Pflugerville City Council approved a resolution for the Pflugerville Community Development Corporation to issue $18.275 million in bonds at its Jan. 28 meeting. The bonds will help fund PCDC's purchase of 52 acres of land located west of Lake Pflugerville.
The details
Sales tax revenue bonds allow the corporation to borrow money to fund projects, which it will pay for using revenue generated by PCDC"s portion of the sales tax in the city. These bonds have a 5.49% interest rate, amounting to an annual debt service of $1.78 million over the next 15 years.
"That ended up being about $20,000 per yer less than we originally budgeted when we set out to sell these particular bonds," Dustin Traylor, a financial advisor with RBC Capital Markets, said at the meeting.
