The city of Pflugerville, Texas, sold $150 million in bonds to build a new city municipal complex and recreation center.
The bonds mature between 2024 and 2053. They have yields ranging from 3% to 4.46%. The bonds received a rating of Aa1 from Moody’s Investors Service and AA+ from Kroll Bond Rating Agency.
The construction is part of the city’s Downtown East project, a 29-acre development that will extend Pflugerville’s downtown area. Funded by public-private partnership, the project’s goals “come together to support an economically and socially vibrant extension of Pflugerville’s downtown that includes the facilities needed to continue providing the high-quality services the community expects and deserves for generations to come,” according to the project’s website.
The issuance comes amid an economic boom in the neighboring city of Austin, fueled by high-profile corporate relocations including by Elon Musk’s Tesla Inc. Pflugerville’s taxable appraised property value has risen from $5.6 billion in 2019 to more than $9.8 billion in 2023. The city has responded to that growth with greater investment in public properties.
The municipal complex will house city administrative offices and meeting spaces, and public safety, city utilities, telecommunications, and information technology facilities. The plan also includes the construction of a new parking structure to service the municipal complex and recreation center, and the construction of new roads in the extended downtown area.
The bonds will be general obligations on the city, backed by its full faith and credit. They will be financed by a city property tax and supported by surplus revenue from the city’s water and sewer utilities.
Siebert Williams Shank & Co LLC served as lead underwriter on the issuance, purchasing the bonds with an underwriters’ discount of $750,000.