Pflugerville is writing a big check to keep the taps running. On Tuesday, the Pflugerville City Council unanimously approved $80.1 million in certificates of obligation to finish a secondary Colorado River raw water pipeline and upgrade the city's surface water treatment plant. City officials said the move clears the final debt issuances needed to wrap up two of the largest water projects in recent Pflugerville history.
As reported by Community Impact, the council approved two ordinances on first and final reading that together authorize more than $80 million in certificates of obligation. The package is split into Series 2026A, which totals about $52.93 million in combination tax and surplus revenue certificates, and Series 2026B, which includes roughly $27.18 million in certificates. Officials said the certificates are secured by the property tax pledge required under state law and are expected to be sold to the Texas Water Development Board.
What the bonds will pay for
According to the Texas Water Development Board, state funding approvals have already allocated about $101.95 million to Pflugerville for water-system work. That total includes $27.18 million to expand the water treatment plant and roughly $74.78 million to increase pump-station capacity and install about 15 miles of raw-water pipeline. The TWDB said the plant upgrades are designed to tackle invasive species in raw water and boost treatment capacity, while the new pipeline and pump improvements will increase the system's ability to pull Colorado River water into Lake Pflugerville and the treatment plant.
How the TWDB sale cuts borrowing costs
City officials told Community Impact that selling the debt to the TWDB should let Pflugerville lock in interest rates significantly lower than those available on the public market, which is not exactly small change on an $80 million tab. Finance staff also said part of the debt will be repaid using water and wastewater utility revenues to reduce reliance on the general fund, and that the city secured an additional $1.1 million via a Travis County interlocal agreement, plus $2.4 million in FEMA grant funding to buy a backup generator at the plant site.
Where this fits in the city's financing plan
Pflugerville has also tapped federal low-cost WIFIA financing in recent years to help cover major water and wastewater projects. The EPA announced a $156 million WIFIA loan to the city last year to support related work and provide long-term savings, according to the agency. City leaders say using a blend of state and federal programs alongside certificates of obligation is a way to keep borrowing costs lower and spread payments across multiple financing tools while the projects move forward.
