Through the provisions of AB 939, Smart Financing for Valley Water Infrastructure, authored by Assemblymember Gail Pellerin (D-Santa Cruz), Valley Water secured the ability to issue revenue bonds. The Valley Water Board of Directors recently authorized up to $450 million in revenue bonds to fund water utility capital projects. This effort leads to debt service savings for ratepayers in the millions, which assists Valley Water in keeping water rates low for the community.
“We are so pleased to see AB 939 already providing savings for Santa Clara County and our ratepayers,” Valley Water Board Chair Nai Hsueh said. “We greatly appreciate Assemblymember Pellerin’s efforts to ensure Valley Water has the financing tools necessary to respond to the impacts of climate change on our water supply, flood protection and ecosystems.”
Passed in 2023, AB 939 amended the Santa Clara Valley Water District Act to reduce the cost of financing water and flood protection infrastructure projects by tens of millions of dollars. It also made technical changes to improve Valley Water’s governance and operations.