District gets bond rating upgrade, sells 2018 bonds
April 16, 2019
Pflugerville ISD recently raised its bond rating to AA+, in time for its initial offering of $250 million in bonds from last year’s successful election.
Standard and Poors on March 14 raised PfISD’s general obligation debt rating from AA to AA+, citing the district’s strong financial management practices and strong local economy, among other factors for the upgrade.
“This rating is a testament to our district’s conservative handling of its budget and finances,” said PfISD Chief Operating Officer Ed Ramos. “Our board and administration continues to maintain great stewardship over its tax dollars. This also translates to millions of dollars in interest cost savings over the life of the bonds.”
The S&P AA+ rating bond rating places PfISD among a select group of only 20 school districts in Texas with the distinction.
The rating upgrade was part of process that included the initial sale of bonds approved by voters in November 2018. The 2018 bond package, totaling $332 million, is slated to accommodate growth in student enrollment, update aging facilities and address evolving student programs.
Ramos on March 25-26 traveled to Dallas for the sale of $250 million in general obligation bonds. The district’s favorable bond rating and high demand for its bonds helped PfISD take advantage of approximately $1 million in interest savings. The district was also able to sell the bonds with no tax rate increase to the community.
PfISD has already begun moving forward to meet the growing demands that led to the 2018 bond election, putting bond monies into full planning and architectural designs on the proposed Elementary No. 22 and Middle School No. 7, as well as the full purchase of the district’s new bus fleet – 159 vehicles total.
Some of the new vehicles have already arrived within the district, Blue Bird Buses each equipped with air-conditioning, heating, security cameras and seatbelts, among other features. The school district has also begun advertising new bus driver and monitor positions, each full-time and starting at $19 an hour, plus benefits.
Remaining bonds from the 2018 PfISD election are scheduled to be sold in late 2020.