The planned financing is included in the city’s long-term utility budget and will not change current water or wastewater rates, according to city staff.
Two-minute impact
The measures authorize up to $52.99 million for the city’s Secondary Colorado River Raw Water Line and $27.18 million for the expansion of the water treatment plant and related system upgrades.
Both issuances represent the final portion of funding needed for projects city leaders have identified as among the largest undertaken by Pflugerville.
“This is probably the biggest water project in the history of Pflugerville,” Place 6 City Council member David Rogers said.
During the meeting, council members received an update on construction progress from City Engineer Jeff Dunsworth, who said work is well underway across several contracts. The raw water pump station is roughly 24% complete, with three pumps expected to begin operating by March—enough for the system to function while the fourth pump is installed.
Pipeline construction continues inside Pflugerville and Austin jurisdictions, where contractors have recovered time lost due to early material delays. Dunham said both the pipeline and the plant expansion remain on track for completion by late 2026, and while change orders and cost adjustments are anticipated, the projects are expected to stay close to their budgeted totals.
What residents should know
City officials emphasized that issuing the new debt will not result in higher water or wastewater rates, because the financing was built into previous budgets as part of the long-term capital planning for the utility system.
"It’s already baked into the budget; already baked into our water and wastewater rates ... none of this is changing anything that our residents would see in terms of finishing up these projects," said Place 1 City Council member Jonathan Coffman.
Municipal advisor Dustin Traylor of RBC Capital Markets told council that borrowing through the Texas Water Development Board will significantly reduce costs, with interest rates projected to be 30%-35% lower than the open bond market. That savings could amount to roughly $320,000 per year, depending on market conditions at the time of closing.
A public hearing on the proposed debt issuances is scheduled for Jan. 27, 2026.
