Point Police Department closed as city faces financial issues

POINT, Texas - The City of Point announced earlier this month it will close its police department following a budget crisis that has left the Texas city hundreds of thousands of dollars in debt.

Point Police Department eliminated

What we know:

Point Mayor Angela Nelson announced on March 6 that the entire Point Police Department had been eliminated, including reserve officers and the Chief of Police, following the discovery of a "substantial financial shortfall."

The city says the Rains County Sheriff’s Office is providing law enforcement operations for the city. Nelson said officers who were laid off could apply for reinstatement in May after new City Council members are elected, but it's unlikely that funding will be available. 

The Texas Commission on Law Enforcement has an active investigation into the branch's closure, according to a statement from the agency.

City faces severe financial crisis

The backstory:

Nelson said unprecedented financial issues caused the city to close its police department.

In December 2025, the city discovered payroll tax obligations to the IRS have not been consistently paid. The missed payments went back to 2018, but many of the missed payments came in the last several years.

The missed payments added additional interest and penalties, which put the city's debt at more than $300,000. In addition, a concealed misappropriation of the city's funds left the city without the money to pay all their existing city employees.

The city also believes it owes $200,000 to the State Comptroller, and that more money could be missing that hasn't been uncovered yet.

The city is under an IRS audit, and it's likely the agency will seize city property as a result of the audit.

"Hard to believe"

Local perspective:

Point residents have concerns about the police department's elimination.

"It’s just hard to believe with all of this," Emily Rhoades, who operates a donation center in Point, told FOX 4's David Sentendrey. "It’s gonna be rough."

She said it's "hard to believe" the city could have lost or misappropriated the reported amount, and that there's plenty of crime and drug use in the East Texas city.

When asked about where the money went, Rhoades said: "Yeah, I do wonder. But only the ones that have done wrong is gonna know the true answer."

What's next:

The City of Point does not have a full City Council after several members resigned in December 2025. A May election is scheduled, after which City Council will meet and discuss what comes next.