Pleasanton City Council Approves Plan Likely To Raise Water Rates

PLEASANTON, CA — The Pleasanton City Council voted to approve a plan that is expected to result in higher water rates in the coming years, though the exact numbers are currently unknown.

In January, the city council adopted a Water System Management Plan, which outlines operational priorities and capital improvement needs for the next 20 years.

The WSMP presents three scenarios for rate adjustments:

• Stabilize Scenario: The lowest increase, which covers only essential repairs.
• Enhance Scenario: Advocates more proactive infrastructure updates to prevent future emergency repairs.
• Accelerate Scenario: The largest increase, which funds all major projects within five years.

On Tuesday, the council unanimously voted to approve the Enhance Scenario, which prioritizes the most critical water-related projects within the first five years of the WSMP’s proposed Capital Improvement Plan. The Enhance Scenario was recommended by city staff and the Pleasanton Water Advisory Group.

It is estimated to cost $73.2 million over five years, and could raise water rates by 15% in 2026 and 2027, and 8% in 2028 and 2029, according to a city staff report, pending further analysis. This scenario also recommends borrowing up to $35 million to help fund critical infrastructure projects, including emergency backup generators and fire flow improvements.

“With an aging water system, rising costs, and new regulatory requirements, we are taking a thoughtful, strategic approach to setting water rates,” Pleasanton Mayor Jack Balch said in a statement. “We’ve spent the past two years working to fully understand what’s needed to keep our water system fully operational and ready to meet our future needs. Now, as we listen to the community, we will work through decisions to cover critical costs, invest in the
future, and ensure we provide safe, reliable water to the community.”

The council voted in 2023 to raise water rates by 30% in January 2024, followed by a 12% raise in January 2025, in response to mounting infrastructure costs and a declining water utility fund. Staff initially requested a 30% increase in 2024, followed by 20% in 2025, followed by 12% in 2026, but this was later scaled back.