: Elizabeth Lake (Oct 9, 2026 09:29:28 PDT) Oct 9, 2026 Elizabeth Lake, Interim City Administrator
Subject: General Obligation Bond Measures DD, KK, and U Remaining Authorization Date: October 5, 2026 Page 2
Finance and Management Committee
October 27, 2026
Additionally, this report details plans for the Series 2027 General Obligation Bonds (the "Series 2027 Bonds"), which may be taxable or tax exempt and have one or more series. The Series 2027 Bonds shall be issued in an aggregate principal amount not to exceed $300,000,000, with approximately $6.0M to be issued under Measure DD, $12.7M to be issued under Measure KK, and $256.8M to be issued under Measure U per the Fiscal Year 2026-2027 Adopted Midcycle Budget (the “Midcycle Budget”) adopted by City Council on June 12, 2026. The Projects will be detailed in a separate resolution scheduled for City Council approval at a later date. They are also included in the Fiscal Year 2025-2027 Capital Improvement Program (the “CIP”), which was adopted along with the Fiscal Year 2025-2027 Biennial Budget and amended per the Midcycle Budget. The terms and provisions of the Series 2027 bond sale will also be detailed in a separate resolution scheduled for City Council approval anticipated to be in February 2027.
BACKGROUND / LEGISLATIVE HISTORY
Pursuant to Section 219 of the Charter of the City, an ordinance is required to authorize the borrowing of money. The ordinance requires that the specific agreements relating to the sale and issuance of every bond series shall be approved by resolution.
Bond Measures
Measure DD, the Oakland Trust for Clean Water and Safe Parks, is a $198,250,000 general obligation bond measure passed by more than two-thirds of qualified Oakland voters in November 2002. Per Measure DD, the Bonds may be issued to fund projects as follows:
• Lake Merritt and Water Quality Improvements $88,250,000 • Estuary Waterfront Access, Parks and Clean-up $53,000,000 • Lake Merritt to Estuary Connection Channel $27,000,000 • Youth and Public Recreation Facilities $20,000,000
• Creeks and Waterways Restoration $10,000,000
Authorization Total: $198,250,000
Measure KK is a $600,000,000 Infrastructure and Housing general obligation bond measure passed by more than two-thirds of qualified Oakland voters in November 2016. Per Measure KK, the Bonds may be issued to fund projects as follows:
• Streetscaping $350,000,000
• City facilities $130,000,000
• Water, energy, and seismic improvements $ 20,000,000
• Affordable housing $100,000,000
Authorization Total: $600,000,000
Elizabeth Lake, Interim City Administrator
Subject: General Obligation Bond Measures DD, KK, and U Remaining Authorization Date: October 5, 2026 Page 3
Finance and Management Committee
October 27, 2026
Measure U is a $850,000,000 Affordable Housing and Infrastructure general obligation bond measure passed by more than two-thirds of qualified Oakland voters in November 2022. Per Measure U, the Bonds may be issued to fund projects as follows:
• Affordable Housing Preservation Projects, Affordable
Housing New Construction Projects, Acquisition and
Conversion to Affordable Housing projects, and Affordable Housing serving Homeless Exits $350,000,000
• Transportation Projects $290,000,000
• Citywide Facility Preservation and Improvement Projects $210,000,000 Authorization Total: $850,000,000
Pursuant to Section 2(C) of Measure KK and section 3(C) of Measure U, projects will be completed according to City Council established priorities, including those projects set forth within the CIP. Additionally, prior to each bond issuance, the City Council will identify the specific projects to be included in each issuance. In accordance with these requirements, all projects to be funded by the Series 2027 issuance are included in the 2025-2027 CIP as amended by the FY2026-27 Midcycle Budget and will be detailed in a separate resolution scheduled for City Council approval at a later date.
A summary of the Measure DD, Measure KK, and Measure U General Obligation Bond issuances to date are included as Table 1a, Table 1b, and Table 1c below. In aggregate, there is $532,020,000 of remaining authorization under Measure DD, Measure KK, and Measure U.
Table 1a: Measure DD General Obligation Bond Issuances
Total Authorization: $198,250,000
Bond Series Purpose Par Amount
2003A (Tax-Exempt) Parks, Facilities, Lake Merritt, Creeks & Waterfront $71,450,000 2009B (Tax-Exempt) Parks, Facilities, Lake Merritt, Creeks & Waterfront $64,545,000 2017C (Tax-Exempt) Parks, Facilities, Lake Merritt, Creeks & Waterfront $26,500,000 Total Measure DD Issuances to Date: $162,495,000
Total Measure DD Authorization Remaining: $35,755,000
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Elizabeth Lake, Interim City Administrator
Subject: General Obligation Bond Measures DD, KK, and U Remaining Authorization Date: October 5, 2026 Page 4
Finance and Management Committee
October 27, 2026
Table 1b: Measure KK General Obligation Bond Issuances
Total Authorization: $600,000,000
Bond Series Purpose Par Amount
2017A-1 (Tax-Exempt) Streets, Facilities, Climate Action Plan Improvements $62,735,000 2017A-2 (Taxable) Affordable Housing $55,120,000
2020B-1 (Tax-Exempt) Streets, Facilities, Climate Action Plan Improvements $140,010,000 2020B-2 (Taxable) Affordable Housing $44,880,000
2022C-1 (Tax-Exempt) Streets, Facilities $198,645,000
2022C-2 (Taxable) Streets, Facilities $13,670,000
2023D (Tax-Exempt) Streets, Facilities $52,475,000
Total Measure KK Bond Issuances to Date: $567,535,000
Total Measure KK Authorization Remaining: $32,465,000
Table 1c: Measure U General Obligation Bond Issuances
Total Authorization: $850,000,000
Bond Series Purpose Par Amount
2023A-1 (Tax-Exempt) Facilities $32,760,000
2023A-2 (Taxable) Housing $68,370,000
2025B-1 (Tax-Exempt) Streets, Facilities, Public Infrastructure $94,260,000 2025B-2 (Taxable) Affordable Housing and Public Infrastructure $180,765,000 2025B-3 (Taxable) Oakland Ice Center $10,045,000
Total Measure U Issuancesto Date: $386,200,000
Total Measure U Authorization Remaining: $463,800,000
ANALYSIS AND POLICY ALTERNATIVES
The ordinance authorizes the borrowing of funds and issuance and sale of general obligation bonds under the remaining authorizations, aggregating to $532,020,000. Following the approval of the ordinance, the terms and provisions of each bond issuance, the projects to be funded by each issuance, and the forms of agreement relating to each issuance, including but not limited to forms of a bond purchase agreement, fiscal agent agreement, continuing disclosure certificate, preliminary official statement, or other related agreements, will be brought to Council by separate resolutions.
The Series 2027 Bonds will be issued in an aggregate principal amount not to exceed $300,000,000 in one or more series which may be taxable or tax exempt. The aggregate principal amounts of Series 2027 Bonds to be issued under each of Measure DD, Measure KK, and Measure U shall be finally determined by the City Administrator or the Director of Finance. After the issuance of the Series 2027 Bonds, approximately $232,020,000 of authorization will remain under Measure DD, Measure KK, and Measure U.
Elizabeth Lake, Interim City Administrator
Subject: General Obligation Bond Measures DD, KK, and U Remaining Authorization Date: October 5, 2026 Page 5
Finance and Management Committee
October 27, 2026
An estimate of the Series 2027 Bonds issuance amount per authorization for various projects is included in Table 2 below. The Projects are included in the CIP and will be detailed in a resolution brought to City Council on or about February 2, 2027, per the proposed financing schedule in Table 3 below:
Table 2: Estimated Issuance Amounts for Projects per the 2026-27 Midcycle Budget Measure Project Type Midcycle Budget Total
DD OPW – Waterfront Trails – Estuary Park $6,000,000
KK OPW – City Facilities $12,720,500
U OPW – City Facilities $81,460,084
U HCD – Affordable Housing $50,000,000
U DOT – Streets, Sidewalks, and Related Infrastructure $125,315,000 Total Estimated Issuance Amount: $275,495,584
1 $2.0M is included in the 2026-27 Midcycle Budget. In the forthcoming resolution staff will seek an additional $4.0M to appropriate bond proceeds for the Measure DD Estuary Park project.
A proposed financing schedule for the issuance of the Series 2027 Bonds is included in Table 3 below:
Table 3: Proposed Financing Schedule
Date Item
December 1, 2026 1st Reading of Ordinance
December 15, 2026 2nd Reading of Ordinance
February 2, 2027* City Council to consider adopting the following:
Resolution to approve projects
Resolution to approve financing documents
Week of February 22, 2027 Distribute Preliminary Official Statement to Investors Week of March 1, 2027 Pricing of Series 2027 Bonds
Week of March 15, 2027 Closing of Series 2027 Bonds
*Tentative; Subject to change
RELATED PLANNING EFFORTS
The issuance of the Series 2027 Bonds will further the Housing and Community Development Strategic Action Plan to use Measure U authorization to build affordable and deeply affordable, restricted units for extremely low to moderate income households. Bond sale proceeds will also fund improvements recommended in the Five-Year Paving Plan (2022), Bicycle Plan (2019), and Pedestrian Plan (2017). Additionally, they support the 25-year federal ADA consent decree to fix inaccessible sidewalks, curb ramps, and crosswalks. Bond financing also supports the efficient implementation of the Capital Improvement Program (CIP), making critical capital investments throughout the City such as funding improvements and rehabilitation of streets, sidewalks and related infrastructure, storm drainage repairs, and renovation and new construction of City facilities including libraries, public safety, parks and recreation and other buildings.
Elizabeth Lake, Interim City Administrator
Subject: General Obligation Bond Measures DD, KK, and U Remaining Authorization Date: October 5, 2026 Page 6
Finance and Management Committee
October 27, 2026
FISCAL IMPACT
Debt service on the Series 2027 Bonds will be payable from ad valorem taxes levied upon all taxable property in the City. The City Council is authorized and obligated to levy and collect annually ad valorem taxes in an amount sufficient to pay the debt service on the Series 2027 Bonds and other bonds issued under the general obligation bond authorizations. Fees related to the issuance of the Series 2027 Bonds will be paid from bond proceeds and are contingent upon the closing of the transaction. Proceeds of the Series 2027 Bonds will finance projects in an estimated amount of $275,500,000. This funding is included in the Midcycle Budget.
PUBLIC OUTREACH / INTEREST
No outreach was deemed necessary for the proposed policy action beyond the standard City Council agenda noticing procedures.
COORDINATION
This report was prepared by the Finance Department in coordination with the Department of Transportation, the Oakland Public Works Department, the Department of Housing and Community Development and the Office of the City Attorney.
RACE AND EQUITY
This item will provide funding to affordable housing developers to acquire and make improvements to real property such as acquisition, improvement, rehabilitation, preservation and construction. Projects are reviewed and evaluated to determine how they meet the needs of Oakland’s most underserved communities in accordance with the bond requirements. In addition, under the Citywide Prioritization Factors and Weighting System, there are nine criteria that are considered when funding capital projects. Transportation and public works projects that address safety and public health in priority communities are prioritized for funding. Equity is represented by both a standalone prioritization factor and as a sub-factor identifying disparities within other criteria including “Health and Safety”, “Existing Conditions”, “Environment” and “Improvement”. [This section is intentionally left blank]
Elizabeth Lake, Interim City Administrator
Subject: General Obligation Bond Measures DD, KK, and U Remaining Authorization Date: October 5, 2026 Page 7
Finance and Management Committee
October 27, 2026
Bradley Johnson (Oct 8, 2026 14:27:27 PDT)
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Adopt An Ordinance Authorizing The Borrowing Of Funds And The Issuance And Sale Of Remaining General Obligation Bonds (Measure DD, Measure KK And Measure U)
For questions regarding this report, please contact David Jones, Treasury Administrator, at (510) 238-6508.
Respectfully submitted,
BRADLEY JOHNSON
Director, Finance Department
Reviewed by:
Dawn Granados, Assistant Treasury Administrator
Treasury Bureau, Finance Department
Emily Ehlers, Interim Assistant Director
Department of Transportation
Liam Garland, Director
Department of Public Works
Emily Weinstein, Director
Housing and Community Development
Prepared by:
Christina Shaw, Principal Financial Analyst
Treasury Bureau, Finance