Council approves lease revenue bond package to fund new police headquarters; $30M par, up to $35M cap

The Indio City Council on Aug. 20 authorized the issuance of lease revenue bonds to finance a new police headquarters on the city’s Public Safety Campus and approved related bond documents through the Indio Public Financing Authority.

The council voted 5‑0 to adopt the city and IPFA resolutions that permit issuance of lease revenue obligations in an amount not to exceed $35 million; staff estimated a par bond amount near $30 million with additional premium and a construction‑period capitalized interest account. City Manager Brian Montgomery, Finance Director Ruby Waller and municipal financial advisors described a tax‑exempt, fixed‑rate structure with an estimated market interest rate of roughly 5.07% for a 30‑year schedule; estimated annual debt service presented to the council was about $1.975 million per year under current market assumptions. The city plans to pay debt service from the general fund and Measure X revenues as part of the annual budget process.

Project and funding overview: The proposed police headquarters will be approximately 28,000 square feet and sit at the Jackson/Doctor Carion corner of the Public Safety Campus. Staff estimated the campus Phase‑2 package (police headquarters and related site work) at about $45 million. The city already has $10 million allocated in the capital improvement program and anticipates using roughly $5–6 million of remaining funds from earlier public‑safety projects; proceeds from the 2025 bond sale are expected to supply the remaining construction funding.

Schedule and procurement: City staff and the design and construction team (HOLT Architecture; Tilden‑Coil Constructors for construction management) are finishing construction documents this year and plan to release construction bids in early 2026, with a projected mid‑2026 groundbreaking and roughly a 24‑month construction schedule. The financing timeline presented showed a public bond sale shortly after Labor Day and a close within a few weeks, to deliver proceeds for capitalized construction costs.

Why it matters: The project replaces an aging police facility and completes the city’s public safety campus (police, fire, dispatch, and public services). Officials said the new headquarters will provide modern locker rooms, workspaces, public lobby areas and interview facilities and will accommodate expected staff growth tied to population and service needs.

Vote and next steps: The resolution authorizing issuance and approving bond documents passed unanimously (5‑0). Staff will post the preliminary official statement, proceed with underwriting and sale efforts, and return to council with final bond delivery and construction contract awards when those items are ready. The city’s financing team — bond counsel, municipal advisor and underwriter — participated in the presentation.