Oakland Successfully Issues $334M Bonds to Fund Capital Projects
Published on December 09, 2025
Oakland, CA -The City of Oakland successfully priced a total of $334 million of General Obligation bonds on December 4, 2025. This milestone provides access to capital funding that will be used by City departments to deliver paved roads, restored public facilities, and investments in affordable housing.
“Oakland is on the move and building momentum with this bond sale. We are reviving access to funding for paving our streets, restoring public facilities we all use and depend upon, and investing in affordable housing for our community, all while maintaining transparency and fiscal discipline,” Mayor Barbara Lee said. “These bonds represent our City’s continued commitment to sound financial management and responsible investment in Oakland’s future. Together, we are strengthening our foundation for generations to come. I’m grateful to our partners in the City Council for their leadership and support, and to City Administrator Jestin Johnson for driving this process and ensuring we brought it home.”
$285 million of the bonds support new projects and $49 million of the bonds refund existing bonds for debt service savings. The City’s bond offering was well received with strong investor demand. Investors placed $638 million in orders for the $334 million of bonds offered by the City. There was broad investor demand with 26 separate investment firms placing orders. The oversubscription ultimately allowed the City to lower the final interest rates offered to investors and reduce the City’s borrowing cost.
There was both a tax-exempt portion and a taxable portion for the bond offering, reflecting the various uses of the bond proceeds. The $143.5 million of tax-exempt bonds have a 30-year final maturity and received an all-in borrowing cost of 3.99%. The $191 million of taxable bonds have a 24-year final maturity and received an all-in borrowing cost of 5.55%. The $49 million in tax-exempt bonds that refinance existing obligations of the City resulted in $5.6 million of debt service savings for taxpayers through 2039, or $4.7 million on a present value basis.
The new money bonds will fund affordable housing, roadway safety and infrastructure improvements, and renovations to parks, libraries, senior centers, and other public facilities under the City’s Measure U Authorization. In September, the City Council approved the sale of these bonds along with a list of projects and programs that will receive the funds. The full list is available online (Resolution 90850 C.M.S.) – highlights include:
- $50.5 million for Citywide Street Resurfacing
- $13 million for the Complete Streets Capital Program
- $9.5 million for the Curb Ramps Program
- $30 million for the Acquisition and Preservation of Existing Affordable Housing
- $33 million for the Mandela Transit Oriented Development
- $28 million for the Liberation Park Development
- $3 million for the Brookdale Recreation Center capital project
- $1.5 million for the Oakland Tool Lending Library at the Temescal Branch Library
- $10 million for the Oakland Ice Center
“We deeply appreciate the work of our finance team and underwriting partners who help position Oakland as a trustworthy investment and vibrant, resilient City,” City Administrator Jestin Johnson said. “An incredible team of City professionals and partner firms went above and beyond to make this happen, and I want to recognize them by name for their invaluable contributions.” They include:
- Finance: Bradley Johnson, Dawn Hort, Jan Mazyck, David Jones, Greg Danielian, Pooja Shrestha, Nicole Welch
- City Administrator’s Office: Deborah Edgerly, Monica Davis
- City Attorney’s Office: Amber Macaulay, Malia McPherson
City Administrator Johnson also thanked PFM Financial Advisors LLC serving as municipal advisor, and the Oakland-based firm Siebert Williams Shank & Co., LLC serving as the Senior Manager along with Loop Capital Markets, LLC and BofA Securities, Inc. as co-managers for their remarkable support and professional services that enabled the sale.
What’s Next:
Pricing marks the point at which the City and investors locked in the final dollar amounts, interest rates, and other key terms of the bond sale. This stage is commonly referred to as the sale date. At pricing, no funds are exchanged. The actual delivery of bonds and receipt of monies occurs at closing, which is scheduled within the next two weeks.
Capital projects receiving this funding will proceed on individual timelines based on their individual conditions and needs. At the time of closing, funding will be immediately available to those projects.
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