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Palestine council authorizes notice to issue up to $20 million for athletic complex, downtown and lift‑station projects
Summary
Palestine City Council on May 27 approved publishing a notice of intent to issue up to $20 million in certificates of obligation to fund an athletic complex, downtown revitalization and Southview Lift Station improvements; council was told debt would be repaid from utility revenues and the tax rate and must decide a final amount by mid‑July.
Palestine City Council on May 27 authorized publication of a notice of intent to issue up to $20,000,000 in debt to finance an athletic complex, a downtown revitalization project and improvements to the Southview Lift Station.
Hilltop Securities portfolio manager Farje Delgado presented a financing plan that would use certificates of obligation similar to the city’s 2022 issuance. Delgado said the lift‑station portion would be repaid from net water and sewer revenues while the downtown and athletic complex pieces would be repaid through the tax‑rate debt‑service portion. Under conservative growth assumptions presented to council, Delgado said the initial scenario would add roughly 1.8 cents to the city’s tax rate; adding each additional $1 million to the projects would increase that impact by about one‑quarter of a penny, and a larger $12 million scenario would approach a 2.3‑cent impact.
The presentation noted timing and legislative risks: Delgado told council the Texas Legislature was scheduled to adjourn June 2 and last‑minute changes could affect municipal borrowing rules, so staff recommended noticing the maximum amount and scaling back if needed. Council was told staff would need a final authorization by mid‑July to proceed with a July 28 bond issuance timeline that would include credit ratings and final interest rates.
Council discussion covered repayment sources and whether unspent proceeds from 2022 authorizations could be reallocated; Delgado said staff would review prior proceeds and report back. A motion to proceed with the notice as presented was made by Councilor Gills and seconded by Councilor Connor and carried on a voice vote; no roll‑call tally was recorded in the minutes.
No final bond sale or tax‑rate change was approved on May 27. City staff will return with a final amount for council consideration in mid‑July and will present final interest rates and terms if the council directs issuance.
