Pflugerville Secures Bond Rating Upgrade From Moody's Investors Services

PFLUGERVILLE, TX — Pflugerville has garnered a bond rating increase that represents the highest level of creditworthiness ever achieved by the city, officials said Tuesday.

Major ratings house Moody's Investors Services boosted the city's bond rating three levels, from A1 to Aa1, city officials said. The increase represents the highest rating ever awarded to the city, according to municipal officials, and is reflective of Pflugerville's financial health and accounting practices.

“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.”

Officials noted 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, officials added.

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.

Actions by officials at the Pflugerville Community Development Corp. — the entity tasked with luring industry and shepherding corporate expansion in the city — also figured in the ratings upgrade. Recent loan restructuring, coupled with strong tax base growth and ongoing development across the city, were cited as factors leading to the bolstered rating.

Additional factors that likely figured in the ratings house reckoning include decline in outstanding debt, and healthy and diverse tax base growth, officials noted.

“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.

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