Debt

A municipal bond is a debt obligation issued by a public entity using the loan for financing long-term public projects such as constructing or improving city streets, parks, and fire and police stations. Some are used for municipal water and sewer systems.

A municipal bond is further categorized based on the source of its interest payments and principal repayments. Some city departments are self-funding, such as water and sanitation, which are funded by service charges from water users according to the amount of water used. A general obligation bond, however, is issued by governmental entities for uses that benefit all citizens that benefit globally from having streets, parks and public safety. General obligation (often called "GO") bonds are typically repaid by dedicating property taxes; other GO bonds are repaid with any combination of general fund revenues. Revenue bonds normally pledge repayment from water, sewer, sales tax, fuel, hotel occupancy or other taxes.

Debt reports and related documents are included here for the most recent three years. If you want to request older documentation, you can do so using the Public Information Request Form (PDF).

In February 2015, Standard and Poor's gave the city an "A+" rating. Read the February 2015 Rating Report (PDF).

Annual Debt Report

Texas Debt Disclosure For FY 2015-2016In February 2015, Standard and Poor's gave the city an "A+" rating. Read the Palestine, Texas General Obligation (PDF).



Series 2022 Debt Funded Project Progress as of August 25, 2022

Current debt funded projects and progress.
Project Budgeted Amount YTD Paid Expenses Comments
Library Relocation $2,000,000 $51,444 Another $40,000 currently encumbered to the project and this project is in progress.
Water and Sewer Infrastructure replacement  16,551,200  1,256,036 Additional $700,000 encumbered for awarded projects. These projects are in progress.
Water & Sewer Building to Store Materials  25,000  11,399 Metal building ordered from contractor, waiting for delivery and construction.
Street Rehabilitation  7,047,467 - Using ARPA Grant funding first for Street Rehabilitation due to time limit on spending.
Downtown Infrastructure Improvements  10,000,000  28,990 $1.8 million engineering contract awarded to Schaumburg & Polk this project is in progress
Fall Surface / Borders / ADA Ramps / Mats  30,815  9,042 Fall surface and mats installed.
Fire Station Generators  29,810 12,795 1 generator installed, outstanding PO for 20,370 for station 3. 
New Roof on Fire Station 1  100,000  61,000 This project is complete
New Roof on City Hall/PD  198,000  175,000 This project is complete
ADA Picnic Tables / ADA Grills  5,214 - This project has not yet begun.
ADA Bleachers 153,495 - This project has not yet begun.
Police Communication Improvement  90,000 - This project is almost complete we have not yet been invoices $74,000 encumbered for this project
Renovate All City Facility Bldg. Restroom to ADA  60,000 - This project has not yet begun.
Sidewalk & Curb - Main Street  17,000 - This project has not yet begun.
Citizen Engagement, Incode 10, Cloud Transition  190,433  9,210 This Project is in progress Financials and HR will be finished converting to Incode 10 in August or September invoice just received
Replacement AC Unit Fire St. No. 2  17,853  6,900 This project is complete.
Calhoun Restroom Renovation  25,000  15,750 This project is complete.
Larry St. Park Playground Equip. Replacement  11,948 - This project has not yet begun.
Calhoun Park Playground Equip. Replacement  20,152 - This project has not yet begun.
Farmers Market Bathroom Renovations 5,000 - This project has not yet begun.
Green's Park Equipment Replacement  20,415 - This project has not yet begun.
Willie Myers Pavilion Roof Replacement  15,000

8,950 This project is complete.
ADA Accessibility - Reagan School  85,000 - This project has not yet begun.
ADA Compliance for Carnegie Library  194,000

 54,604 This project is in progress.
New city website  41,946 19,538 This project is complete, waiting for final invoices. 
Renovate customer service and development services windows
 30,000

- This project has not yet begun. 
Materials Storage Public Works 78,000 - This project has been combined with the "Water and Sewer building to store materials" project.
Sport Lights Ball Fields 250,000 - This project has not yet begun.
14-yard Dump Trucks (2)  109,340 - Dump Trucks Ordered in November
French Drain Reagan Park  5,000 - This project has not begun
Brush/Grass Truck  225,000 - Truck was ordered in January 2022, waiting for delivery to make payment.
Wheel Loader  240,790  250,440 This project is complete
Library Thin-Client  22,773 - This project has not yet begun.
Track Loader  124,895  138,625 This project is complete
Library Self-Check & RFID  32,800 - This project has not yet begun.
Street Sweeper  253,743  260,770 This project is complete
Lift Boom 70,950 - This project has not yet begun.
Basketball Courts-Lincoln St  25,000 - This project has not yet begun.
Unisex Bathrooms @ Greens Park  60,000 - This project has not yet begun.
Dog Park 14,000 - This project has not yet begun.
Pay Study 21,500 21,500 This project is complete.