As part of their efforts to improve city streets, water and sewer lines, the Palestine City Council voted Monday to sell $2 million in certificates of obligation.

The City of Palestine Combination Tax and Revenue Certificates of Obligation, Series 2006, will be issued by the Bank of America at 4.1 percent, with the final year being 2016, according to documents presented to the council by First Southwest Company.

The certificates’ sales will be used to fund public works projects such as improvements to streets, drainage, buildings, parks and the airport, and land acquisition.

Boyd London, financial adviser with First Southwest, told the council that the 10-year rate was a good deal, and that his office was “very pleased” with the 4.1 percent interest rate.

City Councilman Steve Presley said that he was happy to see the city set up to pay its certificates over 10 years, rather than a 20- or 25-year period.

“We’re being fiscally responsible by paying back so quickly,” Presley said, noting that the projects to be funded by the certificates should outlive the life of the debt period.

The council approved the certificates’ issue and sale with a 5-1 vote, with Councilman Vernon Denmon voting against.

Also, the council held a public hearing over the application for designating the property at 801 Esplanade St. as a historic landmark. Mrs. Bun Price, who owns the property with her husband, told the council about renovations she and her husband have done to the house. No one else spoke during the hearing.

In other business, the council:

• AUTHORIZED City Manager Dale Brown to execute a contract with the YMCA to provide lifeguard services at Green’s Park Pool for $18,000, half payable at the beginning of the swimming season and half payable at the end of the season, with a detailed report of expenditures due to the city at the end of September.

• AUTHORIZED Brown to execute a contract with the YMCA for $13,000 for the Green’s Park Outreach Program, a summer program for area youngsters on weekdays at the park, with a detailed report of expenditures due to the city at the end of September.

• APPROVED a utility incentive request by the YMCA for a fire hydrant.

• APPROVED the consent agenda items, including the minutes of the April 10 worksession and regular council meeting; accepting property given to the city as part of the dissolution of the Dogwood Trails Narcotic Task Force; granted historic landmark designation to the property at 801 Esplanade St., Block J, Lot 9, Debard Addition, owned by Mr. and Mrs. Bun Price; accepted a 20-year warranty on repairs to the Civic Center roof by Curtis McKinley Roofing and Sheet Metal, Inc., in the amount of $73,780; authorized paying $12,350 to Goodtimes Wood Products for compost site chipping service; and authorized budget adjustments and amendments for fiscal year 2005-06.

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