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Indio council approves refunding for Terre Lago CFD to cut homeowner special-tax costs
Summary
The city adopted Resolution 10532 authorizing the issuance of 2026 special tax refunding bonds for Community Facilities District 2004-3 (Terre Lago), a move officials said will reduce annual special-tax costs for homeowners and yield multi-year savings backed by a Standard & Poor's 'A' rating.
The City of Indio on a unanimous vote approved a resolution to refund outstanding special-tax bonds for Terre Lago Community Facilities District 2004-3, aiming to reduce homeowners' special-tax burdens beginning in fiscal 2026–27.
Ruby Walla, the city's director of finance, introduced a project team and said the item seeks council approval to authorize issuance of 2026 special tax refunding bonds for the Terre Lago improvement area. Municipal advisor Jim Fabian and underwriter Ralph Holmes presented the financing. Fabian said outstanding bonds issued in 2015 totalled approximately $8,530,000 and the plan is to issue about $6.7 million of 2026 refunding bonds secured by special taxes levied within the CFD boundaries.
Ralph Holmes and staff presented estimated savings: total nominal savings of about $2.4 million to homeowners, an average annual savings of roughly $273,000 and a present-value savings of about $390,000. Holmes also said Standard & Poor's assigned an "A" rating to the financing, citing strong assessed values, low delinquency and a roughly 45-to-1 value-to-lien ratio in the district.
Holmes said the financing was structured to preserve existing maturities rather than extend the debt and that the city planned a late-January bond sale and a closing in February, with exact dates to be set by underwriting market conditions.
Council Member Miller moved adoption of Resolution 10532 and Council Member Gutron seconded. The council approved the resolution by roll-call vote; the motion passed unanimously.
The resolution authorizes the necessary financing and related documents (bond indenture, escrow agreement, preliminary official statement, bond purchase agreement and continuing disclosure agreement) and directs staff to proceed with the sale and closing steps outlined in the presentation.
