Pflugerville ISD Public Facility Corporation unanimously adopts 2024–25 budget; district General Fund to cover debt service

The Pflugerville Independent School District Public Facility Corporation voted unanimously, 6–0, to adopt its 2024–25 budget after a staff presentation on the PFC’s formation, finances and bond obligations.

Miss Land, the PFC representative, told the board the main takeaway is that the PFC is a legally separate nonprofit corporation created by the district that is governed by the district’s Board of Trustees and maintains its own accounting. She said the PFC issued $11,245,000 in bonds on April 21, 2021, and closed on the purchase of the building on May 19, 2021, a property described in the presentation as the former Calvary Church of Austin that now provides additional administrative space and houses the district’s data center and technology team.

“The PFC does have its own assets and therefore its own accounting,” Miss Land said, adding that the corporation has authority to acquire and renovate property and to issue bonds on behalf of the sponsoring public entity but does not have taxing authority.

Staff reported the PFC maintains a project account of about $300,000 set aside for maintenance and renovations. Miss Land said rental revenue is expected to be zero for 2024–25 after the tenant’s lease expired and the tenant vacated in May 2024; the tenant had generated roughly $13,000 per month during the 2023–24 school year.

On the budget’s revenue and expense picture, Miss Land said debt-service payments are scheduled for Feb. 15 and Aug. 15, and that payments for fiscal 2024–25 total $814,600. She said the district’s General Fund is expected to contribute a little over $809,000 to the PFC to make those bond payments under the arrangement used when the PFC was established. The bonds were issued at an interest cost of 2.5%, and staff said current market rates make refinancing unattractive at this time.

Trustees asked clarifying questions: a trustee confirmed the district continues to pay insurance and utilities for the building, and another asked whether the district could acquire the property before lease end. Miss Land said ownership would transfer at the end of the 20-year lease (projected 2041) or earlier if the district chose to pay off remaining bonds and that staff could work with legal counsel to outline early-payoff options.

Trustee Mott moved to approve the budget "as presented," and Trustee Daniel seconded; the motion carried 6–0. After a subsequent unanimous motion to adjourn, the board ended the brief meeting.

The presentation named the PFC’s legal counsel as the firm Orr, Harrington & Sutcliffe and attorneys Jerry Kyle (partner) and Andrew Bethune (senior associate). The board did not record any public comments at the meeting.