Title
Conduct a public hearing regarding the Issuance of City of Pflugerville, Texas Limited Tax Refunding Bonds Series 2026, and approving an Ordinance on first and final reading with the caption reading: Ordinance Authorizing the Issuance of City of Pflugerville, Texas Limited Tax Refunding Bonds, Series 2026; Levying An Ad Valorem Tax in Support of the Bonds; Approving a Paying Agent/Registrar Agreement, a Purchase Agreement and an Escrow Agreement; Establishing Procedures for Selling and Delivering the Bonds; and Authorizing other Matters Relating to the Bonds.
Summary
This ordinance is authorizing the issuance of debt to refinance or refund a portion of the City's currently outstanding obligations in the proposed amount of up to $67,480,000 (final amount will be determined on the day of pricing). By approving this ordinance, the City is authorizing the issuance of limited tax refunding bonds in an amount not to exceed $67,480,000, including bond issuance costs.
The attached ordinance has been prepared by bond counsel. The pricing terms of the bonds will be finalized and incorporated into the pricing certificate executed on the day of pricing. The ordinance delegates authority to the City Manager or an Assistant City Manager as the Pricing Officer to execute the pricing certificate establishing the final terms of the refunding bonds on the day of pricing. The ordinance requires a net present value debt service savings of not less than 3.0% of the principal amount of the refunded obligations and sets the maximum maturity date of the refunding bonds as August 1, 2046. Standard and Poor has maintained the City's AA+ rating. Based on current market conditions, the likely size of the refinancing is $37,420,000. Presently, savings are anticipated at approximately $2.0 million as a result of this refunding. If no savings can be achieved, we will not move forward with the refunding. Additionally, this will not result in the extension of the final maturity of the bonds to be refinanced. The ordinance authorizes potential refinancing of callable portions of the City’s Series 2014 Certificates, Series 2015 Bonds, Series 2015 Certificates, Series 2016A Certificates, Series 2016B Certificates and Series 2016 Refunding Bonds.
Estimated savings by fund: General 91%, Utility 9%
Prior City Council Action
N/A
Deadline for City Council Action
The ordinance authorizing the issuance must be adopted on March 24, 2026 to complete the process of selling the limited tax refunding bonds priced the same day.
Funding Expected: Revenue __ Expenditure __ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Amount: Variable depending on pricing environment
1295 Form Required? Yes _X_ No __
Legal Review Required: N/A __ Required _X_ Date Completed: _Prepared by MPH Bond Counsel and received 3/12/2026
Supporting documents attached:
Refunding Bond Ordinance
Recommended Action
Conduct the public hearing. Approve the ordinance on first and final reading as presented.