Indio Council authorizes up to $38 million water refunding bonds; staff say refinancing will save residents about $1.5–1.8 million
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Summary
The Indio City Council and Indio Water Authority unanimously approved resolutions allowing issuance of water revenue refunding bonds (series 2026A) in an amount not to exceed $38 million to refinance 2015 bonds; staff said the sale (estimate ~$33M) will reduce annual debt service by roughly $131,000 a year and produce present-value savings in the $1.5M–$1.8M range.
The Indio City Council and Indio Water Authority on a unanimous vote approved resolutions authorizing issuance of water revenue refunding bonds (series 2026A) in an amount not to exceed $38,000,000 to refinance outstanding 2015 water-system bonds. Finance Director Ruby Walla told the council the measure would not extend the debt's term or generate new money and is intended to lower the city’s interest expense.
"This evening we are seeking approval by each respective body to authorize issuance of water revenue refunding bonds," Ruby Walla said, noting the transaction is projected to achieve savings to the city’s ratepayers without lengthening the repayment schedule. Municipal adviser Jim Fabian and the city’s financing team presented the financing overview and schedule.
Underwriters and advisers said the bonds would be secured by net revenues of the water system. Ralph Holmes of Piper Sandler, the city’s underwriter, estimated the offering would be in the neighborhood of $33 million to refund the 2015 bonds and said the deal should save the city about $131,000 a year for the remaining 14 years of the debt. "That totals about $1.8 million," Holmes said, adding that present-value savings are roughly $1.5 million.
Brian Forbath, the city’s bond counsel, explained the transaction mechanics: a termination of the existing lease between the Indio Water Authority and the city, an installment-purchase agreement, and escrow arrangements that will be used to pay off the outstanding bonds. Advisers said Standard & Poor’s had reviewed the water system and provided a strong rating that supports competitive pricing.
Councilmembers asked clarifying questions about timing and covenants. Jim Fabian said the tentative bond sale date was February 19 with a closing targeted for March 19, subject to desk-market timing and final approvals. Staff emphasized the bonds remain callable in 10 years and that standard rate covenants will remain in place to ensure coverage of debt service.
The council adopted three separate resolutions—one for the Indio Water Authority board, one for the City Council and one for the Indio Public Financing Authority—that together authorize execution of transaction documents and issuance of water revenue refunding bonds not to exceed $38 million.
The council did not vote to change rates during the meeting; staff said the transaction preserves flexibility and is designed as a savings opportunity for ratepayers. The vote was recorded as unanimous.
