The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints, the cash |ow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.
The Director of Finance shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the Director of Finance’s quarterly report. The Director of Finance shall select an appropriate, readily available index to use as a market benchmark.
REPORTING
Monthly Reports
Monthly transaction reports will be submitted by the Director of Finance, via the City Manager, to the City Council within 60 days of the end of the reporting period in accordance with California Government Code Section 53607.
Quarterly Reports
The Director of Finance will submit a quarterly report to the City Council on the status of the City’s investment portfolio no later than 45 days after the end of each month. This report shall include the types of investments, the amount of money invested with various institutions, purchase and maturity dates, and yield on investments. The Director of Finance will certify that the investment portfolio is in compliance with the investment policy and that it will meet cash |ow needs for the next six (6) months.
INVESTMENT POLICY ADOPTION
The City’s investment policy will be submitted annually to the City Council for adoption by the end of the {scal year, to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and {nancial and economic trends.
Any recommended modi{cations or amendments shall be presented by staff to the Governing Body for its consideration and adoption.
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Glossary of Investment Terms
AGENCIES. Shorthand market terminology for any obligation issued by a governmentsponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:
FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.
FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.
FHLB issues discount notes and bonds.
FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass- through securities.
FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass-through securities.
GNMA.The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.
PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority provides |ood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.
ASKED. The price at which a seller offers to sell a security.
ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.
AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.
BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.
BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which re|ects the mix of securities allowed under a speci{c investment policy.
BID. The price at which a buyer offers to buy a security.
BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.
CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made.
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CERTIFICATE OF DEPOSIT (CD). CERTIFICATE OF DEPOSIT (CD). A time deposit with a speci{c maturity evidenced by a certi{cate. Large denomination CDs may be marketable.
CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single {nancial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.
COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a {nancial institution to secure deposits of public monies.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash |ows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.
COMMERCIAL PAPER. COMMERCIAL PAPER. The short-term unsecured debt of corporations.
COST YIELD. COST YIELD. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.
COUPON. The rate of return at which interest is paid on a bond.
CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.
CURRENT YIELD. CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.
DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.
DEBENTURE. A bond secured only by the general credit of the issuer.
DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.
DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also de{ned as a {nancial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.
DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have {xed 254
coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.
DIVERSIFICATION. DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.
DURATION. DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash |ows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modi{ed duration).
FEDERAL FUNDS RATE. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it.
FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.
LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.
LIQUIDITY. The speed and ease with which an asset can be converted to cash.
LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-pro{t organizations in California that is managed by the State Treasurer’s Of{ce.
LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Of{ce Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.
MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or “made whole.”
MARGIN. MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.
MARKET RISK. The risk that the value of securities will |uctuate with changes in overall market conditions or interest rates.
MARKET VALUE. MARKET VALUE. The price at which a security can be traded.
MARKING TO MARKET. MARKING TO MARKET. The process of posting current market values for securities in a portfolio.
MATURITY. MATURITY. The {nal date upon which the principal of a security becomes due and payable.
MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly |exible debt instruments that can be structured to respond to market opportunities or to investor preferences. 255
MODIFIED DURATION. The percent change in price for a 100 basis point change in yields.
Modi{ed duration is the best single measure of a portfolio’s or security’s exposure to market risk.
MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.
MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash |ows from a speci{ed pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.
MUNICIPAL SECURITIES. Securities issued by state and local agencies to {nance capital and operating expenses.
MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is speci{cally de{ned in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment’s risk.
The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody’s.
NEGOTIABLE CD. A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor).
PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par.
PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities.
PREPAYMENT WINDOW. PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a speci{ed prepayment speed.
PRIMARY DEALER. PRIMARY DEALER. A {nancial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S.
Government securities market.
PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to {duciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” 256
REALIZED YIELD. REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.
REGIONAL DEALER. A {nancial intermediary that buys and sells securities for the bene{t of its customers without maintaining substantial inventories of securities and that is not a primary dealer.
REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.
SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.
STRUCTURED NOTE. A complex, {xed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse |oating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and “dual index |oaters,” which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Secured Overnight Financing Rate (SOFR). Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.
SUPRANATIONAL. SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.
TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.
U.S. TREASURY OBLIGATIONS. U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and {xed coupon notes and bonds.
TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues threeand six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash |ows.
TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.
TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.
VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.
YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash |ows from the investment to its cost. 257
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PURPOSE
The purpose of this policy is to establish a target level of reserve for the General Fund as well as speci{ed Enterprise Funds and Internal Service Funds. Designating funds to reserves supports the City Council’s goal of ensuring {scal stability. For the purpose of this policy, the General Fund does not include any sub-funds of the General Fund such as the Rainy Day Fund.
This reserve policy meets the following objectives of the City:
Reserve Levels and Establishment
1.General Fund Reserves
Unassigned Fund Balance: Unassigned Fund Balance: The City shall maintain an unassigned fund balance of between
16.7% to 25.0% of annual General Fund operating expenditures excluding transfers to other funds and signi{cant one-time expenditures. The target level for the reserve is 20.0%. The reserve shall be calculated using next {scal year’s budget or the current {scal year budget if next {scal year’s budget is not available.
Should the Unassigned Fund Balance fall below 16.7%, one-time revenues/contributions should be evaluated for the reserve. For example, it may be necessary to make a one-time contribution from the Rainy Day Fund.
Restricted Fund Balance: PARS 115 Pension Trust: The City Council has implemented proactive measures to pay down the City’s unfunded pension obligation. A pension trust has been established and funds in the trust account can only be used for pension contributions. Funds can be withdrawn during challenging times in accordance with the PARS Trust Withdrawal Policy adopted by the City Council in February 2020.
Committed and Assigned Fund Balance: Program reserves such as Crisis Response approved by the City Council or City Manager shall not be counted toward the General Fund reserve level stated above.
2. Enterprise Fund Reserves: erprise Fund Reserve p The following enterprise funds shall maintain a reserve of between 30.0% and 40.0% of the operating expenditures for each fund: Water and Sewer.
The target level for these reserves is 35.0%.
3. Internal Services Fund Reserves - Facility and Infrastructure Replacement and Internal Services Fund Reserves - Facili ternal Services Fund Reserves - Facility and Infrastructure Replacement and ernal Services Fund Reserves - Facility and Infrastructure Replacement and yp Renovation: If {nancial resources are available, the following Internal Service Funds shall
1. Ensure {nancial stability;
2. Maintain operations in the event of economic uncertainty or emergency; and Make necessary repairs and replacements in the event of one-time, large-scale capital breakdown.
3. Appendix C (Continued)
Reserve Policy
(Adopted by City Council June 6 , 2023) th
259
strive to maintain a reserve of between 30.0% and 40.0% of the previous year’s expenditures with a target of 35.0% for each fund:
Streetlight Replacement
Traf{c Signal Replacement
Facilities Renovation
Park & Median Renovation
4. Internal Services Fund Reserves - Equipment Replacement: ernal Services Fund Reserves - Equipment Replaceme qp p If {nancial resources are available, the following Internal Service Funds shall strive to maintain a reserve of between
10.0% and 20.0% of the previous year’s operating expenditures with a target of 15.0% for each fund:
Equipment Replacement
Fire Apparatus Replacement
Police Vehicle Replacement
5. An appropriated fund/reserve (e.g., a reserve made for the purpose of repairing, replacing, and procuring City assets) may be created and developed as necessary by the City Manager or their designee.
Use of Reserve Funds
Economic Uncertainty: For use to mitigate annual revenue shortfalls (actual revenues less than projected revenues) due to a temporary slowdown in general economic conditions as well as a short-term reduction in revenues caused by actions of the State or Federal government.
If any unanticipated reductions in revenue are deemed to be recurring, adjustments should be made to the budget to re|ect the new revenue expectations.
1. Emergency: For use to mitigate costs associated with unforeseen emergencies, including natural disasters.
2. Enterprise Fund and Internal Service Fund Reserves shall only be used for unexpected expenses that would normally be paid by that fund. For example, the Streetlight Replacement reserve may only be used in the event of an unexpected streetlight malfunction.
3. The use of reserves shall be approved by the City Council through a resolution or budget adoption. The City Manager shall have the authority to approve the appropriation of Reserve Funds to respond to an emergency situation. The City Manager will then take a resolution to the City Council at its next regularly scheduled meeting con{rming the nature of the emergency and formally authorizing the appropriation of reserve funds.
4. Replenishment of Reserves
If the General Fund reserve level falls below 16.7%, the goal is to replenish the reserve within three {scal years. For the Water and Sewer Enterprise Fund reserves, if either reserve level falls below 30.0%, a rate study will be required to be completed in 12 months or less that provides a roadmap to replenish the impacted reserve over the next three {scal years.
Excess Fund Balances
If actual reserve balances exceed the level required by the reserve policy at year end, the surplus funds shall remain in the reserve until allocation by the City Council for the following purposes:
1. Use of General Fund excess balance shall not be used for new recurring expenses. 260
Annual Reporting and Periodic Review
The Finance Director shall report the year-end budgetary fund balance to the City Council as part of the annual budget report. The reserve policy shall be reviewed annually, and modi{cations are subject to Council approval.
Transfer to the CIP Fund for general capital needs and/or extensive capital maintenance or improvement projects. For example, funding major replacement or renovation projects to maintain or enhance city infrastructure.
2. Re-appropriation within the subsequent year’s operating budget to fund any onetime expenditures/ projects based on City Council direction. For example, pre-funding the City’s pension and retiree health liabilities and setting aside funds for a pilot program.
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Discussion of Major Revenues
MAJOR REVENUE FORECASTING ASSUMPTIONS
The following discussion outlines the major operating revenue sources of the City and describes the methods used to forecast FY 2025/26 and FY 2026/27 revenues.
GENERAL FUND
Property Taxes
Pursuant to Proposition 13 passed by California voters in 1978, countywide property taxes are set at 1.0 percent of assessed value. After Proposition 13, initial assessed values were set at the 1976 level. Since that time, assessed values have increased in most years by a factor of
2.0 percent. Upon change of ownership, the assessed value of a property is reset to the current market value (sales price).
The City receives approximately 25.0 percent of the 1.0 percent countywide collected tax in Pleasanton. Secured property taxes are the single largest source of revenue to the City’s General Fund, representing approximately 50.5 percent of the total revenue.
Property taxes are collected on both secured (real property) and unsecured property (such as boats). If a property changes ownership in the middle of a tax year, the reassessment appears on the tax rolls the following year. However, the property is reassessed for a pro-rata portion of the year of sale, and an additional or “supplemental tax” is applied in that year.
The County often lags behind on reassessments, so supplemental assessments can span more than one year, causing |uctuations in revenue.
During the Great Recession, Pleasanton experienced essentially no growth in assessed property value and the impact on the General Fund revenue was evident. As the real estate market improves the City is experiencing increases in assessments through Proposition 8 recaptures.
A two percent increase is typically derived from the Proposition 13 growth factor (but is not guaranteed). After factoring in all property tax related revenues (secured, unsecured, supplemental, delinquent and property tax in lieu of Vehicle License Fee), staff is projecting an increase of 4.1 percent ($3.8 million) in FY 2025/26 and 3.8 percent ($3.7 million) in FY 2026/27.
Appendix D
Major Revenues and
Financial Forecast
263
Note: The Property Tax Revenues chart includes not only secured property tax, but unsecured, delinquent, supplemental and Vehicle License Fee (VLF) in lieu property tax revenues as well.
Sales Tax
The current sales tax rate in Alameda County is 10.25 percent, of which 1.0 percent is the “local” or City share. However, under a 1950’s revenue sharing agreement with Alameda County, the City receives only 95.0 percent of the 1.0 percent, with the remaining dollars going to Alameda County. In exchange for sharing the sales tax, the County has shared (in varied degrees over the years) some of its gas tax revenues with the City. Dublin, San Leandro, and Livermore are the only cities in Alameda County that are not party to this agreement.
When the COVID-19 pandemic hit, the City’s sales tax revenues declined but have rebounded to the pre-pandemic level. FY 2025/26 sales tax is projected at $26.0 million, a 4.1 percent increase from FY 2024/25. FY 2026/27 sales tax is projected at $26.7 million, a 2.8 percent increase from FY 2025/26. FY 2025/26 sales tax re|ects the recognition of a full year of revenue from Costco. The store was opened in November 2024. Based on the sharing agreement with Costco, 40.0% of the revenue will be paid back to Costco for costs associated with traf{c and street improvements in the Johnson Drive Economic Development Zone until the City’s share of the cost is paid off. 264
Hotel/Motel Tax
The City currently has fourteen hotels/motels with a total of about 2,000 rooms. The City imposes a Transient Occupancy Tax (Hotel/Motel Tax) of 8.0 percent on room rates for stays of 30 days or less. The tax was last raised in 1983, from 5.0 percent to 8.0 percent. The proceeds from this tax currently represent approximately 3.4 percent of the total General Fund revenue.
Revenues in this category depends considerably on business travel and therefore, hotel/motel tax revenues were signi{cantly impacted by the COVID-19 pandemic.
Hotel/motel tax revenues decreased to $4.8 million in FY 2019/20 and $2.0 million in FY 2020/21 from $6.5 million in FY 2018/19. There have been improvements post-pandemic, but revenues are still signi{cantly lower than the pre-pandemic level. FY 2025/26 and FY 2026/27 hotel/motel tax revenues are projected at $5.5 million and $5.6 million, respectively.
While two new hotels were opened during the 2023-25 budget cycle, one hotel was closed.
Business License Tax
The City imposes a license tax on businesses that conduct activities in the City, whether have a physical location here or not. The license tax is based on gross receipts at a rate of 30 265
cents per $1,000 (3/100 of one percent), subject to certain minimums. The rate has not changed since 1983. Revenues are projected at $6.0 million for FY 2025/26 and $6.2 million for FY 2026/27, a 3.4 percent increase from year one.
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Franchise Fees
The City has franchise agreements with Paci{c Gas & Electric, Pleasanton Garbage, Comcast and AT&T Cablevision. As compensation for wear and tear on City streets, these suppliers pay the City a franchise fee based on their revenue in Pleasanton as follows:
Franchise fee revenues change when the customer base expands, when additional/fewer services are used (garbage and cable), when weather impacts the use of gas or electricity, and when rates change. In February 2020, the City Council approved the Rate Reserve Agreement with Pleasanton Garbage Service, Inc. FY 2019/20 revenue increase includes the $2.0 million minimum reserve requirement payment in accordance with this agreement.
Based on historical data and trends, customer base expansion and in|ation projections staff estimates total franchise fee revenues of $3.5 million in FY 2025/26 and $3.5 million in the FY 2026/27.
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Summary of Forecast Assumptions
The purpose of this forecast is to assess the General Fund’s ability over the next ten years to do the following:
Since the Great Recession, which lasted approximately 18 months from the tail end of 2007 to the middle of 2009, the San Francisco Bay Area’s economy has experienced a steady growth, coinciding with the trend observed at the national and state levels. However, the regional economy began showing some signs of slowing in 2019, and a recession was being forecasted by a growing number of economists at the time.
With the arrival of the COVID-19 pandemic in early 2020, the country went into a short but deep recession, creating a lot of economic uncertainties in the near term. In an effort to keep the economy from tail spinning for a prolonged period of time, the federal government took quick actions, approving a series of {scal stimulus packages to provide assistance to state and local governments, businesses, and individuals. Combined with the Federal Reserve’s {scal policies, including the quantitative easing program, the country’s economy turned around rapidly, and the pandemic-induced recession was very short-lived, lasting just two months. Fueled by the unprecedented level of stimulus funding and business-friendly {scal policies, the economy grew 5.7% in terms of annual gross domestic product (GDP) in 2021, the fastest since 1984. The City’s revenue totals were also aided by the one-time American Rescue Plan Act (ARPA) stimulus funding of approximately $8.6 million. The City spent the ARPA funds on essential City services in FY 2021/22 and FY 2022/23. The phase-out of ARPA funds and reduced hotel tax revenue have a negative impact on the City’s budget.
While the City’s overall revenue is projected to continue increasing going forward for the baseline scenario, growth is expected to be modest. Given the economic uncertainty, there is an increasing chatter amongst economists forecasting a recession. Staff prepared a second scenario, assuming the regional economy entered a mild recession sometime during FY 2027/28.
It should be noted that personnel and non-personnel expenditures were signi{cantly reduced in FY 2025/26 and FY 2026/27 to maintain {scal sustainability. The adjusted service levels are re|ected in the long-term forecast.
Below is a set of assumptions used to develop the ten-year General Fund forecast, from FY 2025/26 to FY 2034/35.
1. Maintain current service levels.
2. Maintain the City’s existing infrastructure and facilities.
Preserve the City’s long-term {scal heath by aligning operating revenues and costs and maintaining fund balance at policy levels.
3. Appendix D (Continued)
General Fund
Ten-Year General Fund Forecast: FY 2025/26 to FY 2034/35 268
First Scenario – Normal
General Fund revenue, including transfers from other funds and program reserves, is projected to increase by approximately 3.9 percent in FY 2025/26 and 3.7 percent in FY 2026/27. The overall increase also re|ects the use of reserves for approximately $3.3 million in year one and approximately $4.0 million in year two, which includes $2.0 million pension trust funds for each {scal year. These one-time funds are not included in the projection in the out years.
Property tax is projected to increase by approximately 4.1 percent in FY 2025/26, by 3.8% in FY 2026/27, and at approximately 3.7 to 3.8 percent each year thereafter.
Sales tax is projected to increase by approximately 4.1 percent in FY 2025/26, by approximately 2.8 percent in FY 2026/27, and then by 2.0 to 3.2 percent each year thereafter. The higher increase in year 1 is due to the recognition of a full year of revenue from the Costco store opened in November 2024.
Development fees are projected to increase by approximately 5.4 percent in FY 2025/26, by less than 1.0 percent in FY 2026/27, and by 2.0 percent each year thereafter.
Development activities in year 1 are expected to be higher than those in year 2.
Salaries, including cost-of-living adjustments and step increases, are projected to decrease by approximately 1.1 percent in FY 2025/26, increase by 3.2 percent in FY 2026/27, and increase by 3.5 percent to 3.8 percent each year thereafter. The decrease in FY 2025/26 is due to signi{cant staf{ng reductions proposed in the budget.
PERS contributions are projected to increase by approximately 8.2 percent in FY 2025/26 and by 5.5 percent in FY 2026/27. They will stay between 1.2 and 9.1 percent through FY 2029/30 before moderating to 0.9 percent and decreasing in the last four years. These increases/decreases are based on actuarial method changes and discount rates adopted by CalPERS.°°
Employee fringe bene{ts are projected to decrease by approximately 3.7 percent in FY 2025/26, increase by 1.9 percent in FY 2026/27, and increase by 3.0 percent each year thereafter, except for FY 2027/28 at 8.9 percent. The decrease in FY 2025/26 and the slight increase in FY 2026/27 are due to staf{ng reductions in the proposed budget and the use of retiree medical trust funds for both {scal years, reducing bene{t costs. The use of retiree medical trust funds is not included in the projection in the out years.
Non-personnel expenditures are projected to decrease by approximately 2.9 percent in FY 2025/26, increase by 4.7 percent in FY 2026/27, and increase by 4.0 percent to 4.5 percent each year thereafter. Contributions to the Repair and Replacement Program (e.g., vehicle replacement) total about $3.5 million for FY 2025/26 and $3.6 million for FY 2026/27. Due to wild{res in California, general liability insurance premiums are expected to continue to increase at a faster rate than other expenditure categories. Utility, operating supplies and materials, and contract service costs are also expected to increase. The decrease in FY 2025/26 is mainly due to cost reductions.°° Operating transfers to support various City programs total about $3.3 million for FY 2025/26, $1.2 million for FY 2026/27, and about $1.2 million to $1.5 million each year thereafter. The higher transfer in year 1 is due to funding needs for repairs for several critical projects. Transfers to the Capital Improvement Program (CIP) are $1.0 million for FY 2025/26 and $3.3 million for FY 2026/27, increasing by $0.3 million annually thereafter.
To address the City’s deferred maintenance needs and the anticipated completion of the Asset Management Plan, $6.2 million is set aside for FY 2025/26 and $6.1 million for FY 2026/27. $5.6 to $6.3 million is set aside for each year thereafter.
Second Scenario – Recession in FY 2027/28
This scenario assumes a mild recession sometime during FY 2027/28. Historically, the average duration of recession has been approximately 10 months. 269
Sales tax is projected to decrease by 5.0 percent in FY 2027/28 and by 2.0 percent in FY 2028/29 due to the decline in consumer spending before recovering to increase at a 2.0 percent rate each year thereafter.
Other taxes, primarily hotel and business license taxes, are projected to decrease by 2.0 percent in FY 2027/28 and FY 2028/29 due to fewer visitors and slower business activities before recovering to increase at a 2.0 percent rate each year thereafter.
The chart below shows a ten-year surplus/de{cit projection for each scenario. The City’s expenditures are expected to continue outpacing revenues for the next several years, largely due to increasing operating costs and aging infrastructure, including general liability insurance, pension obligations, and deferred maintenance. Pension costs are projected to increase until FY 2030/31 based on the latest projection from the California Public Employees’ Retirement System (CalPERS). As more employees in the CalPERS’ Classic Plan retire over time, the City’s staf{ng pool will gradually consist of a higher percentage of employees in the CalPERS Pension Reform Act (PEPRA) Plan, which has reduced pension bene{ts. Liability insurance premiums and related costs are expected to continue to increase due to current market conditions. Required funding for aging community assets, such as facilities and other infrastructure, is signi{cant. However, due to {nancial constraints, funds have not been set aside for repair and replacement.
During these de{cit years, the City will need to consider a number of options, including 1) exploring opportunities for revenue enhancements and/or new revenue streams; 2) continuing to reduce operating expenses; and/or 3) drawing on the Section 115 Pension Trust Fund to help cover pension expenses.
270
271
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The City and its related entities are projected to have a combined outstanding debt principal of $26.7 million at June 30, 2026.
In addition, the City has outstanding Home Mortgage Revenue Bonds the proceeds of which were used to fund mortgage loans to {nance the acquisition and construction of multi-family rental housing facilities located in the City. The bonds are repaid solely from payments received on the underlying mortgage loans. The City is not obligated in any manner for repayment of the bonds.
Debt Limit
The City’s debt limit as de{ned under California Government Code, Section 43605 as 15 percent of assessed valuation of all real and personal property of the City is $1.1 billion as of June 30, 2024. Within the meaning of Section 43605 “indebtedness” means bonded indebtedness of the city payable from the proceeds of taxes levied upon taxable property in the City.
Debt Policy
The City’s Debt Policy is de{ned in the Financial Policies section of the budget book.
Appendix E
Debt Overview and
Summary
273
Debt Summary as of 6/30/2026 and 6/30/2027
In addition, we have the following Mortgage Revenue Bonds. The City has no obligation but acts as the conduit agency.
274
Appendix F
Fund Structure
275
Fund Accounting System d Accounting Syste g
The City uses funds to report on its {nancial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance, and to aid {nancial management, by segregating transactions related to certain City functions or activities.
A fund is an accounting entity with a self-balancing set of accounts established to record the {nancial position and results of operations of a speci{c governmental activity. The City maintains the following fund types:
Governmental Fund Types
General Fund is the primary operating fund of the City and accounts for all {nancial resources, except those required to be accounted for in another fund.
Capital Projects Funds account for {nancial resources to be used for the acquisition or construction of major capital facilities other than those {nanced by Proprietary and Special Revenue Funds.
Special Revenue Funds account for the proceeds of speci{c revenue sources (other than special assessments, expendable trusts, or capital projects) that are restricted by law or administrative action to expenditures for speci{ed purposes.
Debt Service Funds account for the accumulation of resources that are restricted or committed to expenditures for, and the payment of, and interest on the bond issued in support of governmental activities.
Proprietary Fund Types
Enterprise Funds account for operations that are {nanced and operated in a manner like private business enterprises, where the intent of the governing body is that the costs (including depreciation) of providing goods and services to the general public on a continuing basis be recovered through user charges.
Internal Service Funds account for the {nancing of goods or services provided by one department or agency to other departments or agencies of the City or to other governmental units on a cost-reimbursement basis.
Fiduciary Fund Types
Appendix F (Continued)
Fund Descriptions
276
Custodial Funds account for assets held by the City as agent for individuals, private organizations, other governmental units, or other funds. Assets equal liabilities and the measurement of operations is not a focus.
Private-Purpose Trust Funds accounts for the P.T.C.W.D. #3 Trust Fund. The Trust received money in 1973 from the Pleasanton Township County Water District #3 and the funds may be used in the future to maintain the private road that serves the City’s water tanks.
The following is a guide to current City funds by fund number:
001 General Fund
This fund is used to account for all revenues and expenditures necessary to carry out basic Governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as general government, public safety, community development, operations services and community activities. 002 Rainy Day Fund
Established as part of the FY 2020/21 Midterm budget to set aside funds that would be available to offset revenue losses associated with the pandemic. Funds can be used to help balance the budget and support capital projects.
101 D.A.R.E. Trust
The Drug Abuse Resistance Education (D.A.R.E) fund accounts for private donations made to speci{cally enhance the City’s D.A.R.E. program.
102-103 Asset Forfeiture
This fund accounts for the proceeds from assets forfeited as a result of investigations of criminal offenses, generally narcotics related. In accordance with the Health and Safety Code section 11489, the funds must be used for law enforcement and prosecution efforts. 104 Central Business District (CBD) Parking In-Lieu
This fund accounts for fees collected from developers in the downtown area in lieu of providing required parking. The City will use this money to build downtown parking structures in the future.
105 Resource Management
This fund accounts for Measure D revenues from Alameda County as well as other mitigation revenues. The City has developed a variety of recycling programs in accordance with state and county requirements.
106-108 Miscellaneous Donations
This fund is used to account for donations made to the City for equipment or to enhance services in accordance with the donor’s requests.
112 AB1379 CASp Certi{cation and Training
This fund accounts for the fees collected from business license applicants as mandated by Assembly Bill No. 1379 and are to be used for increased certi{ed access specialist (CASp) training and certi{cation within the City and to facilitate compliance with constructionrelated accessibility requirements. 116-118 Miscellaneous Grants
& 162 This fund includes various grant revenues received for the Used Oil program, Law enforcement expenditures, and literacy and surface transportation programs. 277
119 Community Access Television
Under City Ordinance No. 2013, Section 6.54.060 of the Pleasanton Municipal Code, the City collects one percent (1%) of gross revenues from Cable Operators to support PEG (public, educational and governmental) channel facilities. This fund accounts for collection of PEG revenues and capital expenditures related to PEG channel facilities. 120 Downtown Economic Loan
This fund was established in FY 1995/96 to provide design and other assistance to downtown merchants to improve their facades. Proposed expenditures in the future will be loans to merchants.
122 Lower Income Housing Fund
This fund is a special revenue fund used to account for and report the proceeds of housing in-lieu fees paid by developers of residential, commercial, and of{ce property, as well as revenue from the repayment of housing loans. These revenues are used to provide {nancial assistance toward meeting the affordable housing guidelines detailed in the housing element of the City’s General Plan.
123 Community Development Block Grant
The Community Development Block Grant (CDBG) program is funded through a federal grant from the U.S. Department of Housing and Urban Development. CDBG funds must be used for projects and activities that bene{t at least 70 percent of low- income persons.
Eligible projects include capital improvements, housing rehabilitation, public services, and economic development activities.
124 H.O.M.E. Program
The Housing Opportunities Made Easy program is funded through a federal grant from the U.S. Department of Housing and Urban Development. The City receives its annual formula allocation and the funds must be used for housing projects that bene{t lower income persons.
127 Abandoned Vehicle
The City receives funds from a vehicle registration surcharge for abatement of abandoned vehicles. Funds are used to cover the costs associated with the handling of abandoned vehicles.
128 HBPOA Maintenance District
This fund receives revenue from the Hacienda Business Park Owners Association to maintain the traf{c signals within their business park. The City administers the maintenance contracts.
129 Urban Forestry Program
This fund was created to promote conservation and public education in regard to Pleasanton’s street trees, park trees and trees on private property. Revenue sources include donations and {nes assessed for damaging heritage trees. 130-133 Geologic Hazard Assessment Districts
Residents of four different subdivisions (Lemoine, Laurel Creek, Moller and Oak Tree Farm)participate in assessment districts that will pay for any landslide repairs and related geologic work. It is administered by the City but paid for by the homeowners through annual assessments placed on their property tax bills.
134-138 Landscape and Lighting Districts
278
Residents of {ve different subdivisions (Ponderosa 84-1, Windsor 93-1, Bond 93-2, Moller 95-1 and Oak Tree Farms 94-1) participate in landscape maintenance districts that pay to maintain and repair designated landscaped and open space areas. It is administered by the City but paid for by the homeowners through annual assessments placed on their property tax bills.
139 Landscape Maintenance North Pleasanton Improvement District This fund accounts for the portion of the N.P.I.D. #3 funds that have been designated for the temporary maintenance of freeway on-ramps landscape.
140 Business Support Program
This fund accounts for the loans provided to independently or locally owned microenterprises, restaurants, and retail businesses located in Pleasanton to assist them in remaining solvent during the COVID-19 emergency.
160 Gas Tax
The City receives its share of gas tax from the State and uses the funds to construct, reconstruct and maintain streets throughout the City as designated in the annual capital improvement program.
161 Marilyn Murphy Kane Trail Reserve
This fund accounts for the unspent portion of a donation received for the construction of the Marilyn Murphy Kane Trail. The remaining funds will be spent on design and construction services to install additional trees along the Marilyn Murphy Kane Trail on the City’s Bernal property.
163-164 Measure B Transportation Improvements
This fund accounts for moneys received from voter-approved Measure B which is to be used for street construction, repair, and maintenance and for bicycle and pedestrian safety projects.
165/170 Measure BB Transportation Improvements
This fund accounts for moneys received from voter-approved Measure BB which is to be used for transportation priorities that includes streets and roads improvements, bicycle pedestrian enhancements, and transit related projects.
166 Vehicle Registration Fees
This fund accounts for moneys received from voter approved Measure F which is to be used for repairs and maintenance of local streets and roads and the improvement of traf{c |ow, public transportation, and bicyclist, pedestrian, and driver safety. 167 Speci{c Plan
Under Government Code Section 65450-65457, the City has established speci{c plans to develop policies, programs, and regulations for implementing its general plan in sitespeci{c areas. Fees collected under these plans for the construction of infrastructure in these speci{c areas of the City are accounted for in this fund. This fund currently consists of the Happy Valley Speci{c Plan, the Vineyard Avenue Corridor Speci{c Plan, and the Stoneridge Drive Speci{c Plan.
168 Traf{c Grants
This fund receives grants from State and Federal agencies for various traf{c related projects. 171 Pleasanton Garbage Service Rate Reserve
279
This fund accounts for the Rate Reserve Calculation proceeds received from Pleasanton Garbage Services (PGS) during FY 2019/20, as per the Rate Reserve Agreement, dated March 20, 2018, between the City and PGS. The funds will be allocated to future projects at a later date.
172 MTC TDA Article III Grant Fund
This fund accounts for the {nancial activities associated with the projects funded by the State of California Transportation Development Act (TDA). Article 3 of the TDA permits local agencies to spend a portion of the transportation fund (not to exceed 2 percent) on facilities provided for the exclusive use of pedestrians and bicycles. The projects are distributed through the Metropolitan Transportation Commission (MTC). 173 Johnson Drive Economic Development Zone (JDEDZ)
This fund was established in FY 2021/22 for transportation related projects within the Johnson Drive Economic Development Zone. Funding for these projects will come from fees collected from future developers at the time they pull permits to develop their property within the JDEDZ.
174-177 Opioid Settlements
This fund accounts for proceeds received from the State of California Opiod settlement and bankruptcy lawsuits. Money received are to be used for opioid remediation activities. 201 Miscellaneous Capital Improvement Programs Fund
This fund is a capital projects fund that receives contributions from the General Fund to be used for design and construction of facilities and infrastructure as adopted in the annual miscellaneous capital improvement program.
202 CIP for Downtown and North Pleasanton
This fund was set up in FY 2007/08 to account for the purchase of land and to construct parking facilities and other improvements in the Downtown Area and in North Pleasanton. 203 Public Facilities
This fund receives revenues from developers of properties. The moneys are used for the purchase of equipment or construction of facilities related to the new property development as adopted in the annual miscellaneous capital improvement program. 204 Budgeted Developer Projects
This fund receives revenue from developers for speci{c capital improvement projects. 211 Street Capital Improvement Program
This fund receives contributions from the General Fund to be used for the construction, reconstruction, and maintenance of City streets as adopted in the annual street capital improvement program.
212 Traf{c Impact
This fund receives revenues from developers of commercial and residential properties. The funds may only be used for traf{c and street improvements. 213 Traf{c Impact - Bernal Property
This fund was set up in FY 2000/01. A percentage of the traf{c impact fees collected from developers were deposited in this fund and used for the construction of the Bernal interchange. This fund is no longer in use since the projects have been completed. Fund balance will be transferred to the Traf{c Impact Fund in FY 2022/23. 280
214 Tri-Valley Transportation
The City, as a member of the Tri-Valley Transportation Council, collects a fee from developers to {nance projects to reduce traf{c related impacts caused by future developments.
216 Assessment District Construction
This fund includes the construction funds of Assessment District NPID 1 and Assessment District Stoneridge Business Center. The projects include street and intersection improvements.
221 Park Capital Improvement Program
This fund is used to account for the construction, reconstruction, and maintenance of City parks as adopted in the annual parks capital improvement program. 222 Park Development
This fund receives revenues from developers of properties and the funds may only be used for the design, development, and construction of new parks within the City. 401-404 Cemetery
This fund accounts for the operations of the Pleasanton Pioneer Cemetery. The City currently contracts with Graham-Hitch Mortuary for cemetery management, sales, and burial coordination. The Cemetery Fund is supported by an operating subsidy contribution from the General Fund.
405 Housing Authority
This fund represents the activities of the Pleasanton Housing Authority. The purpose is to provide and maintain the maximum number of housing units and services for low and moderate income families at rents they can afford.
41x Golf Fund
Accounts for the daily operation and maintenance of the City’s golf course, Callippe Preserve Golf Course. The City currently contracts with Pleasanton Golf, LLC (CourseCo, Inc.) to manage and maintain the golf course and its facilities. This fund also accounts for golf course capital assets, accumulation of funds for payment of golf debt service, and reimbursement for infrastructure expenses necessitated by the development of the golf course.
42x Water Fund
Accounts for the operation and maintenance of the City’s water utility, a self supporting activity, which provides services on a user-charge basis to residences and businesses. 43x Sewer Fund
Accounts for the operation and maintenance of the City’s sewer collection system and related facilities. It is a self-supporting activity, which provides services on a user-charge basis to residents and businesses.
44x Storm Drain Fund
Accounts for the operation and maintenance of the City’s storm system. The revenue source for this fund is the urban runoff annual assessment fee levied on property owners beginning in FY 1992/93 and a subsidy from the General Fund. The expenses accounted for in this fund are for the federally mandated program to reduce pollutants to the Bay and other expenses related to maintaining the City’s storm drain system. 45x Transit
281
This fund receives revenue from Metropolitan Transportation Commission grants, fares from passengers, and Measure B and Measure BB sales tax. This fund provides transit service to seniors and the disabled in Pleasanton.
501-502 Employee Bene{ts
This fund accounts for unemployment insurance bene{t costs and accrues unused employee vacation leave. Revenues come from bene{t accrual charges placed on all City operating programs. This fund also includes the accounting for workers’ compensation bene{ts and the majority of the City’s Net Pension Liability. 505-506 Public Art Acquisition and Maintenance
This fund is to provide a source of public funding for the design, selection, acquisition, purchase, renovation, conservation, and installation of City-owned public art. 510-522 Replacement / Renovation
The replacement fund charges various user departments based on usage of equipment, vehicles, and facilities and uses the money to replace or renovate these items. In addition, this fund collects revenue from the Facility Use Fee for repair and replacement of Recreation and Library program-related machinery and equipment. 530 Section 115 Pension Trust
This fund includes the City’s deposits and investment earnings of the Capital Growth investment portfolio held in City’s Section 115 Pension Trust Fund. The Conservative portfolio of the City’s Section 115 Pension Trust Fund is part of the City’s restricted General Fund reserves.
531 Retiree Insurance Reserve
This fund includes payments for medical insurance obligations for retirees. 533 Self Insurance Retention
This fund pays insurance premiums and claims that fall under the City’s various limits. 534 City Enhancement
This fund is to provide for unplanned and traditionally unfunded priority projects that arise such as employee workplace enhancement and miscellaneous emergency renovation projects which are not part of the City’s Repair and Replacement Plan. 661 Downtown Merchant Improvements
This fund collects annual assessments from downtown businesses and passes it on to the Pleasanton Downtown Association.
662 Asset Forfeiture
This fund collects the assets forfeited as a result of investigations of criminal offenses, generally narcotics related. The money is passed on to various other governmental agencies.
663 Miscellaneous Agencies and Trusts
This fund collects various fees and contributions from developers and others and passes the money on to various government agencies (e.g. Zone 7 Water Agency, DSRSD, Tri-Valley Transportation Council, etc.), or organizations.
664 Cash Bonds
This fund collects cash bond deposits from developers and returns the money when their project is completed.
281
665 Retiree Insurance
This fund collects money from retired employees and pays their share of medical insurance bills.
67x Livermore-Pleasanton Fire Department
This fund accounts for the Livermore-Pleasanton Fire Department activities related to operations, replacement and renovation of equipment, vehicles and facilities, retiree medical and workers’ compensation.
281
C i t y o f P l e a s a n t o n , C A
FY 2025/26 - FY2029/30
Capital Improvement Program
CITY OF PLEASANTON, CALIFORNIA
CAPITAL IMPROVEMENT PROGRAM
FY 2025/26 – FY 2029/30
City Council
Jack Balch, Mayor
Jeff Nibert, Vice Mayor
Craig Eicher, Councilmember
Matt Gaidos, Councilmember
Julie Testa, Councilmember
Staff
Gerry Beaudin, City Manager
Pamela Ott, Assistant City Manager
Susan Hsieh, Director of Finance
Siew-Chin Yeong, Director of Public Works
Adam Nelkie, City Engineer/Assistant Director of Public Works Chris Yi, Financial Services Manager
Dawn DeMarcus, Senior Budget & Finance Analyst
Gerry Parco, Senior Civil Engineer
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Capital Improvement Program Overview and Summary .............................. ...5 Capital Improvement Plan Revenues ..................................................... . . . 17
SUMMARY FINANCIAL TABLES
CIP Fund Balance - All Funds .............................................................. . . . 26 CIP Revenue Details.......................................................................... . . . 28 CIP Projects by Funding ..................................................................... . . . 30
CAPITAL IMPROVEMENT PROGRAM PROJECTS
Transportation & Streets Projects.......................................................... ...33 Parks Projects................................................................................. ...47 Miscellaneous Projects ...................................................................... . . . 51 Water Projects ................................................................................ . . . 55
Sewer Projects ................................................................................ . . . 69
Storm Drain Projects ......................................................................... . . . 81
Facilities Projects ............................................................................. . . . 85
APPENDIX
Appendix A.................................................................................... . . . 91 Table of Contents
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City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 5 To the Honorable Mayor and Councilmembers,
In accordance with the City’s ordinance, I am pleased to present the two-year Proposed Capital Budget and the five-year Capital Improvement Program (CIP) from FY 2025/26 to FY 2029/30. As the City faces an ongoing structural deficit, with revenues not keeping pace with expenses, the proposed budget and the CIP does not fully account for the City’s true capital investment needs due to the lack of funding. The Asset Management Plan, currently under development, will provide a more comprehensive understanding of the City’s needs. This CIP reflects a balanced approach to investing and planning for high-priority projects in various program areas, such as water, sewer, and General Fund supported community infrastructure.
Consistent with the City’s two-year budget policy, it is recommended that the Proposed Capital Budget, which represents the first two years (FY 2025/26 and FY 2026/27) of the CIP be adopted and that funds be appropriated. The projects included in the final three years (FY 2027/28, FY 2028/29 and FY 2029/30) of the CIP represent those that are identified as priority but not as critical compared to the ones included in the first two years, moved out due to staffing resources, or delayed because of limited funding in the first two years. Proposed projects in the CIP are based on urgent and critical identified needs, which are subject to revision, as necessary, to accommodate changes in priorities and/or expected funding levels. The two-year Proposed Capital Budget is approximately $86.0 million. Over a five-year period, the Proposed CIP totals approximately $221.7 million.
The total fiscal resources available for the CIP incorporate estimates for future revenue collection that are subject to economic and political elements outside of the City’s control. In addition to assuming $61.5 million in new debt, $35.0 million for water projects and $26.5 million for sewer projects, the debt amount required will be contingent on the additional revenues from rate increases. As such, the City’s ability to fund projects included in this CIP could change if the City does not receive the anticipated revenues. While some of the capital program revenues, such as the state gas tax and related transportation revenues, have remained mostly stable, several other revenue sources have been revised to be lower in the Proposed Capital Budget and CIP. For example, one of the core funding sources for the City’s capital program is development-related fees, which have been impacted in recent years due to delays associated with proposed commercial and residential developments and recent state law that requires appropriate fees to be collected only at final inspection or occupancy. As a result, several projects budgeted for this funding source have been postponed.
As part of the ongoing budget monitoring process, staff will periodically conduct a review of the Capital Budget and CIP. If these reviews determine that adjustments are needed, staff will provide the City Council with any recommended changes to projects and corresponding revenues for FY 2026/27 as part of the Mid-Term Budget Review process or through a standalone City Council agenda report.
6 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Capital Improvement Program Book Organization
This document is arranged by project category. Starting with the Proposed Budget and CIP, it has seven categories: Transportation & Streets, Parks, Miscellaneous, Water, Sewer, Storm, and Facilities.
Project description sheets, which provide a project description and justification as well as cost and funding information, are included for each funded project in all seven project categories. Summary financial tables detailing expenditures for each CIP project category are included in this section.
Project identification numbers are included on project description sheets and financial tables. The first two digits of these numbers reflect the fiscal year when the project was first funded. The additional digits reflect City project numbers.
Development of CIP Recommendations
The CIP is presented to address the City’s priority capital improvement needs given the available funding over the next five years. When making decisions regarding project recommendations, staff relies on numerous sources of information, including Capital Improvement Program Prioritization Process, Bicycle and Pedestrian Master Plan, Parks Master Plan, Cemetery Master Plan, Alviso Adobe Strategic Plan, Impact Fee Nexus Study, Pavement Management Plan, Repair and Replacement Plans, and Water and Sewer Management Plans. Staff used these plans and recent design and construction documents to develop cost estimates. The following sections identify new and ongoing projects included in this CIP based on the Capital Improvement Prioritization Program.
Capital Improvement Program Process and Prioritization (CIPPP) A CIP prioritization process using a systematic approach to rank projects is intended to help the City allocate resources effectively and make data-driven decisions on capital investments. A CIP process and prioritization strategy that aligns with the ONE Pleasanton Strategic Plan and community input is an essential step in ensuring resources are effectively allocated to the most critical projects, helping to address urgent needs, optimize funding, and meet regulatory deadlines, while acknowledging local priorities. In December 2024, the City Council approved the prioritization evaluation developed around six key categories, each with a weighted scoring system, to assess the relative importance of various projects. The process also establishes procedures for excluding annual core and enterprise-funded programs from prioritization and introduces a sunset clause to remove outdated or stalled projects from the CIP. Notably, the CIP prioritization process intentionally aligns with the City’s broader strategic goals, particularly in sustainability and environmental impacts, ensuring necessary capital investments and supporting the City’s long-term vision for growth and improvement.
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 7 The FY 2025/26 - FY 2029/30 CIP was developed in accordance with the CIPPP and the direction provided by the City Council on April 10, 2025 for the General Fund supported projects. That included funding for seven urgent, critical projects and two core projects that are included within the program. Core projects, as outlined in the CIPPP, along with enterprise projects, are recommended for funding to ensure basic investments in the City’s infrastructure.
The water and sewer management plans have identified significant capital needs for infrastructure investments. Following the adoption of updated water and sewer rates, a substantial increase in sewer and water enterprise expenditures is anticipated during this CIP timeframe. Proposed projects are based on staff-recommended increases to water and sewer rates, and the projects will be adjusted accordingly based on City Council-approved water and sewer rates.
The table below lists the General Fund supported projects recommended from the CIPPP.
Fiscal Year Project Name Funds Needed
2026 West Las Positas Multimodal
Reconstruction - Willow to Stoneridge
$9.0 million ($3.8 million GF Misc., $5.2 million
GF Streets)
2026 Library Fire Alarm Replacement $0.8 million ($0.6 million GF Misc., $0.2 million Public Facility Impact Fee)
2026
West Las Positas Multimodal
Reconstruction - Design of Owens
to Santa Rita
$1.0 million ($0.8 million Grant, $0.2 million
Measure BB)
2026 I-580 Overcrossing Bicycle &
Pedestrian Improvements
$0.7 million ($0.5 million Grant, $0.2 million
Measure BB)
2026 Pleasanton Traffic Model $0.2 million Gas Tax
2027 Non-Functional Turf
Replacement, AB 1572
$1.1 million ($0.9 million GF Parks, $0.2 million
Park Development Impact Fee)
2026-30 Park Trail & Pathway Resurfacing
Program
$0.7 million ($0.2 million GF Misc., $0.5 million
Measure BB)
2026-30 Core Projects: Annual Facility
Replacement and Annual Storm $3.2 million Various Sources TOTAL $16.7 million
8 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30
PROGRAM FINANCIAL OVERVIEW
A summary of available annual financial resources (including beginning balances) and recommended annual expenditures are listed in the tables below. Summary financial tables showing all recommended projects and available funding are included at the end of this section. All project expenditures and revenues segregated by source are included in the detailed financial tables located in the respective CIP project category.
All revenues identified below—development fees, gas taxes, grants, interest earnings, and General Fund—are projected based on staff estimates in the year they are expected to be received. As indicated previously, staff utilizes the Mid-Term Budget Review process to make any adjustments necessary to address fluctuations in estimated revenues or project expenditures that ensures the capital budget accurately reflects project development.
In addition, the table incorporates staff recommendations for the defunding of existing projects so the funding can be reprogrammed under the new prioritization process. General Fund projects intended to be defunded are a result of the sunset clause in the CIPPP, and water and sewer projects recommended to be defunded are to be reprogrammed under the updated master plans.
A summary of available annual financial resources (including beginning balances) and recommended annual expenditures by project category are listed in the following table.
Existing CIP Defunding
Category FY 2024/25
Transportation & Streets $382,229
Facilities $1,306,774
Parks $692,912
Water $1,355,290
Sewer $3,192,500
Storm $4,237,744
TOTAL $11,167,449
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 9 SOURCES OF FINANCIAL RESOURCES, EXPENDITURES, AND FUND BALANCES1 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total Beginning Fund Balance* $63,617,246 $29,671,137 $33,684,603 $33,194,307 $35,349,818 $63,617,246 Revenue Category
Gas Tax, Measure BB & Highway Funds $7,068,556 $7,211,994 $7,359,368 $7,464,875 $7,594,005 $36,698,798 City Development Fees - - - 500,000 815,000 1,315,000
Grants and Miscellaneous 2,571,355 1,253,760 1,253,760 1,253,760 1,253,760 7,586,395 Annual General Fund Contribution 7,221,000 9,391,000 9,560,000 9,726,000 9,892,000 45,790,000 Transfer In from Other Funds 1,534,894 2,034,894 10,259,894 9,709,894 15,534,894 39,074,470 Interest Earnings 2,057,889 2,432,100 2,019,900 2,019,900 2,019,900 10,549,689 Anticipated Debt Proceeds 853,555 15,000,000 13,000,000 21,500,000 12,000,000 62,353,555 Total Resources $84,924,495 $66,994,885 $77,137,525 $85,368,736 $84,459,377 $266,985,153 Expenditures and Reserves
Facilities $2,032,154 $325,000 $265,000 $525,000 $525,000 $3,672,154 Parks 3,746,477 1,069,000 130,000 120,000 220,000 5,285,477 Sewer 3,750,000 1,460,000 7,600,000 13,070,000 13,610,000 39,490,000 Storm Drain 1,900,000 200,000 200,000 200,000 200,000 2,700,000 Transportation and Streets 31,087,735 8,012,500 8,475,000 9,237,500 10,525,000 67,337,735 Water 3,210,000 14,820,000 19,905,000 19,556,000 13,356,500 70,847,500 Miscellaneous 8,268,906 6,141,000 6,060,000 5,976,000 5,892,000 32,337,906 Capital Expenditures $53,995,272 $32,027,500 $42,635,000 $48,684,500 $44,328,500 $221,670,772 Other Expenditures $1,258,086 $1,282,782 $1,308,218 $1,334,418 $1,361,403 $6,544,907 Total Expenditures $55,253,358 $33,310,282 $43,943,218 $50,018,918 $45,689,903 $228,215,679 Projected Ending Fund Balance $29,671,137 $33,684,603 $33,194,307 $35,349,818 $38,769,474 $38,769,474 *Represents the beginning unappropriated amount for each fiscal year. 1 To accurately reflect the amount of financial resources available each year by category, the above annual dollar amounts include all available resources for each year including beginning fund balances. However, the “Total” column has been adjusted to reflect only the FY 2025/26 beginning fund balance. Similarly, for ending fund balances, the “Total” column reflects only the FY 2029/30 ending fund balance. As a result, the “Total” column does not equal the sum of the individual years.
10 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Total available financial resources, including unappropriated beginning fund balances and transfers, projected in the Proposed Capital Budget, representing the first two years of the CIP, are approximately $84.9 million for FY 2025/26 and $67.0 million for FY 2026/27, respectively. A total of $63.6 million is in the beginning fund balance, which includes $18.1 million in capital project reserves and $11.2 million from the proposed defunding of FY 2024/25 projects. For the first two years of the CIP, the General Fund contribution is approximately $7.2 million for FY 2025/26 and $9.4 million for FY 2026/27.
General Fund contribution reflects funds set aside to address deferred maintenance needs and items from the anticipated Asset Management Plan. The following chart provides a graphic representation of a comparison of total financial resources between the five years of the CIP.
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 11 Total capital expenditures and reserves recommended in the first two years of this CIP are approximately $54.0 million for FY 2025/26 and $32.0 million for FY 2026/27 for a total of $86.0 million over the two funded years of the CIP and a total of $221.7 million over all five years. The chart below provides a graphic representation of a comparison of the CIP expenditures and reserves in each of the five years. For FY 2025/26, the reserve projects account for approximately $18.1 million. Other expenditures, such as interfund indirect costs and payments to the California State Water Resources Control Board for its State Revolving Fund Loan, total approximately $6.5 million over the five-year period.
SUMMARY OF THE MAJOR REVENUE SOURCES
Beginning Balances
Initial beginning balances are based on FY 2024/25 estimated ending fund balances that will be available July 1, 2025. Subsequent beginning fund balances are a combination of prior year beginning fund balances plus estimated revenues less expenditure allocations. The estimated beginning balance, representing the unappropriated amount not counting existing project reserves, for all project categories for this CIP is $63.6 million. While the beginning balances represent funds that have not been specifically appropriated, each beginning fund balance reflects individual funds within each CIP project category, and as such, portions of the fund balances are restricted and earmarked for specific future uses.
As part of the Capital Budget and CIP development process, staff examined the current fiscal year capital budget for all the existing projects and identified a series of budget adjustments based on revised revenue projections and project priorities. These recommended adjustments, presented to the City Council at its April 10, 2025 meeting, focused mainly on capital projects funded by the General Fund. Included in the Proposed Capital Budget and CIP is a comprehensive set of recommended adjustments also for other capital funds. It should be noted that fund balance calculations account for these recommended adjustments.
12 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 State and Local Gas Tax and Highway Related Revenue
Gas Taxes and highway related revenue are used for street repairs and improvements and placed in the Transportation and Streets section of the CIP. In addition to the Gas Tax collected annually from the state gas taxes, this CIP includes funding from Measure BB, Measure F Vehicle Registration Fee (VRF) Program, and grants. Gas Tax revenues are allocated annually to cities on a statewide allocation formula which is based primarily on population. These funds, which can be used for new construction or repair and maintenance of existing street systems or street lighting, are determined by the amount of gas sold in the state. A summary of Transportation and Street related revenue anticipated is detailed below.
In general, ongoing street maintenance revenues, including Gas Tax, Measure BB, and Measure F, are expected to remain the same over the next five years. The table below details all street maintenance, bicycle, trails, and pedestrian funds, excluding development impact fees and beginning balances included in the CIP. In addition to the funding below, the City will receive $1.2 million annually from Pleasanton Garbage Service for vehicle impact fees that are being applied toward the streets program.
SUMMARY OF ROADWAY, BICYCLE, TRAILS, AND PEDESTRIAN FUNDING Fund Source FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total Measure BB Bike & Pedestrian $520,307 $525,562 $530,870 $536,232 $541,648 $2,654,619 Measure BB Streets & Roads 1,879,515 1,899,814 1,920,332 1,941,072 1,962,036 9,602,769 Measure F 356,591 356,591 356,591 356,591 356,591 1,782,955 Gas Tax/SB-1 4,312,143 4,430,027 4,551,575 4,630,980 4,733,730 22,658,455 Total $7,068,556 $7,211,994 $7,359,368 $7,464,875 $7,594,005 $36,698,798
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 13 Local Development Fees
This category of revenue consists of fees collected by the City to offset the impact of new development.
The major sources and expected revenue from these sources are as follows:
LOCAL DEVELOPMENT RELATED FEES
Development fee revenue included in this CIP reflects those new residential and commercial projects that are in the process of receiving final City Council approvals, including approved planned unit developments. Revenues from development projects that are currently under initial review or those that are in the early planning stages are not included in the CIP. Notwithstanding this, since the City does not control the timeline for these developments, the development fee projections are staff’s best estimate of anticipated development activity for the next five years, and even approved projects may be affected by the economy and the health of the housing and construction industry that is generally outside the City’s purview.
Effective January 1, 2025, Senate Bill 937 defers the collection of development impact fees, moving the collection from the issuance of building permits to the final inspection or the certificate of occupancy, whichever occurs first. This change will delay the anticipated revenue from development impact fees, including traffic impact fees, making new development impact fees available for this cycle in the outer years of the capital program. Revenue projections for City development contributions, sewer connection fees, water connections fees and Tri-Valley Transportation Fee are impacted by the change in collection date; these amounts are minimal if any are anticipated at this time. Staff will be monitoring development-related fees and will update the projections as part of the Mid-Term Budget Review if needed.
Transfers from the General Fund
The CIP includes a proposed General Fund contribution of approximately $45.8 million over the five-year period from FY 2025/26 to FY 2029/30, including approximately $30.3 million for deferred maintenance and $15.5 million for CIP projects. The proposed allocation to address deferred maintenance that is identified in the Asset Management Plan by fiscal year includes approximately $6.2 million in FY 2025/26, $6.1 million in FY 2026/27, $6.1 million in FY 2027/28, $6.0 million in FY 2028/29 and $5.9 million in FY 2029/30. The proposed General Fund contribution of $15.5 million to CIP projects by fiscal year includes approximately $1.0 million in FY 2025/26, $3.2 million in FY 2026/27, $3.5 million in FY 2027/28, $3.8 million in FY 2028/29 and $4.0 million in FY 2029/30. The contribution in FY 2025/26 is only $1.0 million due to the diversion of $2.0 million to the Repair and Replacement (R&R) Program to extend the service life of the Dolores Bengtson Aquatic Center, continue to operate Fire Station #2, and replace high-use segments of the Bernal Synthetic Fields.
GENERAL FUND CONTRIBUTIONS TO THE CIP
FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total $7,221,000 $9,391,000 $9,560,000 $9,726,000 $9,892,000 $45,790,000 Fund Source FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total Capital Facilities Fees - - - $500,000 $500,000 $1,000,000 Traffic Impact Fees - - - - 315,000 315,000
Total - - - $500,000 $815,000 $1,315,000
14 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Historically, the General Fund contribution has been used for a full range of Facilities, Parks Miscellaneous and Street projects, and the CIP will continue this practice. Some of the projects that will be funded through the General Fund contributions include West Las Positas Boulevard Multimodal Reconstruction, Library Fire Alarm Replacement, and Non-Functional Turf Replacement.
An internal assessment estimated $900 million in CIP and Repair & Replacement needs over the next decade, prior to the implementation of the Asset Management Program, to maintain infrastructure and other assets in a “state of good repair”. The Asset Management Plan is scheduled to be completed by year-end 2025 and will provide a complete asset list with high-level condition assessment and a prioritized implementation plan linked to a long-term funding strategy. Staff may provide additional recommendations to adjust the FY 2026-2030 Capital Improvement Program during the two-year budget cycle, based on the results of the Asset Management Plan. Refer to Appendix A for a listing of unfunded projects.
SUMMARY OF CIP EXPENDITURES
The CIP includes a total of 40 capital projects recommended for funding during the five years of this CIP and reappropriating funding for 18 reserve projects in FY 2026/27. The Proposed Capital Budget for the next two years includes approximately $54.0 million and $32.0 million in expenditures for capital and reserve projects in FY 2025/26 and FY 2026/27, respectively, for a total of $86.0 million. Total fiveyear anticipated expenditures for capital projects in the CIP are estimated at $221.7 million. It should be noted that Other Expenditures of approximately $2.5 million in the first two years, and $6.5 million over a five-year period, consist of interfund transfers for operating costs and payments of approximately $2.2 million for the California State Water Resources Control Board State Revolving Fund Loan. Combined, the overall expenditure included in the CIP is $228.2 million over a five-year period, including $62.4 million in anticipated debt for sewer and water enterprise projects to help meet regulatory compliance and system health.
A summary of the major funded projects is below:
Transportation and Streets
• $35.6 million for the West Las Positas Boulevard Multimodal Reconstruction: $17.0 million for the fiveyear CIP and an estimated $18.6 million in current funding for the pavement reconstruction project.
Phase 1 will be between Willow Road to Stoneridge Drive, reconstructing or replacing portions of the roadway and sidewalk, including pedestrian, bicycle, and transit improvements. • $22.7 million for Annual Street Resurfacing & Reconstruction: the first year’s funding is being applied toward West Las Positas Boulevard Multimodal Reconstruction. In recent years, funding for this project has generally ranged between $3.0 million and $4.0 million. The addition of the Pleasanton Garbage Service vehicle impact fee with proposed annual funding of approximately $6.0 million over the five-year period will allow the City to improve the maintenance for local roads and streets.
The actual streets to be resurfaced will be determined following an update to the City’s pavement management system. Notwithstanding this funding, staff anticipates that additional street maintenance funding will be needed in the future to meet ongoing street maintenance needs to maintain the current pavement condition index.
• $11.3 million over a five-year period for various street related maintenance and improvement projects, including Annual Slurry Sealing of Various Streets ($6.0 million), Annual Curb & Gutter & ADA Ramp ($3.6 million), Annual Sidewalk & ADA Ramp ($0.8 million) for installation of curb and gutter and ADA curb ramps, Annual Safety Improvements at Various Locations ($0.6 million), and Annual Traffic Buttons & Line Markers Installation ($0.3 million). These funded amounts are consistent with funding in recent years.
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 15 • $1.3 million for Bi-Annual Traffic Signal Installations for traffic signals at various locations to be determined consistent with the General Plan and the City traffic improvement fees. Signal locations will be presented to the City Council prior to awarding a contract for design and installation. • $1.3 million for Annual Bicycle & Pedestrian Improvements at various locations.
Parks
• $1.1 million for the Nonfunctional Turf Conversion for Assembly Bill 1572, which aims to convert approximately 2.4 acres of nonfunctional turf across 11 locations within the city for mulching or installation of drought-tolerant plantings. • $0.7 million over five years for Park Trail & Pathway Resurfacing Program to repair and resurface park trails and pathways on various city parks and properties that were identified as priorities in the Trails Master Plan or by staff.
Miscellaneous
• There is one new miscellaneous project, Deferred Maintenance – Asset Management Plan, for approximately $30.3 million over a five-year period. The annual amount/contribution from the General Fund ranges from $5.9 million to $6.2 million. The funds are required to address deferred maintenance needs and fund critical projects from the Asset Management Plan, which is expected to be completed at the end of 2025.
Water and Sewer
• $26.0 million for the City Ground Water Supply Project, $22.0 million for the five-year CIP and $4.0 million in current funding to install new wells and recover the City’s groundwater production quota. • $22.7 million combined for sewer lift station improvements and sewer siphons repairs includes Sunol Boulevard Sewer Improvements ($1.6 million), Amberwood Siphon Replacement ($3.3 million), Sewer Lift Station 5 Replacement ($6.1 million), Bernal Avenue Sewer Improvements – Tawny Drive to Nevada St. ($3.3 million), Sewer Lift Station Improvements at LS-2, 7, and 8 ($1.4 million), Sewer Pipe Improvements at Kamp Drive & Stoneridge Drive, Stoneridge Mall ($6.1 million), and Sewer Lift Stations Improvements at LS-4,12,13 and 15 repairs and improvements ($0.9 million) over a five-year period.
• $11.6 million over five years is a combined total for both water and sewer emergency power improvements to protect the City’s utility systems from an increasing risk of power outages. • $11.3 million over the five-year period for Annual Sewer Inspection System Improvements for collection system repairs and replacement to increase capacity and replace aging pipelines. • $10.9 million over the five-year period for Water Meter and AMI System Replacement to replace and upgrade the City’s Advanced Metering Infrastructure (AMI) for water. • $8.7 million over the five-year period for Annual Water Distribution System Improvements for the replacement and upgrade of piping, valves, and other appurtenances as recommended in the City’s Water System Management Plan.
• $8.0 million combined for Water Tank Inspections & Repairs Program ($1.3 million), Water Tank 1300 Rehabilitation ($3.0 million), the Grey Eagle Pump Station Replacement ($2.2 million), and the Foothill Pump Station Rehabilitation ($1.5 million).
16 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 • $13.6 million over a three-year period (FY 2027/28, FY 2028/29 and FY 2029/30) for the Kilkare and Sunol Fire Flow Improvements Program to improve service levels and reduce operating and maintenance costs while enhancing fire flow capacity and customer capacity and replacing aging pipelines.
• $1.2 million in FY 2028/29 for the Supervisory Control and Data Acquisition (SCADA) Communications Network Improvement to the communication network system for the City.
Storm Drain
• $2.2 million in funding for the Storm System Management Plan, $1.7 million for the five-year CIP and an estimated $0.5 million in current funding to complete all the necessary field inspections and develop a comprehensive plan to make the enterprise fund self-sustaining. • $1.0 million over the five-year period for annual storm drain repair and replacement.
Facilities
• $2.2 million over the five-year period for the Annual Facility Replacement Project that will replace aging roofs, insulation, and HVAC systems across multiple City-owned buildings and facilities and develop a Facility Use Master Plan that will identify and plan for the efficient use of City assets. • $0.8 million for the replacement of the fire alarm system at the City library.
CONCLUSION
This CIP presents a wide range of capital projects that will address many community interests and needs, including necessary maintenance of existing infrastructure and new critical projects. In many ways, this CIP focuses on balancing the need for ongoing infrastructure maintenance while addressing new needs and priorities. However, as presented to the City Council at the April 10, 2025 meeting, challenges remain due to unfunded and deferred capital projects requiring significant additional resources over the next several years. With the completion of the Asset Management Plan at the end of 2025, the funding gap for deferred maintenance and critical projects is expected to be significant, as previously identified by staff over two years ago.
To address ongoing capital needs, staff will continue to rely on the City Council’s comprehensive priority setting process that integrates with the City’s strategic plan that identifies and prioritizes key projects and programs. In addition, staff and the City Council will continue exploring opportunities for revenue enhancements and new revenue streams to ensure the City is well-maintained with infrastructure and facilities that meet community needs.
Staff is confident that this plan addresses the City’s immediate current capital improvement requirements and through the collective efforts of the City Council and the community, these future challenges will be met in a way that maintains the high quality of existing streets, facilities, and utility infrastructure and allows for the development of new infrastructure and facilities in a cost efficient and effective manner.
Respectfully submitted,
Gerry Beaudin
City Manager
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 17 FY 2025/26 - FY 2029/30
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City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 19 Capital Improvement Plan Revenues
The Capital Improvement Plan (CIP) is projected to receive approximately $203.4 million in revenue over the five-year span.1 This amount is derived from different sources that pay for the CIP projects.
This section highlights the categories and composition of these revenue sources.
General Fund
The General Fund is the City’s unrestricted fund that captures a variety of taxes, including Property Tax, Sales Tax, Transient Occupancy Tax (TOT), and Business License Tax. It also includes fees for services, franchise fees, interest income and other sources. While most of these revenues are used to fund operations, the General Fund annually contributes to the CIP for construction and improvements on City-owned facilities and infrastructure. These General Fund contributions are either directly allocated to projects or held in reserve for future projects as they complete the design phase. The General Fund represents approximately 22.5 percent of the total CIP revenues.
Transportation & Street Funds
Transportation funds are a collection of revenues and resources that are restricted in use to street repairs and improvement projects only. The biggest contributor to transportation funds is the Gas Tax, including SB-1 funds, followed by Measure BB.
1 Beginning fund balances are also a major funding source for the CIP. The total estimated beginning fund balance for all capital funds in FY 2025/26 is $63.6 million and represents a cumulative total of unappropriated funds based on prior year revenues from all of the sources discussed in this section. Subsequent estimated beginning fund balances are a combination of prior year beginning fund balances plus estimated revenues less expenditures.
20 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Gas Tax typically refers to the tax that the State of California charges on the sale of gasoline. Most, if not all, of this tax is passed along to drivers and charged per gallon on sales at the pump. Gas tax revenues are allocated annually to cities on a statewide allocation formula which is based primarily on population. These funds, including SB-1 funding can be used for new construction or repair and maintenance of existing street systems or street lighting, and are determined by the amount of gas sold in the state. Gas taxes make up approximately 61.7 percent of the transportation funds and are placed in a special capital fund. Funds are monitored and dispersed appropriately to various Transportation and Streets capital projects based on gas tax regulations.
In addition to the Gas Tax collected annually from the State of California gas taxes, the Transportation funds include funding from several local measures.
Measure BB was established in 2014 and added another half-cent sales tax to the initial measure and extended it to 2045. Measure BB increased to one cent on July 1, 2022, when Measure B expired on March 31, 2022. This tax is administered by the Alameda County Transportation Commission (ACTC).
Measure BB makes up for approximately 33.4 percent of the transportation funds and is tracked in two separated funds, Measure BB – Streets & Roads Fund and Measure BB – Bikes & Pedestrian Fund. The City receives approximately $2.4 million combined revenue for the measure with about one percent growth annually. This revenue is split between street/road projects and bike/pedestrian projects at about 78 percent and 22 percent, respectively. These funds are passed-through based and are used for capital projects based on priority projects as determined by the City.
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 21 Measure F, also known as the Vehicle Registration Fee (VRF) program, was approved by voters in 2012.
This program collects a $10 per year vehicle registration fee, which is dedicated to Alameda County’s transportation network improvements with the aim of reducing traffic congestion and pollution. ACTC also administers this program and provides funding allocations to local municipalities in the County.
Measure F makes up for approximately 4.9 percent of the transportation funds. The City uses Measure F funds toward local streets and transportation related capital projects.
Development Impact Fees
The CIP includes funding from the City’s development impact fees like the Capital Facilities Fee, Transportation Improvement Fees, and non-city fees such as the Tri-Valley Transportation Fee. Combined, these development-related fees comprise 0.6 percent of the CIP funding sources.
Impact fees are one-time charges on new development collected and used by the City to cover the cost of capital facilities and infrastructure that is required to serve new residential and commercial growth. Impact fees were previously collected upon issuance of a building permit, but with the passage of Senate Bill 937, the fees are now collected at the time of the issuance of the certificate of occupancy; this effectively delays the fee collection schedule and sets the fee collection trigger at the completion of the project. If the project does not reach the certificate-of-occupancy milestone for any reason, the City will not be able to collect the fee for services rendered. Fees from new development where permits have been issued are projected in FY 2028/29 and FY 2029/30 to reflect this change and are subject to economic conditions. The City currently has an established impact fee program that specifies areas of use and restricts the maximum Capital Facility Fees use on future projects at
22.7 percent, although it is now available for most future projects under the identified areas of use, which include:
•Public Facility Fees that fund:
O Parks & Recreation Facilities
O Public Facilities, including fire stations, public safety training facilities, the City library, downtown parking, and the Civic Center
•Transportation Improvements under the Traffic Impact Fee program can be funded at 100 percent.
22 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Transfers In from Other Funds
This revenue category, which accounts for 19.2 percent of the total projected revenues, consists of various transfers from funds other than the General Fund. Contributions are from the Utility Enterprise Funds for approximately $39.1 million over a five-year period. Normally, these utility funds make annual contributions based on revenues generated from City-operated utilities like Water, Recycled Water, Sewer, and Storm Drain. While most of these revenues are used to fund the utility operations, a portion is transferred to the capital funds annually to pay for infrastructure maintenance and improvement projects directly related to these utilities. However, due to operating funding challenges in these utility programs, the collected revenues fall far short of the operating and improvement costs, resulting in annual enterprise funding deficits. The Water Rate Study, based on the Water System Management Plan (WSMP) and identified projects, is working to establish new, increased water user rates that will account for inflation, asset maintenance, and end-of-useful-life replacement, among other factors, ensuring funding resources for future replacement and improvement needs. A sewer rate study will be undertaken to account for the capital projects that will be identified in the Sanitary Sewer Management Plan, and rate increases are anticipated to bring in the necessary revenue to support the recommended CIP program.
Other Revenue Sources
These CIP funding categories consist of smaller sources, including interest earnings on fund balances of all CIP funds, miscellaneous grants, transportation grants, and the Pleasanton Garbage Service Vehicle Impact Fees. The Pleasanton Garbage Service Impact Fees are approximately $1.2 million per fiscal year and $6.0 million over the next five years. The combined contribution of these categories to the CIP is 8.9 percent, where 3.7 percent comes from Grants and Miscellaneous, and 5.2 percent comes from interest earnings.
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 23 Anticipated Debt Proceeds
Existing and proposed debt financing is necessary to support the water and sewer enterprise capital programs to ensure regulatory compliance and system health. This CIP funding category consists of approximately $0.9 million in appropriations from the 2024 Water Revenue Bond in FY 2025/26 for unappropriated bond proceeds, $35.0 million for Water, and $26.5 million for Sewer related projects in anticipated debt proceeds for FY 2026/27 to FY 2029/30. The combined contribution of these categories to the CIP is 30.8 percent, where 13.0 percent is for the Sewer Replacement CIP and 17.8 percent is for the Water Replacement CIP.
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26 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 CIP Fund Balance Summary - All Funds
Fund Fund Description
Beginning
Balance
Estimated
Revenue
Estimated
Expenditure
Year-End
Fund Balance
Estimated
Revenue
Estimated
Expenditure
Year-End
Fund Balance
160 Gas Tax $914,020 $4,440,043 $4,830,000 $524,063 $4,583,427 $3,862,500 $1,244,990 161 Marilyn Kane Trail Reserve 120,793 2,100 - 122,893 2,600 - 125,493 162 Miscellaneous CIP Grants (281,981) 1,275,000 1,275,000 (281,981) - - (281,981) 163 Measure B Bike & Pedestrian 182,011 7,989 190,000 - - - - 165 Measure BB Bike & Pedestrian 702,796 560,507 675,000 588,303 573,762 580,000 582,065 166 Measure F 27,290 367,791 350,000 45,081 369,991 400,000 15,072 167 Specific Plans 886,118 15,700 133,902 767,916 18,900 - 786,816 170 Measure BB - Streets/Roads 515,640 1,937,715 2,350,000 103,355 1,969,614 1,900,000 172,969 172
Transportation Development
Grant 120,728 42,595 42,595 120,728 - - 120,728
173 JDEDZ Transportation Fee 1,027,034 2,000 1,027,034 2,000 2,400 - 4,400 201 Miscellaneous CIP-Gen 7,585,261 7,732,200 12,474,703 2,842,758 10,004,500 6,481,000 6,366,258 202 Downtown & North Pleas CIP 408,686 90,000 430,000 68,686 60,000 - 128,686 203 Capital Facilities Impact Fees 1,889,887 17,800 937,000 970,687 21,300 74,000 917,987 204 Misc Developer Contributions 601,281 11,300 - 612,581 13,600 - 626,181 211 Street CIP - Gen 6,329,912 1,368,860 7,308,462 390,310 1,403,960 1,300,000 494,270 212 Traffic Impact Fees 1,916 191,100 - 193,016 229,300 - 422,316 214 Trivalley Transportation 2,419,666 41,600 1,852,522 608,744 58,200 - 666,944 215 Streets Developer Contribution 7,069,616 125,200 6,673,219 521,597 150,200 - 671,797 221 Park CIP - Gen 3,079,659 39,900 - 3,119,559 47,900 850,000 2,317,459 222 Park Development Impact Fees 6,698,013 171,000 4,435,834 2,433,179 205,200 100,000 2,538,379 223 Parks Developer Contributions 463,695 6,000 - 469,695 7,200 - 476,895 241 Sewer Developer Contributions 43,310 800 - 44,110 900 - 45,010 421 Water Replacement CIP 3,861,874 1,048,055 3,773,500 1,136,429 15,713,400 13,130,605 3,719,224 422 Water Connection Fees 4,218,082 74,700 - 4,292,782 89,700 2,116,800 2,265,682 426 Recycled Water CIP 284,256 434,894 484,894 234,256 434,894 484,894 184,256 431 Sewer Replacement CIP 7,000,705 1,207,700 4,081,134 4,127,271 1,249,200 1,801,068 3,575,403 432 Sewer Connection Fees 3,128,899 57,400 28,558 3,157,741 68,800 29,415 3,197,126 441 Storm Drain Replacement/Renov 4,318,075 37,300 1,900,000 2,455,375 44,800 200,000 2,300,175 Total $63,617,246 $21,307,249 $55,253,358 $29,671,137 $37,323,748 $33,310,282 $33,684,603 FY 2025/26 FY 2026/27
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 27 FY 2027/28
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Revenue
Estimated
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Year-End
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Revenue
Estimated
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Year-End
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Revenue
Estimated
Expenditure
Year-End
Fund Balance
$4,679,475 $4,015,000 $1,909,465 $4,758,880 $5,162,500 $1,505,845 $4,861,630 $5,600,000 $767,475 2,100 - 127,593 2,100 - 129,693 2,100 - 131,793
- - (281,981) - - (281,981) - - (281,981)
- - - - - - - - -
571,070 1,010,000 143,135 576,432 635,000 84,567 581,848 345,000 321,415 367,791 380,000 2,863 367,791 360,000 10,654 367,791 300,000 78,445 15,700 - 802,516 15,700 - 818,216 15,700 - 833,916
1,978,532 2,000,000 151,501 1,999,272 2,000,000 150,773 2,020,236 2,000,000 171,009 - - 120,728 - - 120,728 - - 120,728
2,000 - 6,400 2,000 - 8,400 2,000 - 10,400
10,071,200 6,265,000 10,172,458 10,237,200 6,382,000 14,027,658 10,403,200 6,298,000 18,132,858 60,000 - 188,686 60,000 - 248,686 60,000 - 308,686
17,800 60,000 875,787 517,800 119,000 1,274,587 517,800 119,000 1,673,387 11,300 - 637,481 11,300 - 648,781 11,300 - 660,081
1,368,860 1,200,000 663,130 1,368,860 1,200,000 831,990 1,368,860 1,200,000 1,000,850 191,100 - 613,416 191,100 - 804,516 506,100 1,300,000 10,616 41,600 - 708,544 41,600 - 750,144 41,600 - 791,744
125,200 - 796,997 125,200 - 922,197 125,200 - 1,047,397 39,900 - 2,357,359 39,900 - 2,397,259 39,900 - 2,437,159 171,000 - 2,709,379 171,000 - 2,880,379 171,000 - 3,051,379 6,000 - 482,895 6,000 - 488,895 6,000 - 494,895
800 - 45,810 800 - 46,610 800 - 47,410
18,244,500 18,139,327 3,824,397 17,694,500 19,996,479 1,522,418 13,444,500 13,811,673 1,155,245 74,700 2,207,400 132,982 74,700 16,000 191,682 74,700 16,500 249,882 434,894 484,894 134,256 434,894 484,894 84,256 434,894 484,894 34,256 4,882,700 7,951,300 506,803 13,382,700 13,431,839 457,664 13,957,700 13,982,694 432,670 57,400 30,297 3,224,229 57,400 31,206 3,250,423 57,400 32,142 3,275,681 37,300 200,000 2,137,475 37,300 200,000 1,974,775 37,300 200,000 1,812,075 $43,452,922 $43,943,218 $33,194,307 $52,174,429 $50,018,918 $35,349,818 $49,109,559 $45,689,903 $38,769,474 FY 2028/29 FY 2029/30
28 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Project
Category Fund Fund Description FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Facilities 203
Public Facilities
Impact Fees $17,800 $21,300 $17,800 $517,800 $517,800
Subtotal $17,800 $21,300 $17,800 $517,800 $517,800
Miscellaneous 201
Miscellaneous CIP -
General Fund $7,732,200 $10,004,500 $10,071,200 $10,237,200 $10,403,200 204
Miscellaneous Developer
Contributions 11,300 13,600 11,300 11,300 11,300
Subtotal $7,743,500 $10,018,100 $10,082,500 $10,248,500 $10,414,500 Parks 221 Park CIP - General Fund $39,900 $47,900 $39,900 $39,900 $39,900 222
Park Development Impact
Fees 171,000 205,200 171,000 171,000 171,000
223
Parks Developer
Contributions 6,000 7,200 6,000 6,000 6,000
Subtotal $216,900 $260,300 $216,900 $216,900 $216,900
Sewer 241
Sewer Developer
Contributions $800 $900 $800 $800 $800
431 Sewer Replacement CIP 1,207,700 1,249,200 4,882,700 13,382,700 13,957,700 432 Sewer Connection Fees 57,400 68,800 57,400 57,400 57,400 Subtotal $1,265,900 $1,318,900 $4,940,900 $13,440,900 $14,015,900 Storm Drain 441
Storm Drain Replacement/Renovation $37,300 $44,800 $37,300 $37,300 $37,300 Subtotal $37,300 $44,800 $37,300 $37,300 $37,300
Transportation
& Streets 160 Gas Tax $4,440,043 $4,583,427 $4,679,475 $4,758,880 $4,861,630 161 Marilyn Kane Trail Reserve 2,100 2,600 2,100 2,100 2,100 162 Miscellaneous CIP Grants 1,275,000 - - - -
163
Measure B Bike &
Pedestrian 7,989 - - - -
165
Measure BB Bike &
Pedestrian 560,507 573,762 571,070 576,432 581,848
166 Measure F 367,791 369,991 367,791 367,791 367,791
167 Specific Plan 15,700 18,900 15,700 15,700 15,700
170
Measure BB - Streets/
Roads 1,937,715 1,969,614 1,978,532 1,999,272 2,020,236 172 TDA Grant 42,595 - - - -
173 JDEDZ Transportation Fee 2,000 2,400 2,000 2,000 2,000 202
Downtown & North
Pleasanton (DNP) 90,000 60,000 60,000 60,000 60,000
211 Street CIP - General 1,368,860 1,403,960 1,368,860 1,368,860 1,368,860 212 Traffic Impact Fee 191,100 229,300 191,100 191,100 506,100 214 Tri-Valley Transportation 41,600 58,200 41,600 41,600 41,600 215
Streets Developer
Contribution (SDC) 125,200 150,200 125,200 125,200 125,200 Subtotal $10,468,200 $9,422,354 $9,403,428 $9,508,935 $9,953,065 Water 421 Water Replacement CIP $1,048,055 $15,713,400 $18,244,500 $17,694,500 $13,444,500 422 Water Expansion CIP 74,700 89,700 74,700 74,700 74,700 426 Recycled Water CIP 434,894 434,894 434,894 434,894 434,894 Subtotal $1,557,649 $16,237,994 $18,754,094 $18,204,094 $13,954,094 Grand Total $21,307,249 $37,323,748 $43,452,922 $52,174,429 $49,109,559 CIP Revenue Details
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 29 This page has been
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30 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Fund
Fund
Description Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total 160 Gas Tax Annual Safety Improvements at Various Locations $100,000 $105,000 $110,000 $115,000 $120,000 $550,000 Annual Slurry Sealing of Various Streets - 1,550,000 1,600,000 1,375,000 1,500,000 6,025,000 Annual Street Resurfacing & Reconstruction - 1,100,000 1,165,000 2,550,000 2,800,000 7,615,000 Annual Traffic Buttons & Line Marker Installation 50,000 52,500 55,000 57,500 60,000 275,000 Pleasanton Traffic Model Update 230,000 - - - - 230,000 West Las Positas Boulevard Multimodal
Reconstruction 4,300,000 - - - - 4,300,000
Annual Curb & Gutter & ADA Ramp - 900,000 925,000 900,000 950,000 3,675,000 Annual Sidewalk & ADA Ramp 150,000 155,000 160,000 165,000 170,000 800,000 Total $4,830,000 $3,862,500 $4,015,000 $5,162,500 $5,600,000 $23,470,000 162
Miscellaneous CIP
Grants
I-580 Overcrossing Bicycle & Pedestrian
Improvements $525,000 - - - - $525,000
West Las Positas Multimodal Reconstruction -Owens
Drive to Santa Rita Road 750,000 - - - - 750,000
Total $1,275,000 - - - - $1,275,000
163
Measure B Bike &
Pedestrian
West Las Positas Boulevard Multimodal
Reconstruction $190,000 - - - - $190,000
Total $190,000 - - - - $190,000
165
Measure BB Bike &
Pedestrian Annual Bicycle & Pedestrian Improvements - $ 100,000 $505,000 $515,000 $125,000 $1,245,000 Annual Street Resurfacing & Reconstruction - 450,000 375,000 - - 825,000 I-580 Overcrossing Bicycle & Pedestrian
Improvements $175,000 - - - - 175,000
Park Trail & Pathway Resurfacing Program - 30,000 130,000 120,000 220,000 500,000 West Las Positas Boulevard Multimodal
Reconstruction 250,000 - - - - 250,000
West Las Positas Multimodal Reconstruction -
Owens Drive to Santa Rita Road 250,000 - - - - 250,000
Total $675,000 $580,000 $1,010,000 $635,000 $345,000 $3,245,000 166 Measure F (MF) Annual Street Resurfacing & Reconstruction - $400,000 $380,000 $360,000 $300,000 $1,440,000 West Las Positas Boulevard Multimodal
Reconstruction $350,000 - - - - 350,000
Total $350,000 $400,000 $380,000 $360,000 $300,000 $1,790,000 167 Specific Plan Old Vineyard Ave Ped Trail-Ph 2 & 3 $133,902 - - - - $133,902 Total $133,902 - - - - $133,902
170
Measure BB -
Streets/Roads Annual Street Resurfacing & Reconstruction - $1,900,000 $2,000,000 $2,000,000 $2,000,000 $7,900,000 West Las Positas Boulevard Multimodal
Reconstruction $2,350,000 - - - - 2,350,000
Total $2,350,000 $1,900,000 $2,000,000 $2,000,000 $2,000,000 $10,250,000 172 TDA Grant Annual Bicycle & Pedestrian Improvements $42,595 - - - - $42,595 Total $42,595 - - - - $42,595
173
JDEDZ
Transp.Fee JDEDZ Transportation Fee Reserve $1,027,034 - - - - $1,027,034 Total $1,027,034 - - - - $1,027,034
201
Misc CIP -
General Fund Annual Facility Replacement $398,000 $251,000 $205,000 $406,000 $406,000 $1,666,000 Capital Improvement Program Reserve 1,220,700 - - - - 1,220,700 Deferred Maintenance - Asset Management Plan 6,221,000 6,141,000 6,060,000 5,976,000 5,892,000 30,290,000 Downtown Beautification CIP Reserve 160,003 - - - - 160,003 Library Fire Alarm Upgrade 580,000 - - - - 580,000
Park Trail & Pathway Resurfacing Program 95,000 89,000 - - - 184,000 West Las Positas Boulevard Multimodal
Reconstruction 3,800,000 - - - - 3,800,000
Total $12,474,703 $6,481,000 $6,265,000 $6,382,000 $6,298,000 $37,900,703 202
Downtown & North
Pleasanton CIP
(DNP)
West Las Positas Boulevard Multimodal
Reconstruction $430,000 - - - - $430,000
Total $430,000 - - - - $430,000
203
Public Facilities
Impact Fees (PFIF) Alviso Adobe Strategic Plan Implementation $650,000 - - - - $650,000 Annual Facility Replacement 117,000 $74,000 $60,000 $119,000 $119,000 489,000 Library Fire Alarm Upgrade 170,000 - - - - 170,000
Total $937,000 $74,000 $60,000 $119,000 $119,000 $1,309,000 211
Street CIP -
General Fund Annual Street Resurfacing & Reconstruction - $1,300,000 $1,200,000 $1,200,000 $1,200,000 $4,900,000 Use Of Dublin Fwy Reimbursemnt $2,108,462 - - - - 2,108,462 West Las Positas Boulevard Multimodal
Reconstruction 5,200,000 - - - - 5,200,000
Total $7,308,462 $1,300,000 $1,200,000 $1,200,000 $1,200,000 $12,208,462 CIP Projects by Funding Source
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 31 Fund
Fund
Description Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total 212
Traffic Impact
Fees (TIF) Bi-Annual Traffic Signal Installations - - - - $1,300,000 $1,300,000 Total - - - - $1,300,000 $1,300,000
215
Streets Developer
Contribution
(SDC) 2nd Bridge Bernal/Laguna $1,707,143 - - - - $1,707,143 Clara Lane Extension Reimbursement 663,041 - - - - 663,041 Dublin Canyon Road Widening 2,332,705 - - - - 2,332,705 Extension Of Livingston Way 25,479 - - - - 25,479
Happy Valley Bypass Road & Improvement 645,905 - - - - 645,905 Old Vineyard Avenue Pedestrian Trail-Ph 2 & 3 30,673 - - - - 30,673 Vineyard Corridor Improvements 30,673 - - - - 30,673
Westbound Bernal Avenue at First Street/Sunol
Boulevard Intersection Improvements 1,237,600 - - - - 1,237,600 Total $6,673,219 - - - - $6,673,219
221
Park CIP -
General Fund Nonfunctional Turf Conversion for AB1572 - $850,000 - - - $850,000 Total - $850,000 - - - $850,000
222
Park Development
Impact Fees Alviso Adobe Strategic Plan Implementation $117,154 - - - - $117,154 New Community Park - Site Acquisition Reserve 3,501,477 - - - - 3,501,477 Nonfunctional Turf Conversion for AB1572 150,000 $100,000 - - - 250,000 Pioneer Cemetery Master Plan Implementation 667,203 - - - - 667,203 Total $4,435,834 $100,000 - - - $4,535,834
421
Water
Replacement CIP Annual Water Distribution System Improvements $550,000 $680,000 $710,000 $5,320,000 $1,380,000 $8,640,000 City Ground Water Supply - 9,263,200 8,467,600 - - 17,730,800 Foothill Pump Station Rehabilitation - - - 1,540,000 - 1,540,000 Grey Eagle Pump Station Replacement - - - - 2,240,000 2,240,000 Kilkare and Sunol Fire Flow Improvements Program - - 4,630,000 4,000,000 5,000,000 13,630,000 SCADA Communications Network Improvements - - - 1,180,000 - 1,180,000 Water Meter and AMI System Replacement 2,020,000 2,100,000 2,180,000 2,270,000 2,360,000 10,930,000 Water System Emergency Power Improvements
Program 590,000 610,000 1,660,000 1,600,000 1,660,000 6,120,000 Water Tank 1300 Rehabilitation - - - 2,950,000 - 2,950,000 Water Tank Inspections and Repairs Program - - - 630,000 650,000 1,280,000 West Las Positas Boulevard Multimodal
Reconstruction 150,000 - - - - 150,000
Total $3,310,000 $12,653,200 $17,647,600 $19,490,000 $13,290,000 $66,390,800 422
Water
Expansion CIP Annual Water Distribution System Improvements - - $15,000 $16,000 $16,500 $47,500 City Ground Water Supply - $2,116,800 2,192,400 - - 4,309,200 Total - $2,116,800 $2,207,400 $16,000 $16,500 $4,356,700 426
Recycled
Water CIP Annual Recycled Water System Improvements $50,000 $50,000 $50,000 $50,000 $50,000 $250,000 Total $50,000 $50,000 $50,000 $50,000 $50,000 $250,000
431
Sewer
Replacement CIP Amberwood Siphon Replacement - $270,000 $3,060,000 - - $3,330,000 Annual Sewer Inspection and Replacement $730,000 750,000 2,300,000 $3,580,000 $3,900,000 11,260,000 Bernal Ave Sewer Improvements - Tawny Drive to
Nevada Street - - - 400,000 2,930,000 3,330,000
Sewer Lift Station 5 Replacement - - 810,000 5,310,000 - 6,120,000 Sewer System Emergency Power Improvements
Program 1,420,000 440,000 1,150,000 1,190,000 1,230,000 5,430,000 Sewer Lift Station Improvements at LS 4, 12, 13 and 15 - - - - 940,000 940,000 Sewer Lift Station Improvements at LS 2, 7 and 8 - - - - 1,420,000 1,420,000 Sewer Pipe Improvements - Stoneridge Mall Road - - - 470,000 3,190,000 3,660,000 Sewer Pipe Improvements - Kamp Drive and
Stoneridge Drive - - 280,000 2,120,000 - 2,400,000
Sunol Boulevard Sewer Improvements 1,600,000 - - - - 1,600,000 Total $3,750,000 $1,460,000 $7,600,000 $13,070,000 $13,610,000 $39,490,000 441
Storm Drain
Replacement/
Renovation Annual Storm Water Repair and Replacement $200,000 $200,000 $200,000 $200,000 $200,000 $1,000,000 Storm Water System Management Plan 1,700,000 - - - - 1,700,000 Total $1,900,000 $200,000 $200,000 $200,000 $200,000 $2,700,000 Grand Total $53,995,272 $32,027,500 $42,635,000 $48,684,500 $44,328,500 $221,670,772 CIP Projects by Funding Source
32 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 This page has been
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City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 33 Transportation & Streets Projects
Project
Number Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total 11514
West Las Positas Boulevard
Multimodal Reconstruction $17,020,000 - - - - $17,020,000 22570
I-580 Overcrossing Bicycle &
Pedestrian Improvements 700,000 - - - - 700,000
26514
West Las Positas Boulevard
Multimodal Reconstruction -
Owens Drive to Santa Rita Road 1,000,000 - - - - 1,000,000 26588 Pleasanton Traffic Model Update 230,000 - - - - 230,000 FY503
Annual Street Resurfacing &
Reconstruction - $5,150,000 $5,120,000 $6,110,000 $6,300,000 22,680,000 FY504
Annual Slurry Sealing Of
Various Streets - 1,550,000 1,600,000 1,375,000 1,500,000 6,025,000 FY507
Annual Traffic Buttons &
Line Marker Installation 50,000 52,500 55,000 57,500 60,000 275,000 FY509
Annual Curb & Gutter and
ADA Ramp - 900,000 925,000 900,000 950,000 3,675,000
FY512 Annual Sidewalk and ADA Ramp 150,000 155,000 160,000 165,000 170,000 800,000 FY532
Bi-Annual Traffic Signal
Installations - - - - 1,300,000 1,300,000
FY541
Annual Safety Improvements
at Various Locations 100,000 105,000 110,000 115,000 120,000 550,000 FY543
Annual Bicycle & Pedestrian
Improvements 42,595 100,000 505,000 515,000 125,000 1,287,595 Grand Total $19,292,595 $8,012,500 $8,475,000 $9,237,500 $10,525,000 $55,542,595 Project
Number Project Name
Funding
Source
Estimated
Current
Budget
Recommended
Adjustments
Recommended
Final Budget Status
11514
West Las Positas Boulevard Multimodal
Reconstruction 160 $2,167,209 - $2,167,209 Design
162 8,167,000 - 8,167,000
163 184,047 - 184,047
165 810,161 - 810,161
201 2,500,000 - 2,500,000
202 3,040,525 - 3,040,525
211 912,397 - 912,397
421 250,000 - 250,000
431 500,000 - 500,000
15525
Hopyard Road & Owens Drive Intersection Improvements 165 813,854 - 813,854 Construction 211 1,286,119 - 1,286,119
212 2,499,307 - 2,499,307
216 1,145,810 - 1,145,810
15551 Sunol Boulevard Interchange Improvements 162 2,650,000 - 2,650,000 Design 212 1,574,847 - 1,574,847
17556
Westbound Bernal Avenue at First Street/Sunol
Boulevard Intersection Improvements 160 1,950,000 - 1,950,000 On Hold 215 1,237,600 - 1,237,600
18531 Stoneridge Drive & I-680 On-Ramp 162 625,633 - 625,633 Construction 212 6,107,977 - 6,107,977
Existing Transportation & Streets Projects & Reserves
34 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Project
Number Project Name
Funding
Source
Estimated
Current
Budget
Recommended
Adjustments
Recommended
Final Budget Status
21596 JDEDZ Right of Way and Misc. 211 $4,852 - $4,852 Construction 22521
2022 Bi-Annual Evaluation/Reclassification
of Street Surfaces 160 15,000 ($15,000) - Cancelled
22570
I-580 Overcrossing Bicycle & Pedestrian
Improvements 162 250,000 - - Planning
23505
Annual Sidewalk & Intersection Ramp Installations
(ADA) 160 92,099 - 92,099 Construction
23507 Annual Traffic Buttons & Line Marker Installation 160 22,835 - 22,835 Construction 23512 Annual Sidewalk Maintenance 160 21,305 - 21,305 Construction 23532 Bi-Annual Traffic Signal Installations 160 591,889 (93,987) 497,902 Construction 212 665,882 - 665,882
23541 Annual Intersection Improvements at Various Locations 212 119,814 - 119,814 Cancelled 23543
Annual Bicycle & Pedestrian Related Improvements at
Various Locations 163 55,172 (10,862) 44,310 Completed
165 311,049 (61,553) 249,496
24503 Annual Street Resurfacing & Reconstruction 160 2,761,294 - 2,761,294 Construction 165 168,487 - 168,487
166 799,822 - 799,822
170 3,515,025 - 3,515,025
211 408,392 - 408,392
24504 Annual Slurry Sealing of Various Streets 160 403,873 - 403,873 Completed 24512 Annual Sidewalk Maintenance 160 91,631 - 91,631 Construction 24534 Annual Expedited Speed Lump Program 160 50,000 - 50,000 Consolidate to 25503 24541 Annual Intersection Improvements at Various Locations 160 100,000 - 100,000 Consolidate to 25503 24543
Annual Bicycle & Pedestrian Related Improvements at
Various Locations 165 20,323 - 20,323 In Design
172 493,513 - -
24546 Annual Trail Resurfacing Project 165 100,000 - 100,000 Planning 24555 Annual Neighborhood Traffic Calming Devices 160 50,000 (45,000) 5,000 Cancelled 25503 Annual Street Resurfacing & Reconstruction 160 1,975,000 - 1,975,000 Construction 166 400,000 - 400,000
170 1,975,000 - 1,975,000
25504 Annual Slurry Sealing of Various Streets 160 385,000 - 385,000 Construction 25505
Annual Sidewalk & Intersection Ramp Installations
(ADA) 160 140,678 (60,678) 80,000 Completed
25507 Annual Traffic Buttons & Line Marker Installation 160 50,000 - 50,000 Planning 25509 Annual Curb & Gutter for Street Resurfacing 160 609,322 - 609,322 Construction 25512 Annual Sidewalk Maintenance 160 150,000 - 150,000 Planning 25521
2025 Bi-Annual Evaluation/Reclassification of Street
Surfaces 160 25,000 - 25,000 Planning
25534 Annual Expedited Speed Lump Program 160 50,000 - 50,000 Consolidate to 25503 25541 Annual Intersection Improvements at Various Locations 160 100,000 - 100,000 Planning 25543
Annual Bicycle & Pedestrian Related Improvements at
Various Locations 165 100,000 - 100,000 Planning
172 80,000 - 80,000
25546 Annual Trail Resurfacing Project 165 100,000 - 100,000 Planning 25555 Annual Neighborhood Traffic Calming Devices 160 50,000 (50,000) - Cancelled 01541 Tri-Valley Transportation Fees Reserve 214 1,852,517 - 1,852,517 Reserve 03506 Happy Valley Bypass Road & Improvements 215 645,905 - 645,905 Reserve 05526 2nd Bridge Bernal/Laguna 215 1,707,143 - 1,707,143 Reserve 12533 Vineyard Avenue Corridor improvements 215 30,673 - 30,673 Reserve 21564 Old Vineyard Ave Ped Trail-Phases 2&3 167 133,902 - 133,902 Reserve 215 30,673 - 30,673
80532 Clara Lane Extension Reimbursement 215 663,041 - 663,041 Reserve 93530 Extension of Livingston Way 215 25,479 - 25,479 Reserve 98516 Dublin Canyon Road Widening 215 2,332,705 - 2,332,705 Reserve 98590 Use of Dublin Freeway Reimbursement 211 2,108,462 - 2,108,462 Reserve 99523 JDEDZ Transportation Fee Reserve 173 1,012,518 - 1,012,518 Reserve
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 35 The roadway section on WLP Boulevard adjacent
to the Arroyo Mocho Canal continues to settle and
crack, requiring the road to be reconstructed. The
WLP Boulevard corridor is identified in the 2018 Pedestrian Bicycle Master Plan as the highest-priority corridor. The addition of bicycle and pedestrian improvements will bring this corridor up to an ‘all ages and abilities’ standard.
West Las Positas Boulevard
Multimodal Reconstruction
Project Number: 11514
Transportation
This project will focus on West Las Positas (WLP)
Boulevard pavement reconstruction. Phase 1 will be
between Willow Road to Stoneridge Drive, reconstructing or replacing portions of the roadway and sidewalk. It will also include pedestrian, bicycle, and transit improvements to bring the corridor up to an
all users and abilities design standard. This funding
will support the design & construction of this phase
of the project.
Department:
Project Phase: Design & Construction
Total Budget: $35,551,339
Project Description:
CIP Rating Score: 100
Project Funding
Project Justification:
Fund Description Fund
#
Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Gas Tax 160 $2,167,209 $4,300,000 - - - -
Miscellaneous CIP Grants 162 $8,167,000 - - - - -
Measure B - Bike & Ped 163 $184,047 $190,000 - - - -
Measure BB - Bike & Ped 165 $810,161 $250,000 - - - -
Measure F 166 - $350,000 - - - -
Measure BB - Streets/
Roads 170 - $2,350,000 - - - -
Miscellaneous
CIP - General Fund 201 $2,500,000 $3,800,000 - - - -
North Pleasanton 1 ID 202 $3,040,525 $430,000 - - - -
Street CIP 211 $912,397 $5,200,000 - - - -
Water Replacement CIP 421 $250,000 $150,000 - - - -
Sewer Replacement CIP 431 $500,000 - - - - -
Community & Economic
Development -Traffic Engineering
36 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 The I-580 overcrossings are ranked No. 3 in the
Pedestrian and Bicycle Master Plan, making this
project highly competitive for regional and federal
grant funding, as it connects two local agencies
and crosses a major freeway system. This project
will be funded from grants from Alameda CTC and
Measure BB Bike and Pedestrian funding. This project is in alignment with the ONE Pleasanton Strategic Plan goal of - Investing in Our Environment to invest in parks, bicycle, and pedestrian infrastructure.
I-580 Overcrossing Bicycle &
Pedestrian Improvements
Project Number: 22570
Transportation
This project will generate the design for improvements
to the bicycle and pedestrian facilities connecting the city of Pleasanton to the city of Dublin. As part of the 2018 Pedestrian and Bicycle Master Plan, the City developed both short- and long-range designs for improvements to the I-580 overcrossings at Santa Rita Road, Hacienda Road, and Hopyard Road. This funding
will support the project design.
Department:
Project Phase: Design
Total Budget: $950,000
Project Description:
CIP Rating Score: 98
Project Funding
Project Justification:
Community & Economic
Development -Traffic Engineering
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Miscellaneous
CIP Grants 162 $250,000 $525,000 - - - -
Measure BB -
Bike & Pedestrian 165 - $175,000 - - - -
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 37 The WLP Boulevard corridor from Hopyard to Santa
Rita Road is identified in the 2018 Pedestrian Bicycle
Master Plan as the highest-priority corridor. This project will be funded from grants from Alameda CTC and Measure BB Bike and Pedestrian funding. This
project is in alignment with the ONE Pleasanton Strategic Plan goal of - Investing in Our Environment to invest in parks, bicycle, and pedestrian infrastructure.
West Las Positas Boulevard
Multimodal Reconstruction -
Owens Drive to Santa Rita Road
Project Number: 26514
Transportation
This project will focus on West Las Positas (WLP) Boulevard between Owens Drive and Santa Rita Road, specifically the design phase for the reconstruction or replacement of portions of the roadway and sidewalk.
It will also include pedestrian, bicycle, and transit
improvements to bring the corridor up to an ‘all users
and abilities’ design standard. This funding will support the project design.
Department:
Project Phase: Design
Total Budget: $1,000,000
Project Description:
CIP Rating Score: 98
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Miscellaneous
CIP Grants 162 - $750,000 - - - -
Measure BB -
Bike & Pedestrian 165 - $250,000 - - - -
Community & Economic
Development -Traffic Engineering
38 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 An update to the 2015 citywide traffic model is required for state and federal compliance and will assist the City in making critical decisions about infrastructure needs and prioritization related to land development, traffic patterns, and land use trends.
This aligns with the ONE Pleasanton Strategic Plan
goals #1, #2, and #3: Investing in Our Environment.
Pleasanton Traffic Model Update
Project Number: 26588
Transportation
This project will engage a consultant to update the
existing 2015 citywide traffic model to current design
standards and modeling techniques, projecting future land use development as well as traffic and travel patterns.
Department:
Project Phase: Study
Total Budget: $230,000
Project Description:
CIP Rating Score: 93
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Gas Tax Fund 160 - $230,000 - - - -
Community & Economic
Development -Traffic Engineering
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 39 This annual project is needed to help keep city
streets in a serviceable, smooth riding condition for
vehicular traffic, and to maintain streets at the current Pavement Condition Index. The funding level is identified from the Pavement Management System
based on the City’s actual cost of treatments.
Annual Street Resurfacing &
Reconstruction
Project Number: FY503
Transportation
This annual project involves resurfacing and reconstructing city streets with a new layer of asphalt. The actual locations each year will be determined after the annual review of the Pavement Management System
(PMS) survey data and field analysis. The project will
include performing base repairs and crack sealing,
replacing existing traffic loop detectors, installing traffic signal cameras, and reconstructing pavement surfaces. Traffic striping will be updated to accommodate new bike lanes in accordance with the Bicycle and
Pedestrian Master Plan.
Department: Public Works - Engineering
Project Phase: Design & Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Core
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26 FY 2026/27
27503
FY 2027/28
28503
FY 2028/29
29503
FY 2029/30
30503
Gas Tax 160 - $1,100,000 $1,165,000 $2,550,000 $2,800,000 Measure BB - Bike &
Pedestrian 165 - $450,000 $375,000 - -
Measure F 166 - $400,000 $380,000 $360,000 $300,000
Measure BB - Streets/ACTC 170 - $1,900,000 $2,000,000 $2,000,000 $2,000,000 Street CIP - General Fund 211 - $1,300,000 $1,200,000 $1,200,000 $1,200,000
40 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 The application of slurry seal treatment seals and
protects street surfaces and extends the useful life
of the existing asphalt pavement.
Annual Slurry Sealing of
Various Streets
Project Number: FY504
Transportation
This annual project provides for the slurrying of various city streets with slurry seal. Actual locations will be determined after reviewing the Pavement Management System (PMS) survey data and field information analysis, which is completed on a biannual basis. Traffic striping will be updated to accommodate new bike lanes, where
possible, in accordance with the Bicycle and Pedestrian Master Plan and Complete Streets Policy.
Department: Public Works - Engineering
Project Phase: Design & Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Core
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26 FY 2026/27
27504
FY 2027/28
28504
FY 2028/29
29504
FY 2029/30
30504
Gas Tax 160 - $1,550,000 $1,600,000 $1,375,000 $1,500,000
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 41 This annual project will enhance safety by improving and maintaining roadway traffic control markings.
Annual Traffic Buttons &
Line Marker Installation
Project Number: FY507
Transportation
This annual project secures contract services to complete street pavement markings and signage revisions.
The work schedule and priorities will be established
annually by the Traffic Engineering and Street Maintenance Program.
Department:
Project Phase: Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Ranking Score: Core
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26
26507
FY 2026/27
27507
FY 2027/28
28507
FY 2028/29
29507
FY 2029/30
30507
Gas Tax 160 $50,000 $52,500 $56,000 $57,500 $60,000
Community & Economic
Development -Traffic Engineering
42 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 This annual project will restore proper street gutter
drainage run-off to protect the pavement from failure
due to saturated subgrade conditions. This project
will also reduce maintenance costs and help keep
city streets safe.
Annual Curb & Gutter
& ADA Ramp
Project Number: FY509
Transportation
This project is part of the annual resurfacing of city
streets, as various sections of curb and gutter must
be replaced along streets scheduled for resurfacing.
The Americans with Disabilities Act (ADA) requires
that all intersection ramp areas be upgraded to
current standards when the street is resurfaced. City
staff determines curb and gutter replacement locations through field inspections.
Department: Public Works - Engineering
Project Phase: Design & Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Core
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26 FY 2026/27
27509
FY 2027/28
28509
FY 2028/29
29509
FY 2029/30
30509
Gas Tax 160 - $900,000 $925,000 $900,000 $950,000
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 43 Continuous sidewalk maintenance is essential to
ensure compliance with the Americans with Disabilities Act (ADA). Failure to address identified irregularities poses legal liability to the City and increases the risk of pedestrian injuries. Proactively maintaining sidewalks supports Pleasanton’s commitment to accessibility, safety, and the overall quality of life for its residents.
Annual Sidewalk & ADA Ramp
Project Number: FY512
Transportation
This project involves dividing the city into inspection zones, where sidewalks are assessed for offsets or irregularities that create potential tripping hazards. A scope of work is developed from these inspections, and each
identified offset is addressed by cutting the surface to make it level with the existing and surrounding pavement. This approach ensures safe and accessible pedestrian pathways throughout the city.
Department: Public Works - O&M
Project Phase: Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Core
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26
26512
FY 2026/27
27512
FY 2027/28
28512
FY 2028/29
29512
FY 2029/30
30512
Gas Tax 160 $150,000 $155,000 $160,000 $165,000 $170,000
44 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Traffic signals are essential for controlling vehicular, bicycle, and pedestrian movements. They assign
the right-of-way to various traffic flows, influence
traffic movement, and help reduce the frequency
and severity of certain types of crashes, particularly
right-angle collisions.
Bi-Annual Traffic Signal
Installations
Project Number: FY532
Transportation
This biannual project will install traffic signals at
high-priority locations identified in the Traffic Signal Priority List. Traffic Engineering will conduct a signal warrant analysis each spring to assess the need for,
and rank, intersections that have been identified as
potential future traffic signal locations.
Department:
Project Phase: Design & Construction
Total Budget: $1,300,000
Project Description:
CIP Rating Score: Core
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 30532
Traffic Impact Fees 212 - - - - $1,300,000
Community & Economic
Development -Traffic Engineering
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 45 This project will provide intersection safety improvements at various locations throughout the city, significantly enhancing traffic safety and intersection level of service. It will protect public health and safety, maintain compliance with regulatory requirements, and update roadway safety infrastructure.
Annual Safety Improvements at
Various Locations
Project Number: FY541
Transportation
This project will provide intersection safety improvements in the upcoming 5-year plan at the following locations: 1. Hopyard Road at North Valley Trails Drive,
2. Hacienda Drive at I-580 Eastbound Off-ramp, 3.
Hopyard Road at I-580 Eastbound ramp, 4. Hopyard
Road at I-580 Westbound Off-ramp, 5. Stoneridge
Drive at I-680 Northbound ramp.
Department:
Project Phase: Design & Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Core
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26
26541
FY 2026/27
27541
FY 2027/28
28541
FY 2028/29
29541
FY 2029/30
30541
Gas Tax 160 $100,000 $105,000 $110,000 $115,000 $120,000 Community & Economic
Development -Traffic Engineering
46 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 This work promotes collaboration between projects
and maximizes the use of funds. Project locations
identified in the Safe Streets for All and will incorporate the recommended improvements.
Annual Bicycle & Pedestrian
Improvements
Project Number: FY543
Transportation
This annual project will install bicycle and pedestrian improvements on streets identified by the Safe Streets
for All (SS4A) Plan or the Traffic Engineer. The scope for each fiscal year will be determined by the final streets improvement list. The shown FY budgets may be combined with other related transportation projects to align with the work shown in the final streets list.
Department:
Project Phase: Design & Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Core
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26
26543
FY 2026/27
27543
FY 2027/28
28543
FY 2028/29
29543
FY 2029/30
30543
Measure BB - Bike
& Pedestrian 165 - $100,000 $505,000 $515,000 $125,000
TDA Grant 172 $42,595 - - - -
Community & Economic
Development -Traffic Engineering
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 47 Parks Projects
Project
Number Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total 26787
Nonfunctional Turf Conversion for
AB1572 $150,000 $950,000 - - - $1,100,000
FY546
Park Trail & Pathway Resurfacing
Program 95,000 119,000 $130,000 $120,000 $220,000 684,000 Grand Total $245,000 $1,069,000 $130,000 $120,000 $220,000 $1,784,000
48 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Project
Number Project Name
Funding
Source
Estimated
Current Budget
Recommended
Adjustments
Recommended
Final Budget Status
01737
General Trail Improvements and
Development 221 $91,747 - $91,747 Planning
222 412,750 - 412,750
06451
Landscape Median Construction &
Renovation 201 5,306 - 5,306 Construction
06716 Lions Wayside Park Improvements 222 1,789,090 - 1,789,090 Construction 16733 Pleas Tennis/Community Park LED Light 222 120,000 ($120,000) - Cancelled 20772 Design Phase 1 of Bernal Comm Farm 201 57,772 (57,772) - Cancelled 20773 Design Inclusionary/All Access Play 222 283,485 - 283,485 Cancelled 21775 Tennis/Community Park Court Lighting 222 250,000 - 250,000 Cancelled 22773 COP Urban Forest Master Plan 129 80,938 - 80,938 Design 23668 Cemetery Storm Repairs & Renovation 222 101,655 (101,655 ) - Completed 24744 Annual Court Resurfacing 221 100,000 - 100,000 Construction 24747 Annual Irrigation Upgrades 221 9,443 - 9,443 Construction 24767 Callippe Preserve Trail Renovations 221 65,500 (10,000) 55,500 Construction 25744 Annual Court Resurfacing 221 500,000 (50,000) 450,000 Construction 25745 Annual Playground Renovations 221 550,000 - 550,000 In Design 25747 Annual Irrigation Upgrades 221 150,000 - 150,000 Construction 25748
Annual Park Trail & Pathway
Resurfacing 221 200,000 - 200,000 Planning
25783 Augustin Bernal Fuels Reduction 162 1,048,900 - 1,048,900 In Design 03728 New Comm Park: Site Acq Reserve 222 3,501,477 - 3,501,477 Reserve 18544 City Street Median Island R&R 211 613,668 - 613,668 Reserve Existing Parks Projects & Reserves
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 49 This project aims to comply with the California State
Assembly Bill 1572 (AB 1572), prohibiting the use of
potable water to irrigate nonfunctional turf. The
goal of AB 1572 is to reduce unnecessary water use
in support of the City’s water conservation efforts
and improve the aesthetic and ecological value of
these areas. AB 1572 takes effect on January 1, 2027.
If non-compliant, the City may be subject to civil
liability and penalties.
Nonfunctional Turf Conversion
for AB 1572
Project Number: 26787
Parks
This project aims to convert approximately 2.4 acres of nonfunctional turf across 11 locations within the city to mulch or drought-tolerant plantings. It includes a design phase to modify irrigation systems and create a sustainable landscape design, followed by a construction phase to implement the turf reduction plan as outlined
in the 2024 Citywide Turf Reduction Study. The project
supports water conservation efforts and improves the
aesthetic and ecological value of these areas.
Department: Public Works - Engineering
Project Phase: Design & Construction
Total Budget: $1,100,000
Project Description:
CIP Rating Score: 92
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Park CIP -
General Fund 221 - - $850,000 - - -
Park Development
Impact Fees 222 - $150,000 $100,000 - - -
50 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Publi
Replacement and/or repair work is necessary to
maintain the sustainability and usability of pathways
and trails for the safe use of residents. These trails
and paths have been identified for repair or replacement in the Trails Master Plan, by residents or staff, or due to storm damage and/or age. This project is
in alignment with the ONE Pleasanton Strategic Plan
goal of - Investing in Our Environment to invest in
parks, bicycle, and pedestrian infrastructure..
Park Trail & Pathway
Resurfacing Program
Project Number: FY546
Parks
This program project involves resurfacing or replacing various city park and property pathways and trails identified as priorities in the Trails Master Plan or by staff. The work will include crack sealing, spot
repairs or new trail surface. The following trails are
scheduled for updates over the next 5 years: 1. Sutter
Gate Park, 2. Marilyn Murphy Kane Trail, 3. Iron Horse
Trail, 4. Arroyo Mocho Trail (east of Santa Rita Rd), 5.
Bernal Community Park oak woodland trail.
Department: Public Works - Engineering
Project Phase: Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: 90
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/2727546
FY 2027/28
28546
FY 2028/29
29546
FY 2029/30
30546
Measure BB - Bike
& Pedestrian 165 - - $30,000 $130,000 $120,000 $220,000 Miscellaneous CIP
- General Fund 201 - $95,000 $89,000 - - -
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 51 Miscellaneous Projects
Project
Number Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total 26489
Deferred Maintenance -
Asset Management Plan $6,221,000 $6,141,000 $6,060,000 $5,976,000 $5,892,000 $30,290,000 Grand Total $6,221,000 $6,141,000 $6,060,000 $5,976,000 $5,892,000 $30,290,000
52 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Project
Number Project Name
Funding
Source
Estimated
Current Budget
Recommended
Adjustments
Recommended
Final Budget Status
16437 ADA Transition Plan 201 $1,000,000 - $1,000,000 In Design 18437 Valley Ave Soundwall Replacement 201 1,237,140 - 1,237,140 In Design 20466 Street Light LED Conversion 211 187,826 - 187,826 Close 22416
Annual Soundwall Repair &
Replacement 201 190,242 - 190,242
Consolidate
to 18437
203 225,000 - 225,000
Consolidate
to 18437
23416
Annual Soundwall Repair &
Replacement 201 100,000 - 100,000
Consolidate
to 18437
24416
Annual Soundwall Repair &
Replacement 201 125,000 - 125,000
Consolidate
to 18437
24460 Asset Management Plan 201 987,911 - 987,911 In Design 24461 Climate Action Plan Implementation 201 1,000,000 - 1,000,000 Planning 162 140,450 - 140,450 -
25416
Annual Soundwall Repair &
Replacement 201 125,000 - 125,000
Consolidate
to 18437
25582
Foothill Highschool Southbound
Left Turn 201 471,578 - 471,578 Completed
06418 CIPR - Capital Imp Prog Reserve 201 1,220,700 - 1,220,700 Reserve 16446
Pioneer Cemetery Master Plan
Implementation 222 667,203 - 667,203 Reserve
18440 Downtown Beautification CIP Reserve 201 160,003 - 160,003 Reserve Existing Miscellaneous Projects & Reserves
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 53 Internal assessment estimated approximately $900
million in CIP and Repair & Replacement needs over
the next decade to maintain the existing infrastructure and other assets in a state of good repair. With the completion of the Asset Management Plan at the
end of 2025, the funding gap for deferred maintenance and critical projects is expected to be significant, as previously identified by staff over two years ago. Aging community assets, such as facilities, if not repaired and replaced, will deteriorate and become
unusable to the community. Aging infrastructure may
also pose significant risks and liabilities for the City.
Deferred Maintenance -
Asset Management Plan
Project Number: 26489
Miscellaneous
Annual allocation for managing and prioritizing maintenance and repairs to aging infrastructure and assets that have been deferred due to limited resources. Insufficient resources have negatively impacted the City’s ability to properly invest in facilities and other infrastructure used to serve the community. Community assets, such as buildings and facilities, parks and medians,
storm drain systems, police and fire vehicles, equipment, information technology, streetlights, traffic signals, streets and roads, sound walls, and traffic poles, are
significantly underfunded. Annual allocation will help to fund critical priority projects.
Department: Public Works
Project Phase: Planning
Total Budget: $30,290,000
Project Description:
CIP Rating Score: N/A
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Miscellaneous CIP
- General Fund 201 - $6,221,000 $6,141,000 $6,060,000 $5,976,000 $5,892,000
54 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 This page has been
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City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 55 Water Projects
Project
Number Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total 24174 City Ground Water Supply - $11,380,000 $10,660,000 - - $22,040,000 26137
Water Meter and AMI System
Replacement $2,020,000 2,100,000 2,180,000 $2,270,000 $2,360,000 10,930,000 29163
SCADA Communications
Network Improvements - - - 1,180,000 - 1,180,000
29191
Foothill Pump Station
Rehabilitation - - - 1,540,000 - 1,540,000
29192 Water Tank 1300 Rehabilitation - - - 2,950,000 - 2,950,000 30194
Grey Eagle Pump Station
Replacement - - - - 2,240,000 2,240,000
FY133
Annual Recycled Water
System Improvements 50,000 50,000 50,000 50,000 50,000 250,000 FY162
Water System Emergency
Power Improvements Program 590,000 610,000 1,660,000 1,600,000 1,660,000 6,120,000 FY183
Annual Water Distribution
System Improvements 550,000 680,000 725,000 5,336,000 1,396,500 8,687,500 FY190
Kilkare and Sunol Fire Flow
Improvements Program - - 4,630,000 4,000,000 5,000,000 13,630,000 FY193
Water Tank Inspections
and Repairs Program - - - 630,000 650,000 1,280,000
Grand Total $3,210,000 $14,820,000 $19,905,000 $19,556,000 $13,356,500 $70,847,500
56 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Project
Number Project Name
Funding
Source
Estimated
Current Budget
Recommended
Adjustments
Recommended
Final Budget Status
21162
Emergency Power Improvements
Utility System 421 $272,000 - $272,000 In Design
22190 Water System Management Plan 421 330,816 ($100,000) 230,816 In Design 22199 Lemoine Bypass Pipeline (DS-5) 421 158,020 (125,000) 33,020 On Hold 23180
Recycled Water System
Management Plan 426 300,000 - 300,000 Planning
23183 Annual Water Distribution System 421 36,208 (36,208) - Completed 24171 Near-Term Water Improvements 421 9,142,231 (650,000) 8,492,231 Construction 24172 Improvements (Bernal) 421 483,150 (233,343) 249,807 Construction 24174 City Ground Water Supply 421 3,997,300 - 3,997,300 Design 24181
Turnout 4 Pre-packaged Booster
Station Procurement 421 1,300,000 - 1,300,000 Construction 24183 Annual Water Distribution System 421 60,739 (60,739) - Completed 25133
Annual Recycled Water Repair &
Replacement 426 50,000 - 50,000 On Hold
25183 Annual Water Distribution System 421 728,000 (150,000) 578,000 In Design Existing Water Projects
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 57 This project is expected to improve the long-term
reliability and cost efficiency of the City’s water supply by recovering the use of the City’s groundwater production quota, reducing the need to purchase
additional water from Zone 7 at the wholesale rate
as a replacement.
City Groundwater Supply Project
Project Number: 24174
Water
This project is funded for FY 2024/25 and FY 2025/26 to study the feasibility and design the installation of new groundwater wells in collaboration with Zone 7, along
with related City transmission piping improvements.
The goal is to recover the use of the City’s groundwater production quota, which is currently unavailable due to PFAS concentrations that has caused existing
City wells to be taken offline. Additional funding is allocated for FY 2026/27 and FY 2027/28 as placeholders for construction if the project is deemed feasible.
Department:
Project Phase: Design & Construction
Total Budget: $26,037,300
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Water Replacement CIP 421 $3,997,300 - $9,263,200 $8,467,600 - - Water Expansion
CIP 422 - - $2,116,800 $2,192,400 - -
Public Works -
Utilities & Environmental Services
58 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 The existing meter system is failing requiring replacement of over 300 meters per week, far above the industry average. The project will improve efficiency of utility billing, help manage water loss, and improve condition of customer meters.
Water Meter and AMI System
Replacement
Project Number: 26137
Water
This project involves replacing the City’s customer
advanced metering infrastructure (AMI), including
customer meters, radio transmission units, and
related software. It is identified in the Water System
Management Plan as project RR-8.
Department:
Project Phase: Design & Construction
Total Budget: $10,930,000
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Water Replacement CIP 421 - $2,020,000 $2,100,000 $2,180,000 $2,270,000 $2,360,000 Public Works -
Utilities & Environmental Services
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 59 This project will enhance the redundancy and
resiliency of the SCADA communications network,
reducing the risk of failures that could impact the
monitoring and control of the water system.
SCADA Communications
Network Improvements
Project Number: 29163
Water
This project involves improving the SCADA (Supervisory Control and Data Acquisition) communications network for the water system. It is identified as project SP-1 in the Water System Management Plan. The project will be completed in three phases: Evaluation,
Design, and Construction. This budget includes funding for all three phases.
Department:
Project Phase: Design & Construction
Total Budget: $1,180,000
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Water Replacement CIP 421 - - - - $1,180,000 -
Public Works -
Utilities & Environmental Services
60 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 The project will reduce operations and maintenance
costs and extend the useful life of Foothill Pump
Station by improving its condition.
Foothill Pump Station
Rehabilitation
Project Number: 29191
Water
This project involves rehabilitating the Foothill Pump
Station, including pumps, valves, electrical equipment, instrumentation and controllers, and security improvements. The project will be divided into three
phases: predesign, final design, and construction, all
of which are included in this budget. This project was
identified in the City’s Water System Management
Plan as project RR-3.
Department:
Project Phase: Design & Construction
Total Budget: $1,540,000
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Water Replacement CIP 421 - - - - $1,540,000 -
Public Works -
Utilities & Environmental Services
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 61 This project will reduce operations and maintenance costs and extend the useful life of Tank 1300 by improving its condition. The existing coating
system and cathodic protections systems are
reaching end of their useful life.
Water Tank 1300 Rehabilitation
Project Number: 29192
Water
This project aims to rehabilitate Tank 1300 by performing corrosion repairs and applying new coating systems. It was identified in the City’s Water System
Management Plan as project RR-1.
Department:
Project Phase: Maintenance
Total Budget: $2,950,000
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Water Replacement CIP 421 - - - - $2,950,000 -
Public Works -
Utilities & Environmental Services
62 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 This project will improve service levels and reduce
operations and maintenance costs for the City’s
water distribution system by enhancing fire flow
capacity, customer service capacity, and the condition of aging assets. The existing pump station is reaching the end of its useful life and is in need of
replacement.
Grey Eagle Pump Station
Replacement
Project Number: 30194
Water
The Grey Eagle pipeline and pump station transfers
water from the Grey Eagle Pressure Zone to the Kottinger Pressure Zone, as outlined in the City’s Water System Management Plan (WSMP). The waterline connection
and pump station improvements were recommended
in the WSMP as necessary improvements to maintain
system reliability and efficiency.
Department:
Project Phase: Design & Construction
Total Budget: $2,240,000
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Water Replacement CIP 421 - - - - - $2,240,000
Public Works -
Utilities & Environmental Services
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 63 This project will improve service levels and reduce
operations and maintenance costs for the City’s
recycled water distribution system by enhancing
flow capacity, customer service capacity, and the
condition of aging assets.
Annual Recycled Water
System Improvements
Project Number: FY133
Water
This annual project includes improvements to recycled water distribution piping and appurtenances, such as mains, valves and service laterals. The improvements will be based on recommendations from the City’s Recycled Water System Management Plan
white paper and coordinated with future street resurfacing locations.
Department:
Project Phase: Design & Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26
26133
FY 2026/27
27133
FY 2027/28
28133
FY 2028/29
29133
FY 2029/30
30133
Recycled Water CIP 426 $50,000 $50,000 $50,000 $50,000 $50,000 Public Works -
Utilities & Environmental Services
64 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 PG&E has implemented a Public Safety Power Shutoff program to reduce the threat of wildfires that results in an increased risk of simultaneous utility
power outages at the City’s water pump stations.
This project improves the reliability of the City’s
water system emergency power systems to keep
pump stations online during utility power outages
and will comply with air quality regulations.
Water System Emergency Power
Improvements Program
Project Number: FY162
Water
This project involves designing and constructing improvements to the emergency power systems that support the City’s water pump station facilities. The
goal is to enhance reliability and ensure continued
operation during utility power outages. This project is included in the City’s Water System Management Plan
as project SP-2.
Department:
Project Phase: Design & Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26
26162
FY 2026/27
27162
FY 2027/28
28162
FY 2028/29
29162
FY 2029/30
30162
Water Replacement CIP 421 $590,000 $610,000 $1,660,000 $1,600,000 $1,660,000 Public Works -
Utilities & Environmental Services
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 65 This project will improve service levels and reduce
operations and maintenance costs for the City’s
water distribution system by enhancing fire flow
capacity, customer service capacity, and condition
of aging assets.
Annual Water Distribution
System Improvements
Project Number: FY183
Water
This annual project includes replacing and/or installing water mains (including at bridge and culvert crossings), valves, services, and other needed appurtenances. Locations will be determined from a priority list managed by the Public Works Department and in coordination with future street resurfacing locations.
Department:
Public Works -
Utilities & Environmental Services
Project Phase: Design & Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26
26183
FY 2026/27
27183
FY 2027/28
28183
FY 2028/29
29183
FY 2029/30
30183
Water Replacement CIP 421 $550,000 $680,000 $710,000 $5,320,000 $1,380,000 Water Expansion CIP 422 - - $15,000 $16,000 $16,500
66 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 This project will improve service levels and reduce
operating and maintenance costs for the City’s
water distribution system by enhancing fire flow
capacity, customer service capacity, and the condition of aging assets.
Kilkare and Sunol Fire Flow
Improvements Program
Project Number: FY190
Water
The Kilkare–Sunol fire flow improvements were identified in the Water Distribution System Capacity Master Plan (WDSCMP) as having flow capacity deficiencies
exceeding 30 percent, resulting in a Priority A classification for implementation. These improvements will be guided by recommendations from both the WDSCMP
and the City’s Water System Management Plan.
Department:
Project Phase: Design & Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26 FY 2026/27 FY 2027/28 28190
FY 2028/29
29190
FY 2029/30
30190
Water Replacement CIP 421 - - $4,630,000 $4,000,000 $5,000,000 Public Works -
Utilities & Environmental Services
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 67 This project will extend the useful life of the City’s
water tanks by performing inspections to identify
rehabilitation needs. The implementation of these
recommendations will be incorporated into subsequent facility rehabilitation projects.
Water Tank Inspections and
Repairs Program
Project Number: FY193
Water
This project will involve performing structural inspections of the City’s 21 water tanks to assess their condition and recommend any necessary rehabilitation to extend their useful life. This project is included in the City’s Water System Management Plan as project RR-4.
Department:
Project Phase: Maintenance
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 29193
FY 2029/30
30193
Water Replacement CIP 421 - - - $630,000 $650,000
Public Works -
Utilities & Environmental Services
68 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 This page has been
intentionally left blank.
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 69 Sewer Projects
Project
Number Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total 26295
Sunol Boulevard Sewer
Improvements $1,600,000 - - - - $1,600,000
27296
Amberwood Siphon
Replacement - $270,000 $3,060,000 - - 3,330,000
28297
Sewer Lift Station 5
Replacement - - 810,000 $5,310,000 - 6,120,000
28298
Sewer Pipe Improvements
-Kamp & Stoneridge Drive - - 280,000 2,120,000 - 2,400,000 29299
Bernal Avenue Sewer
Improvements - Tawny Drive
to Nevada Street - - - 400,000 $2,930,000 3,330,000
29200
Sewer Pipe Upsize Improvements - Stoneridge Mall - - - 470,000 3,190,000 3,660,000 30201
Sewer Lift Station Improvements at LS 4, 12, 13 and 15 - - - - 940,000 940,000 30202
Sewer Lift Station Improvements at LS 2, 7 and 8 - - - - 1,420,000 1,420,000 FY278
Annual Sewer Inspection
System Improvements 730,000 750,000 2,300,000 3,580,000 3,900,000 11,260,000 FY250
Sewer System Emergency
Power Improvements Program 1,420,000 440,000 1,150,000 1,190,000 1,230,000 5,430,000 Grand Total $3,750,000 $1,460,000 $7,600,000 $13,070,000 $13,610,000 $39,490,000
70 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Project
Number Project Name
Funding
Source
Estimated
Current Budget
Recommended
Adjustments
Recommended
Final Budget Status
16245 Sewer Capacity Evaluation 431 $212,597 - $212,597 In Design 432 39,609 - 39,609
21162
Emergency Power Improvements
Utility System 431 750,000 - 750,000 In Design
22289 Sewer System Management Plan 431 507,823 ($300,000) 207,823 In Design 23278
Annual Sewer Collection System
Improvements 431 1,392,500 (1,392,500) - Cancelled
24265
Sewer Station S-14 Electrical
Improvements 431 650,638 - 650,638 Construction
25278
Annual Sewer Collection System
Improvements 431 1,500,000 (1,500,000) - Cancelled
Existing Sewer Projects
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 71 The 2024 Sanitary Sewer System Capacity Evaluation Report identified potential sewer overflows due to insufficient capacity of the existing sewer main.
The project will increase capacity of the system.
Sunol Boulevard Sewer
Improvements
Project Number: 26295
Sewer
This project upsizes 1,400 linear feet of 10-inch sewer pipe with 15-inch sewer pipe along Sunol Boulevard
from Junipero Street to manholes near Monaco Drive.
Department:
Project Phase: Design & Construction
Total Budget: $1,600,000
Project Description:
Funding Source: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Sewer Replacement CIP 431 - $1,600,000 - - - -
Public Works -
Utilities & Environmental Services
72 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 The existing Amberwood Siphon is being impacted
due to erosion of the Arroyo Mocho that has exposed the sewer line crossing within the channel.
The project will install a new sewer crossing below
the proposed future channel bottom protecting it
from any future impacts from channel erosion.
Amberwood Siphon Replacement
Project Number: 27296
Sewer
This project will replace the existing Amberwood Siphon that conveys sewer below the Arroyo Mocho near Sutter Gate Park.
Department:
Project Phase: Design & Construction
Total Budget: $3,330,000
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Sewer Replacement CIP 431 - - $270,000 $3,060,000 - -
Public Works -
Utilities & Environmental Services
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 73 Condition assessments found that lift station #5
has reached the end of its useful life and needs to
replaced immediately because of imminent failure
or potential safety hazards. An additional siphon is
needed to provide a secondary line in conformance
with current standards.
Sewer Lift Station 5 Replacement
Project Number: 28297
Sewer
This project replaces existing sanitary sewer lift station #5 and updates to current standards. The project will
also include the addition of a sanitary sewer siphon
under the Arroyo De La Laguna that feeds the lift
station.
Department:
Project Phase: Design & Construction
Total Budget: $6,120,000
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Sewer Replacement CIP 431 - - - $810,000 $5,310,000 -
Public Works -
Utilities & Environmental Services
74 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 The 2024 Sanitary Sewer System Capacity Evaluation
Report identified potential sewer overflows due to insufficent capacity of the existing sewer main and for future conditions associated with the development
from housing site updates and East Pleasanton.
Sewer Pipe Improvements -
Kamp Drive & Stoneridge Drive
Project Number: 28298
Sewer
This project upsizes existing 1,200 linear foot of 10-inch sewer pipe in Kamp Drive and Stoneridge Drive to 12-inch.
Department:
Project Phase: Design & Construction
Total Budget: $2,400,000
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Sewer Replacement CIP 431 - - - $280,000 $2,120,000 -
Public Works -
Utilities & Environmental Services
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 75 The 2024 Sanitary Sewer System Capacity Evaluation Report identified potential sewer overflows due to insufficient capacity of the existing sewer main.
The project will increase capacity of the system.
Bernal Avenue Sewer Improvements -
Tawny Drive to Nevada Street
Project Number: 29299
Sewer
This project upsizes 3,000 linear feet of 10-inch sewer pipe to 12-inch in Bernal Avenue, and will connect the
sewer system in Bernal Avenue to the existing 18-inch
sewer in Nevada Street via a new 12 inch pipe bridge
crossing over Arroyo Del Valle.
Department:
Project Phase: Design & Construction
Total Budget: $3,330,000
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Sewer Replacement CIP 431 - - - - $400,000 $2,930,000
Public Works -
Utilities & Environmental Services
76 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 The 2024 Sanitary Sewer System Capacity Evaluation Report identified potential sewer overflows due to insufficient capacity of the existing sewer main
and for future conditions associated with the development for Housing Element Rezone Site 2 at the Stoneridge Shopping Center.
Sewer Pipe Improvements -
Stoneridge Mall
Project Number: 29200
Sewer
This project upsizes 1,300 linear foot of 10-inch sewer pipelines to 12-inch in Stoneridge Mall Road and Stonedale Drive.
Department:
Project Phase: Design & Construction
Total Budget: $3,660,000
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Sewer Replacement CIP 431 - - - - $470,000 $3,190,000
Public Works -
Utilities & Environmental Services
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 77 Condition assessments at all City lift stations were
performed by Woodard & Curran. Stations #4, #12,
#13, and #15 were found to have “Criticality 3: repair/ replace immediately because of imminent failure or
potential safety hazard” ratings for electrical, mechanical, and/or health & safety categories.
Sewer Lift Station Improvements
at LS 4, 12, 13 and 15
Project Number: 30201
Sewer
This project addresses necessary improvements at four
of the City’s sewer lift stations: #4, #12, #13, and #15 to bring the stations up to current standards. The projects includes electrical upgrades, ventilation and mechanical system replacements.
Department:
Project Phase: Design & Construction
Total Budget: $940,000
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Sewer Replacement CIP 431 - - - - - $940,000
Public Works -
Utilities & Environmental Services
78 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Condition assessments at all City lift stations were
performed by Woodard & Curran. Stations #2, #7,
and #8 were found to have a “Criticality 3: repair/
replace immediately because of imminent failure
or potential safety hazard” rating in the electrical,
mechanical, and/or health & safety categories.
Sewer Lift Station Improvements
at LS 2, 7 and 8
Project Number: 30202
Sewer
This project addresses necessary improvements at three
of the City’s sewer lift stations: #2, #7 & #8 to bring the stations up to current standards. The projects includes electrical upgrades, ventilation and mechanical system
replacements.
Department:
Project Phase: Design & Construction
Total Budget: $1,420,000
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Sewer Replacement CIP 431 - - - - - $1,420,000
Public Works -
Utilities & Environmental Services
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 79 These projects were identified as high-risk,
high-priority projects in the sewer condition assessment and manhole condition assessment studies conducted by Woodard & Curran (2024).
Annual Sewer Inspection
System Improvements
Project Number: FY278
Sewer
This covers high-priority projects identified in the
sewer condition assessment and manhole condition
assessment studies and includes pipe replacements,
pipe lining, pipe point repairs, and manhole repairs.
Projects for each year of the program have been coordinated with the street resurfacing project.
Department:
Project Phase: Design & Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26
26278
FY 2026/27
27278
FY 2027/28
28278
FY 2028/29
29278
FY 2029/30
30278
Sewer Replacement CIP 431 $730,000 $750,000 $2,300,000 $3,580,000 $3,900,000 Public Works -
Utilities & Environmental Services
80 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 PG&E has implemented a Public Safety Power Shutoff program to reduce the threat of wildfires, which has resulted in an increased risk of simultaneous
utility power outages at the City’s sewer pump
stations. This project improves the reliability of the
City’s sewer pump stations during utility power outages, while ensuring compliance with upcoming air quality regulations.
Sewer System Emergency Power
Improvements Program
Project Number: FY250
Sewer
This project is to design and construct improvements
to the emergency power systems for the sewer system
that support the City’s sewer pump station facilities,
with the goal of improving the reliability of continued operation during utility power outages. This project was included in the City’s Sewer System Management Plan.
Department:
Project Phase: Design & Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Enterprise
Project Funding
Project Justification:
Fund Description Fund # Current
Funding
FY 2025/26
26250
FY 2026/27
27250
FY 2027/28
28250
FY 2028/29
29250
FY 2029/30
30250
Sewer Replacement CIP 431 - $1,420,000 $440,000 $1,150,000 $1,190,000 $1,230,000 Public Works -
Utilities & Environmental Services
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 81 Storm Drain Projects
Project
Number Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total 25659
Storm Water System
Management Plan $1,700,000 - - - - $1,700,000
FY615
Annual Storm Water Repair
and Replacement 200,000 $200,000 $200,000 $200,000 $200,000 1,000,000 Grand Total $1,900,000 $200,000 $200,000 $200,000 $200,000 $2,700,000
82 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Project
Number Project Name
Funding
Source
Estimated
Current Budget
Recommended
Adjustments
Recommended
Final Budget Status
22484
Sassafras Court Storm Drain Interceptor 441 $596,875 - $596,875 Design 23415 Annual Storm Repair/ Replacement 441 152,965 ($152,965) - Completed 23443
Annual Installation of Trash Capture
Devices 441 25,000 - 25,000 On Hold
24415 Annual Storm Repair/ Replacement 441 56,424 (44,779) 11,645 Completed 24662
Sycamore Creek Storm Drain Improvements 441 4,978,939 - 4,978,939 Design 24676
East Vineyard Detention Pond Outfall
Repair 441 607,195 - 607,195 Design
24677
Oak Tree Farm Outfall and Channel
Stabilization 441 628,492 - 628,492 Design
24678
Augustin Bernal Trail Creek Crossing
Culverts and Retaining Wall 441 1,293,890 - 1,293,890 Design 24679
Park Pathway Restoration (Alviso
Adobe & Tawny Parks) 441 150,000 - 150,000 Design
24680
Sycamore Creek Storm Improvements (Sycamore Road) 441 5,000,000 (4,000,000) 1,000,000 Design 25415
Annual Storm Repair/ Replacement
(Puri Court) 441 1,750,000 - 1,750,000 Construction
25659
Storm Water System Management
Plan 441 500,000 - 500,000 Planning
25666
Storm Drain Lift Station
Improvements 441 40,000 (40,000) - Cancelled
Existing Storm Drain Projects
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 83 PW
This project will develop a management plan that
includes short- and long-term recommended projects, programs, and actions to ensure the storm drain system continues to meet desired service
levels. The plan will develop the financial plan to
become self supporting. This will be the first plan
prepared for the City’s storm drain system and
aligns with the ONE Pleasanton Strategic Plan goal
of – Investing in Our Environment to develop the
Storm Water Master Plan.
Storm Water System
Management Plan
Project Number: 25659
Storm Drain
The Storm Water System Management Plan will be an
integrative planning document for the overall management of the City’s storm water system. The plan will establish objectives and performance measures
for collection and conveyance, capacity, infrastructure renewal and upgrades, and operations and maintenance. It will also identify the necessary maintenance and replacement costs. The storm drain system will be
evaluated against these objectives and performance
measures to identify areas requiring improvement.
Department:
Project Phase: Planning
Total Budget: $2,200,000
Project Description:
CIP Rating Score: Existing CIP
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Storm Drain
Replacement and
Renovation
441 $500,000 $1,700,000 - - - -
Public Works -
Utilities & Environmental Services
84 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 There is an ongoing need to perform repairs or remedial measures to prevent or limit storm damage and improve storm water quality. Recent elevated
rain runoff flows have significantly impacted the
storm water system infrastructure.
Annual Storm Repair &
Replacement
Project Number: FY615
Storm Drain
This project will provide erosion control and other
storm protection measures for City-owned property.
The project includes the repair, replacement, or installation of new storm facilities to protect property from damage associated with storm activity, improve
storm water quality, and reduce the work required
to safely remove accumulated debris and silt. Work
would either be performed by City staff or through
contracted services.
Department:
Project Phase: Design & Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Core
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26
26615
FY 2026/27
27615
FY 2027/28
28615
FY 2028/29
29615
FY 2029/30
30615
Storm Drain Replacement
and Renovation 441 $200,000 $200,000 $200,000 $200,000 $200,000 Public Works -
Utilities & Environmental Services
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 85 Facilities Projects
Project
Number Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total 26386 Library Fire Alarm Upgrade $750,000 - - - - $750,000 FY349 Annual Facility Replacement 515,000 $325,000 $265,000 $525,000 $525,000 2,155,000 Grand Total $1,265,000 $325,000 $265,000 $525,000 $525,000 $2,905,000
86 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 Project
Number Project Name
Funding
Source
Estimated
Current Budget
Recommended
Adjustments
Recommended
Final Budget Status
17423 Design/Construct New Fire Station 3 201 $150,000 - $150,000 In Design 17753 Century House Facility Assessment 201 195,043 - 195,043 Cancelled 18424 Design Fire Station 2 Improvements 203 473,625 ($473,625) - Cancelled 22482 Police Department Training Facility 203 550,000 (550,000) - Cancelled 22781
Design of Aquatic Center 50-Meter
Pool Deck 203 37,106 (37,106) - Cancelled
23457
OSC Fire Alarm and Notification
System 201 1,100,000 - 1,100,000 In Design
23479
Design of Police Dept. Secured
Police & Staff Vehicular Parking 201 200,000 - 200,000 Planning 23493 Library Lighting 201 533,418 (184,678) 348,740 Completed 23494 Design of City Administration 203 51,000 (51,000) - Cancelled 24374
Motor Control Center Replacement
and Temporary Power for Ken
Mercer Sports Park 203 24,063 - 24,063 Construction
221 151,014 - 151,014 Construction
18725
Alviso Adobe Strategic Plan
Implementation 203 650,000 - 650,000 Reserve
222 117,154 - 117,154 -
Existing Facilities Projects & Reserve
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 87 The Library’s fire alarm system, installed in the
1980s, has exceeded its operational life and has
become increasingly unreliable, due to obsolete
parts and technology. This poses a safety risk to
patrons and staff. Upgrading the system is essential to ensure safety, enhance emergency response, and maintain compliance with current codes and
standards. This project supports the ONE Pleasanton Strategic Plan goal of - Investing in Our Environment to invest Public Facilities.
Library Fire Alarm Upgrade
Project Number: 26386
Facilities
This project involves upgrading the fire alarm system
at the Library. The system will remain active throughout construction. The scope of work includes replacing the
existing control panel and wiring to support the upgraded system; upgrading detection and notification devices; and increasing the battery backup capacity to
meet code requirements during power outages. Additionally, the scope includes modifying the fire backflow assembly to bring it up to current standards.
Department: Library & Recreation
Project Phase: Design & Construction
Total Budget: $750,000
Project Description:
CIP Rating Score: 96
Project Funding
Project Justification:
Fund Description Fund # Current
Funding FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Miscellaneous CIP
- General Fund 201 - $580,000 - - - -
Public Facilities
Impact Fees 203 - $170,000 - - - -
88 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 The replacement of roofs, insulation, and HVAC systems is essential to maintaining the safety, functionality, and energy efficiency of City-owned facilities.
Aging infrastructure leads to higher maintenance
costs and decreased occupant comfort. By addressing 9 HVAC units and 9 roof systems, this project will improve building performance, reduce operational
disruptions, and enhance long-term sustainability,
aligning with the City’s commitment to maintaining
reliable public facilities.
Annual Facility Replacement
Project Number: FY349
Facilities
This project involves the study of City-owned facility
space use and the replacement of aging roofs, insulation, and HVAC systems across multiple City-owned facilities. FY 2025/26: Facility & Space Use Master Plan.
FY 2026/27: Replacement of the Gingerbread Preschool
Roof & 8-HVAC units. FY 2027/28: Replacement of the
Senior Center roof system. FY 2028/29: Replacement of
the Senior Center HVAC system. FY 2029/30: Replacement of the roof insulation at the Water & Sewer buildings and the Streets and Parks buildings (four Public Works buildings in total)
Department: Public Works - O&M
Project Phase: Design & Construction
Total Budget: N/A - Annual Project
Project Description:
CIP Rating Score: Core
Project Funding
Project Justification:
Fund Description Fund # FY 2025/26
26349
FY 2026/27
27349
FY 2027/28
28349
FY 2028/29
29349
FY 2029/30
30349
Miscellaneous CIP -
General Fund 201 $398,000 $251,000 $205,000 $406,000 $406,000 Public Facilities Impact Fees 203 $117,000 $74,000 $60,000 $119,000 $119,000
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 89 This page has been
intentionally left blank.
90 City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 This page has been
intentionally left blank.
City of Pleasanton Capital Improvement Program • FY 2025/26 - FY 2029/30 91 Project Names Project Costs (FY24/25)
Facilities
City-Wide Access Control System Replacement and
Security Integration $4,200,000
Fire Station 2 Emergency Generator Replacement $320,000 EOC and PW DOC/ Training Center $575,000
Fire Station 2 Kitchen Remodel $350,000
LPFD Fire Station 2 Building Exterior Repairs $200,000
LPFD Training Center Remodel $460,000
LPFD Fire Station 2 Bunks and Bathrooms Remodel $2,000,000 LPFD Fire Station 2 Sitework Renovation $410,000
LPFD Fire Station 4 Shower Remodel $210,000
PD Vehicle Storage $310,000
Century House Master Plan* $4,500,000
Fire Station 3 Parking Lot Gate $260,000
Miscellaneous
Railroad Quiet Zone $175,000
Parks
Aquatic Center 50m pool renovation $5,200,000
Playground Renovations Program $1,065,000
Bernal Park Synthetic Turf Replacement $6,100,000
All Abilities Playground $136,515
Irrigation Upgrades Program $600,000
Court Resurfacing Program $1,920,000
Pleasanton Skatepark* $7,775,000
Total $36,766,515
*Defunded based on City Council’s recommendation on March 19, 2024, to redirect funds for 2023 winter storm repairs.
Appendix A
List of unfunded Capital Improvement Projects submitted for FY25/26 through FY29/30
5/13/2025
1 Fiscal Years 2025/26 and 2026/27
Proposed Budget Presentation
May 20, 2025
Agenda
1. City Manager’s Opening Remarks
2. Operating Budget Overview
3. Community Engagement
4. Budget Balancing Strategies
5. Long-Range Financial Forecast
6. Capital Improvement Program Overview
7. Next Steps 2
1 2
5/13/2025
2 City Manager’s Opening Remarks
The budget reflects: • Key City Council budget principles and strategic initiatives • Exceptional level of community engagement • Budget balancing strategies to maintain core services and fiscal stability • Funding to address deferred maintenance needs and the Asset Management Plan • Anticipated debt proceeds for critical water and sewer capital investments • Path to develop a comprehensive long-term Financial Sustainability Plan 3 Budget Principles • Long-Term Fiscal Stability – Utilize proactive approaches to manage the budget and reduce reliance on one-time funding
• Protect Core and Essential Services – Prioritize essential over non-essential programs and services
• Community Engagement and Equity – Promote strong community engagement • Prioritize Infrastructure – Maintain and improve core infrastructure 4 3
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3 Budget Priorities
Maintaining Core
Services
Investing in Our
Future/Infrastructure
Implementing
Strategic Econ. Dev.
Initiatives 5 Community Engagement • Received 700+ online responses • Interacted directly with nearly 200
community members
• Held four BAC meetings with many
community members in attendance
6 Budget
Town Hall
Pop-up
Event
Budget
Advisory
Committee
Online Tool
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4 Economic Outlook
• Rising economic uncertainty due to tariffs and
other U.S. policies • Increased risks of higher unemployment and higher inflation
• Significant decline in consumer sentiment • Volatility in the stock market 7 Citywide Operating Expenditures • Total operating expenditures exclude transfers
• Services and programs will be delivered by approximately 430 employees 8 7
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5 General Fund Revenues and
Expenditures
General Fund Budget Overview
• Modest revenue growth
• Significant cost reductions
• Use of one-time money
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6 Budget Balancing Strategies
The General Fund budget is balanced with significant cost reductions and the use of one-time funds: • $7.0 million in annual cost reductions to protect core services • $0.3 million from COVID Reserve for year one (the remaining balance) • $3.0 million from Capital Reserve over two years • $4.0 million from pension trust funds over two years
• $1.8 million from retiree medical/OPEB trust funds over two years ($2.1 million for all funds) 11 General Fund Revenue and
Expenditure Comparison
Totals include transfers in and transfers out
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7 General Fund Revenues by Major Category -
$162.9M
13 2.6% increase over FY 2024/25
General Fund Expenditures by Category -
$165.2M
14 3.9% increase over FY 2024/25
Personnel costs account for
72.0% of budget excluding
transfers out
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8 General Fund Expenditures by Program
Excludes transfers to other funds
15 Public Safety: 45% of budget
Service Level Changes –
Proposed Cost Reductions
• Per Council direction from the April 10, 2025 special meeting • The Fire Marshal position will be removed from the final budget and the freezing of the Emergency Preparedness Manager will be modified to add back a part-time position at a reduced cost. 16
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9 Proposed Department Restructure –
Key Personnel Changes
• Consolidate the Economic Development Division with the Community Development Department
To enhance focus on economic development activities, including review of City permitting processes
Added an Economic and Business Development Manager to support Council strategic initiatives
Cost impact: approximately $400,000 annually
• Added a Management Analyst in HR to continue handling expanded labor relations responsibilities that are currently managed through a limited-term position
No cost impact 17 Key General Fund Transfers In/Out
Contributions address deferred maintenance needs and the Asset Management Plan
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10 Projected General Fund Reserves
• Reserve Target: 20.0%
• Range: 16.7% - 25.0%
• Projected Reserve: 20.0% for FY 2025/26 and 19.0% for FY 2026/27 19General Fund Long-Range Financial Forecast -
Key Assumptions
Revenues
• Property tax: 3.7% to 4.1%
• Sales tax*: 2.0% to 4.1%
* FY26 is the first full year of revenue recognition
from Costco
Expenditures
• Personnel costs*: 1.3% to 4.8%
• Non-personnel costs*: 4.0% to 4.7%; -
2.9% for FY 2025/26 • Capital contribution: $3.3 million to $5.3 million; $1.0 million for FY 2025/26
• Deferred maintenance: $5.6 million to
$6.3 million
* Pension and liability insurance costs are anticipated to remain significant in future years 20
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11 General Fund Long-Range Financial Forecast (Cont.)
Expenditures are still projected to outpace revenues even with significant cost reductions directed by the Council on April 10
21 Key Enterprise Fund Revenues
and Expenditures
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12 Overview
• Water and Sewer Funds: Lack of funding for
capital investments
• Golf Fund: Self-supporting at this point, but
accruing significant capital needs
• Storm Drain Fund: Heavy reliance on the
General Fund – needs its own funding source
• Cemetery: Operating at a deficit – ongoing
General Fund subsidy; revenue and cost
savings options for City Council consideration
in June/July 2025 23 Water and Recycled Water Operating Fund • Rate increases are necessary to restore and maintain reserve and support operations and infrastructure investment
Only $0.1 million in transfer to the Water Capital Fund in FY 2025/26 • Add three positions in FY 2025/26 (an Associate Engineer and two Utilities Operators) and five positions in FY 2026/27 (two Associate Engineers and three Utilities Operators) - all necessary to maintain and operate the water program 24 23
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13 Sewer Operating Fund
• Rate increases are necessary to support operations, meet compliance requirements, and invest in infrastructure
• Add an Environmental Specialist and two Utility Operators starting in FY 2025/26 • The projected deficits are expected to be eliminated with rate increases 25 Cemetery Fund
$170,000 in General Fund subsidy for FY 2025/26 and $50,000 for FY 2026/27 26 25
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14 Thank You!
27 Capital Improvement Program
Overview
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15 Capital Improvement Program Overview
• Five Year Capital Improvement Plan – Fiscal Years 2025/26 through 2029/30 • Changed from 4 years to 5 years
• CIP Cycle • Start of new cycle with call for new projects every two years • Mid-Term updates May/June 2026
• Capital Improvement Program
Process and Prioritization
29Capital Improvement Program Overview (Cont.) • CIP Five-year Total Budget $221.7 million over five years • Capital Budget first two years – $86 million
• $54 million Fiscal Year 2025/26 (includes $18.1 million in reserve projects) • $32 million Fiscal Year 202627 • General Fund Support - $15.5 million CIP, $30.3 million Deferred Maintenance • $1 million CIP and $6.2 million Deferred Maintenance Fiscal Year 2025/26 • $3.25 million CIP and $6.1 million Deferred Maintenance Fiscal Year 2026/27 • $63.6 million in starting fund balance
• $3.5 million General Fund Reserve Projects
• $13.5 million General Funds
• $46.6 million Restricted Funds
• $38.8 million in ending fund balance
• $17.2 Restricted Funds 30
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16 Available Resources
• Available resources include restricted and unrestricted revenues • Includes funding for deferred maintenance and the Asset Management Plan • Assumes water and sewer rate increase to fund capital projects through debt issuance
31 *Represents the projected unappropriated amount at the beginning of each fiscal year FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total Beginning Fund Balance* $63,617,246 $29,671,137 $33,684,603 $33,194,307 $35,349,818 $63,617,246 Revenue Category
Gas Tax, Measure BB & Highway Funds $7,068,556 $7,211,994 $7,359,368 $7,464,875 $7,594,005 $36,698,798 City Development Fees - - - 500,000 815,000 1,315,000 Grants and Miscellaneous 2,571,355 1,253,760 1,253,760 1,253,760 1,253,760 7,586,395 Annual General Fund Contribution 7,221,000 9,391,000 9,560,000 9,726,000 9,892,000 45,790,000 Transfer In from Other Funds 1,534,894 2,034,894 10,259,894 9,709,894 15,534,894 39,074,470 Interest Earnings 2,057,889 2,432,100 2,019,900 2,019,900 2,019,900 10,549,689 Anticipated Debt Proceeds 853,555 15,000,000 13,000,000 21,500,000 12,000,000 62,353,555 Total Resources $84,924,495 $66,994,885 $77,137,525 $85,368,736 $84,459,377 $266,985,153 32 31
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17 33 Expenditures and Reserves
• $221.7 million in capital investments over a five-year period • $64.2 million in anticipated debt proceeds to fund Sewer and Water projects
34 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total Expenditures and Reserves
Facilities $2,032,154 $325,000 $265,000 $525,000 $525,000 $3,672,154 Parks 3,746,477 1,069,000 130,000 120,000 220,000 5,285,477 Sewer 3,750,000 1,460,000 7,600,000 13,070,000 13,610,000 39,490,000 Storm Drain 1,900,000 200,000 200,000 200,000 200,000 2,700,000 Transportation and Streets 31,087,735 8,012,500 8,475,000 9,237,500 10,525,000 67,337,735 Water 3,210,000 14,820,000 19,905,000 19,556,000 13,356,500 70,847,500 Miscellaneous 8,268,906 6,141,000 6,060,000 5,976,000 5,892,000 32,337,906 Capital Expenditures $53,995,272 $32,027,500 $42,635,000 $48,684,500 $44,328,500 $221,670,772 Other Expenditures $1,258,086 $1,282,782 $1,308,218 $1,334,418 $1,361,403 $6,544,907 Total Expenditures $55,253,358 $33,310,282 $43,943,218 $50,018,918 $45,689,903 $228,215,679 Projected Ending Fund Balance $29,671,137 $33,684,603 $33,194,307 $35,349,818 $38,769,474 $38,769,474 33 34
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18 Transportation and Streets Projects
35 Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total West Las Positas Boulevard Multimodal Reconstruction - Willow Road to Stoneridge Drive $17,020,000 - - - - $17,020,000 I-580 Overcrossing Bicycle & Pedestrian
Improvements - 700,000 - - - 700,000 West Las Positas Boulevard Multimodal Reconstruction - Owens Drive to Santa Rita Road - 1,000,000 - - - 1,000,000 Pleasanton Traffic Model Update 230,000 - - - - 230,000 Annual Street Resurfacing and Reconstruction $5,150,000 $5,120,000 $6,110,000 $6,300,000 22,680,000 - Annual Slurry Sealing Of Various Streets - 1,550,000 1,600,000 1,375,000 1,500,000 6,025,000 Annual Traffic Buttons & Line Marker Installation 50,000 52,500 55,000 57,500 60,000 275,000 Annual Curb & Gutter and ADA Ramp - 900,000 925,000 900,000 950,000 3,675,000 Annual Sidewalk and ADA Ramp 150,000 155,000 160,000 165,000 170,000 800,000 Bi-Annual Traffic Signal Installations - - - - 1,300,000 1,300,000 Annual Safety Improvements at Various Locations 100,000 105,000 110,000 115,000 120,000 550,000 Annual Bicycle & Pedestrian Improvements 42,595 100,000 505,000 515,000 125,000 1,287,595 Grand Total 19,292,595 $ 8,012,500 $ 8,475,000 $ 9,237,500 $ 10,525,000 $ 55,542,595 $ Grant
Grant
TIFF
Measure BB
Transportation and Streets Projects
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19 Transportation and Streets Projects
37 • Streets Program $32.4 million
• $3.7 million - Annual Curb & Gutter and ADA Ramp • $6.0 million - Annual Slurry Sealing of Various Streets • $22.7 million – Annual Street Resurfacing & Reconstruction – includes PGS Funding Annual Curb and Gutter and ADA Ramp Annual Slurry Seal Annual Street Resurfacing Parks Projects
38 Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total Nonfunctional Turf Conversion for AB 1572 $150,000 $950,000 - - - $1,100,000 Park Trail & Pathway Resurfacing Program 95,000 119,000 $130,000 $120,000 $220,000 684,000 Grand Total $245,000 $1,069,000 $130,000 $120,000 $220,000 $1,784,000 Nonfunctional Turf Conversion Park Trail and Pathway Resurfacing 37 38
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20 Miscellaneous Projects
39 Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total Deferred Maintenance - Asset Management Plan $6,221,000 $6,141,000 $6,060,000 $5,976,000 $5,892,000 $30,290,000 Grand Total $6,221,000 $6,141,000 $6,060,000 $5,976,000 $5,892,000 $30,290,000 40 39
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21 41 Water Projects
42 Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total City Groundwater Supply Project $11,380,000 $10,660,000 - - - $22,040,000 Water Meter and AMI System Replacement $2,020,000 2,100,000 2,180,000 $2,270,000 $2,360,000 10,930,000 SCADA Communications Network Improvements - - - 1,180,000 - 1,180,000 Foothill Pump Station Rehabilitation
- - - 1,540,000 - 1,540,000 Water Tank 1300 Rehabilitation - - - 2,950,000 - 2,950,000 Grey Eagle Pump Station Replacement
- - - - 2,240,000 2,240,000
Annual Recycled Water System Improvements 50,000 50,000 50,000 50,000 50,000 250,000 Water System Emergency Power Improvements
Program 610,000 590,000 1,660,000 1,600,000 1,660,000 6,120,000 Annual Water Distribution System Improvements 550,000 680,000 725,000 5,336,000 1,396,500 8,687,500 Kilkare and Sunol Fire Flow Improvements Program
- - 4,630,000 4,000,000 5,000,000 13,630,000
Water Tank Inspections and Repairs Program - - - 630,000 650,000 1,280,000 Grand Total $3,210,000 $14,820,000 $19,905,000 $19,556,000 $13,356,500 $70,847,500 41 42
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22 Water Projects
43 • $26 million City Groundwater Supply
• $10.9 million Water Meter and AMI
System Replacement
• $13.6 million Kilkare and Sunol Fire Flow
and Improvements
• $8.7 million Annual Water Distribution
Improvements
Sewer Projects
44 Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total Sunol Boulevard Sewer Improvements $1,600,000 - - - - $1,600,000 Amberwood Siphon Replacement - $270,000 $3,060,000 - - 3,330,000 Sewer Lift Station 5 Replacement - - 810,000 $5,310,000 - 6,120,000 Sewer Pipe Improvements - Kamp Drive and
Stoneridge Drive
- - 280,000 2,120,000 - 2,400,000
Bernal Avenue Sewer Improvements - Tawny Drive to
Nevada Street - - - 400,000 $2,930,000 3,330,000
Sewer Pipe Improvements - Stoneridge Mall Road - - - 470,000 3,190,000 3,660,000 Sewer Lift Station Improvements at LS 2, 7 and 8 - - - - 1,420,000 1,420,000 Sewer Lift Station Improvements at LS 4, 12, 13 and 15 - - - - 940,000 940,000 Annual Sewer Inspection System Improvements 730,000 750,000 2,300,000 3,580,000 3,900,000 11,260,000 Sewer System Emergency Power Improvements
Program 440,000 1,420,000 1,150,000 1,190,000 1,230,000 5,430,000 Grand Total $3,750,000 $1,460,000 $7,600,000 $13,070,000 $13,610,000 $39,490,000 43 44
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23 Sewer Projects
45 • $11.3 million Annual Sewer Inspection &
System Improvements
• $5.4 million Sewer System Emergency
Power Improvements
• $6.1 million Sewer Lift Station 5
• $3.7 million Sewer Pipe Improvements
Stoneridge Mall
Storm Drain Projects
46 Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total Storm Water System Management Plan Devices $1,700,000 - - - - $1,700,000 Annual Storm Water Repair and Replacement 200,000 $200,000 $200,000 $200,000 $200,000 1,000,000 Grand Total $1,900,000 $200,000 $200,000 $200,000 $200,000 $2,700,000 45 46
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24 Facilities Projects
47 Project Name FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Total Library Fire Alarm Upgrade $750,000 - - - - $750,000
Annual Facility Replacement 515,000 $325,000 $265,000 $525,000 $525,000 2,155,000 Grand Total $1,265,000 $325,000 $265,000 $525,000 $525,000 $2,905,000 Next Steps
48 Public Hearing -
Operating and Capital
Budget Adoption
June 17, 2025
Ongoing Budget
Monitoring
Mid-Year Budget Review
February 2026
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5/13/2025
25 Thank You!
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