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Board authorizes up to $55M in Sonoma Water revenue bonds and adopts transmission system rates
Summary
The board authorized the issuance of up to $55 million in Sonoma Water revenue bonds to fund water transmission capital projects and potential refunding, and adopted proposed water transmission rates for Fiscal Year 2026‑27 (roughly 8.2–9.4% increases for contractors), following staff presentations and contractor endorsements.
The Sonoma County Board of Supervisors authorized staff to proceed with a proposed water revenue bond transaction — a not‑to‑exceed $55 million issuance with a 25‑year term — and adopted Sonoma Water’s FY 2026‑27 budget and contractor rate proposals on April 28.
Sonoma Water officials told the board the authorization would allow up to $12 million to refund 2015 bonds (only if net present‑value savings are available) and roughly $32.9 million of new‑money capacity for capital projects in the next three years. Staff emphasized the refunding would occur only if present‑value savings are positive, and noted debt‑policy thresholds (a 3% PV savings goal) while describing a potential rate‑stabilization mechanism available if bonds are recalled.
Finance staff said the bond would support long‑range capital projects including tank rehabilitation, hazard mitigation, and resiliency work; the long‑range plan has roughly 25 projects anticipated to need funding in the next three years. Staff estimated annual new‑money debt service of about $1.5 million initially and $2.2 million later in the schedule and described strong credit ratings (Fitch and S&P high investment grades).
Separately, Sonoma Water presented its FY 2026‑27 transmission system budget (about $78.4 million overall) and recommended contractor rate increases in the 8.21–8.97% range (with North Marin paying about 9.42%). Water contractors and the Water Advisory Committee praised increased transparency in budget development and collaborative budgeting. The board approved the financing documents and adopted the budget and rates by roll call.
