Title
Conduct a public hearing and consider action to approve an ordinance on first and final reading with the caption reading: Sixth 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 1).
Summary
Water Treatment Plant expansion, Weiss Lane/Pecan Street water line and pump station expansion and 42” raw water line are multi-year projects anticipated to be completed by FY27. The total project cost is currently estimated at $425.6M. The project will be funded from multiple sources with $76.9M through the Texas Water Development Board (TWDB), $156.5M through WIFIA (Water Infrastructure Finance and Innovation Act) to be authorized by this item, $52M through WIFIA loan entered into in 2022 and the remaining $140.1M through certificates of obligation.
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 $156,528,628 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 TWDB and the EPA.
This ordinance also approves a Master Loan Agreement with EPA to facilitate the execution of future WIFIA loans up to $438,202,066 (including the current WIFIA loan authorized by this item). All future WIFIA loans under the Master Loan Agreement would still require future City Council approval.
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 da...
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