PLEASANTON — A long-running dispute over the financing of the Castlewood water and sewer system is returning to the Alameda County Board of Supervisors, where officials are expected to consider a proposal aimed at recovering approximately $1.4 million in costs associated with operating the Castlewood County Service Area.
The issue, which has been debated for more than two years, centers on expenses incurred between fiscal years 2021 and 2024 for maintaining the privately served community in unincorporated Alameda County near Pleasanton. County officials say the outstanding costs must be addressed to maintain the financial stability of the service area, while many residents argue they should not be responsible for charges they believe were accumulated during periods of inadequate oversight.
Unlike an earlier proposal that sought to recover the costs through a direct assessment on property owners, the latest recommendation would authorize an inter-account loan within the Castlewood County Service Area. Under the proposal, funds would temporarily be transferred from another service-area account to reimburse the county, with repayment occurring over time.
The financing approach follows a Proposition 218 protest process in which Castlewood property owners overwhelmingly rejected a similar assessment. That vote came after a legal dispute between the Castlewood Property Owners Association and Alameda County over how the charges should be imposed.
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Residents continue to question the basis for the $1.4 million figure, saying they have requested additional financial documentation explaining how the costs were calculated. Some homeowners have suggested the county explore other funding options, including using a portion of property tax revenue generated within the service area instead of placing additional financial responsibility on water customers.
The debate comes after Castlewood property owners experienced significant increases in annual water and maintenance fees in recent years. Many residents say another financial obligation would further increase costs for homeowners already paying some of the highest service-area water charges in Alameda County.
The Board of Supervisors will also consider recommendations that extend beyond the immediate financial dispute. County staff are proposing to formally approach the City of Pleasanton about assuming responsibility for operating and maintaining the Castlewood water and sewer systems. If an alternative governance structure is established, the county would also begin the process of dissolving the existing Castlewood County Service Area through the Alameda County Local Agency Formation Commission (LAFCO).
Infrastructure reliability remains another major concern for the community. Castlewood's water system relies on pumps that fill storage tanks, supplying both residential water service and emergency fire protection. During power outages, portable generators must currently be connected manually before the pumps can resume operation. Residents have repeatedly expressed concern that delays during an extended outage or wildfire could affect water availability for firefighting and emergency response.
Community representatives have also called for permanent backup power systems, upgraded pumping equipment, and pressure-control improvements designed to reduce stress on aging pipelines and improve long-term reliability.
The Board of Supervisors' decision will determine how the county proceeds with recovering the disputed costs while potentially shaping the future management of essential utility services for the Castlewood community. Regardless of the outcome, the discussion reflects broader questions about infrastructure funding, transparency, and accountability in special service districts across Alameda County.
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