Pflugerville City Council unanimously approved issuance of the certificates of obligation at a May 23 meeting.
Certificates of obligations are a type of debt issuance that—unlike general obligation bonds—generally do not require voter approval.
$66.2 million of the debt will be self-supported, while the remaining $86.8 million is tax-supported. City documents state a tax increase of up to $3.54 per $100,000 valuation will be necessary to support the debt.
Funding from the certificates of obligation will specifically go toward public parts of the development, such as the new city hall, the recreation center and parking infrastructure.
While the project's developer is not expected to bring plans before council until this fall, Assistant City Manager Emily Barron said issuing certificates of obligation now will help the city to avoid any unexpected price increase down the road.
"With the cost escalations we're seeing not only for this project but for all of our projects ... we want to make sure we're doing this in a timely fashion and proceeding with a level of confidence," Barron said.
More information on Downtown East is available on the city's website.
