Public Infrastructure Financing in Solano County: Bonds, Taxes, and User Fees

How does Solano County fund critical infrastructure like roads, water systems, and public buildings? The answer involves a complex mix of financing tools, each with different implications for taxpayers and service delivery.

Primary Funding Sources

General Obligation Bonds: Secured by property tax revenue, requiring voter approval for issuance. Recent examples include school construction bonds and transportation improvements.

Revenue Bonds: Repaid through specific revenue streams like water rates or sewer fees, often not requiring voter approval.

Special Assessments: Property-based charges for localized improvements like streetlights, sidewalks, or landscaping.

User Fees: Direct charges for services like water, sewer, and solid waste collection.

Recent Financing Trends

• Increased reliance on revenue bonds for utility infrastructure
• Growing use of special assessment districts for maintenance
• Federal and state grants becoming more competitive
• Public-private partnerships emerging for major projects

The Challenge of Deferred Maintenance

Across Solano County jurisdictions, aging infrastructure creates ongoing financial pressure:

• Many water and sewer systems need major upgrades
• Road maintenance backlogs continue to grow
• Public buildings require seismic and efficiency improvements

Financing Equity Considerations

Different financing mechanisms have varying impacts on different community segments:

• Property-based assessments can disproportionately affect lower-income homeowners
• User fees provide more direct connection between usage and cost
• Bond financing spreads costs over time but includes interest expenses

Looking Forward

Sustainable infrastructure financing requires:

• Long-term capital planning across all jurisdictions
• Regional coordination for shared infrastructure needs
• Public education about the true costs of infrastructure
• Innovative financing approaches for climate resilience

This analysis draws from municipal financial reports, bond documents, and budget presentations across Solano County jurisdictions.