The City of Pflugerville Bond Rating increases three levels from A1 to Aa1
The City of Pflugerville received an increased bond rating of Aa1 from Moody’s Investors Services, the highest rating ever awarded to the City.
“The City of Pflugerville’s rating has gone up from upper medium to high quality grade, a significant accomplishment and compliment to the city as a reflection of good financial practices and growth,”
Finance Director Amy Good said. “A high rating like this one can mean higher demands for our bonds and may result in lower interest rates and favorable bond pricing in future bond issues. This is a great reflection of our financial health and accounting practices.”
The last rating took place when the city issued bonds in 2016 for the transportation and parks projects approved by the voters in 2014 and 2015. In the 2017-2018 year, as the city issues more bonds for roadway projects and utility improvements, the improved rating makes Pflugerville’s bonds favorable in the market. According to Moody’s report, “the upgrade to Aa1 reflects elimination of the credit risk of a guaranteed loan and reflects the city’s large, growing tax base, trend of stable financial performance, elevated debt burden, and manageable pension burden.” Recent PCDC loan restructuring coupled with strong tax base growth and ongoing development citywide have contributed to the increase.
Additional factors that can lead to an upgrade include decline in outstanding debt, and healthy and diverse tax base growth.
“When Pflugerville’s bond rating goes up, it reflects the steady improvements in the city’s financial procedures, and the scrutiny that the City Council and staff put into the budgeting process each year,” Assistant City Manager Lauri Gillam said. “
For more information on the City’s bond ratings, call the City’s Finance Department at 512-990-6100.