The conditional was testing the wrong object for existance.
<ul>
<li><a href="[% (is_source ? src_bugs_url : bugs_url) _ pkg | uri %]">Bug Reports</a></li>
<ul>
<li><a href="[% (is_source ? src_bugs_url : bugs_url) _ pkg | uri %]">Bug Reports</a></li>
<li><a href="[% pts_url _ src.pkg | uri %]">Developer Information (PTS)</a></li>
[% ELSIF is_source %]
<li><a href="[% pts_url _ pkg | uri %]">Developer Information (PTS)</a></li>
<li><a href="[% pts_url _ src.pkg | uri %]">Developer Information (PTS)</a></li>
[% ELSIF is_source %]
<li><a href="[% pts_url _ pkg | uri %]">Developer Information (PTS)</a></li>