Pflugerville City Council has authorized the city manager to refund city bonds, potentially saving the city about $7.8 million over the next 21 years.

"I know we've done this in the past, and it's an opportunity for the city to save money for our taxpayers," Mayor Pro Tem Victor Gonzales said during an April 24 Pflugerville City Council meeting.

Financial advisor Bill Harrison advised the city that the market predictions looked favorable to sell the city's current bonds and refund the debt into bonds at a lower interest rate, Assistant City Manager Lauri Gillam said. In the current market, this could create refundable bonds that equal $57.820 million, Gillam said.

"Since the effective interest rate at this time is 3.38 percent, we estimate that by June, our net present value savings could be as high as 9.77 percent if market trends continue," Gillam said. "That could result in as much as $7.8 million in savings on the bonds over the next 21 years."

That $7.8 million could go into the computation of property taxes and utility rates, ultimately saving taxpayers money, Gillam said.

Pricing of the bonds will be determined the week of May 7.