Title
Conduct a public hearing and consider action to approve an ordinance on first and final reading with the caption reading: Seventh Supplemental Ordinance to the Master Ordinance Establishing the City of Pflugerville, Texas Utility System Revenue Financing Program Authorizing the Issuance of the City’s Utility System Revenue Bond (City of Pflugerville Master Program - Water and Wastewater CIP Tranche 2).
Summary
There are three (3) water projects and seven (7) wastewater projects being funded from this loan. Total of the projects including contingency and financing is $359,801,937. This loan is limited to funding up to 49% of the project costs. Water Projects - 12-inch Looping Improvement (WA2402), Water Master Plan (WA2501), and Water Line Rehabilitation - Gatlinburg and Bohl's Place (WA2406). Wastewater Projects - Wilbarger Wastewater Treatment Plant (WW2001), 54-inch Wilbarger Interceptor (WW2002), 36-inch Sorento Interceptor (WW2003) 15-inch North Wilbarger Interceptor (WW2202), Cottonwood West Lift Station and Force Main (WW2302), Wastewater Master Plan (WW2301), and Water Treatment Plant 18-inch water line extension (WW2604). This funding for these projects was included in the rate model used to project the utility rates going into effect October 1, 2025.
This ordinance approves the issuance of a loan from the United States Environmental Protection Agency (EPA) under the federal WIFIA program in a principal amount up to $176,302,949 which is evidenced by a bond in that amount that will be held by EPA. The bond is payable from a pledge of the net revenues of the City’s water and wastewater utility system after the payment of operating and maintenance expenses with the same payment priority as the City’s outstanding utility revenue bonds held by Texas Water Development Board (TWDB) and the Environmental Protection Agency (EPA). The ordinance includes the WIFIA Loan Agreement, Term Sheet, and Paying Agent/Registrar Agreement.
In accordance with EPA rules, the interest rate on the WIFIA loan is set on the morning of closing based on the United States Treasury Direct SLGS Daily Rate published that date. The scheduled closing date for the WIFIA loan is September 17, 2025. The City’s 2022 WIFIA loan was the first loan under the program closed in the State of Texas. As required by EPA, the ordinance waives the City’s sovereign immunity from suit with respect to its payment obligations on the WIFIA bond. The WIFIA loan will be drawn down in installments over time to reimburse the City for project cost expenditures and interest on the loan will only accrue on the principal amount of the loan that has actually been drawn down. The ordinance and the supporting loan documents have been reviewed by the Public Finance Division of the Texas Attorney General’s Office in anticipation of closing.
Prior City Council Action
Council approved a Master Loan Agreement (up to $438,202,066) and the issuance of Tranche 1 loan on October 8, 2024.
Deadline for City Council Action
Council action is required by September 9, 2025 to close the loan with WIFIA on September 17, 2025.
Funding Expected: Revenue _X_ Expenditure __ N/A __
Budgeted Item: Yes __ No __ N/A _X_
Budget Source: ____________
Amount: $176,302,949
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required _X_ Date Completed: August 22, 2025 (Bond Counsel)
Supporting documents attached:
Seventh Supplemental Ordinance
Public Hearing Notice
Recommended Action
Staff recommends approval of this ordinance on first and final reading with the caption reading: Seventh Supplemental Ordinance to the Master Ordinance Establishing the City of Pflugerville, Texas Utility System Revenue Financing Program Authorizing the Issuance of the City’s Utility System Revenue Bond (City of Pflugerville Master Program - Water and Wastewater CIP Tranche 2).