# Finance Committee Meeting - October 20, 2026

The City of Palo Alto Finance Committee met on October 20, 2026. It unanimously recommended that the City Council authorize up to $100 million in electric revenue bonds for the first tranche of grid modernization financing, with a 6% true-interest-cost cap and debt structured to keep the resulting revenue requirement within the equivalent of a one-time 1% rate increase. The planned negotiated sale would be the electric utility’s first bond issuance; staff selected JPMorgan as underwriter from 10 proposals. Estimated bond issuance and administrative costs are approximately $600,000. Staff described a three-tranche financing plan and options for managing rate or market changes, and committee members asked staff to strengthen the public explanation of project benefits and provide further financing detail before Council consideration. No bond sale was approved at this meeting; the recommendation advances to the City Council.

The committee also unanimously approved recommendations on wastewater treatment plant reserve-policy categories and targets, including a tentative five-year phase-in beginning in fiscal year 2029 and elimination of the rate-stabilization reserve. The proposed framework targets approximately $34.4 million in total reserves by fiscal year 2033. Members requested additional modeling of phase-in periods between five and ten years and potential flexibility in reserve contributions; staff agreed to explore those options. This item concerned financial planning rather than a procurement or contract award.

**Jurisdictions:** sled
**Industries:** Energy & Utilities, Construction & Infrastructure
**Topics:** Physical Infrastructure
**Published:** October 20, 2026

### Sources
- [Finance Committee Meeting - October 20, 2026](https://www.youtube.com/watch?v=CC-dZp62BgM) - City of Palo Alto