Pflugerville Seeks To Issue $51.5M In Debt For Various Projects

PFLUGERVILLE, TX — Pflugerville seeks to issued more than $50 million in long-term debt in the form of certificates of obligation to finance various infrastructure projects, officials said Monday.

Residents will be able to hear plans for the debt issuance not to exceed $51.5 million at a September public hearing. Proceeds of the certificates of obligation are meant to fund enhancements and infrastructure additions, including work on Kelly Lane and Old Austin-Hutto Road, improvements to waterworks and sewer system that include the water treatment plant, addition of elevated storage facilities, installation of new water lines and more.

According to a municipal advisory, Pflugerville City Council members propose a first and final reading of the initiative at a Sept. 22 meeting set for 7 p.m. at City Hall, 100 E. Main St., Suite 500. Given the ongoing need for physical distancing due to an ongoing reach of the coronavirus, the public hearing will likely be staged via video conference, city officials noted. If so, information related to accessing the meeting toward public participation will be available on the City of Pflugerville website, with the agenda to be posted no less than 72 hours before the Sept. 22 meeting, officials said.

As of July 28, city officials noted, the aggregate principal amount of all outstanding debt obligations of the city secured by and payable from ad valorem taxes is $258,570,000. Additionally, the combined principal and interest required to pay all outstanding debt obligations of the city secured by and payable from ad valorem taxes on time and in full is $392,085,245. The estimated combined principal and interest required to pay the certificates on time and in full is $88,893,014 with an estimated interest rate of 4 percent, officials added.

"Such estimates take into account a number of factors, including the issuance schedule, maturity schedule and the expected ratings of the proposed certificates," officials said. "Such estimated interest rate is provided as a matter of information, but is not a limitation on the interest rate at which the certificates may be sold."

The maximum maturity date of the certificates is Aug. 15, 2050, officials noted.

According to the Texas comptroller's office, certificates of obligation do not require voter approval unless 5 percent of qualified voters within the jurisdiction petition for an election on the spending.

Related stories:

• Pflugerville Plant Malfunction Leads To Another Fish Kill
• Pflugerville Was Fined More Than $30K After Chlorine Creek Spill
• Pflugerville Hasn't Paid State Fine After Chlorine Creek Spill
• Pump Fail Dumps 3.4M Gallons Of Chlorinated Water In Pflugerville

Among the more prominent projects to be financed through the certificates of obligation is the city's water treatment plant marked with malfunctions that led to fish kills, chlorine spills and a hefty fine from regulators. Regarding the latter, Patch learned from a public information request the Texas Commission on Environmental Quality issued the city more than $30,000 fine after a chlorine spill into a creek that city officials were resistant to immediately paying.