Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities topic
No spam. Unsubscribe anytime.
Indio Electric Finance Authority raises customer surcharge to meet bond covenant
Summary
The Indio Electric Finance Authority approved an increase to the utility surcharge after staff and consultants reported that earlier account estimates left revenues short of the level needed to meet bond covenants. The council voted unanimously to adopt Resolution 2025-1.
The Indio Electric Finance Authority on Jan. 15 approved an increase to the electric-service surcharge after finding earlier account estimates overstated the number of customer meters inside city boundaries.
City staff and outside counsel told the council that initial meter and kilowatt-hour estimates used when the authority issued about $59 million in bonds were later found to include accounts outside the city. Because those accounts did not receive the surcharge, revenue collections were lower than anticipated and might not meet the rate covenant the bond documents require.
City Manager Montgomery said the city received meter ownership data from the county and that staff and IID (Imperial Irrigation District) cooperated to verify the boundary accounting. "We weren't really levying the surcharge on it," attorney Brian Forbath said, summarizing staff's review. Forbath said the change corrects an overinclusion in IID's original account list and restores the revenue base used to underwrite the bonds.
The staff recommendation described a revised per‑kilowatt‑hour surcharge to restore the coverage level for debt service. After discussion, a council member moved to adopt Resolution 2025-1 to modify the surcharge and the board voted to approve the change.
The board also asked staff to coordinate with IID on outreach and to include information on IID's low-income ratepayer assistance programs when the new rate is publicized.
The mayor and council emphasized outreach. Councilmember Oscar Ortiz asked which geographic areas had been included in the original dataset; staff said the Indio ZIP codes (92001 and 92203) had led to overinclusive account lists that included meters in adjacent, non‑city areas such as parts of Bermuda Dunes and unincorporated land toward La Quinta.
The new surcharge was read into the motion on the dais as "0.00095¢ per kilowatt hour" and the council adopted Resolution 2025-1 by a unanimous vote of those seated. Staff said the resolution would take effect 120 days after adoption and start appearing on bills in mid‑May.
The authority directed staff to continue coordinating customer outreach and to remind customers about available low‑income assistance through IID.
Votes: The board voted to adopt Resolution 2025-1, modifying the surcharge for electric service within the city. Tally: Yes 4, No 0, Abstain 0. The motion passed and the change will take effect 120 days after adoption.
