Indian Wells City Council
February 5, 2026

CITY COUNCIL
Meeting Agenda

Thursday, February 5, 2026
1:30 PM
City Hall Council Chamber
44950 Eldorado Drive, Indian Wells, CA 92210

Welcome to a meeting of the Indian Wells City Council.

Live Stream: Regular meetings held in the City Hall Council Chamber are streamed live.

You can watch the meeting on any device or computer. Members of the public who wish to listen or watch the meeting may access the livestream during the regular meetings.

LIVE STREAM CLICK HERE.

Public Comments: Members of the Public who wish to speak should fill out a blue slip and submit it to the City Clerk, comments are limited to three minutes. In accordance with State Law, remarks during public comment are to be limited to subjects within the City's jurisdiction. If you are unable to provide comments during meeting, written comments on agenda or non-agenda items or both, may be submitted at [email protected].

Notification: If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (ADA) please contact the City Clerk at 760-346-2489, 48 hours prior to the meeting.

Please turn off all communication devices (phones) or put them on non-audible mode (vibrate) during Council proceedings. All documents for public review are available for public inspection at City Hall reception, 44-950 Eldorado Drive, Indian Wells during normal business hours.

Pages

A.CONVENE THE INDIAN WELLS CITY COUNCIL, PLEDGE OF

ALLEGIANCE AND ROLL CALL

MAYOR TOPER TAYLOR

MAYOR PRO TEM BRIAN PENNA

COUNCIL MEMBER GREG SANDERS

COUNCIL MEMBER DANA REED

COUNCIL MEMBER BRUCE WHITMAN
B.APPROVAL OF THE FINAL AGENDA
C.PROCLAMATIONS AND PRESENTATIONS
C.1 Visit Greater Palm Springs Presentation by Scott White, President/CEO
C.2 SunLine Rides Reimagined Presentation by Luis Garcia, Chief Financial Officer and Isabel Vizcarra, Chief Transportation Officer C.3 Troon Golf Update by Robin Graf, Indian Wells Golf Resort General Manager
D.PUBLIC COMMENTS
Members of the public who wish to speak on Consent Calendar items or items not listed on the agenda may do so at this time. Public comments are limited to three (3) minutes per speaker. Speakers will be alerted when their time is up and are asked to promptly return to their seats. No further comments will be permitted after the allotted time.

Please note that while the City Council values public input, it cannot take action or engage in discussion on items not listed on the agenda.

However, the Council may refer matters raised during public comment to staff for review, follow-up, as appropriate.

E.CITY MANAGER'S REPORTS
The City Manager or Department Heads may make brief
announcements, informal comments, or brief the Council on items of interest.

F.CITY ATTORNEY REPORTS AND COMMENTS
Council Meeting Agenda- February 5, 2026

G.CONSENT CALENDAR
All matters listed on the Consent Calendar are considered to be routine and will be approved by one motion. Reading of text of Ordinances is waived and Ordinances are adopted as second reading, by title only. There will be no separate discussion of these items unless members of the Council request specific items be removed from the Consent Calendar for separate discussion and action.

G.1 Ordinance Amending Municipal Code Section 2.12.010 to Clarify Planning Agency Authority
12 RECOMMENDED ACTIONS:

Council ADOPTS Ordinance No. 768 by title only and waives further reading amending Section 2.12.010 of the Municipal Code relating to Planning Agency; and
FINDS the action to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

G.2 Ordinance Amending Chapter 21.85 of the Indian Wells Municipal Code Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units
15 RECOMMENDED ACTIONS:

Council ADOPTS Ordinance No. 769 by title only and waives further reading amending Chapter 21.85 of the City of Indian Wells Municipal Code relating to Accessory Dwelling Units and Junior Accessory Dwelling Units to comply with recent changes in State Law; and
FINDS that the adoption of the proposed ordinance is statutorily exempt from review under the California Environmental Quality Act (CEQA) under Public Resources Code § 21080.17.

Council Meeting Agenda- February 5, 2026

G.3 Authorize the City Manager to Execute a Memorandum of Understanding between the City of Indian Wells and Troon Golf for use of the Indian Wells Golf Resort Clubhouse for Temporary Emergency Shelter
33 RECOMMENDED ACTIONS:

Council APPROVES a Memorandum of Understanding (MOU) with Troon Golf, L.L.C. to support disaster operations, including Care & Reception and temporary emergency sheltering; and
AUTHORIZES the City Manager to sign and execute the MOU for the same; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3).

G.4 Annual Financial Report – Fiscal Year Ending June 30, 2025 43 RECOMMENDED ACTIONS:

Council APPROVES the City’s Annual Financial Report for the fiscal year ending June 30, 2025; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

G.5 Annual Adoption of the City Investment Policy 232
RECOMMENDED ACTIONS:

Council ADOPTS the City’s 2026 Investment Policy as presented; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

Council Meeting Agenda- February 5, 2026

G.6 Formation of Two City Council Ad Hoc Committees Requested by Mayor Toper Taylor
255
RECOMMENDED ACTIONS:

Council APPROVES the Mayor’s formation and appointment of two Ad Hoc Committees; and
AUTHORIZES the formation of the Municipal Code Update Ad Hoc Committee, consisting of Council Member Greg Sanders and Mayor Toper Taylor; and
AUTHORIZES the formation of the Tennis Garden Relationship Expansion Ad Hoc Committee, consisting of Mayor Toper Taylor and Mayor Pro Tem Brian Penna; and
FINDS the project not subject to the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15060, 15061(b)(3), and 15378.

G.7 Support Joint Effort with the Coachella Valley Conservation Commission Concerning Recent Wildlife Agency Assertions 257
RECOMMENDED ACTIONS:

Council AUTHORIZES City support for joint letter opposing wildlife- agency assertions that would negatively affect implementation of the Coachella Valley Multiple Species Habitat Conservation Plan/Natural Community Conservation Plan; and
FINDS the action to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2), 15060(c)(3), and 15061(b)(3).

Council Meeting Agenda- February 5, 2026

G.8 Extension of Exclusive Negotiation Agreements with Abode Communities and Summit Development for Affordable Housing Development in Indian Wells
261
RECOMMENDED ACTIONS:

Council AUTHORIZES and DIRECTS the City Attorney to prepare and the City Manager to execute a 1-year extension to the exclusive- negotiation agreements with Adobe Communities and Summit Developers regarding potential development of an affordable housing project in the City of Indian Wells; and
FINDS the action is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act (“CEQA”) Guidelines because it has no potential to result in physical change in the environment, directly or indirectly; and that the action is nonetheless exempt from the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. (14 CCR 15061(b)(3).)
G.9 2025 Epson Tour Championship Report 265
RECOMMENDED ACTIONS:

Council RECIEVES and FILES the 2025 Epson Tour Championship Report; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3).

G.10 Governance Ad Hoc Committee Recommendation to Adopt Proclamation and Certificate Policy; and Amend the City Council Policy Relating to Council Assignment Draft Process
285
RECOMMENDED ACTIONS:

It was determined to ADOPT Resolution establishing a Proclamation and Certificate Policy; and
FINDS the actions to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

Council Meeting Agenda- February 5, 2026

G.11 Consideration of Sponsorship Requests for the 2026 Riverside County Fair & National Date Festival and Annual Luncheon Celebrating the Ophelia Girls and their Mentors
298
RECOMMENDED ACTIONS:

Council APPROVES sponsorship Requests to the 2026 Riverside County Fair & National Date Festival & the 2026 Annual Luncheon Celebrating the Ophelia Girls and Their Mentors; and
APPROVES A Supplemental Appropriation in the Amount of $12,500 to fund the Sponsorships; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

G.12 Supplemental Appropriation to Dokken Engineering for a Drainage Study and Design
301
RECOMMENDED ACTIONS:

Council APPROVES a supplemental appropriation in the amount of $150,000 to Dokken Engineering for the initiation of a Drainage Study and Design, at Dakota Trail and Blackfoot, from the Capital Improvement Reserve Fund; and
FINDS the action exempt from the provisions of the California Environmental Quality Act (CEQA) in accordance with Section 15301, Class 1 (c) of Title 14 of the California Code of Regulations.

G.13 City Treasurer’s Report for December 2025 303
RECOMMENDED ACTIONS:

Council RECEIVES and FILES the City Treasurer’s Report for December 2025; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

H.PUBLIC HEARINGS
No Public Hearings.

Council Meeting Agenda- February 5, 2026

I.GENERAL BUSINESS
The Mayor will call upon the members of the public to address the Council regarding the agenda item being considered. After the public has provided comment, the item is closed to further comment and brought to the Council for discussion and action.

I.1 Resolution Approving Revised Publicly Available Pay Schedules for Retroactive Salary Increases and Approve City Manager Contract Amendment
322
RECOMMENDED ACTIONS:

Council ADOPTS Resolution approving the Fiscal Years 2024-25 and 2025-26 Approved Positions List with Annual Salaries and Ranges effective July 1, 2024, January 1, 2025, and July 1, 2025, in accordance with CalPERS guidelines; and
APPROVES the Eighth Amendment to the City Manager Contract; and
DIRECTS staff to post the employee salary range schedule on the City’s website; and
FINDS the action exempt from CEQA review under CEQA Guidelines section 15061(b)(3).

I.2 Council Member Whitman Request for Consideration of Inclusion of a “Resident Impact Statement” to City Council Staff Reports 332
RECOMMENDED ACTIONS:

Council DISCUSSES and PROVIDES direction on Council Member Whitman’s request to include a “Residential Impact Statement” for future City Council staff reports; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15378 Council Meeting Agenda- February 5, 2026

J.COUNCIL MEMBER'S REPORTS AND COMMENTS
On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. Council Members may ask a question for clarification, make a referral to staff, or take action to have staff place a matter of business on a future agenda. The Council may take action on items listed on the Agenda.

J.1 COUNCIL MEMBER WHITMAN
California Joint Power Insurance Authority (JPIA)
Coachella Valley Children's Museum
Cove Communities Services Commission
Desert Sands Unified School District
Indian Wells Golf Advisory Committee
Sunline Transit Agency
J.2 COUNCIL MEMBER REED
CVAG Conservation Commission
CVAG Public Safety Committee
Desert Recreation District
Governance Ad Hoc Committee
Indian Wells Marketing Committee
Indian Wells Finance & Legal Oversight Committee
J.3 COUNCIL MEMBER SANDERS
Coachella Valley Animal Campus
Coachella Valley Clean Air Ad Hoc Committee
Cove Communities Service Commission
Desert Sands Unified School District
Desert Recreation District
Indian Wells 60th Anniversary Ad Hoc Committee
Indian Wells Marketing Committee
Indian Wells Finance & Legal Oversight Committee
Indian Wells Public Safety Committee
Council Meeting Agenda- February 5, 2026

J.4 MAYOR PRO TEM PENNA
Coachella Valley Mountain Conservancy
Indian Wells Preservation Foundation
Indian Wells 60th Anniversary Ad Hoc Committee
Visit Greater Palm Springs
Indian Wells Community Activities Committee
Indian Wells Grants In Aid Committee
Indian Wells Personnel Committee
Indian Wells Public Safety Committee
Indian Wells Tee Committee
J.5 MAYOR TAYLOR
CVAG Executive Committee
CVAG Energy & Sustainability Committee
CVAG Homelessness Committee
CVAG Transportation Committee
Coachella Valley Clean Air Ad Hoc Committee
Governance Ad Hoc Committee
Indian Wells Golf Resort Advisory Committee
Indian Wells Personnel Committee
Indian Wells Tee Committee
Riverside County Transportation Commission
Southern California Association of Governments
Council Meeting Agenda- February 5, 2026

K. ADJOURNMENT
To a special scheduled meeting of the City Council to be held at 10:30 a.m. on March 5, 2026 in the City Hall Council Chamber.

Affidavit of Posting,
I, Angelica Avila, certify that on January 30, 2026 I caused to be posted a notice of a City Council Meeting to be held on February 5, 2026 at 1:30 p.m. in the City Hall Council Chamber.

Notices were posted at Indian Wells Civic Center and City's Website [ www.cityofindianwells.org]
________________________
Angelica Avila, MMC, City Clerk
Council Meeting Agenda- February 5, 2026

V I S I T G R E A T E R P A L M S P R I N G S

A N N U A L U P D A T E
February 5, 2026
City Council Meeting:

February 5, 2026 - Presentation
Item C.1

2024
Total
Economic
Impact
of Tourism
SOURCE: TOURISM ECONOMICS
REPORT 2024
Coachella Valley

TOTAL ECONOMIC
IMPACT $9.1B
$897M
JOBS
SUSTAINED 51,045

HOUSEHOLD

TAXES SAVED

STATE & LOCAL
TAXES
TOTAL

VISITORS
$5,900

14.5M
In 2024, the total economic impact of tourism in the City of Indian Wells was $510 million, generating $52 million in state & local taxes.

REPORT 2024

DESTINATION STEWARDSHIP PLAN
Hunden Partners was selected to lead the development
of our Destination Stewardship Plan, bringing deep
expertise in destination planning and sustainable
tourism strategy.

Expanded scope to include nine city-specific master
plans, ensuring each community’s unique priorities,
opportunities, and challenges are directly reflected.
City master plans will roll up into a
comprehensive overall Destination Stewardship
Plan, creating a cohesive regional vision both
locally actionable and regionally aligned.
Approach balances local needs with regional
strategy, supporting sustainable growth,
community stewardship, and an exceptional
visitor experience across the destination.

2026 KEY RESEARCH INITIATIVES
Resident Sentiment Study: Captures local
perceptions of tourism and community quality
of life.

Image & Awareness Study:Tracks brand
awareness and destination perception across
key markets.

Visitor Intercept Study: Provides ongoing, real-
time insight into visitor behavior, spending, and
experience drivers while in-market
2025 Tourism Economic Impact Study:Updates
the region-wide economic contribution of
tourism.
2025 Tourism Economic Impact Study:

Updates the region-wide economic
contribution of tourism.

Meetings: Identifies behaviors, motivations
and booking patterns of meeting planners.

Restaurant Week Survey: Measures visitor
engagement and economic impact.

Rove Dashboards: Anticipated platform
launch in 2026 to consolidate key datasets
into a single, accessible reporting
environment.

PRIORITY AREAS OF FOCUS
Regional Collaboration & Economic Diversity:
Grow regional initiatives to include
expanded workforce development
Launch the new economic development
web site and campaign
Focus on the development of an indoor
sports complex
Stewardship:
Develop strategies around sustainability,
cultural heritage, accessibility, community
engagement and advocacy
Increase Demand:
Expand the initiatives for the need periods:
(June-September) (May and December)
Expand off peak marketing for air service
development
Develop sports strategy to attract new
sporting events, especially during the need
periods

INCREASE DEMAND –

OFF -PEAK EMPHASIS
2 A I R S E R V I C E

2026 NEW AIR SERVICE
SOUTHWEST:
•New seasonal service from Austin (AUS)
UNITED:
•New seasonal service from Newark
(EWR)
•Returning seasonal service from
Washington, D.C. (Dulles/IAD)
ALASKA:
•Service extension from Boise (BOI)
•New market from Santa Rosa (STS)
•Frequency increase from Portland (PDX)
AMERICAN:
•New Charlotte (CLT) seasonal service
•Frequency increase from Chicago (ORD)
DELTA:
•New seasonal service from Austin (AUS)
•Frequency increase from New York (JFK)
New nonstop flights and expanded air service:

C O N V E N T I O N S A L E S

KEY 2023 CONVENTION SALES STATS2025 CONVENTION SALES STATS $238M
estimated
economic
impact
262,061
definite
room nights
428
meetings
booked
82,291
estimated jobs
supported by
VGPS bookings
1,620
hotel
leads

KEY 2023 CONVENTION SALES STATS2025 CONVENTION SALES STATS – OFF PEAK 47,545
31,218
61,513
26,000 24,500
30,000
0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
May & Sept Summer Q4
2025 Off Peak RN Production vs Goal by Period
Production Goal

KEY 2023 CONVENTION SALES STATSCONVENTION SALES STATS – OFF PEAK

INDIAN WELLS

2025 GROUP LEADS, BOOKINGS, ROOM NIGHTS

CITY OF INDIAN WELLS HOTELS
$49 Million
Estimated
Economic
Impact
96 55,823 19,183
Est. Jobs SupportedBookingsBooked Room Nights
1,068
Leads

2026 GOALS/OBJECTIVES
•Off-Peak Bookings & Sales Focus
•Partnership and Collaborations
•Sports Market Committee/Funding
•Customer Advisory Board
(Mentor/Mentee Structure)
•Marketing and Strategic
Partnerships

D E S T I N A T I O N M A R K E T I N G

2025 CAMPAIGNS: SEASONAL & ALWAYS ON
•Brand Campaign: "Escape Your Ordinary"
•Summer Brand + Social Media Campaign
•Oasis of Art
•Dine GPS / Restaurant Week
•Spa Month
•Group Meetings Campaign: "The Oasis is Real"
•Benefits of Tourism
•Workforce Development

DINING &

SHOPPING
ARTS &

ENTERTAINMENT

OUTDOOR
EXPERIENCES LGBTQ+CULTURE &

HERITAGE

HEALTH &

WELLNESS
•Spring Getaway / Staycation Campaigns
•Direct Flight: "Time To Fly"
•VGPS Co-op Programs
•Social Media “Dine Series”
•Vacation Rentals (consumer)
•Vacation Rentals / One Coachella Valley (local)
•International Campaigns
•LGBTQ+

2025 MARKETING RESULTS
22M
website usersconvention
sales impressions

2.7M
total impressions generated30.8B+

2.3M
television spots
528K
total social
media followers
in 2025

28.5M
social media
video views
Record-setting year!

EVENT SUPPORT

2026 GOALS/OBJECTIVES: MARKETING
NEW BRAND CAMPAIGNS: WHERE YOU SHINE
•Launch the "Where You Shine" campaign
focusing on international and LGBTQ+ audiences

PILLAR SUPPORT
•Escapes Video Series: Promote our new six-
episode video series.
•Social Media Series: Create a new series of short
form content.
•Promote outdoor adventure and sports

OFF-PEAK VISITATION
•NEW Summer Brand + Social Media Campaign
"Play for Days"
•VRBO Summer/Fall Campaign

2026 GOALS/OBJECTIVES
Expedia Ambassador Summit
•40 content creators, 11M combined reach
Expanded TED Conference Sponsorship
•Sponsorship of Restore Lounge
•Custom Content + Promotion
International
•FIFA World Cup & Olympics
•Canada – Brand USA co-ops & Canadian
Airlines
•Germany - expansion
•China - social media channels

/CANADIAN SUPPORT TOOLKIT

ENGAGEMENTS

VIDEO VIEWS

IMPRESSIONS
ENGAGEMENTS •Custom-designed window
clings for local businesses,
personalized by city
•Partner toolkit with ready-to-
use graphics and messaging
for digital and print use
Launching February 2026 to welcome
back Canadian visitors and highlight
community support.

P R / C O M M U N I C A T I O N S

2025 COMMUNICATIONS/PR KEY RESULTS

7.2 BILLION+

TOTAL CIRCULATION
1,457

TOTAL EARNED

ARTICLES
11,813

EARNED MEDIA PR

QUALITY SCORE

8.1 AVERAGE SCORE

PER ARTICLE
177

MEDIA VISITS AND

GROUP FAMS HOSTED
Record-setting year!

2025 PRESS COVERAGE: INDIAN WELLS

REGIONAL

COLLABORATION,

ECONOMIC DIVERSITY &

COMMUNITY ENGAGEMENT
8 NEW – Champion the Coachella
Valley Regional EDSP
NEW – Establish a regional
economic development
advisory board and valley-
wide business retention task
force
Full implementation of the
marketing and communications
plan
2026 ECONOMIC DEVELOPMENT GOALS
LiveWorkGPS.com

AMATEUR SPORTS FACILITY
2026 Goals
•Identification of
estimated funding &
financing options
•Roadmap for
implementation
•Identify location
with potential
groundbreaking in
2028

2026 QUALITATIVE PARTNERSHIP GOALS
RESTAURANT WEEK 2026
May 29 – June 7
•Increase restaurant
participation
•Continue sponsorship from all
nine cities at some level
•Add culinary student
participation at Kickoff Event
•Restaurant Week Bootcamp in
February

SPA MONTH
September
•Increase spa participation for
spa offers and partners
•At least 5 sponsors
•Spa month bootcamp in June
2026

2025 KEY WORKFORCE DEVELOPMENT STATS
184
leadership institute
graduates
400+
high school students
engaged in outreach
181 scholarship applications,
10 college scholars
252
new
destination
ambassadors
$50,000 in scholarship funding
$24,000 travel/study abroad
scholarships
$30,000 leadership training for
workforce scholarships
$239,075
raised for the
tourism foundation

WORKFORCE DEVELOPMENT & FOUNDATION
2026 GOALS
NEW Restaurant Week Chef/Student Dinner •NEW Launch Visionary Leaders in Partnership with COD • Passport to Leadership & Student Hospitality Day • THANK YOU for your support of Autism Certification!

Thank you!

APPENDIX

KEY 2025 AIR SERVICE STATS
Data above is for CY 2025 and includes inbound and outbound air service

3.3M
total number of
passengers

2.4M
total
seats
74%
average load
factor
6%
increased seat capacity
over previous year

VGPS TOTAL FY 25/26 BUDGET: $33.3M
83%
TID

82.2%
TBID 8.7%
Private

9.1%
JPA
TBID – Hotels
(50+ Rooms) Contribute 3% TOT
TBID – Vacation Rentals
Contribute 1% TOT
Funding Source Allocation
88%
12%
Sales &
Marketing
Admin &
Operations

TBID – Hotels with
50+ Rooms Contribute 3%
$22,764,075
TBID – Vacation Rentals
Contribute 1%
$3,079,822
JPA Funding
from 9 Cities & County
$2,848,884
Private Revenue,
Tribal Voluntary &
Other Sources
$4,638,208
JPA Funding
from Indian Wells
$273,184
83%
TID

GREATER PALM SPRINGS

CITY OF INDIAN WELLS
Funding Allocation
88% Sales & Marketing
12% Admin & Operations
(0.8% of VGPS
Funding Overall)

9.6% of JPA
Funding

82.2%
TBID 8.7%
Private

9.1%
JPA
TBID – Hotels
(50+ Rooms) Contribute 3% TOT
TBID – Vacation Rentals
Contribute 1% TOT
TOTAL FY 25/26 BUDGET: 33.3M FUNDING SOURCE

SUMMER CO-OP
8,232

TOTAL SPOTS
533M

IMPRESSIONS
$12,500

INVESTMENT
$160K

TOTAL VALUE

C I T Y O F

I N D I A N W E L L S
S U M M E R 2 0 2 5

T E L E V I S I O N

C O-O P

R E C A P

R E P O R T

SOCIAL MEDIA

C I T Y O F

I N D I A N W E L L S
S U M M E R 2 0 2 5

T E L E V I S I O N

C O-O P

R E C A P

R E P O R T
2,730

INSTAGRAM

VIDEO VIEWS
Instagram Reel

SUMMER CO-OP
8,232

TOTAL SPOTS
533M

IMPRESSIONS
$12,500

INVESTMENT
$160K

TOTAL VALUE

R E N A I S S A N C E

E S M E R A L D A

R E S O R T & S P A
S U M M E R 2 0 2 5

T E L E V I S I O N

C O-O P

R E C A P

R E P O R T

SOCIAL MEDIA
4,438

INSTAGRAM

VIDEO VIEWS
Instagram Reel

R E N A I S S A N C E

E S M E R A L D A

R E S O R T & S P A
S U M M E R 2 0 2 5

T E L E V I S I O N

C O-O P

R E C A P

R E P O R T

SUMMER CO-OP
8,232

TOTAL SPOTS
533M

IMPRESSIONS
$12,500

INVESTMENT
$160K

TOTAL VALUE

G R A N D H Y A T T

I N D I A N W E L L S

R E S O R T &

V I L L A S
S U M M E R 2 0 2 5

T E L E V I S I O N

C O-O P

R E C A P

R E P O R T

SOCIAL MEDIA
9,794

INSTAGRAM

VIDEO VIEWS
Instagram Reel

G R A N D H Y A T T

I N D I A N W E L L S

R E S O R T &

V I L L A S
S U M M E R 2 0 2 5

T E L E V I S I O N

C O-O P

R E C A P

R E P O R T

PR/TRADE REPRESENTATION
Finn Partners

UNITED KINGDOM
Full-Time Rep MN'O
Organisation
FRANCE
Full-Time Rep
Msi

GERMANY
Full-Time Rep
Aviareps – Visit CA
CHINA
Ad-Hoc Projects
Sartha Marketing –
Visit CA
INDIA
NEW - Full-Time RepGate 7 – Visit CA

AUSTRALIA
Full-Time Rep
JAPAN
Ad-Hoc Projects
Connect Worldwide –
Visit CA

SOUTH KOREA
Ad-Hoc Projects
iConnect– Visit CA Atlantic Link –
Visit CA

SCANDINAVIA
Ad-Hoc Projects

MMGY NJF PR

UNITED STATES
Full-Time Rep
Connvoc & Visit CA
MEXICO
Ad-Hoc Projects

2026
Approved
Goals & Objectives
City Council Meeting:

February 5, 2026 - Supplemental Material
Item C.1

Introduction

Visit Greater Palm Springs is the official destination marketing organization for the nine cities of Greater Palm Springs, working to position the region as a place where travelers from around the world are welcomed to find adventure, inspiration, and rejuvenation.

Our mission is to promote our unique and diverse destination globally while advancing regional collaboration to improve the quality of life for our residents and partners.

Guided by this mission and our core values of collaboration, integrity, innovation, accountability, and stewardship, we align strategic sales, marketing, communications, and research efforts to drive sustainable visitation and economic impact.

In support of this work, Visit Greater Palm Springs also has a dedicated Director of Tourism for the City of Indian Wells with separate goals and objectives specific and exclusive to the city of Indian Wells. An expert in sales and marketing, this role focuses solely on supporting Indian Wells partners, advancing the city’s tourism objectives, and delivering customized strategies with support of Visit Greater Palm Springs resources to strengthen the city’s position and maximize return on investment.

Destination Future Planning

As we look ahead, the global tourism industry stands at a pivotal crossroads shaped by normalizing travel demand following the post-pandemic surge and a rapidly shifting digital ecosystem. Nationally, rising media costs and the integration of Generative AI into the travel planning journey have fundamentally transformed how visitors discover destinations, moving the “search-to-booking” path away from traditional websites and toward direct, AI-driven answers. Internationally, economic headwinds and fluctuating currency exchanges—particularly in key markets like Canada—require a more agile and targeted approach to maintain our global competitiveness.

In response to these external dynamics, Visit Greater Palm Springs is embarking on a landmark year. A central milestone for 2026 will be the development of our updated, comprehensive Destination Stewardship Plan. This forward-thinking roadmap will not only guide our long-term growth and sustainability but also ensure that tourism continues to enhance the quality of life for our residents while preserving the unique character of our oasis. The Destination Stewardship Plan will deliver nine city tourism plans that will integrate into our regional plan. The individual city plans will be funded by VGPS.

By prioritizing economic diversification, expanding international reach through campaigns like “Thrive and Shine” (economic development), “Escape Your Ordinary” (national campaign), and “Where You Shine” (international and LGBTQ) while leveraging major global moments such as the 2026 FIFA World Cup, we are positioning Greater Palm Springs as a premier, year-round destination that remains resilient in an ever-changing global economy.

Destination Stewardship Plan

As we plan for the future, a major milestone will be underway in 2026: the development of our updated comprehensive Destination Stewardship Plan (previously called the Destination Development Plan) for Greater Palm Springs. This forward-thinking initiative will serve as a strategic roadmap to guide the region’s long-term growth, competitiveness, and sustainability as a premier travel destination. Equally important, it will ensure that future tourism development enhances resident quality of life while preserving the character, culture, and natural beauty that make our oasis truly one of a kind. The plan will align closely with our organizational priorities—including driving off- peak visitation, expanding air service, growing meetings and conventions, advancing sustainability and DEI, strengthening the hospitality workforce, and promoting economic diversification across the Coachella Valley.

At the end of 2025 we conducted a competitive bid process, and we recently conducted three interviews with CSL, Resonance, and Hunden Partners with our team and three board members (Rolf Hoehn, Doug Watson, and David Feltman). The interview panel determined that Hunden Partners is best suited to work with our region and accomplish our goals. The entire Hunden team will bring a unique and creative approach to the master planning process and ultimately a plan that is actionable and measurable.

During the interview process, we decided to expand the scope and add nine city-level plans alongside the regional plan, focusing on tactical implementation steps tailored to each city.

As part of this expanded scope, we asked for deeper, tourism-specific analysis and recommendations across key categories, including:

• Large hotels and resort properties
• Short-term rentals
• Small and boutique hotels
• Restaurants
• Attractions and experiences
• Retail that supports the visitor economy
• Event venues and supporting infrastructure
• Outdoor recreation assets

For each category, we are seeking insights that help translate the master plan into practical guidance for cities. This may include, but is not limited to:

• How current city policies, regulations, and planning frameworks impact each category
• Identification of gaps, needs, or barriers within each city • Market opportunities and risks
• Action-oriented considerations that cities can use to inform policy decisions, planning priorities, and future investment

Key additional tasks include:
o Organizing an in-person session with city leaders and touring key assets. o Conducting customized focus groups for each city.
o Enhancing research on destination products and gaps specific to each city.
o Developing unique plans for each city that address policies, identify gaps, and recommend actionable priorities.

The overall timeline was adjusted to 12-13 months, with the regional plan taking 10 months and city plans an additional 2-3 months.

Indoor Sports Complex

In 2026, Visit Greater Palm Springs will continue advancing plans for a ~200,000 sq. ft.

Indoor Sports Complex, a long-term regional asset projected to generate a $46.3 million annual economic impact, 34,300 annual hotel room nights, 561,500 total annual attendee days, and $384,600 in annual net operating profit (excluding debt service).

This project is critical to increasing demand during the summer months.

With sports tourism rapidly growing nationwide, this facility is critical for the destination to remain competitive, secure year-round tournament business, and drive much-needed summer and off-peak visitation to support local hotels, restaurants, and attractions.

Building on strong feasibility results and demonstrated demand for indoor, climate- controlled space, VGPS will focus on securing funding, aligning regional partners, and advancing key pre-development milestones to position the project for a 2027/28 groundbreaking.
2026 Priorities
• Finalize funding strategy: Partner with Kosmont to identify viable financing models, incentives, and investment tools, and develop a clear funding pathway for the facility.
• Engage regional stakeholders: Share funding findings and economic impact potential with cities and prospective partners to build multi-jurisdictional support. • Attract developers and investors: Actively pitch the project to qualified developers, operators, and investment partners, both within and outside the region, to drive interest, explore public-private partnership models, and identify potential long-term operators for the facility.
• Advance pre-development work: Support site analysis, feasibility refinement, governance structure exploration, and partner outreach to keep the project moving toward 2027.
• Strengthen the case for impact: Continue quantifying projected economic benefits, including visitor spending, job creation, and increased off-season activity, to ensure regional alignment and investment readiness.

AI-Driven Efficiency & Productivity

In 2026, Visit Greater Palm Springs will continue to leverage AI to drive organizational efficiency, enhance productivity, and enable teams to focus more time on high- impact, strategic work. AI will be integrated as a practical business tool, supporting faster insights, smarter decision-making, and streamlined workflows across marketing, communications, sales, research, partnership, and operations while maintaining brand integrity, data privacy, and human oversight. By using AI, the organization can respond more quickly to market changes, maximize ROI, and operate with greater agility in an increasingly competitive tourism landscape.

Examples of AI applications include:
• Marketing & Content Efficiency: Using AI to accelerate first-draft development for campaign and website copy, social content, itineraries, media pitches, and internal reports, allowing teams to focus on refinement, storytelling, and brand alignment.
• Data & Insights: Applying AI to analyze performance dashboards, identify trends in booking windows, traveler behavior, and source markets, and generate faster insights to inform media spend, co-op strategies, and air-service support. • Sales & Meetings Productivity: Leveraging AI to summarize RFPs, analyze lead quality, draft customized follow-ups, and identify patterns that support off-peak and midweek group demand.
• Research & Reputation Management: Monitoring media coverage, social sentiment, and competitive positioning in real time to surface opportunities, mitigate risks, and inform proactive PR strategies.
• Internal Operations: Automating meeting summaries, project updates, utilizing Zapier to automate Basecamp projects and to-do’s, and cross-departmental reporting to reduce manual workload and improve alignment across teams.

AI will support Visit Greater Palm Springs’ commitment to innovation, accountability, and results—ensuring the organization operates smarter, faster, and more efficiently in 2026 and beyond.

Research/Dashboards

Research remains a critical foundation for how Visit Greater Palm Springs makes informed, strategic decisions, ensuring marketing investments, sales efforts, and destination initiatives are grounded in data and aligned with both visitor demand and community priorities.

In 2026, Visit Greater Palm Springs will continue to leverage a robust research portfolio to generate actionable insights that guide long-term strategy, optimize resource allocation, support stakeholder decision-making, and advance destination stewardship.

Key research initiatives include:
• 2025 Tourism Economic Impact Study – Quantifies the total economic value of tourism to the region, including jobs supported, tax revenues generated, and household savings.
• 2025 STVR Economic Impact Study – Assesses the economic value of short-term vacation rentals, including revenue, visitor spending, and job creation, to guide policy, planning, and destination development decisions. • Resident Sentiment Study (initiated in 2025; finalizing in 2026) – Captures resident perceptions of tourism, quality of life, and community benefits to guide responsible growth and stakeholder alignment.
• Image and Awareness Study (initiated in 2025; finalizing in 2026) – Evaluates brand awareness, destination perception, and traveler motivations across key domestic and international markets.

• Visitor Intercept Study (initiated in 2025; finalizing in 2026) – Provides real-time insights into visitor behavior, spending patterns, and experience drivers while in destination.
• Destination Stewardship Plan – Establishes data-informed strategies to balance visitation growth with sustainability, resident quality of life, and long-term destination health.
• Meetings – Evaluates the effectiveness of “The Oasis is Real” campaign and identifies opportunities to better support meetings and group business. Identifies behaviors, motivations and booking patterns of meeting planners. • Restaurant Week Survey – Measures program performance, visitor engagement, and economic impact to inform future culinary and off-peak visitation strategies.

Visit Greater Palm Springs will also complete the rollout of customized destination dashboards in partnership with Rove in 2026, transforming complex data sets into clear, intuitive visualizations that deliver meaningful, actionable insights. By seamlessly integrating multiple data sources into a single platform, these dashboards centralize information that previously lived across disparate tools and reports, streamlining workflows, reducing manual reporting, and improving consistency in how performance is measured and communicated. The result is greater operational efficiency, faster access to insights, and more confident decision-making.

Beyond internal use, the Rove dashboards significantly expand the value of Visit Greater Palm Springs’ data by enabling cities, partners, and stakeholders to access the same trusted insights in real time. This shared visibility creates a common source of truth, supports more productive and informed conversations, and strengthens alignment across the organization and destination community, reinforcing transparency, collaboration, and data-driven decision-making at every level.

_________________________________
Board Priority: Increase Demand

CONVENTION SALES

The team delivered an exceptional year-end performance in 2025, achieving 115% of its annual room-night goal by securing 262,061 room nights against a target of 228,500.

This result exceeded the stretch goal of 235,000 room nights and surpassed the previous high-water mark set in 2018 (242,084 room nights).

A key driver of this success was the team’s intentional focus on booking business in off- peak and shoulder periods, amplified by the Meetings Oasis Incentive Program.

Together, these efforts generated 140,696 room nights during targeted need periods across the in-year and three-years-out windows—up significantly from 99,461 room nights in 2024.

Year-end performance across all goal categories included:
• 1,620 total leads distributed – 105% of annual goal (1,550) • 284 new bookings – 103% of annual goal (275)
• 849 new leads generated – 105% of annual goal (805)

Geographically, top end-user markets were led by Southern California, the Mid-Atlantic, and Northern California, while the highest-producing industry segments included high tech, healthcare & medical, and trade/commercial.

In 2025, the team established targeted booking goals to drive room nights during off- peak and shoulder months (May & September, Summer, and Q4), delivering outstanding results:

• May & September: 183% of goal – 47,545 room nights (goal: 26,000) • Summer: 127% of goal – 31,218 room nights (goal: 24,500) • Q4: 206% of goal – 61,933 room nights (goal: 30,000)

Overall, the team successfully booked 140,696 room nights during these need periods against a goal of 80,500. This performance was driven by a combination of focused direct sales efforts, strategic partnerships, targeted marketing campaigns, booking incentive program, expanded trade show and sales mission presence, and increased in-market familiarization tours, demonstrating a results-oriented approach to demand generation and long-term growth.

Looking Ahead to 2026

The renovation and expansion of the Palm Springs Convention Center (PSCC) is anticipated to begin in Q3 2026 and conclude in Q3 2028. While this investment is critical to the long-term competitiveness of the destination, construction activity during this period may impact near-term booking production.

For context, PSCC-related booking production has been strong in recent years:

The data below highlights the short-term nature of the booking window and the impact it will have on our ability to confirm groups during the renovation/expansion process.

• 2024: 43,171 total room nights booked
o In-year: 12,219 (2024)
o 1 year out: 20,753 (2025)
o 2 years out: 10,013 (2026)
o 3 years out: 7,275 (2027)

• 2025: 61,598 total room nights booked
o In-year: 8,115 (2025)
o 1 year out: 14,934 (2026)
o 2 years out: 18,230 (2027)
o 3 years out: 11,612 (2028)

Additionally, the Riviera Resort is scheduled to be closed from May through December 2026, with the potential to extend into 2027. This temporary closure will further impact available inventory and booking potential. For reference:

• 2024: 20,647 room nights booked (in-year and future years combined) • 2025: 17,899 room nights booked

Future Pace for 2026 shows the destination down by 1% year over year, with room nights on the books (RNS OTB) tracking 2,122 fewer room nights than same time last year.

• Quarterly breakdown points to a stronger back half and a need and focus into the first half of the year:
•
Q1: Down -6%, (-6,457 room nights)
Q2: Down -23% (-14,535 room nights)
Q3: Up +13% (+4,376)
Q4: Up +56% (+14,494)

Future Pace for 2027-2029 are as follows:
• 2027: Up +3% (+2,835)
• 2028: Up +17% (+8,819)
• 2029: Up +43% (+8,064)

CBRE Hotel Market Forecast (a s o f November 2025)
2026 Outlook
• Overall market occupancy is expected to stay flat in 2026 at 60.6%, while the downside projects a decline of -3.4%.
• ADR is expected to grow 2.5% in 2026.
• RevPAR growth is expected to grow 2.2%.

HISTORICAL GOALS/2026 GOALS

2024
GOAL
2024

STRETCH
GOAL
2024
ACTUAL
2025
GOAL
2025

STRETCH
GOAL
2025
ACTUAL
2026
GOAL
2026

STRETCH
GOAL
ROOM
NIGHTS 207,000 225,000 237,182 228,500 235,000 262,061 250,000 260,000 LEAD
DISTRIBUTION 1,650 1,730 1,520 1,550 1,565 1620 1580 1600 NEW
BOOKINGS 290 305 268 275 290 284 280 290

NEW LEAD
DISTRIBUTION 870 885 797 805 825 849 835 850

Off-Peak Booking & Sales Focus: In 2026, Convention Sales will continue to prioritize off- peak and shoulder-season demand generation, with a deliberate focus on mid-week occupancy and long-term booking windows.

1. Track & Optimize Off-Peak Performance
Continue to closely track off-peak and mid-week bookings, using data and reporting tools to identify trends, conversion opportunities, and gaps by month, market, and industry segment.

2. Develop Mid-Week Advantage Offers
Launch a Mid-Week Advantage program featuring compelling value-add packages co-developed with hotel partners. Offers may include enhanced concessions, experiential add-ons, or destination incentives designed to increase mid-week occupancy during off-peak and shoulder seasons. These offers will be promoted through targeted newsletters, LinkedIn campaigns, and marketing promotions in collaboration with strategic partners.

3. Increase Off-Peak Conversion Through Enhanced Site Inspections Expand and elevate off-peak site inspections to improve close rates for meetings and events. In partnership with the Marketing and Brand teams, these experiences will more effectively showcase updated venues, resorts, and unique destination experiences that position Greater Palm Springs as a high-value, flexible off-peak option.

Sports Market: Sports tourism will remain a key driver of off-peak demand and economic impact.

1. Establish a Sports Advisory Committee
Assemble a local sports committee with key stakeholders to identify and pursue sports organizations and events that align with off-season availability. The committee will meet quarterly to align priorities, assess opportunities, and coordinate resources.

2. Dedicated Sports Incentive Fund
Allocate a dedicated fund to help offset operational or venue costs for high- value sports events that deliver measurable room nights during off-peak periods.

3. Enhance Sports Value-Add Programming
Collaborate with hotels, attractions, and local businesses to create value-add offerings for visiting teams, families, and spectators—driving extended stays and increased local economic impact.

Partnership and Collaborations: Strategic destination partnerships will support rotational and multi-program business during off-peak periods.

1. Expand Palms-to-Palms Partnership
Continue to strengthen the partnership with The Palm Beaches CVB and Convention Center, focusing on rotational business opportunities and personalized client hand-offs that target off-peak and shoulder seasons.

2. Joint Client Engagement & Packaging
Host a minimum of three joint client events with The Palm Beaches to promote Palms-to-Palms opportunities. Develop a bundled value package for rotational programs designed to increase multi-year and multi-program bookings during shoulder seasons.

NEW Customer Advisory Board (Mentor/Mentee Structure): A new Customer Advisory Board (CAB) Leadership Exchange will be structured as a mentorship and knowledge- sharing program that pairs experienced meeting planners with emerging professionals in the industry. Designed as an extension of the CAB, this program will position Visit Greater Palm Springs as an industry leader committed to talent development, long- term relationship building, and the future of meetings and events while gaining meaningful insights that cross generations.

Robust Travel Calendar & Client Events: Visit Greater Palm Springs will continue to execute a high-impact calendar of client events, tradeshows, and destination familiarization (FAM) trips designed to deepen relationships with meeting planners and decision-makers while showcasing the destination’s diverse venues, refreshed hotel product, and unique experiences. These in-market and outbound efforts are a critical component of the Convention Sales strategy, serving as both a relationship-building and conversion-driving tool.

Building on strong momentum, the team hosted 98 client engagements in 2025, reflecting a strategic activity aligned with off-peak demand generation and long-term booking windows. Collectively, these initiatives reinforce Visit Greater Palm Springs’

commitment to personalized service, proactive sales outreach, and positioning the destination as a premier, year-round meetings and events destination.

Key highlights included in our plans are participation in national and regional tradeshows such as IMEX, ASAE, and PCMA, alongside immersive client events and FAM experiences including the Palm Springs International Film Festival and a Spring FAM designed to showcase the destination firsthand. These efforts are further amplified through collaborative partner activations with organizations such as Visit California and partnerships with Palm Beaches CVB, extending reach and strengthening strategic partnerships.

As part of this approach, we encourage our hotels and resorts partners to proactively bring forward opportunities tied to high-profile client events, enabling Visit Greater Palm Springs to partner alongside them to extend reach, elevate the client experience, and maximize destination visibility.

Marketing & Sales Alignment: Convention Sales will continue to align closely with Marketing to elevate visibility and generate inbound demand.

1. Maximize Media & Partner Marketing Opportunities
Leverage media partnerships and strategic vendors to extend the reach of the “The Oasis Is Real” meetings campaign.

2. Refresh Campaign Assets
Update “The Oasis Is Real” with new video and photography highlighting refreshed meeting spaces, new and renovated hotel product, and immersive destination experiences.

3. Explore Co-Op Content Development
Evaluate and pursue co-op opportunities with hotel and resort partners to support joint video and photo production, expanding Visit Greater Palm Springs’ meetings asset library.

4. Elevate LinkedIn Thought Leadership
Increase LinkedIn activity with strategic content recapping tradeshows, sales missions, and destination FAMs—positioning Visit Greater Palm Springs as an industry expert, showcasing destination momentum, and driving planner interest and inbound leads.

_________________________________
Marketing

In 2025, Visit Greater Palm Springs advanced a comprehensive, multi-channel consumer advertising strategy to expand brand visibility, deepen audience engagement, and deliver measurable results across key drive and fly markets.

Collectively, these campaigns generated a total of 30.8B impressions across all platforms an increase of more than 800 million impressions year over year.

These campaigns elevated the destination’s profile nationally and internationally, supported tourism partners and stakeholders, strengthened community pride, and stimulated off-peak and year-round visitation, reinforcing Greater Palm Springs’ position as a premier travel destination.

BRAND HEALTH & AWARENESS: At the close of 2025, SMARI completed an Image and Awareness Study evaluating how Greater Palm Springs is perceived across key domestic and international markets. The study measured brand awareness, destination imagery, and consumer travel behaviors, including lodging preferences and travel motivations. These insights will directly inform future strategic planning, guide marketing investments, and ensure messaging remains aligned with the expectations of high- value travelers.

Findings include:
• Emerging fly markets such as Atlanta, Salt Lake City, and Washington, D.C. experienced the most significant gains in destination perception following recent advertising investment.
• Brand perception gains are cumulative and long-term; Greater Palm Springs continues to see strong positive momentum since expanding its marketing footprint in 2018.
• Gateway markets reported the highest familiarity levels, with 74% of consumers indicating some level of awareness of Greater Palm Springs. • International consumers showed notable increases in familiarity, signaling growing global reach and awareness.
• Greater Palm Springs outperforms its competitive set on key product attributes— particularly as a destination for health and wellness and for offering a relaxing, rejuvenating atmosphere.

2026 Goals – Consumer

In 2026, Visit Greater Palm Springs will focus on further optimizing our variety of tactics and marketing strategies to further enhance brand visibility, audience engagement, and drive off-peak visitation. Below is an outline of our key objectives for 2026:

Brand Campaigns
• Escape Your Ordinary – The successful “Escape Your Ordinary” campaign will return in Fall 2026 for its planned third year, supported by refreshed creative assets informed by performance analysis and creative optimization. New photography will be incorporated to ensure fresh content and updated partner representation.
• NEW – Where You Shine: Launch the “Where You Shine” campaign with a focus on international markets and LGBTQ+ audiences, highlighting the destination’s unique positioning as an authentically welcoming and inclusive option for travelers. The campaign will include digital, social, and video assets deployed across all channels in international markets such as Canada and the UK, with additional creative specifically targeting LGBTQ+ audiences and running across LGBTQ+ media platforms. The campaign will also run on standard consumer channels as a test alongside the core brand campaign.

Digital Services
• NEW - Agency Evaluation – In Q4 2025, a comprehensive RFP was issued for Visit Greater Palm Springs’ digital services, with a three-phase approach for our CRM, CMS, and paid digital media, to ensure that we are aligned with the most effective and forward-thinking agency partners in these areas. In early 2026, we will finalize evaluations of each proposal to identify opportunities for shifts in our digital strategy, which may include one or more of these key phases. o Onboard any new agency partners that we agree to contract with, ensuring seamless integration into our digital ecosystem, alignment on goals and KPIs, and a coordinated rollout of new strategies and initiatives.  Phase 1: Paid Services – Select in Q1 with a Q2 launch  Phase 2: CMS – Review and launch by Q3
 Phase 3: CRM – Review and decision by Q4
Destination Pillar Support
• NEW - Video Series: “Escapes”
o Promote new series launched in December 2025 in collaboration with production company Part Time Genius. This six-episode series highlights key destination pillars through a fast-paced, voiceover-driven style and will be distributed across programmatic video channels, connected television, and social media.
• NEW – Social Media Video Series: In collaboration with Alle Pierce and Stefan Colson (our partners on the “Your Guide To Greater Palm Springs” social series from 2024/2025), we plan to create a social media video series, “Only in Greater Palm Springs,” focusing on creation of short-form, social-optimized content featuring 15 hyper-local experiences throughout Greater Palm Springs for both consumer and dineGPS channels.

o Each location will be captured in three distinct creative styles – talent-led with voiceover, short-form cinematic, and one utilizing current trending audio and a compilation format to drive engagement via saves and shares. Together, these three formats will allow us to test a variety of content styles across TikTok, YouTube Shorts, Instagram Reels, and Facebook, maximizing performance based on our KPIs and providing a flexible bank of content that can be repurposed throughout the year. Performance insights from this testing will directly inform the VGPS team’s social media video creative strategy, revealing which messaging, formats, and hooks resonate most effectively by platform.

• Culinary Experiences
o Promote annual Greater Palm Springs Restaurant Week with a dedicated media plan supported by refreshed photo and video assets highlighting participating restaurants.
o Continue to grow and promote the dineGPS Chef Series on social channels, featuring local restaurateurs and chef-owners. o Explore new ways to utilize the Visit Greater Palm Springs app to promote local restaurants, whether through our annual Summer Eats Pass or via other dining-centric promotions.
• Arts & Culture
o Continue promotion of the Oasis of Art campaign through visibility of our Visit Greater Palm Springs app as well as promotion of signature events, museums, and public art via digital advertising, ongoing video campaigns, and social channels.
• Health & Wellness
o Build upon the success of our inaugural Spa Month in 2025 with an expanded media plan.
o Produce new health and wellness video assets that highlight our resort spas and wellness offerings.
• NEW - Sports & Outdoor
o Promote Greater Palm Springs as premier destination for outdoor adventure and sports highlighting hiking, horse park, golf, polo, soccer, ice skating, tennis and pickleball.
o Create video content supporting this pillar with new social media series and summer social media for indoor sports
LGBTQ+ Audiences
• Continue to authentically represent LGBTQ+ travelers across all marketing materials, while exploring new advertising opportunities and partnerships to extend the reach of the “Where You Shine” campaign, particularly across video and digital platforms.
• Explore new and updated ways to provide co-op advertising opportunities to our LGBTQ+ and allied hotels, via Lavender Magazine or other publications and platforms.

Off-Peak Visitation
• NEW – Summer Brand + Social Media Campaign - Launch a new summer brand campaign that will build on the success of past campaigns like “Check In. Chill

Out.” and “Born to Chill.” An RFP was distributed in Fall 2025 to four qualified agencies, with three proposals in the evaluation/selection phase. The agency awarded the campaign will begin planning for production slated for spring with campaign deployment beginning in May 2026.
• Summer Television Co-Op – Produce up to ten new :30 commercial spots to enhance our overall brand campaign and provide cost-effective advertising opportunities for destination hotels, attractions, and city partners. • NEW - Explore opportunities to include nightlife and evening activities/events into summer campaign messaging.

NEW - Expedia Ambassador
• Greater Palm Springs’ is the sponsor and host destination for the highly sought after Expedia Ambassador Summit in February 2026. This will elevate destination visibility among top travel influencers and content creators and position the region as a year-round leisure destination. The Summit will be used to showcase key destination assets and activities to an audience with expansive reach across digital and social channels, driving increased visitation to the destination. o 40 total ambassadors will attend with an 11M combined reach and 530K average reach.
o The event will be hosted by the Parker Palm Springs with a vacation rental property as a featured dinner location.
o Visit Greater Palm Springs will attend key Summit events and present an Education Session about the destination as part of programming. o Expedia will promote Summit content across their channels (Facebook, Instagram, Pinterest) in addition to influencer content. o Visit Greater Palm Springs will create a dedicated Expedia Travel Shop (recommendation hub and storefront for the destination) featured on the Expedia app for 30 days.

Live Sports
• NCAA – Acrisure Series: Build on the success of past sponsorships of the Acrisure Series by continuing to support this high-profile event, with the goal of increasing visibility and audience engagement to further position the destination as a premier sports and travel location.
o Support new dates for 2026 across both November and December games.
o Maintain branding at Acrisure Arena with Greater Palm Springs brand messaging and social handles, including full LED ring visibility, scoreboard signage, and prominent placement of court floor logo.
o Ensure inclusion of Greater Palm Springs brand commercials in game airings, maximizing reach to millions of live sports viewers. o Highlight destination offerings, including both group and leisure travel opportunities, through marketing efforts targeting visitor fans during Thanksgiving and early December.

• NEW - FIFA World Cup and 2028 Olympics: Coordinate new and ongoing targeted live sports placements as part of the overall television advertising strategy, intentionally leveraging moments when global attention is at its peak.

With billions of viewers actively engaged around the 2026 FIFA World Cup and the 2028 Olympic Games, this approach positions Greater Palm Springs in front of a highly attentive, international audience actively consuming travel and destination content tied to these marquee events. The strategy focuses on driving awareness and future visitation across priority domestic and international feeder markets, while ensuring the destination is visible during culturally relevant, high-impact moments. Strategic partnerships and co-op opportunities with travel and media partners such as Expedia and similar platforms will be evaluated annually and integrated when they demonstrate strong audience alignment, premium placement, and measurable performance lift.

TED Partnership
Visit Greater Palm Springs will build on our successful TED partnership by sponsoring TED2026. This prestigious partnership provides unique opportunities to showcase Greater Palm Springs as a hub for innovation, inspiration, and connection to this highly influential audience. For the upcoming year, this sponsorship includes:

• Exclusive Travel Partner Sponsor – As the Exclusive Travel Partner Sponsor, Visit Greater Palm Springs will have prominent brand visibility throughout pre- conference communications (including on the TED website and newsletters) as well as logo placement throughout the conference venue. Last year’s conference included a highly influential audience of over 1,600 attendees representing 53 countries, a large portion of which are senior leaders and decision makers.
• Sponsorship Dinner: “Dine Around the World” dinner experience, with an invitation-only event with a targeted group of “c” suite attendees. This event focuses on curated conversations and networking.
• Social Media Exposure: Additional promotion across social media channels will part of the sponsorship, including a LinkedIn Live presentation post-conference, or similar opportunities. In addition, added value posts on Meta and LinkedIn channels will be included during the conference period. • NEW Restore Lounge - An immersive takeover of TED’s most frequented space:
the Restore Lounge—a calm, wellness-focused destination where attendees recharge throughout the five-day experience.
• NEW Content Production & Promotion – This targeted plan is valued at $250K and includes production and promotion of a 2-3 minute longform video and :15-30 cutdown spots for usage on Ted.com and YouTube as well as TED social channels (LinkedIn, Meta).

2026 Goals – International

Marketing initiatives in key international markets will continue to adapt to ongoing headwinds and potential shifts in the travel landscape in 2026.

Key Market Strategies:
o Canada: Expected decreases in visitation from Canada, Greater Palm Springs’ #1 international market caused by recent shifts in travel behavior driven by economic and political factors, currency exchange, and evolving traveler preferences. This has created some uncertainty around near-term outbound travel to the U.S. Scheduled flights from Canada to PSP continue to trend down slightly entering the winter season, and this trend is expected into 2026. We continue to maintain conversations with our Canadian airlines, uncover additional partnership opportunities, and reach out to our loyal Canadian visitors through targeted messaging, ongoing media partnerships, and seasonal promotions focused on wellness, signature events, and extended stays.
 NEW – Co-ops with Canadian airline partners:
 Porter Airlines – in partnership with PSP – create a campaign to encourage inbound and outbound Canadian travel –
 NEW – Brand USA Co-ops
• Air Miles (ran in 2025) or similar program Canada’s most recognized loyalty program
• Optimize Audience – utilizing Brand USA’s first party data with targeted ads and messaging
o UK / Ireland – Continue partnership with Finn Partners agency with an evolving media plan efforts that highlight our destination’s most impactful assets to travelers in these markets.
• AI Integration: Continue to utilize AI-based advertising platforms such as Google’s AI Max search feature (a key performance driver in 2025) as well as Demand Gen, which utilizes AI to create optimized digital ads. In partnership with Finn, new and emerging AI-based platforms and products
will be evaluated and tested.

o NEW – German Market Expansion – Expansion into the German market, while delayed in 2025, will be prioritized.
o NEW – Asia Market Expansion
 Launch China social media campaign to increase visibility and engagement in this key market.
o Brand USA Partnership
 Leverage Brand USA’s reach via Optimized Audience campaigns in markets like France, Germany, Mexico, Canada, and the UK, which utilize first-party data to reach international audiences during key timeframes throughout the year.
 Participate in specialized campaigns via Brand USA partners such as Canada Air Miles, Price Travel in Mexico, and other emerging opportunities.

2026 Goals – Vacation Rentals Marketing

Visit Greater Palm Springs will place a strong and visible emphasis on vacation rentals throughout its 2026 marketing strategy. This segment continues to play a critical role in attracting key visitor audiences, including luxury travelers seeking high-end private accommodations and families or multi-generational groups looking for more space, amenities, and shared experiences. Through targeted campaigns, dedicated creative assets, and close collaboration with industry partners, vacation rentals will remain central to driving visitation, generating economic impact, and supporting regional tourism goals.

Custom Campaigns Supporting Vacation Rentals
These customized campaigns are designed to reach high-value audiences and influence travel decisions during key periods.

Expedia Ambassador Program
• Vacation rentals will be featured prominently within the Expedia Ambassador Program, leveraging the reach of 40 top Expedia influencers. Their content will highlight properties that appeal to families, luxury travelers, and group travel— showcasing space, privacy, and amenities that differentiate vacation rentals from traditional accommodations.

VRBO Summer/Fall Campaign
• Building on three years of strong performance, the 2026 VRBO campaign will again promote vacation rental stays during essential need periods. This program is especially effective for reaching families and multi-generational travelers planning longer summer vacations, as well as luxury guests seeking premium rental homes. New creative and enhanced targeting will inspire both new and repeat bookings.

Content Partnerships
• Through premium partnerships, including Sunset Magazine and additional lifestyle media, vacation rentals will be showcased in year-round editorial content and photography. These placements naturally appeal to audiences researching family getaways, multi-generational gatherings, and upscale escapes with private pools, spacious layouts, and resort-style amenities.

Influencer Marketing
• Influencers will share authentic, relatable content demonstrating how vacation rentals enhance family travel, offer flexibility for groups, and provide elevated experiences for luxury audiences. This storytelling helps travelers picture themselves in unique homes, discovering neighborhoods, and enjoying the region together.

Collaboration with the STVR Advisory Group
• Continue to work closely with the STVR Advisory Group to identify and develop new marketing opportunities and expand Visit Greater Palm Springs’ media library.
• Leverage the group’s insights to align marketing strategies with evolving industry trends and community priorities.

Year-Round Integration Across Brand Campaigns
In addition to customized efforts, vacation rentals will maintain a continuous presence in Greater Palm Springs’ broader brand marketing.

Campaign Creative Integration
• Vacation rental imagery and messaging will appear across digital, native, video, and content placements in every season. This ensures rentals are consistently represented as a core lodging option—particularly appealing for luxury visitors and families who prioritize comfort, privacy, and unique experiences.

New Creative Asset Development
• Visit Greater Palm Springs will invest in refreshed photography, video, and campaign assets that highlight a broad range of rental options—from luxury estates to family-friendly homes. These assets will support major initiatives such as the summer brand campaign, new social media series, the VRBO partnership, and additional media programs throughout the year.

Data-Driven Insights and Optimization

Visit Greater Palm Springs continues to prioritize data-driven decision-making to maximize marketing performance, improve operational efficiency, and ensure responsible use of digital resources. In 2026, the organization will further strengthen its analytics and technology ecosystem by leveraging advanced measurement tools, optimizing media platforms, streamlining internal workflows, and reinforcing data privacy and compliance. These efforts ensure marketing investments are accountable, adaptable, and aligned with evolving consumer behavior and regulatory standards.

• Arrivalist – With a full year of Arrivalist data now available, Visit Greater Palm Springs will deepen its understanding of campaign-driven visitation and traveler movement across key drive and fly markets. Insights will be used to evaluate channel and advertising effectiveness, refine audience targeting and geographic focus, optimize messaging, and inform future media planning and budget allocation to drive stronger ROI. Advertising measurement compares exposed visitators to unexposed visitors to calculate incremental lift impact advertising has on arrivals.
• NEW - Media Partner Consolidation & Optimization – As the digital advertising landscape continues to evolve, Visit Greater Palm Springs currently leverages multiple platforms and DSPs—including Basis (formerly Centro), Cadent (formerly AdTheorent), Sojern, Perion, and others—to execute campaigns across diverse channels and formats. In 2026, the organization will conduct a comprehensive

performance and efficiency review of these platforms to assess ROI, reduce redundancy, and identify opportunities for consolidation that improve effectiveness, streamline operations, and maximize media investment impact. • NEW - ITI Digital (Event Calendar Management) – ITI Digital will be used to modernize and streamline the Visit Greater Palm Springs event calendar by consolidating event submissions into a centralized dashboard. This will significantly reduce manual data entry, accelerate approvals, and enable faster, more accurate publishing—resulting in improved internal efficiency and an enhanced website experience for visitors.
• NEW - Osano (Data Privacy & Compliance) – Launched in 2025 and monitored continuously into 2026, Osano will support enhanced data privacy, consent management, and regulatory compliance across Visit Greater Palm Springs’ digital ecosystem. The platform allows for customization across varying state and international regulations, ensuring privacy-first practices are embedded into all digital marketing and website experiences.

2026 Goals – Website

The Visit Greater Palm Springs destination website continues to operate within a rapidly evolving digital environment shaped by major technological, behavioral, and regulatory shifts. In response, the team has proactively adapted by updating content for greater visibility within AI-generated search results, auditing and optimizing high-value pages, and aligning website strategy with how travelers now discover and consume information. The summary below outlines the broader industry dynamics influencing website performance and how VGPS is adjusting its approach in 2026.

Industry Context & Performance Trends
In 2025, the slowdown in website session growth and the decline in traditional on-site conversions were not unique to Visit Greater Palm Springs. These trends reflect structural changes affecting destination marketing organizations industry-wide, driven by evolving technology, shifting user behavior, and the normalization of demand following several years of extraordinary post-pandemic growth.

Privacy Laws & the Changing Digital Landscape
The digital ecosystem has also been significantly reshaped by expanded privacy regulations and the deprecation of third-party tracking, fundamentally altering how destinations measure performance and reach audiences online.

• Increased Privacy Regulations such as GDPR, CPRA, and evolving state-level and international data laws have reduced the availability of user-level tracking and limited the effectiveness of traditional cookies.

• Consent-Based Tracking now governs a significant portion of website traffic, resulting in fewer measurable sessions, conversions, and attribution signals—particularly from international and privacy-conscious users.

• Loss of Third-Party Cookies has disrupted retargeting, frequency capping, and attribution models that previously drove website traffic and conversions.

• Shift Toward First-Party Data has elevated the importance of owned channels such as email subscriptions, visitor guides, and partner referrals as more reliable, compliant performance indicators.

These changes do not reflect reduced traveler interest, but rather a new reality in which visibility, influence, and engagement increasingly occur beyond the website and outside traditional analytics frameworks.

Digital Shifts Impacting Website Performance

• The travel planning journey has fundamentally changed. Travelers no longer rely solely on destination websites as their primary planning tool. Discovery increasingly occurs through AI-powered search results, social platforms, influencer content, and third-party travel tools—often before, or without, a website visit.

• Traditional website metrics are declining across the industry. Year-over-year decreases in sessions and pageviews reflect changes in how users consume destination content directly within external platforms, rather than diminished destination relevance.

• AI-powered discovery has reshaped visibility and engagement. In 2025, AI-driven discovery increased its share of total search exposure by an estimated 240%, as Google’s AI Overviews began surfacing destination content directly within search results, creating meaningful off-site visibility without corresponding click-throughs.

Key Factors Driving the Shift

1. Impact of Google AI Overviews
Google’s AI-generated search results now answer many travel-related queries directly on the search page, often directing users to hotels, attractions, or booking platforms without visiting destination websites. This has led to fewer organic clicks and pageviews across the sector, while still supporting traveler decision-making and demand.

2. Shifting Traffic Dynamics
Following the post-pandemic surge, industry traffic has stabilized as travel demand normalizes and media costs increase. With a higher baseline, year-over-year growth appears flatter, and achieving incremental gains now requires significantly greater investment. Despite this, VGPS continues to outperform industry benchmarks in several engagement metrics.

3. Evolving User Behavior
Travelers increasingly favor mobile-first search, social discovery, and AI-powered tools that deliver fast, targeted answers. Shorter planning windows and closer-in booking behavior result in fewer research-heavy sessions and lower pages per visit—reflecting efficiency, not disengagement.

What This Means
Traditional website metrics such as sessions and on-site conversions are no longer reliable as standalone indicators of success. These industry-wide shifts underscore the need to diversify channels, redefine performance benchmarks, and evaluate success through both on-site and off-site influence.

Despite these external headwinds, Visit Greater Palm Springs continues to outperform industry benchmarks in engagement time, pages per session, and paid media conversion rates, reinforcing the strength of the brand and content strategy.

2026 Website Measurement Approach
In 2026, Visit Greater Palm Springs will transition toward a more qualitative, intent-based framework for website success. Performance will be defined not solely by traffic volume, but by content quality, discoverability, clarity, usefulness, and alignment with traveler intent across the full digital ecosystem.

Internal tracking will continue to include:

• Users and sessions
• Conversion rates
• Search impressions and visibility
• Engagement signals (time on page, visitor guide sign-ups, partner referrals)

Qualitative Website Success Priorities

• Implement an AI Content SOP to guide creation and updates of all web content, ensuring pages are structured for AI visibility, featured snippets, tables, and search summaries.
• Measure organic search impressions and AI referral traffic year over year to understand how often VGPS content appears in AI-generated results. • Grow first-party data, with an emphasis on newsletter subscriptions and owned audience development influenced by paid media.
• Ensure content clearly supports traveler inspiration, trip planning, and decision- making.
• Maintain consistent alignment with Visit Greater Palm Springs brand pillars and strategic priorities.

Traditional metrics like sessions and conversions are less reliable as standalone measures.

These challenges and shifts are industry-wide affecting DMOs everywhere, underscoring the importance of diversifying channels to maintain visibility and impact. Traditional website metrics, such as sessions and on-site conversions, are becoming less reliable as standalone indicators of success.

Despite these external headwinds, VGPS continues to outperform industry benchmarks in engagement time, pages per session, and paid media conversion rates.

2026 WEBSITE GOALS
2024 GOAL 2024 ACTUAL 2025 GOAL 2025-ACTUAL 2026 GOAL
Users 2,604,355 2,935,311 3,082,076 2,756,174 Track only Sessions 3,329,649 3,807,485 3,997,589 3,631,440 Track only Key Pages
Engaged 1,174,048 1,267,972 959,127 Track only
Action 615,733 634,204 462,458 Track only

2026 Goals - Social Media
Social media remains a core pillar of Visit Greater Palm Springs’ marketing strategy serving as a powerful, high-impact channel to inspire travel, spark aspiration, and motivate real-time trip planning. As consumer discovery continues to shift toward visual, social-first platforms, social media allows the destination to showcase its personality, experiences, and year-round appeal in authentic, engaging ways.

Through compelling storytelling, creator partnerships, and timely, culturally relevant content, Visit Greater Palm Springs uses social media to influence traveler intent, reinforce brand positioning, amplify partner experiences, and drive demand across both peak and off-peak seasons—meeting travelers where they are and inspiring them to turn inspiration into action.

2025 SOCIAL MEDIA GOALS
@VISITGREATERPS
@dineGPS
(TOTAL COMBINED)
2024
GOAL
2024 ACTUAL
(Includes
LWK&M)
2024
ACTUAL
(Excludes
LWK&M)
2025
GOAL
2025
ACTUAL
2025

ACTUALS
(excludes
viral)
2026
GOAL
Impressions 53,000,000 57,043,596 56,487,684 57,500,000 65,906,441 64,909,441 68,676,077 Video Views 9,250,000 16,745,597 15,617,086 15,800,000 28,570,109 20,374,367 21,298,642 Website Clicks 221,500 264,955 264,955 266,000 354,255 354,255 300,000 Engagement 1,384,854 1,323,172 1,330,000 1,632,618 1,390,777 1,462,483

Goals were calculated with a 5% increase, organically and paid, from 2025. Website clicks are reduced from 2025 actuals, but higher than the 2025 goal, as nearly 70,000 resulted from UK Meta campaigns that are currently paused in 2026.

Each platform plays a different role in the traveler journey, and our goal is to better align our Paid Social campaigns by platform and KPI goal • TikTok: Reach, awareness, video views, etc. (upper funnel) • Pinterest: Discovery and planning stages Mid funnel awareness and traffic • Meta: Full funnel + retargeting, lookalikes, strong conversions and traffic driver

Integrate AI for Efficiencies
o Trellis Beta – Releasing in January 2026, AI Agent that will turn social data into insights. VGPS will explore how to apply this to current workflows in 2026. o Generate ideas for multi-platform distribution from one piece of content

Key Drivers

1. Organic Social Media

2. Paid Social Media

3. Collaborations with influencers

4. International social media

Assumptions
• International social media will remain paused beyond Pinterest in Q1 and will be reviewed quarterly to restart.

_________________________________
PR/Communications

The 2026 PR/Communications Plan builds on the foundation established in 2025, advancing Greater Palm Springs’ national and international reputation through high- quality earned media, deeper media relationships, and strategic alignment with destination priorities. The plan continues to emphasize off-peak travel, air access, meetings and conventions, and community stewardship—while placing increased focus on credibility, consistency, and long-term impact.

Success will be measured not just by volume of coverage, but by the quality of storytelling, strength of media relationships, and alignment with Visit Greater Palm Springs’ economic, cultural, and community goals.

Domestic Strategy

Goal: Strengthen national earned media visibility while reinforcing Greater Palm Springs’ positioning as a year-round, multi-dimensional destination.

Key Focus Areas:

National Destination Storytelling
• Elevate coverage across wellness, arts and culture, architecture, outdoor experiences, culinary and agritourism, and film/creative industries. • Ensure earned media reflects the destination’s depth beyond leisure travel.

Air Service Awareness
• Continue promoting PSP accessibility and expanded air service. • Secure targeted national placements tied to air service, meetings, and sports.

Meetings & Events
• Strengthen earned media positioning for meetings, conventions, and events. • Highlight wellness ROI, accessibility, and creative meetings. • Support sales milestones, site visits, IMEX, and IGLTA through coordinated PR.

Off-Peak & Midweek Travel
• Continue promoting travel during May–December.
• Align earned media storytelling with shoulder-season marketing efforts.

Film & Creative Industries
• Support Film Oasis and film-related earned media through targeted press visits and FAMs.

Economic Development:
• Promote “Thrive & Shine” and Greater Palm Springs as a place to live, work, invest, and innovate, not just visit.
• Support business attraction and retention efforts by positioning the region as a hub for entrepreneurship, creative industries, remote work, sports, and innovation.
• Secure earned media that highlights quality of life, workforce talent, infrastructure, and regional collaboration as key economic advantages. • Align PR storytelling with economic development priorities, including air service expansion, sports tourism, meetings, film, and emerging industries.

Tactics:
• Maintain a steady national media outreach cadence across top-tier and mid- tier outlets such as Travel & Leisure, Wall Street Journal, LA Times, Seattle Magazine. Wanderlust and Rob Report.
• Host 75 individual press visits with tailored storylines. • Execute 6 targeted group FAMs (leisure, meetings, Film Oasis, Desert Region). • Deploy themed pitch toolkits to support meetings, wellness, and accessibility narratives.
• Conduct quarterly proactive outreach to priority domestic media.

Metrics:
• 70–80% of coverage aligned with at least one strategic pillar. • 95 meetings, tourism development, and MICE placements. • 10 high-quality placements tied to air service, meetings, and sports. • Average PR Quality Score of 7+ across domestic coverage.

International Strategy

Goal: Maintain consistent international market presence by promoting luxury experiences, ease of travel, and cultural depth in priority global markets.

Canada – Priority Market Focus (2026)
Objective: Increase awareness of Greater Palm Springs in Canada as an easy, welcoming, year-round escape destination.

Key Focus Areas & Tactics:
• Focus on maintaining strong relationships with key media in Canadian market • Increase awareness of Greater Palm Springs as a year-round escape that is welcoming

• Pursue additional broadcast and high-impact media opportunities, including lifestyle and travel programming.
• Remain agile and responsive to timely editorial and partnership opportunities in the market.

• Metrics:

Contribute to overall international placement and PR Quality Score targets
• Secure broadcast or digital-broadcast exposure when feasible

Other Priority International Markets
Objective: To garner additional media coverage from the UK & Ireland, France, Germany, Australia, Canada, Mexico, India, and select Asia markets.

Luxury, Culture & Adventure
• Showcase high-end resorts, cultural events, architecture, and outdoor adventure.
• Continue promoting Modernism Week and other globally relevant events.

Ease of Travel
• Reinforce PSP connectivity and seamless travel experiences. • Align messaging with Visit California and Brand USA campaigns.

Tactics:
• Conduct media missions aligned with Visit California and Brand USA. • Host 3 international FAMs focused on luxury, culture, and adventure. • Maintain updated international media toolkits through agency partners.

Metrics:
• Host 3 international FAMs.
• Secure 10 top-tier international placements.
• Maintain an average PR Quality Score of 7+ for international coverage.

Strategic Partnership

Partner with Italy’s Mille Miglia event to establish a meaningful VGPS presence at the 2026 event while strategically exploring the opportunity to bring the race—or a future stage or affiliated experience—to Greater Palm Springs and potentially California.

This partnership will focus on immersive participation rather than passive sponsorship, allowing VGPS to experience the event firsthand and gain insight into its operations, culture, audience, and brand alignment. While on site, VGPS will host targeted dinners and lunches with select international media, influencers, sponsors, and top-tier participants including potential drivers—to build relationships and position Greater Palm

Springs as a future host destination. The program will also explore bespoke gifting opportunities for drivers and key participants that reflect the design, luxury, and lifestyle identity of Greater Palm Springs. In potential collaboration with Visit California, VGPS will use the Mille Miglia experience as a proof-of-concept for how this iconic event could translate to a California setting, helping build a case for broader statewide involvement. Additionally, VGPS will explore the giveaway of a themed travel package tied to the winner of a specific stage of the race, driving both near-term awareness and long-term positioning of the destination as a natural home for a future Mille Miglia experience.

Live Sports

FIFA World Cup 2026Objective: Leverage World Cup momentum and global media attention to position Greater Palm Springs as a place to escape, reset, and recharge after attending this high-energy events, capitalizing on when travelers are consuming regional content.

Focus Areas:
• Collaborate with the Marketing team to create earned media opportunities highlighting wellness, balance, and open space.
• Use World Cup-related awareness windows to elevate destination storytelling without competing with host-city narratives.
• Coordinate with international offices and the domestic PR agency to monitor and act on relevant opportunities.

2026 KPIs:
• Earned media placements aligned with World Cup timing • Coverage supporting escape and wellness messaging

LA28 Olympic & Paralympic Games
Objective: Position Greater Palm Springs as an engaged and values-aligned participant in the LA28 Olympic and Paralympic Games.

Focus Areas:
• Continue efforts to work with the LA28 Olympic organizing committee to bring the Torch Relay and/or related activations to Greater Palm Springs. • Use LA28 as a platform for earned media storytelling centered on community pride, wellness, inclusivity, and creativity.
• Collaborate with Marketing, international offices, and the domestic PR agency to remain alert to emerging opportunities.

2026 KPIs:
• Earned media visibility connected to LA28-related moments • Coverage reinforcing Greater Palm Springs’ role within the broader Southern California Olympic narrative

Agency Alignment & Accountability

Goal: Ensure domestic and international agencies operate as strategic, accountable partners.

Key Focus Areas:
• Quarterly planning and alignment with all PR agencies. • Ongoing evaluation of qualitative and quantitative performance. • Maintain updated media toolkits and pitch frameworks.

Metrics:
• Annual performance review.
• Issue Domestic PR Agency RFP in alignment with VGPS five-year review protocol.

Community & Destination Alignment

Goal: Strengthen community trust, regional storytelling, and stewardship across inclusivity, accessibility, and sustainability.

Key Focus Areas:

Community Understanding & Stakeholder Engagement
• Increase clarity around VGPS’s role in economic impact and workforce support • Support partner and community events through storytelling.

Regional Storytelling Across Nine Cities
• Ensure earned media reflects Greater Palm Springs as a connected, multi-city destination.
• Develop city- and region-focused story angles in collaboration with partners.

Diversity, Inclusion & Accessibility
• Continue highlighting Certified Autism Destination status • Amplify Indigenous heritage, workforce development, and inclusive tourism initiatives.

Sustainability & Thought Leadership
• Integrate sustainability and DEIA authentically into earned media narratives.

Crisis Planning & Preparedness
• Build on 2025 Crisis Communications learnings.
• Develop proactive crisis playbooks to support partners and stakeholders.

Tactics:
• Host 2 stakeholder workshops.
• Distribute 2 communications toolkits.
• Publish 2 thought leadership pieces.
• Develop 2 Crisis Playbooks based on 2025 learnings.

Metrics:
• Earned coverage representing all nine cities.
• 2 placements tied to DEIA or sustainability.
• Increased stakeholder alignment and message consistency.

2026 EARNED MEDIA GOALS

*Out of the 11,813 score:
• 1214 can be attributed to IGLTA media
• 1224 can be attributed to one story (This Palm Springs Hotel Blends Mid-Century Cool with Unexpected Value” that was syndicated 136 times • 402 can be attributed to one story (The Year that was and get set for 2026) that was syndicated 67 times

*2024 Goals far exceeded due to media exposure from LIVE with Kelly & Mark and London Design Festival.

• PR Quality Score is a point-based system of evaluating the quality of media.

Media is rated on a scale of 1-12 based on story type, media tier, visuals, URL, DMO mention, and reader response. This is done through an internal point scoring system.

Consumer
Earned Media
2024
GOAL
2024
ACTUAL
2025
GOAL
2025
ACTUAL
2026
GOAL
PR Quality Score 6,900 10,850* 8,500 11,813* 9,200
Media
Outreach/Assists 2,550 2,724 2,700 3,346 3,200
Media Value Tracking $98,732,755 Tracking 109,879,936 Tracking CS Earned Media
Earned Media
Placements 75 83 90 116 120

_________________________________
Tourism Development

The Tourism Development team promotes Greater Palm Springs as a desired location to travel trade clients and airline network planners across all global markets, focusing on attracting tourism and enhancing air service to our destination. By focusing on these strategies and initiatives, Tourism Development aims to drive measurable growth, expand market reach, and position Greater Palm Springs as a premier global destination.

Forecasters predict demand for 2026 to be driven by major events like the FIFA World Cup and the nation's 250th anniversary, which will boost international arrivals and business travel. Domestic leisure travel will remain strong, but growth is expected to slow, and consumer caution is increasing due to economic and political uncertainty.

Challenges:

The biggest concerns for the travel industry in 2026 are expected to be from economic uncertainty and consumer caution, supply-side operational constraints (like labor shortages), and geopolitical and policy issues. The Tourism Development team will also be closely monitoring these other potential challenges and adjusting strategies as needed; Full or partial government shutdowns - Ease and costs of obtaining a Visa for travel to the U.S. - Negative perceptions at our international borders - Traveler concerns due to possible enhanced screening procedures at U.S. borders - Brand USA funding - Possible rising entrance fees at US national parks for non-residents.

2026 Travel Trade Goals

The U.S., Canada, and Mexico source markets represent a significant amount of our visitors in our peak season. Our B2B efforts will focus on high value guest stays, increasing average length of stays, promoting ancillary destination experiences and niche travel segments.

The overseas markets are vital for our summer and fall need periods and require consistent and long-term programming, despite any current geo-political or economic issues. We will continue to strengthen destination awareness with a main goal of driving visitation during our off-peak periods. Primary markets are the U.K., France, Germany, and Australia with secondary markets consisting of Scandinavia, India, Ireland, Italy, Belgium, Switzerland, South Korea, China, Japan, Brazil, and Southeast Asia.

• NEW - Event Tourism: Targeted marketing, client events, new itinerary development, trainings, etc. to raise destination awareness in countries assigned to World Cup matches on the U.S. West Coast and Western Canada. Additional

focus related to visitation around America 250, Summer Olympics and the Route 66 Centinel celebrations.
• NEW - Summer Activity Offerings: Develop a SWOT analysis of four comp set destinations to compare the depth and breadth of activities and experiences offered in the summer and fall periods while also sharing findings with our partners.
• NEW - Resilient Markets: Initiate and expand client engagement and programming in markets (Eastern Europe, Middle East, Southeast Asia, Brazil demonstrating less travel resilience with current geo-political and economic challenges.
• Client FAMS and Destination Trainings: Destination awareness through hosted FAMS, partnerships with Visit California, Visit USA Committees, and Brand USA. • Collaborative Itineraries: Work with regional DMOs to develop and promote unique, multi-regional itineraries directly to the travel trade. • Educational Webinars: Conduct GPS Next International Edition webinars allowing partners to meet face-to-face with clients across all global markets. • Robust Program of Work: Provide partners with opportunities to engage in person with key travel trade clients through organized programs. • Market-Specific Goals & Programming: Execute targeted destination trainings, client engagements, events, and marketing efforts through full-time representation offices in the U.K., France, Germany, and Australia. Programming in secondary and emerging overseas markets via project contracts with in- market Visit California agencies.
• Vacation Rental Focus: Increase awareness of vacation rental options via destination training and marketing campaigns.
• Cultural and Bespoke Campaigns: Develop campaigns with cultural and tailored experiences to keep Greater Palm Springs top-of-mind globally. • Inspirational Marketing Campaigns: Develop targeted campaigns with strategic alignment addressing country or region-specific travel behavior and perceptions across Europe, Asia, Mexico and Canada.
• Foster Relationships: Build strong client connections through sales missions, client FAMS, and participation in relevant trade shows.

Quantitative Goals – Travel Trade

• Marketing Campaigns
ο Execute 25 measurable B2B2C marketing campaigns leveraging multiple channels like digital, print, webinars, and more. Align campaigns with Visit GPS, Visit California, and Brand USA to amplify ROI.
• Sales Missions, Trade Shows, Client Events, Destination Trainings ο Attend 100 travel trade programs domestically and internationally, including one consumer show supporting the Desert Region. • Client FAMS and Destination Visits
ο Host 100 key travel trade clients through FAMS and destination visits, prioritizing accounts that drive off-peak occupancy.

_________________________________

AIR SERVICE
2026 Goals

Air Service remains an important focus as we will continue to utilize the resources of our aviation consultant, Ailevon Pacific, while partnering with Palm Springs International Airport to responsibly grow air service for both visitors and residents. With a long-range goal of positioning Greater Palm Springs as an alternative gateway to the Southwest while also driving tourist demand in our off-peak periods, we will work to support the airport’s updated Master Plan to better serve new markets, including non-stop, and future overseas routes.

Tactics:
• NEW - Develop a tailored incentive plan (MRGs, marketing, reduced landing fees, etc.) for extended seasonal flights, and / or new routes. • NEW - Implement a new GPS Next Aviation webinar, twice a year, to educate partners on current air service development projects, industry trends, airport updates, etc.
• Season extension and / or year-round: Chicago, Atlanta, Salt Lake City, Northeast, Minneapolis, Chicago, and Houston.
• Increase capacity & focus on success: U.S. Northeast and Mid-Atlantic markets. • Pursue new seasonal, nonstop flights based upon data and research/ visa/ leakage/ markets. Examples: Detroit, Spokane, Philadelphia, Kansas City, St.

Louis, Omaha, and Indianapolis.
• Capitalize and leverage the 2026 World Cup and 2028 Olympics to position Greater Palm Springs as an alternative gateway to the Southwest for these events, which help to drive demand during off-peak times. • Proactive communication with airline network planners on airport incentives, destination events, and new products.
• Continue to build relationships with network planners of foreign based carriers • Support PSP’s master plan for an FIS / Customs & Border Patrol. • Work with VGPS Marketing team in co-op destination marketing with airlines, including frequent flyer marketing opportunities.
• Maintain presence at airline industry conferences while making personal visits to airline headquarters.
• Prepare for future international service, advocate for an FIS to allow for new air service from secondary Canadian markets, Mexico, and Europe. • Continue to focus on Canadian recovery and supporting Canadian carries with marketing.

_________________________________
Regional Collaboration

ECONOMIC DEVELOPMENT

Market the Region
• Promote “Thrive & Shine” brand
o Launch new campaign to market the Valley as a Lifestyle Destination to attract investment, work force talent (medical), entrepreneurs and remote workers. Highlight our lifestyle amenities, climate, and cultural richness as assets for talent attraction and business relocation. o Highlight local industry “ambassadors” in target industry clusters • Publish 12 blog posts for the Economic Development blog • Distribute two regular economic development newsletters. o One monthly local focused for partners and stakeholders o One quarterly economic development “sales” focused newsletter to clients and sales leads - launch in q2
 Develop and implement email lead generation plan (LinkedIn campaign, research buying lists, conference email lists, etc.) • Create at least four organic “thought leadership” content for LinkedIn, in addition to targeted LinkedIn advertising
• Earn at least 1 tier one media placement focused on regional economic development
• Earn at least 25 media placements that highlight regional economic development
• Participate in at least 2 speaking or thought leadership presentation opportunities a year including conference panels, podcasts, interviews, industry group presentations, and more.
• Attend at least the following trade shows to market GPS for economic development:
o Meet the Consultants
o Select USA
o Site Selectors Guild Fall Forum
• Plan and execute at least 8 site and/or FAM tours for site selectors, CEO’s, developers, and others with potential to bring business to the Coachella Valley. o Integrate appropriate clients with other planned FAMs o Utilize tickets/passes from existing sponsorships
• Directly assist at least 6 companies interested in establishing a new presence or expanding in Greater Palm Springs
• Support VGPS sales in targeting Business and Innovation Events o Use resorts and conference centers to attract industry summits, investor forums, and startup showcases.

Placemaking & Development
• Advocate for the Greater Palm Springs Legislative Platform priorities with local, state, and federal lawmakers and agencies to improve infrastructure and reduce barriers for development and support industries
• Identify location, funding, and partnership for an indoor amateur sports facility with groundbreaking in 2027
• Support foreign trade zone utilization and expansion & foreign direct investment for the region
• Provide targeted recommendations to City Managers and Technical Advisory Committee (TAC) members on high-value industry conferences to attend, and actively support their participation: such as the Entertainment Experience Conference and ICSC Las Vegas.

Workforce Development
• Meet at least once a year with industry cluster groups or individual employers to understand workforce development needs and successes
• Work with CSUSB and UCR to Establish Joint Research and Workforce Initiatives o Focus on lithium tech, sustainability, Agtech, and advanced manufacturing.
• Work with OneFutureCV to Support Dual Enrollment and Early College Pathways o Partner with high schools to expose students to higher education programs earlier.
• Identify and engage existing efforts that function as a Regional Talent Consortium, and explore opportunities to amplify, align, and strengthen their collective impact.
o Align curriculum, internships, and job placement across COD, UCR, and CSUSB.
o Host at least one meeting with these organizations to discuss • Research funding and support for a “Stay Local” Fellowship Program: Providing paid internships and mentorships with local employers for recent grads.

Research & Reports
• Facilitate presentations of the Coachella Valley EDSP and promote it to local governments, non-profits, and industry partners to identify Lead agencies for each action item.
• Support Creative Economy Development Plan and share with partners when completed
• Create data/report tool for development support
• Provide JobsEQ and other relevant on-demand data for developers, site selectors, and partners

Events & Engagement
• Host quarterly TAC roundtables
• Develop Advisory Council to support funding and provide feedback and industry support
o Meet quarterly
• Explore Regional Business Concierge Program
o Gather information on what is currently happening in each city for stream- lined permitting, licensing, and site selection support o Promote on website
• Develop a Shared Business Incentives Toolkit Online
o Share a guide of all tax credits, fee waivers, and infrastructure support to reduce friction for investors and entrepreneurs.
• Explore options for a model ordinance or consultant that can help Standardize Zoning and Development Review Processes to Promote consistency in land use regulations and timelines across cities.
• Establish a Valley-Wide Business Retention Task Force o Host quarterly
o Coordinate outreach and support for existing employers to prevent relocation or closure.
• Explore Economic Development event partnerships with State of the Fourth District, Commercial Real Estate Event, Off-Season Wellness Festival, or arts & culture event
• Plan study tours for REACH and Greater Phoenix/Scottsdale and invite TAC or other partners

2026 GOALS 2026 Stretch
Revenue $50,000 $65,000

Blog Posts 12 15
Tier 1 Media Placements 1 3
Other Media Placements 25 35
Thought Leadership
Panels, podcast, op-ed
4 6
LinkedIn
LinkedIn Followers 400 450
Impressions
Engagements
Website Clicks
Video Views
397,000
700
12,600
72,200
435,000
800
15,000
82,000

_________________________________
Tourism Foundation & Workforce
Development

Expand Scope
• Continue to facilitate rebranding of the Foundation to reflect expanded mission:
o Create narrative and talking points to launch the TEAM GPS Foundation o Create donor schedule and campaigns to leverage social media o Facilitate dynamic, engaging creation of content for social media reflecting impact of the foundation
• Complete updated annual impact report and publish on website. • Expand Foundation board, update board members role & responsibilities document, create board orientation document

Foundation Fundraising
• Diversify funding streams for the Foundation to support expanded workforce development and youth engagement programs:
o Pursue grant opportunities aligned with foundation priorities – work with a Grant Writer to identify these opportunities
o Explore sponsorship opportunities with local events and organizations to amplify program impact
• Maximize sponsorship and stakeholder experience to produce major fundraising events:
o Champions of Hospitality
o Golf Tournament
• Create a new fundraising event to align with Restaurant Week – Chef/Student Dinner featuring student culinary programs that pairs local Chefs with students from these programs

Champions Program
• 16 in-person training classes at VGPS or at partner sites • Promote online Champions training
o Create and implement a strategy to market to groups – focus on workforce for seasonal and/or events (e.g. Modernism, BNP, Date Festival, etc.) • Develop two new 1-hour TEAM GPS 2.0 training courses with .ppt decks / online delivery
o Topics:
 The 4 Cs of Sustainability

 Inclusion and Accessibility
• Enhance engagement with the Ambassador network in 2026 through:
o 6 mixers/experiential events
o 6 Huddle Webinars
o 2 bus tours
• Ambassador benefits
o Source opportunities and deliver information via email to TEAM GPS Ambassadors
o Total of 20 opportunities to experience free events and/or discount admission to attractions
• Form an Ambassador Network Volunteer Steering Group of current TEAM GPS Champions, as appropriate, to strengthen engagement, enhance events and experiences, and provide ongoing feedback.

Youth Engagement
• Facilitate year 3 of “Passport to Leadership” high school summer leadership program
o At least 12 students
o Expand curriculum to include industry clusters identified by ED priorities • Host year 2 of Student Hospitality Day in partnership with all three school districts to expose high school students to careers in hospitality o Expand engagement to 120 students
• Provide mentorship and guidance to Young Professionals Advisory Board so that they can produce (1) awareness building/fundraising event in 2026 • Support hospitality industry conference attendance for college hospitality students
o 2 from COD for Visit CA’s Outlook Forum
o 2 from CSUSB for DI’s Annual Convention
o 1 student to attend CalTravel’s Advocacy Day

Supporting Scholars & Students
• Continue to support of OneFuture and school district collaborations as Co-Chair of OneFuture’s Business Engagement Committee:
o Explore production co-op to create content for Economic Development featuring CTE pathways and academies across the 3 school districts o Continue to manage Scholarship Program – college scholars, CVHS Tourism Academy, and study abroad scholarships

Workforce Training & Leadership Development
• Continue to manage partnership with College of the Desert’s PaCE Program:
o Promote Essentials Leaders program
o Launch Visionary Leaders program
• Join COD Palm Springs campus Hospitality Working Group to ensure hospitality curriculum and programs at new campus align with industry needs • Host quarterly Workforce Readiness Committee meetings

• Convene a meeting with organizations in the Coachella Valley focused on providing Leadership Training and Education Programs to align priorities and pathways
• Explore State and County pre-apprenticeship and apprenticeship opportunities to unlock funding for the Foundation and other Coachella Valley organizations

Promoting Hospitality Careers & Pathways
• Via:
o Social media
o Website updates
o Media campaigns

_________________________________
Stewardship

Sustainability
Visitor-Focused Sustainability Content
• Continue the “Sustainable Stories” social media series to promote Greater Palm Springs as a sustainability-driven destination.
o 4 reels a year

Sustainability Thought Leadership
• Work with Communications & Finn Partners on opportunities to present at conferences like NYC’s Climate Action Week in September 2026

Group Sales Market Sustainability Focus
• Equip partner hotels to competitively address sustainability in Group Sales:
o Continue to deliver sustainability presentation – The 4 Cs of Sustainability during Sales Missions and offer direct consultation with meeting planners to align with their sustainability priorities.
o Promote the Sustainable Meetings Toolkit, including:
o A Sustainability Webinar
o A Sustainability Checklist
o The PCMA Whitepaper
o Ensure these resources are hosted on a dedicated Sustainability page within the Meetings site.

Partnership with Kind Traveler
• Provide support to onboard 5 additional properties to Kind Traveler program and amplify its impact to support local non-profits.

Cultural Tourism
Accessibility Promotion
• Finalize and promote 30 total businesses and Greater Palm Springs being “Destination Verified” by Wheel the World
• Develop Accessibility focused webinar for partners

Certified Autism Destination
• Add 10 more Certified Autism Centers in 2026
• Promote autism certification grant program through foundation

Inclusion Training
• Organize comprehensive training for VGPS staff and partners to deepen understanding of inclusion and the diverse experiences of travelers, ensuring a welcoming environment for all – work with Dr. Bella and IGLTA Gender Diverse Advisory on training for partners and staff
• Co-author journal article with Dr. Bella Vongvisitsin from Hong Kong Metropolitan University on “Visit Greater Palm Springs’ initiatives in promoting a sense of community and engaging with youths, especially those from LGBTQ+ backgrounds.”

Support for Underserved Communities
• Promote partnership with Caravanserai Project to support a cohort of local artists and artisans with business training and opportunities to expand their networks and visibility.
o Create visitor facing content featuring artists
o Plan and facilitate showcase event in the Fall of 2026 to highlight this partnership

Advocacy
Legislative Advocacy
• Pursue funding for priority initiatives in the 2026 Legislative Platform:
o Workforce development training programs
o Grants to support businesses in becoming autism-certified • Promote SB 346 cleanup bill to include JPA’s
• Monitor legislation and promote 2026 Legislative Platform • Meet at least once with key legislators and government representatives to share legislative priorities

Regional Sustainability Initiatives
• Engage with Blue Zones initiatives in Palm Springs/Coachella and report to staff/board/partners on initiatives and opportunities.
o Highlight in at least 2 blog or social posts
• Participate in CVAG meetings of Sustainability Directors from the member cities, and Riverside County to strategize and align sustainability goals to create a unified regional approach.

Vacation Rental Education/Research
Refresh local “One Coachella Valley: Short-term rental, Long-term benefits” Campaign • Utilize results of 2025 Coachella Valley Resident Survey to refresh campaign creative and messaging.
• Promote the benefits of well-regulated vacation rentals to the local community. • Enhance awareness and support for vacation rentals as a positive contributor to the Coachella Valley.

Partnership with Rent Responsibly
• Create location regulations guide and share with real estate agents and hosts • Host 2 in-person and 2 online host education webinars with Rent Responsibly o Explore “host verification” program with Rent Responsibly to highlight good operators

Stakeholder & Partner Engagement
• Provide annual STVR TBID marketing update for stakeholders • Meet with all 9 cities and the county at least once to discuss TBID collection and help improve processes
• Meet at least once with Airbnb and Expedia to discuss TBID collection

Restaurant Week & Spa Month
Restaurant Week 2026
May 29 – June 7
• At least 120 restaurant participating
• Host restaurant bootcamp to support participating restaurants • Add 2 additional sponsors
• Maintain sponsorship from all nine cities at some level

Spa Month 2026
• Add sponsorship levels and secure at least 5 sponsors • Host Spa Month bootcamp to support participating spas • At least 40 participating spas or wellness events

Partnership & Community Engagement
Continued No-Cost Benefits
• Maintain free benefits for tourism-related businesses in the Coachella Valley, including:
o Basic website listings.
o Invitations to partner events.
o Brochure distribution in the Visitor Center.
o Opportunities to participate in FAM tours.

Affordable Advertising & Sponsorship Opportunities
• Collaborate with DTN to offer partners website advertising opportunities.

• Provide low-cost co-op advertising and event sponsorship opportunities to help businesses amplify their visibility.

Enhanced Partner Communications
• Strengthen engagement with partners by increasing communication about:
o Visit Greater Palm Springs’ efforts to promote the valley o Opportunities for participation in campaigns and initiatives • Use a variety of channels to connect with partners, including:
o Email communications
o Presentations to local community groups
o Updates via @teamgreaterps social channels
o Webinars to share insights and opportunities

PARTNERSHIP & TOURISM FOUNDATION
REVENUE GOALS 2025 Goal 2025 actual 2026 Goal Stretch goal Partnership Revenue $180,000 $172,929 $180,000 $210,000 DTN-Website $100,000 $113,891 $100,000 $120,000
Restaurant Week $80,000 $86,300 $80,000 $100,000
Spa Month $15,000 $25,000
Total $360,000 $373,120 $375,000 $455,000

Fundraising
Oasis Awards Gala $125,000 $151,695 $150,000 $165,000
Golf Tournament $35,000 $40,109 $35,000 $40,000
Other (auctions, sponsors) $25,000 $19,546 $25,000 $30,000 Grants $50,000 $27,500 $50,000 $60,000
Total $235,000 $238,850 $260,000 $295,000

TEAM GPS
Registrations (in-person) 150 174 150 180
Registrations (online) 200 78 100 130

Visit Greater Palm Springs is committed to adapting and evolving as market conditions fluctuate. We stay closely connected to our stakeholders, ground our decisions in timely research and performance data, and make disciplined adjustments when needed—so our resources are deployed efficiently and deliver the strongest possible outcomes for our nine-city destination.

February 5, 2026
City of Indian Wells
Isabel Vizcarra, Chief Transportation Officer
Luis Garcia, Chief Financial Officer
City Council Meeting:

February 5, 2026 - Presentation
Item C.2

Member Agencies: Palm Springs, Desert Hot
Springs, Cathedral City, Palm Desert, Rancho
Mirage, Indian Wells, La Quinta, Indio, Coachella
and unincorporated areas of Riverside County
SunLine Service Area
Joint Powers Authority formed in 1977
Service Characteristics:⦿1,120 mile service area (roughly the size of the State of Rhode Island)⦿Fixed Route, Paratransit, Microtransit, and Commuter Link⦿Taxi voucher program
Annual Ridership = Approximately
3 million

We are learning from the existing transit service and the transit market.

Existing
Conditions
We are starting to talk to the public and learn from their needs and experiences.

Community
Engagement
SunLine: Rides Reimagined Process

Thank You!
Help us hear from your communities!
https://www.surveymonkey.com/r/SunLineCOA1

FINANCIAL VARIANCE
& MARKETING

QUARTERLY UPDATE
February 5, 2 0 2 6
City Council Meeting:

February 5, 2026 - Presentation
Item C.3

FINANCIALS

INDIAN WELLS GOLF RESORT
Summary of YTD Performance
vs. Budget

OVERALL PERFORMANCE IS MIXED, WITH SEVERAL

STRONG CATEGORIES OFFSETTING A FEW
UNDER-BUDGET AREAS.

KEY HIGHLIGHTS
CONSOLIDATED NOI: 8.3% FAVORABLE OVERALL OPERATIONS ARE OUTPERFORMING BUDGET EXPECTATIONS.MERCHANDISE NOI: 106.3% FAVORABLE EXTREMELY STRONG PERFORMANCE, SIGNIFICANTLY EXCEEDING BUDGET.

F&B CONSOLIDATED NOI: 69.2% FAVORABLE FOOD & BEVERAGE IS PERFORMING WELL ABOVE PLAN.

AREAS BELOW BUDGET
GOLF NOI: 18% UNFAVORABLE GOLF OPERATIONS
ARE UNDERPERFORMING RELATIVE TO BUDGET. KESTREL NOI: 5.1% UNFAVORABLE SLIGHTLY BELOW BUDGET, THOUGH CLOSE TO PLAN OVERALL.

REPUTATION SUMMARY

INDIAN WELLS GOLF RESORT
Reputation Summary

PLAYERS COURSE

THE UPDATED COURSE LAYOUT HAS BEEN VERY WELL
RECEIVED. MOST OF THE NEGATIVE FEEDBACK WE’VE

HEARD IS SPECIFICALLY RELATED TO THE
CART-PATH-ONLY RESTRICTIONS.

KESTREL

KESTREL CONTINUES TO EARN EXCELLENT FEEDBACK,

CONSISTENTLY APPEARING AMONG THE TOP-RATED
INDIAN WELLS RESTAURANTS ON GOOGLE.

EVENTS & STAFF UPDATE

INDIAN WELLS GOLF RESORT
Events Performance & Upcoming Highlights

RECENT EVENTS
MCINTYRE WINE DINNER — JANUARY 30 | SOLD OUT. EXCEPTIONAL TURNOUT AND STRONG GUEST FEEDBACK.

FEBRUARY EVENTSVALENTINE’S DAY DINNER - FEBRUARY 14 | À-LA-CARTE HOLIDAY MENU.CURRENTLY OVER 110 RESERVATIONS AND TRACKINGFOR A FULL EVENING.

FIRESIDE CHAT WITH CHEF RICHARD BLAIS - FEBRUARY 20 ENGAGING CULINARY CONVERSATION & TASTING EXPERIENCE.OVER 40 RESERVATIONS TO DATE AND GROWING.

SPRING LINE-UPRESIDENT GOLF TOURNAMENT - APRIL 18 & 19 TWO-DAY RESIDENT TOURNAMENT WITH STRONG EARLY INTEREST.

FIRESIDE CHAT WITH

CHEF RICHARD BLAIS

INDIAN WELLS GOLF RESORT
Staff Announcements
CHARLIE SOLIS — DIRECTOR OF KESTREL RESTAURANT

FORMER DIRECTOR OF FOOD & BEVERAGE AT
HOTEL PASEO.

CONGRATULATIONS TO NICK LEITNER DIRECTOR OF

AGRONOMY, AND HIS WIFE KATIE, WHO WELCOMED
A BABY GIRL ON JANUARY 27.

MARKETING UPDATE

OVERALL

STRONG QUARTER DRIVEN BY THE PLAYERS COURSE RENOVATION AND CHEF BLAIS ACTIVATIONS

SIGNIFICANT GAINS IN VISIBILITY, REACH, AND ENGAGEMENT ACROSS ALL PLATFORMS

SOCIAL MEDIA GROWTH
KESTREL: CONSISTENT INCREASES EACH MONTH → MAJOR SPIKES FROM LOCALE, NITROGEN MARGARITA, AND

BLAIS CONTENT
IWGR: STRONG GROWTH TIED TO PLAYERS COURSE REOPENING; SNEAK-PEEK AND RIBBON-CUTTING POSTS

PERFORMED BEST

GOOGLE & SEARCH VISIBILITY

HIGH BUSINESS PAGE VISIBILITY FOR BOTH BRANDS WITH STRONG DISCOVERY FROM NON -FOLLOWERS AND

NEW AUDIENCES

MEDIA & PRESS

PLAYERS COURSE EARNED NATIONAL GOLF COVERAGE (GOLFWEEK, LINKS, TROON, GOLFPASS)

STRONG REGIONAL VISIBILITY VIA PALM SPRINGS LIFE, ROUGE MEDIA, CA LIVINGBROADCAST EXPOSURE THROUGH FOX SPORTS AND ACRISURE ARENA PLACEMENTS

EMAIL & PROMOTIONS
REACHED 120K+ SUBSCRIBERS PROMOTING HOLIDAY DINING, STAY & PLAY, AND REOPENING NEWS GOLFPASS FEATURE REACHED 900K+ USERS

PARTNERSHIPSCONTINUED GROWTH WITH VACAYOU, ADDING ELEVATED CULINARY AND GOLF EXPERIENCES

QUARTER TAKEAWAYDECEMBER RANKED AS ONE OF THE STRONGEST MONTHS OF THE YEAR BOTH IWGR AND KESTREL ENTER 2026 WITH MAJOR MOMENTUM AND EXPANDED AUDIENCES

INDIAN WELLS GOLF RESORT
Marketing Summary – IWGR & Kestrel

PRINT & DIGITAL MEDIA SOCIAL MEDIA

EMAIL & PROMOTIONS MEDIA & PRESS

LOOKING AHEAD

STRONG PERFORMANCE PROJECTED FOR

FEBRUARY AND MARCH DRIVEN BY SEASONAL
ACTIVITY AND EVENTS.

ADDITIONAL COLLABORATIONS AND SPECIAL
EVENTS PLANNED WITH CHEF RICHARD BLAIS.

PREPARING FOR MAJOR SPRING CELEBRATIONS
INCLUDING EASTER BRUNCH AND MOTHER’S DAY
BUFFET.

INDIAN WELLS GOLF RESORT
What’s Next . . .

THANK Y O U

1 Angelica Avila
From:DEANNA JOHNSON
Sent:Tuesday, February 3, 2026 9:40 AM
To:City Clerk
Subject:2/3/26 City Council Meeting
CAUTION: This email originated outside our organization. Be cautious with any links or attachments.

Hello,
This request may be too late, but it would be nice to have an update on the new flight path directly over Indian Wells, what is being done about it and how the community can continue to assist with getting this addressed.

Thanks,
Deanna
City Council Meeting:

February 5, 2026 - Public Comment
Non-Agenda Item

26529.00000\44543558.3

INDIAN WELLS CITY COUNCIL
February 5, 2026

To: City Council
From: City Manager Department
Prepared by: Angelica Avila, City Clerk
Subject: Ordinance Amending Municipal Code Section 2.12.010 to Clarify Planning Agency Authority

RECOMMENDED ACTIONS:

Council ADOPTS Ordinance No. 768 by title only and waives further reading amending Section 2.12.010 of the Municipal Code relating to Planning Agency; and

FINDS the action to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regulations. The City, acting as the Lead Agency, determined that this resolution is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a “project” as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.

ATTACHMENTS:

1. Ordinance

Council Meeting Agenda- February 5, 2026

ORDINANCE NO. 768

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF INDIAN WELLS, CALIFORNIA, AMENDING SECTION 2.12.010 OF THE INDIAN WELLS

MUNICIPAL CODE TO CLARIFY THE ESTABLISHMENT OF THE PLANNING AGENCY
WHEREAS, the City Council of the City of Indian Wells ("City Council") is committed to maintaining clear and accurate provisions within the Municipal Code to ensure transparency and effective governance; and
WHEREAS, the Governance Ad Hoc Committee was established by the City Council in 2025 to review and recommend updates to City processes and policies in alignment with the City Charter; and
WHEREAS, the Committee identified outdated references and ambiguous language in the Municipal Code relating to the Planning Agency, including obsolete references to the Architecture and Landscape Committee; and
WHEREAS, the City Council desires to clarify that the City Council serves as the Planning Agency pursuant to Government Code Section 65100 et seq., with authority to delegate duties to the Planning Commission or the Building and Planning Departments as needed; and WHEREAS, the proposed amendment is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2) and (c)(3) of the CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIAN WELLS DOES ORDAIN AS FOLLOWS:

Section 1. Amendment. Section 2.12.010 of the Indian Wells Municipal Code is hereby amended to read as follows:
“2.12.010 – Establishment of Planning Agency Pursuant to the provisions of Section 65100 et seq. of the California Government Code, the Planning Agency is established for the City as the City Council. The Council may delegate related duties to the Planning Commission or the Building and Planning Departments, as needed.”
SECTION 2. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance.

SECTION 3. CEQA. The City Council finds that this Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2) and (c)(3) of the CEQA Guidelines because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment.

SECTION 4. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption.

ATTACHMENT #1

Council Meeting Agenda- February 5, 2026

City of Indian Wells
Ordinance No. 768

SECTION 5. Certification. The City Clerk shall certify the adoption of this Ordinance and cause it to be published as required by law.

Section 6. Effective Date. This Ordinance takes effect immediately upon its adoption.

Section 7. Publication. The City Clerk certifies that this Ordinance was adopted by the City Council at a regular meeting on the 5th day of February 2026.

Section 8. Custodian of Records. The custodian of records for this Ordinance is the City Clerk and the records comprising the administrative record are located at 44950 Eldorado Drive, Indian Wells, California 92210.

PASSED APPROVED AND ADOPTED by the City Council of the City of Indian Wells, California, at a regular meeting held on the 5th day of February, 2026.

________________________
DR. TOPER TAYLOR
MAYOR

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF INDIAN WELLS )

CERTIFICATION FOR ORDINANCE NO. 768

I, Angelica Avila, City Clerk of the City Council of the City of Indian Wells, California, DO HEREBY CERTIFY that Ordinance No. 768, having been regularly introduced at the meeting of January 15, 2026, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the 5th of February, 2026 said ordinance was passed and adopted by the following stated vote, to wit:

AYES:

NOES:

and was thereafter on said day signed by the Mayor of said City of Indian Wells.

ATTEST: APPROVED AS TO FORM:

_____________________________ ______________________________

ANGELICA AVILA TODD LEISHMAN FOR

CITY CLERK BEST BEST & KRIEGER LLP

CITY ATTORNEY

Council Meeting Agenda- February 5, 2026

INDIAN WELLS CITY COUNCIL
February 5, 2026

To: City Council
From: Community Development Department
Prepared by: Jon Berg, Community Development Director
Subject: Ordinance Amending Chapter 21.85 of the Indian Wells Municipal Code Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units to Comply with Recent
Changes in State Law, and finding the Action to be
Statutorily Exempt From CEQA Under Public Resources Code § 21080.17

RECOMMENDED ACTIONS:

Council ADOPTS Ordinance No. 769 by title only and waives further reading amending Chapter 21.85 of the City of Indian Wells Municipal Code relating to Accessory Dwelling Units and Junior Accessory Dwelling Units to comply with recent changes in State Law; and

FINDS that the adoption of the proposed ordinance is statutorily exempt from review under the California Environmental Quality Act (CEQA) under Public Resources Code § 21080.17.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

Under California Public Resources Code section 21080.17, CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California’s ADU law.

Therefore, the adoption of the proposed Ordinance is statutorily exempt from CEQA in that it implements state ADU law.

ATTACHMENTS:

1. Ordinance

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3
ORDINANCE NO. 769

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
INDIAN WELLS AMENDING CHAPTER 21.85 OF THE CITY

OF INDIAN WELLS MUNICIPAL CODE RELATING TO

ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY

DWELLING UNITS TO COMPLY WITH THE RECENT

CHANGES IN STATE LAW, AND FINDING THE ACTION TO BE

STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC
RESOURCES CODE § 21080.17
WHEREAS, the City of Indian Wells, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, state law authorizes cities to act by ordinance to provide for the creation and regulation of accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”); and
WHEREAS, in recent years, the California Legislature has approved, and the Governor has signed into law, numerous bills that, among other things, amend various sections of the Government Code to impose new limits on local authority to regulate ADUs and JADUs; and WHEREAS, in 2025, the California Legislature approved, and the Governor signed into law, further amendments to state ADU law; and
WHEREAS, new updates to state ADU law take effect January 1, 2026, and for the City’s ADU ordinance to remain valid, it must be amended to reflect the most recent changes to state law; and
WHEREAS, the City desires to amend its local regulatory scheme for the construction of ADUs and JADUs to reflect the most recent changes to state law; and WHEREAS, on December 18, 2025, the Planning Commission held a duly-noticed public hearing and considered the staff report, recommendations by staff, and public testimony concerning this proposed Ordinance. Following the public hearing, the Planning Commission voted to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and WHEREAS, on January 15, 2026, the City Council held a duly-noticed public hearing to consider the Ordinance, including: (1) the public testimony and agenda reports prepared in connection with the Ordinance, (2) the policy considerations discussed therein, and (3) the consideration and recommendation by the City’s Planning Commission; and WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIAN WELLS DOES ORDAIN AS FOLLOWS:

Section 1. Incorporation. The recitals above are each incorporated by reference and adopted as findings by the City Council.

ATTACHMENT #1

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3
City of Indian Wells
Ordinance No.769

Section 2. CEQA. Under California Public Resources Code section 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California’s ADU law. Therefore, adoption of the Ordinance is statutorily exempt from CEQA in that it implements state ADU law.

Section 3. General Plan. The City Council hereby finds that the adoption of the Ordinance is consistent with the General Plan as a matter of law under Government Code section 66314(c).

Section 4. Code Amendment. Chapter 21.85 of the City of Indian Wells Municipal Code is hereby amended and restated to read in its entirety as provided in Exhibit “A” attached hereto and incorporated herein by reference.

Section 5. Effective Date. This Ordinance takes effect 30 days after its adoption.

Section 6. HCD Submittal. In accordance with Government Code sections 66326 and 66333.5, the City Clerk is directed to submit a copy of this Ordinance to the California Department of Housing and Community Development within 60 days after adoption.

Section 7. Publication. The City Clerk is directed to certify to the adoption of this Ordinance and post or publish this Ordinance as required by law.

Section 8. Custodian of Records. The custodian of records for this Ordinance is the City Clerk and the records comprising the administrative record are located at 44950 Eldorado Drive, Indian Wells, California 92210.

Section 9. Severability. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid by a court of competent jurisdiction, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof.

PASSED APPROVED AND ADOPTED by the City Council of the City of Indian Wells, California, at a regular meeting held on the 5TH day of February, 2026. _______________________
DR. TOPER TAYLOR
MAYOR

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3
City of Indian Wells
Ordinance No.769

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF INDIAN WELLS )
CERTIFICATION FOR ORDINANCE NO. 769
I, Angelica Avila, City Clerk of the City Council of the City of Indian Wells, California, DO HEREBY CERTIFY that Ordinance No. 769, the reading in full thereof unanimously waived, was duly passed and adopted at a regular meeting of the City Council held on the 5th day of February 2026, and said Ordinance was passed and adopted by the following vote, to wit:

AYES:

NOES:
and was thereafter on said day signed by the Mayor of said City of Indian Wells.

ATTEST: APPROVED AS TO FORM:
_____________________________ ______________________________

ANGELICA AVILA TODD LEISHMAN FOR

CITY CLERK BEST BEST & KRIEGER LLP

CITY ATTORNEY

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

EXHIBIT A
Amended ADU Regulations
ADU REGULATIONS THAT COMPLY WITH CURRENT LEGISLATION (2026) Chapter 21.85 ACCESSORY DWELLING UNITS
§ 21.85.010. Purpose. The purpose of Chapter 21.85 is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with Chapter 13 of Division 1 of Title 7 of the California Government Code.
§ 21.85.020. Effect of Conforming. An ADU or JADU that conforms to the standards in this section will not be:
(1) Deemed to be inconsistent with the city’s general plan and zoning designation for the lot on which the ADU or JADU is located.
(2) Deemed to exceed the allowable density for the lot on which the ADU or JADU is located.
(3) Considered in the application of any local ordinance, policy, or program to limit residential growth.
(4) Required to correct a nonconforming zoning condition, as defined in subsection

21.85.030(8) below. This does not prevent the city from enforcing compliance with applicable building standards in accordance with Health and Safety Code section 17980.12.
§ 21.85.030. Definitions. As used in this section, terms are defined as follows:
(1) “Accessory dwelling unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit also includes the following:
a) An efficiency unit, as defined by section 17958.1 of the California Health and Safety Code; and
b) A manufactured home, as defined by section 18007 of the California Health and Safety Code.
(2) “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot.

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

City of Indian Wells
Ordinance No.____

(3) “Complete independent living facilities” means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated.
(4) “Efficiency kitchen” means a kitchen that includes all of the following:
a) A cooking facility with appliances.
b) A food preparation counter and storage cabinets that are of a reasonable size in relation to the size of the JADU.
(5) “Junior accessory dwelling unit” or “JADU” means a residential unit that satisfies all of the following:
a) It is no more than 500 square feet of interior livable space in size. b) It is contained entirely within an existing or proposed single-family structure.

An enclosed use within the residence, such as an attached garage, is considered to be a part of and contained within the single-family structure. c) It includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure.
d) If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed single- family structure in addition to an exterior entrance that is separate from the main entrance to the primary dwelling.
e) It includes an efficiency kitchen, as defined in subsection 21.85.030(4) above. (6) “Livable space” means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation. (7) “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. (8) “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards.
(9) “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU.
(10) “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting.
(11) “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

City of Indian Wells
Ordinance No.____

transportation that charge set fares, run on fixed routes, and are available to the public.
(12) “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another. § 21.85.040. Approvals. The following approvals apply to ADUs and JADUs created under this section:
(1) Ministerial ADU and Building Permits Required. Every ADU and JADU requires an ADU permit and a building permit. The city will review and approve permit applications in accordance with subsection 21.85.040(3) below. (2) Processing Fee. The city may charge a fee to reimburse it for costs incurred in processing ADU permits, including the costs of adopting or amending the city’s ADU ordinance. The ADU-permit processing fee is determined by the Community Development Director and approved by the city council by resolution.
(3) Process and Timing.
a) Completeness.
i. Determination in 15 days. The city will determine whether an application to create or serve an ADU or JADU is complete and will provide written notice of the determination to the applicant within 15 business days after the city receives the application submittal.
ii. Incomplete items. If the city’s determination under subsection

21.85.040(3)(a)(i) above is that the application is incomplete, the city’s notice must list the incomplete items and describe how the application can be made complete.
iii. Cure. After receiving a notice that the application is incomplete, the applicant may cure and address the items that were deemed by the city to be incomplete.
iv. Subsequent submittals. If the applicant submits additional information to address incomplete items, within 15 business days of the subsequent submittal the city will determine in writing whether the additional information remedies all the incomplete items that the city identified in its original notice.

The city may not require the application to include an item that was not included in the original notice.

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

City of Indian Wells
Ordinance No.____

v. Deemed complete. If the city does not make a timely
determination as required by subsection 21.85.040(3)(a), the application or resubmitted application is deemed complete for the purposes of subsection 21.85.040(3)(c) below.
vi. Appeal of incompleteness. An applicant may appeal the city’s determination that the application is incomplete by submitting a written appeal to the city clerk. The planning commission will review the written appeal and affirm or reverse the completeness determination and provide a final written
determination to the applicant within 60 business days after receipt of the appeal.
b) No discretion or hearing. Ministerial permits for an ADU or JADU are considered and approved without discretionary review or a hearing. c) Deadline to approve or deny ministerial approvals. The city must approve or deny an application to create an ADU or JADU within 60 days from the date that the city receives a complete application. If the city has not approved or denied the complete application within 60 days, the application is deemed approved unless either:
i. The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay, or ii. When an application to create an ADU or JADU is submitted with a permit application to create a new single-family or multifamily dwelling on the lot, the city may delay acting on the permit application for the ADU or JADU until the city acts on the permit application to create the new single-family or multifamily dwelling, but the application to create the ADU or JADU will still be considered ministerially without
discretionary review or a hearing.
d) Denial. If the city denies an application to create an ADU or JADU, the city must provide the applicant with comments that include, among other things, a list of all the defective or deficient items and a description of how the application may be remedied by the applicant. Notice of the denial and corresponding comments must be provided to the applicant within the 60-day time period established by subsection 21.85.040(3)(c) above. e) Appeal of denial. An applicant may appeal the city’s denial of the application by submitting a written appeal to the city clerk. The planning commission will review the written appeal and affirm or reverse the denial and provide a final written determination to the applicant within 60 business days after receipt of the appeal.

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

City of Indian Wells
Ordinance No.____

f) Concurrent review of demolition. A demolition permit for a detached garage that is to be replaced with an ADU is reviewed with the application for the ADU and issued at the same time.
§ 21.85.050. Classes.
(1) Class 1: Statutorily Regulated. Class 1 ADUs and JADUs are approved under Government Code section 66323. If an ADU or JADU complies with each of the general requirements in section 21.85.060 below, it is allowed in each of the scenarios provided in this subsection 21.85.050(1). An ADU and JADU approved under subsection 21.85.050(1)(a) may be combined with an ADU approved under subsection 21.85.050(1)(b), and ADUs approved under subsection

21.85.050(1)(c) may be combined with ADUs approved under subsection

21.85.050(1)(d).
a) Converted on Lot with Single-Family: One ADU as described in this

21.85.050(1)(a) and one JADU on a lot with a proposed or existing single- family dwelling on it, where the ADU or JADU:
i. Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or (in the case of an ADU only) within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress; and
ii. Has exterior access that is independent of that for the single- family dwelling; and
iii. Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes.
iv. The JADU complies with the requirements of Government Code sections 66333 through 66339.
b) Limited Detached on Lot with Single-Family: One detached, new- construction ADU on a lot with a proposed or existing single-family dwelling, if the detached ADU satisfies each of the following limitations:
i. The side- and rear-yard setbacks are at least four feet. ii. The total floor area is 800 square feet of livable space or smaller.
iii. The peak height above grade does not exceed the applicable height limit in subsection 21.85.60(2) below.

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

City of Indian Wells
Ordinance No.____

c) Converted on Lot with Multifamily: One or more ADUs within portions of existing multifamily dwelling structures that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings. Under this subsection 21.85.50(1)(c), at least one converted ADU is allowed within an existing multifamily dwelling, up to a quantity equal to 25 percent of the existing multifamily dwelling units. d) Limited Detached on Lot with Multifamily: No more than two detached ADUs on a lot with a proposed multifamily dwelling, or up to eight detached ADUs on a lot with an existing multifamily dwelling, if each detached ADU satisfies all of the following:
i. The side- and rear-yard setbacks are at least four feet. If the existing multifamily dwelling has a rear or side yard setback of less than four feet, the city will not require any modification to the multifamily dwelling as a condition of approving the ADU. ii. The peak height above grade does not exceed the applicable height limit provided in subsection 21.85.060(2) below. iii. If the lot has an existing multifamily dwelling, the quantity of detached ADUs does not exceed the number of primary
dwelling units on the lot.
(2) Class 2: Locally Regulated. Class 2 ADUs are approved under Government Code sections 66314–66322. Except for Class 1 ADUs approved under subsection

21.85.50(1) above, all ADUs are subject to the standards set forth in subsection(s)

21.85.060 and 21.85.70 below.
§ 21.85.060. General Requirements. The following requirements apply to all Class 1 and Class 2 ADUs and JADUs:
(1) Zoning.
a) A Class 1 ADU approved under subsection 21.85.050(1) may be created on a lot in a residential or mixed-use zone.
b) A Class 2 ADU approved under subsection 21.85.050(2) above may be created on a lot that is zoned to allow single-family dwelling residential use or multifamily dwelling residential use.
c) In accordance with Government Code section 66333(a), a JADU may only be created on a lot zoned for single-family residences.
(2) Height.

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

City of Indian Wells
Ordinance No.____

a) Except as otherwise provided by subsection(s) 21.85.060(2)(b) and

21.85.060(2)(c) below, a detached ADU created on a lot with an existing or proposed single family or multifamily dwelling unit may not exceed 16 feet in height.
b) A detached ADU may be up to 18 feet in height if it is created on a lot with an existing or proposed single family or multifamily dwelling unit that is located within one-half mile walking distance of a major transit stop or high quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code, and the ADU may be up to two additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit. c) A detached ADU created on a lot with an existing or proposed multifamily dwelling that has more than one story above grade may not exceed 18 feet in height.
d) An ADU that is attached to the primary dwelling may not exceed 25 feet in height or the height limitation imposed by the underlying zone that applies to the primary dwelling, whichever is lower. Notwithstanding the foregoing, ADUs subject to this subsection 21.85.060(2)(d) may not exceed two stories. e) For purposes of subsection 21.85.060(2), height is measured from existing legal grade or the level of the lowest floor, whichever is lower, to the peak of the structure.
(3) Fire Sprinklers.
a) Fire sprinklers are required in an ADU or JADU if sprinklers are required in the primary residence.
b) The construction of an ADU or JADU does not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling. (4) Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 days. This prohibition applies regardless of when the ADU or JADU was created. (5) No Separate Conveyance. An ADU or JADU may be rented, but, except as otherwise provided in Government Code section 66341, no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family lot) or from the lot and all of the dwellings (in the case of a multifamily lot).
(6) Septic System. If the ADU or JADU will connect to an onsite wastewater- treatment system, the owner must include with the application a percolation test

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

City of Indian Wells
Ordinance No.____

completed within the last five years or, if the percolation test has been recertified, within the last 10 years.
(7) Owner Occupancy.
a) ADUs. ADUs are not subject to an owner-occupancy requirement. b) JADUs.
i. Generally. As required by state law, JADUs are generally subject to an owner-occupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person’s legal domicile and permanent residence.
ii. Exceptions. The owner-occupancy requirement in subsection

21.85.60(7)(b) does not apply in either of the following situations:

I. The JADU has separate sanitation facilities (i.e., does not share sanitation facilities with the existing primary dwelling unit structure).

II. The property is entirely owned by another
governmental agency, land trust, or housing
organization.
(8) Deed Restriction. Prior to issuance of a certificate of occupancy for a JADU, a deed restriction must be recorded against the title of the property in the County Recorder’s office and a copy filed with the Community Development Director (“Director”). The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by the city and must provide that:
a) The JADU may not be sold separately from the primary dwelling. b) The JADU is restricted to the approved size and to other attributes allowed by this section.
c) The deed restriction runs with the land and may be enforced against future property owners.
d) The deed restriction may be removed if the owner eliminates the JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the Director, providing evidence that the JADU has in fact been eliminated. The Director may then determine whether the evidence supports the claim that the JADU

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

City of Indian Wells
Ordinance No.____

has been eliminated. Appeal may be taken from the Director’s determination consistent with other provisions of this Code. If the JADU is not entirely physically removed, but is only eliminated by virtue of having a necessary component of an JADU removed, the remaining structure and improvements must otherwise comply with applicable provisions of this Code. e) The deed restriction is enforceable by the director or his or her designee for the benefit of the city. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the city is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the JADU in violation of the recorded restrictions or abatement of the illegal unit. (9) Building & Safety.
a) Must comply with building code. Subject to subsection 21.85.060(9)(b) below, all ADUs and JADUs must comply with all local building code requirements.
b) No change of occupancy. Construction of an ADU does not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code, unless the Building Official or Code Enforcement Manager makes a written finding based on substantial evidence in the record that the construction of the ADU could have a specific, adverse impact on public health and safety. Nothing in this subsection

21.85.060(9)(b) prevents the city from changing the occupancy code of a space that was uninhabitable space or that was only permitted for nonresidential use and was subsequently converted for residential use in accordance with this section.
(10) Certificate of Occupancy Timing.
a) Generally. No certificate of occupancy for an ADU or JADU may be issued before the certificate of occupancy is issued for the primary dwelling unit. b) Limited Exception for State-declared Emergencies. Notwithstanding subsection 21.85.060(10)(a) above, a certificate of occupancy for an ADU may be issued before a certificate of occupancy for the primary dwelling if each of the following requirements are met:
i. The county is subject to a proclamation of a state of emergency made by the California Governor on or after February 1, 2025. ii. The primary dwelling was substantially damaged or destroyed by an event referenced in the Governor’s state of emergency proclamation.

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

City of Indian Wells
Ordinance No.____

iii. The ADU has been issued construction permits and has passed all required inspections.
iv. The ADU is not attached to the primary dwelling.
§ 21.85.070. Specific ADU Requirements. The following requirements apply only to Class 2 ADUs approved under subsection 21.85.050(2) above. This section does not apply to Class 1 ADUs or JADUs approved under subsection 21.85.050(1) above. (1) Maximum Size.
a) The maximum size of a detached or attached ADU subject to this section

21.85.070 is 850 square feet of interior livable space for a studio or one- bedroom unit and 1,000 square feet of interior livable space for a unit with two or more bedrooms.
b) An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling. c) Application of other development standards in this section 21.85.070, such as FAR or lot coverage, might further limit the size of the ADU, but no application of the percent-based size limit in subsection 21.85.070(1)(b) above or of an FAR, front setback, lot coverage limit, or open-space requirement may require the ADU have less than 800 square feet of interior livable space. (2) Floor Area Ratio (FAR). No ADU subject to this section 21.85.070 may cause the total FAR of the lot to exceed 45 percent, subject to subsection

21.85.070(1)(c) above.
(3) Setbacks.
a) ADUs that are subject to this section 21.85.070 must conform to 4-foot side and rear setbacks. ADUs that are subject to this section must conform to 25- foot front setbacks, subject to subsection 21.85.070(1)(c) above. b) No setback is required for an ADU that is subject to this section 21.85.070 if the ADU is constructed in the same location and to the same dimensions as an existing structure.
(4) Lot Coverage. No ADU subject to this section 21.85.070 may cause the total lot coverage of the lot to exceed 50 percent, subject to subsection 21.85.070(1)(c) above.
(5) Minimum Open Space. No ADU subject to this section 21.85.070 may cause the total percentage of open space of the lot to fall below 50 percent, subject to subsection 21.85.070(1)(c) above.

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

City of Indian Wells
Ordinance No.____

(6) Passageway. No passageway, as defined by subsection 21.85.030(9) above, is required for an ADU.
(7) Parking.
a) Generally. One off-street parking space is required for each ADU or bedroom, whichever is less. The parking space may be provided in setback areas or as tandem parking, as defined by subsection 21.85.030(12) above. b) Exceptions. No parking under subsection 21.85.070(7)(a) is required in the following situations:
i. The ADU is located within one-half mile walking distance of public transit, as defined in subsection 21.85.030(11) above. ii. The ADU is located within an architecturally and historically significant historic district.
iii. The ADU is part of the proposed or existing primary residence or an accessory structure.
iv. When on-street parking permits are required but not offered to the occupant of the ADU.
v. When there is an established car share vehicle stop located within one block of the ADU.
vi. When the permit application to create an ADU is submitted with an application to create a new single-family or new multifamily dwelling on the same lot, provided that the ADU or the lot satisfies any other criteria listed in subsections

21.85.070(7)(b)(i) through (v) above.
c) No Replacement. When a garage, carport, covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced.
(8) Architectural Requirements.
a) The materials and colors of the exterior walls, roof, and windows and doors must be the same as those of the primary dwelling.
b) The roof slope must match that of the dominant roof slope of the primary dwelling. The dominant roof slope is the slope shared by the largest portion of the roof.

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

City of Indian Wells
Ordinance No.____

c) The exterior lighting must be limited to down-lights or as otherwise required by the building or fire code.
d) The ADU must have an independent exterior entrance, apart from that of the primary dwelling.
e) The interior horizontal dimensions of an ADU must be at least 10 feet wide in every direction, with a minimum interior wall height of seven feet. f) No window or door of the ADU may have a direct line of sight to an adjoining residential property. Each window and door must either be located where there is no direct line of sight or screened using fencing, landscaping, or privacy glass to prevent a direct line of sight.
g) All windows and doors in an ADU less than 30 feet from a property line that is not a public right-of-way line must either be (for windows) clerestory with the bottom of the glass at least six feet above the finished floor, or (for windows and for doors) utilize frosted or obscure glass. (9) Historical Protections. An ADU that is on or within 600 feet of real property that is listed in the California Register of Historic Resources must be located entirely behind the rear-most exterior wall of the primary dwelling and directly behind the primary dwelling.
(10) Allowed Stories. No ADU subject to section 21.85.070 may have more than one story, except that an ADU that is attached to the primary dwelling may have the stories allowed under subsection 21.85.060(2)(d).
§ 21.85.080. Fees. The following requirements apply to all Class 1 ADUs and JADUs and Class 2 ADUs that are approved under subsection(s) 21.85.050(1) or 21.85.050(2) above.
(1) Impact Fees.
a) No impact fee is required for a JADU or for an ADU that has less than 750 square feet of interior livable space. For purposes of this subsection

21.85.080(1), “impact fee” means a “fee” under the Mitigation Fee Act (Gov.

Code § 66000(b)) and a fee under the Quimby Act (Gov. Code § 66477). “Impact fee” here does not include any connection fee or capacity charge for water or sewer service.
b) A JADU or ADU with less than 500 square feet of interior livable space does not increase assessable space by 500 square feet for purposes of Education Code section 17620(a)(1)(C), and is therefore not subject to school fees under Education Code section 17620.

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

City of Indian Wells
Ordinance No.____

c) Any impact fee that is required for an ADU that has 750 square feet or more of interior livable space must be charged proportionately in relation to the square footage of the primary dwelling unit. (E.g., the floor area of the ADU, divided by the floor area of the primary dwelling, times the typical fee amount charged for a new dwelling.)
(2) Utility Fees.
a) If an ADU or JADU is constructed with a new single-family home, a separate utility connection directly between the ADU or JADU and the utility and payment of the normal connection fee and capacity charge for a new dwelling are required.
b) Except as described in subsection 21.85.080(2)(a), JADUs and converted ADUs on a single-family lot that are created under subsection 21.85.080(1)(a) above are not required to have a new or separate utility connection directly between the JADU or ADU and the utility. Nor is a connection fee or capacity charge required. Notwithstanding the rest of this paragraph, a direct utility connection is required for separate conveyance of an ADU when separate conveyance is allowed under this code.
c) Except as described in subsection 21.85.080(2)(a), all ADUs that are not covered by subsection 21.85.080(2)(b) require a new, separate utility connection directly between the ADU and the utility for any utility. All utilities are subject to the connection and fee requirements of the utility provider.
§ 21.85.090. Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.
(1) Generally. The city will not deny an ADU or JADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that does not present a threat to the public health and safety and that is not affected by the construction of the ADU or JADU. (2) Unpermitted ADUs and JADUs constructed before 2020. a) Permit to Legalize. As required by state law, the city may not deny a permit to legalize an existing but unpermitted ADU or JADU that was constructed before January 1, 2020, if denial is based on either of the following grounds:
i. The ADU or JADU violates applicable building standards, or ii. The ADU or JADU does not comply with state ADU or JADU law or this ADU ordinance (Chapter 21.85).

Council Meeting Agenda- February 5, 2026

93939.00059\42755721.3

City of Indian Wells
Ordinance No.____

b) Exceptions:
i. Notwithstanding subsection 21.85.090(2)(a) above, the city may deny a permit to legalize an existing but unpermitted ADU or JADU that was constructed before January 1, 2020, if the city makes a finding that correcting a violation is necessary to comply with the standards specified in California Health and Safety Code section 17920.3.
ii. Subsection 21.85.090(2)(a) above does not apply to a building that is deemed to be substandard in accordance with California Health and Safety Code section 17920.3.

Council Meeting Agenda- February 5, 2026

INDIAN WELLS CITY COUNCIL
February 5, 2026
To: City Council
From: City Manager Department
Prepared by: Eric Ceja, Assistant City Manager
Yessica Prieto, Emergency Services Coordinator
Subject: Authorize the City Manager to Execute a Memorandum of Understanding between the City of Indian Wells and Troon Golf for use of the Indian Wells Golf Resort Clubhouse for Temporary Emergency Shelter
RECOMMENDED ACTIONS:

Council APPROVES a Memorandum of Understanding (MOU) with Troon Golf, L.L.C. to support disaster operations, including Care & Reception and temporary emergency sheltering; and
AUTHORIZES the City Manager to sign and execute the MOU for the same; and FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3).

BACKGROUND:

The City of Indian Wells is responsible for providing mass care, sheltering, and care-and- reception services for residents and visitors who may be displaced during emergencies or disasters. These responsibilities are carried out in accordance with the City’s Emergency Operations Plan (EOP) and the California Emergency Services Act, which authorize the activation of appropriate facilities to support community needs during such events.

Troon Golf, L.L.C. manages and operates the Indian Wells Golf Resort, a city-owned facility that includes indoor and outdoor spaces, utilities, and amenities capable of supporting disaster-response operations. Due to its size, layout, and available infrastructure, the facility is well-suited to serve as a Care & Reception Center or temporary emergency shelter when activated by the city.

To ensure clarity and operational readiness, both the City and Troon Golf, L.L.C. seek to establish a cooperative understanding that defines the terms, roles, and responsibilities associated with the temporary use of the facility during an emergency. Under this

Council Meeting Agenda- February 5, 2026

understanding, the Troon General Manager will serve as the primary point of contact and will coordinate directly with City staff for any care-and-reception or sheltering activation.

The proposed MOU formalizes this partnership, strengthens the City’s ability to respond effectively during emergencies, and ensures that a suitable, pre -identified facility is available to support disaster operations when needed.

Advisory Committee Recommendation:

This topic was discussed as part of an overview for Emergency Services at the November 5, 2025, Public Safety Committees.

CITY COUNCIL STRATEGIC GOAL:

The City Council 2024/2025 Strategic Plan included a Strategic Plan Goal of “Expanding Emergency Preparedness Programs.” Execution of this MOU supports these goals by expanding the number of available emergency shelter facilities in the City.

OPTIONS:

The City Council has the following options:

1. Accept the MOU and authorize the City Manager to execute as presented.

2. Deny entering into the MOU; or

3. Provide alternate directions.

FISCAL IMPACT:

The Memorandum of Understanding does not create an ongoing financial obligation for the City; however, costs may be incurred when the facility is activated for Care & Reception or temporary emergency sheltering during an emergency. Under the terms of the agreement, Troon Golf, L.L.C. may request reimbursement for reasonable out-of- pocket expenses directly associated with supporting disaster operations. These may include custodial services, utilities, food services, staff overtime, and supplies that fall outside normal business operations. The City may also be responsible for repairing damage to the facility caused by City shelter operations, excluding ordinary wear and tear or pre-existing conditions.

Actual costs will vary depending on the scale and duration of the activation. When eligible, the City may seek reimbursement from state or federal disaster assistance programs. Any costs not recoverable through such programs would be absorbed by the City. Fiscal impacts are expected to be limited to emergency-related expenditures incurred only when the facility is activated.

Council Meeting Agenda- February 5, 2026

This MOU provides another level of administrative documentation to seek funding from state and federal agencies in the aftermath of a declared emergency.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The action is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act (“CEQA”) Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly; and that the action is nonetheless exempt from the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. (15061(b)(3).)

ATTACHMENTS:

1. Memorandum of Understanding

Council Meeting Agenda- February 5, 2026

MEMORANDUM OF UNDERSTANDING (MOU)

BETWEEN

CITY OF INDIAN WELLS
AND
TROON GOLF, L.L.C. (INDIAN WELLS GOLF RESORT)

RECITALS
WHEREAS, the City of Indian Wells (“CITY”) is responsible for providing mass care, sheltering, and care & reception services for residents and visitors displaced during emergencies or disasters, and may activate facilities for these purposes in accordance with its Emergency Operations Plan (EOP) and the California Emergency Services Act; and
WHEREAS, Troon Golf, L.L.C. (“TROON”) manages and operates the Indian Wells Golf Resort (“FACILITY”), which contains indoor and outdoor spaces, utilities, and amenities capable of supporting disaster operations, including Care & Reception Centers and temporary emergency sheltering; and
WHEREAS, both Parties desire to enter into a cooperative understanding to define the terms, roles, and responsibilities related to the temporary use of the FACILITY during an emergency, including the direction of operations through the Troon General Manager, who shall serve as the primary point of contact for any care & reception or sheltering activation; and
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1. DEFINITIONS
•CITY: The City of Indian Wells, including its elected officials, officers, employees, designated volunteers, and authorized agents. •TROON: Troon Golf, L.L.C., operator of the Indian Wells Golf Resort, including its employees and authorized representatives.
•FACILITY: Designated portions of the Indian Wells Golf Resort approved for temporary use during care & reception or shelter operations. •CARE & RECEPTION SERVICES: Short-term emergency services including hydration, shade/heat relief, restrooms, accountability, information dissemination, and coordination of onward transportation.

ATTACHMENT #1

Council Meeting Agenda- February 5, 2026

• MASS CARE AND SHELTER SERVICES: Provision of temporary shelter, food services, basic support services, and accommodations for individuals displaced by an emergency.
• SHELTER MANAGER: The individual designated by the CITY to oversee and manage mass care and shelter operations at the FACILITY. • GENERAL MANAGER: The Troon General Manager or designee, serving as TROON’s primary point of authority for activation, coordination, and decision- making regarding FACILITY use during emergency operations.

2. UNDERSTANDING OF THE PARTIES

2.1 Personnel
Each Party is responsible for costs associated with its personnel, including pay, benefits, supervision, and support, unless otherwise specified or eligible for reimbursement under state/federal programs.

2.2 Compensation
No Party shall receive monetary compensation under this MOU unless:
• Costs are eligible for Federal Emergency Management Agency (FEMA) or California Disaster Assistance Act (CDAA) reimbursement, or • CITY authorizes specific reimbursement under this Agreement.

All claims must follow applicable rules and documentation requirements.

3. DESCRIPTION OF SERVICES

3.1 Facility Use
Upon request by the CITY and subject to feasibility as determined by TROON, the FACILITY may be used for:
• Cool Center
• Care & Reception Center operations
• Mass Care and Shelter operations
• Training activities related to the above

3.2 Direction and Coordination

Council Meeting Agenda- February 5, 2026

• All decisions related to activating or opening the FACILITY for Care & Reception or Shelter use shall be coordinated through the Troon General Manager. • The CITY shall designate a Shelter Manager and/or provide a CITY Liaison for coordination.
• TROON will maintain access to restrooms, showers, water, power, HVAC, and other building systems as available.

3.3 American Red Cross (ARC)/ the County of Riverside Emergency Management Department (EMD) Coordination
• The CITY may request ARC or EMD support.
• If ARC assumes shelter management, this understanding will no longer apply for those operations, and ARC’s MOU with TROON will govern.

3.4 Additional Terms
TROON shall support operations as feasible, including:
• Facility access and utilities
• Catering/food service support
• Coordination with the CITY Liaison and/or Shelter Manager

4. PERIOD OF PERFORMANCE
This MOU becomes effective upon signature and remains in effect for three (3) years, renewable by mutual written agreement.

5. TERMINATION
• Either Party may terminate with 30 days’ written notice, unless the FACILITY is actively being used for emergency operations.

6. INSURANCE & LIABILITY

6.1 Insurance
Each Party shall maintain appropriate liability and workers’ compensation insurance for its own personnel and operations.

6.2 Hold Harmless
Each Party shall hold the other harmless for claims arising from its own negligent or intentional acts.

Council Meeting Agenda- February 5, 2026

7. RECORDS, INSPECTIONS, AND AUDITS
TROON shall maintain documentation of reimbursable costs for three (3) years.

CITY, state, or federal auditors may inspect such records as needed for reimbursement claims.

8. CONFIDENTIALITY
TROON shall protect identifying information related to evacuees or shelter residents and shall not disclose such information except as legally required or explicitly authorized by the CITY.

9. OPERATIONAL REQUIREMENTS
The following section adapts Perris’s “Schedule A – Scope of Services” for Troon:

9.1 Activation Requirements
The CITY shall notify TROON of:
• Planned date/time of activation
• Shelter Manager contact information
• Required areas of the FACILITY
CITY and TROON shall conduct a joint pre-occupancy inspection documenting pre- existing conditions.

9.2 Facility Access
TROON shall provide:
• 24-hour access to approved spaces
• Restrooms, showers, water, lighting, and HVAC
• Parking access
• Instructions for facility systems

9.3 Food Service
If requested and feasible:
• TROON may provide catering/food service staff

Council Meeting Agenda- February 5, 2026

• A food service lead may be identified to coordinate with the Shelter Manager • Pre- and post-occupancy food inventory will be conducted jointly

9.4 Custodial and Maintenance
TROON may provide custodial staff and supplies, subject to reimbursement.

9.5 Security
CITY may provide security support if needed; TROON may also use its own security staff.

9.6 Damage Assessment
TROON must report damage within 24 hours. A joint post-occupancy inspection will determine damages and restoration needs.

10. SIGNAGE AND PUBLIC INFORMATION
• CITY may post temporary signs identifying the FACILITY as a Care & Reception or Shelter site.
• TROON shall not issue press releases regarding shelter operations without CITY approval.
• All media inquiries shall be referred to the CITY’s Public Information Officer or Shelter Manager.

11. PET GUIDELINES
If pets are permitted:
• Pets must remain in designated areas and properly restrained. • TROON staff will not handle pets and will enter pet areas only with a CITY or Riverside County Animal Services representative.
• CITY is responsible for pet sheltering and care.

12. COSTS & REIMBURSEMENT
TROON may request reimbursement for:
• Reasonable out-of-pocket custodial, utilities, food service, and staff overtime costs

Council Meeting Agenda- February 5, 2026

• Damage to facilities caused by CITY operations (excluding ordinary wear and tear or pre-existing conditions)
• Supplies used were not part of normal business operations Reimbursement must:
• Be pre-approved when possible
• Follow FEMA and CDAA guidelines
• Be submitted within 30 business days after demobilization

13. COMPLIANCE WITH APPLICABLE LAWS
Each Party shall comply with all federal, state, and local laws, including:
• California Emergency Services Act
• Applicable public health orders
• Federal reimbursement requirements

14. FORCE MAJEURE
Neither Party shall be held liable for failure to perform due to events beyond their reasonable control.

15. INDEPENDENT CONTRACTORS
Neither Party is an agent or employee of the other.

16. GOVERNING LAW
This MOU is governed by the laws of the State of California.

17. DISPUTE RESOLUTION
Parties shall first attempt to resolve disputes at the staff level.

If unresolved, Parties shall participate in mediation prior to litigation.

18. NOTICES
Formal notices shall be delivered to:

CITY OF INDIAN WELLS
Yessica Prieto, Emergency Services Coordinator
44-950 Eldorado Drive
Indian Wells, CA 92210

Council Meeting Agenda- February 5, 2026

(760 346-2489

TROON – INDIAN WELLS GOLF RESORT
Robin Graf, General Manager
44-50 Indian Wells Lane
Indian Wells, CA 92210
(760) 346-4653

19. MODIFICATION OF TERMS
This MOU may only be amended by a mutual written MOU of both Parties.

20. ENTIRE AGREEMENT
This MOU constitutes the complete understanding of the Parties.

SIGNATURE PAGE

CITY OF INDIAN WELLS

Name, Title
Date: _____________

TROON GOLF, L.L.C. – INDIAN WELLS GOLF RESORT

Name, Title
Date: _____________

Council Meeting Agenda- February 5, 2026

INDIAN WELLS CITY COUNCIL
February 5, 2026

To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, Finance Director
Subject: Annual Financial Report – Fiscal Year Ending June 30, 2025

RECOMMENDED ACTIONS:

Council APPROVES the City’s Annual Financial Report for the fiscal year ending June 30, 2025; and

FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

BACKGROUND:

On January 20, 2026, the Finance Committee reviewed the City’s Annual Financial Report and recommended that the City Council approve the report. The City’s independent auditors, Davis Farr LLP, issued an opinion confirming that the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Indian Wells, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Pursuant to Government Code Sections 26909(a) and (b), the City engaged a certified public accountant to conduct the audit in accordance with generally accepted auditing standards. The complete audit was submitted to both the State Controller’s Office and the Riverside County Auditor within statutory deadlines.

The auditor’s report is included within the financial section of the Annual Financial Report.

Following the opinion, the Management’s Discussion and Analysis (MD&A) provides an overview of the City’s financial position and operating results.

Council Meeting Agenda- February 5, 2026

Fiscal Highlights:

The City concluded Fiscal Year 2024–25 with strong reserve levels. These results reflect prudent financial management and reinforce the City’s long-standing record of fiscal stability. The Annual Financial Report is available for public review on the City’s website at www.cityofindianwells.org . The report will also be submitted to the Government Finance Officers Association (GFOA) for consideration of the Certificate of Achievement for Excellence in Financial Reporting.

Fiscal Year 2024–25 produced strong financial results:

 Total City equity of approximately $310 million and cash balances of $97 million  Citywide operating surplus of $12.6 million, including $10.9 million in the General Fund
 Full pre-funding of the five-year capital program, with $19.3 million in the Capital Improvement Fund
 Significant compliance improvements to the Transmittal and MD&A reporting.  $2,000,000 net pension asset – meaning we are getting very close to Council’s goal of a self-funding pension system

Financial Communication Initiatives:

The City Council has consistently prioritized fiscal transparency and accessibility. To support this commitment, financial information is communicated through multiple channels, including Council meetings, Finance Committee discussions, budget publications, online resources, resident outreach, and periodic community updates.

Collectively, these initiatives strengthen public trust and accountability.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regulations. The City, acting as the Lead Agency, determined that the ordinance is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a “project” as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.

ATTACHMENTS:

1. IW ACFR – Final Report 12.23.25

Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Annual Comprehensive Financial Report
Year Ended June 30, 2025
ATTACHMENT #1

Council Meeting Agenda- February 5, 2026

This page intentionally left blank

Council Meeting Agenda- February 5, 2026

CITY OF INDIAN WELLS, CALIFORNIA

Annual Comprehensive Financial Report

Fiscal Year Ended June 30, 2025

Prepared by the Finance Department

Kevin McCarthy, Finance Director
Erika Flores, Assistant Finance Director
Amy Dallosta, Accountant
Daisy Amezcua, Accounting Technician III
Joanna Rojas, Accounting Technician II
Camille Montemayor, Accounting Technician I

44-950 Eldorado Drive, Indian Wells, California 92210-7497 Telephone: 760-346-2489 – Fax: 760-346-0407

www.cityofindianwells.org

Council Meeting Agenda- February 5, 2026

This page intentionally left blank

Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Table of Contents
June 30, 2025

INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................................ i Certificate of Achievement for Excellence in Financial Reporting (GFOA).......……………………………………………….....xi Organizational Chart …………………………………………………………………………………………………………………………………….. xii List of Principal Officers ………………………………………………………………………………………………………………………………...xiii

FINANCIAL SECTION
Independent Auditor’s Report ...................................................................................................................................1 Management's Discussion and Analysis ……………………………………………………………………………………………………………….5 Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ................................................................................................................................... 31 Statement of Activities ........................................................................................................................................ 32 Fund Financial Statements
Balance Sheet - Governmental Funds ................................................................................................................. 34 Reconciliation of the Statement of Net Position - Governmental Funds ............................................................ 35 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds .......................... 36 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities - Governmental Funds.……………………………………………………………………………………….........37 Statement of Net Position - Proprietary Funds.……………………………………………………………………………………….........38 Statement of Revenues, Expenses, and Changes in Fund Position - Proprietary Funds................…………….........39 Statement of Cash Flows - Proprietary Funds......................................................................................................40 Statement of Fiduciary Net Position - Fiduciary Funds.……………………………………………………………………………….....42 Statement of Changes in Fiduciary Net Position - Fiduciary Funds ..................................................................... 43 Notes to Financial Statements.............................................................................................................................45 Required Supplementary Information
Schedule of the City’s Proportionate Share of the Net Pension Liability - Miscellaneous Plan .......................... 92 Schedule of Plan Contributions – Miscellaneous Plan ........................................................................................ 93 Schedule of Changes in the Net OPEB Liability and Related Ratios .................................................................... 94 Schedule of OPEB Contributions ......................................................................................................................... 95 Budgetary Comparison Schedules
General Fund ....................................................................................................................................................... 96 Housing Authority Special Revenue Fund ........................................................................................................... 97 Emergency Services Upgrade Special Revenue Fund .......................................................................................... 98 Notes to Required Supplementary Information .................................................................................................. 99 Combining and Individual Fund Statements and Schedules
Combining Balance Sheet – Nonmajor Governmental Funds ........................................................................... 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ....................................................................................................................... 107

Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Table of Contents
June 30, 2025

Budgetary Comparison Schedules
IWFA Debt Service Fund .................................................................................................................................... 110 Traffic Safety ...................................................................................................................................................... 111 Public Safety 1/2% Tax ...................................................................................................................................... 112 Measure “A” Transportation ............................................................................................................................. 113 Fire Access Maintenance District No. 1 ............................................................................................................. 114 South Coast AQMD Vehicle Registration ........................................................................................................... 115 Citizens Option for Public Safety Program ........................................................................................................ 116 Gas Tax .............................................................................................................................................................. 117 AB 939 Recycling ............................................................................................................................................... 118 Solid Waste ........................................................................................................................................................ 119 Consolidating LLMD ........................................................................................................................................... 120 Street Lighting District 2001-1 ........................................................................................................................... 121 Affordable Housing Operations ......................................................................................................................... 122 Capital Improvements ....................................................................................................................................... 123 City Streets Capital Reserve ............................................................................................................................... 124 Highway 111 Circulation Improvements ........................................................................................................... 125 Park Facilities Fees ............................................................................................................................................. 126 Park Facilities in Lieu Capital Projects Fund ...................................................................................................... 127 Transportation Facilities Fees ............................................................................................................................ 128 Recreation Facilities Fees .................................................................................................................................. 129 City Wide Public Improvements ........................................................................................................................ 130 Art in Public Places ............................................................................................................................................ 131 Storm Drains Capital Reserve ............................................................................................................................ 132 Bridges Capital Reserve ..................................................................................................................................... 133 Buildings Capital Reserve .................................................................................................................................. 134 Medians & Parkways Capital Reserve ............................................................................................................... 135 Traffic Signals Capital Reserve ........................................................................................................................... 136 Technology Capital Reserve .............................................................................................................................. 137 City Vehicles Capital Reserve ............................................................................................................................. 138 Disaster Recovery Reserve ................................................................................................................................ 139

Internal Service Funds
Combining Statement of Net Position – Internal Service Funds ....................................................................... 140 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds ............. 141 Combining Statement of Cash Flows – Internal Service Funds ......................................................................... 142 Statistical Section
Net Position by Component .............................................................................................................................. 145 Changes in Net Position ..................................................................................................................................... 146 Fund Balances of Governmental Funds ............................................................................................................. 147 Changes in Fund Balances of Governmental Funds .......................................................................................... 148 Tax Revenues by Source - Governmental Funds................................................................................................149 Assessed Value and Estimated Actual Value of Taxable Property......................................................................150 Assessed Value of Property by Use Code, Citywide............................................................................................151

Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Table of Contents
June 30, 2025

Direct and Overlapping Property Tax Rates........................................................................................................152 Principal Property Tax Payers.............................................................................................................................153 Principal Sales Tax Producers.............................................................................................................................154 Property Tax Levies and Collections...................................................................................................................155 Transient Occupancy Tax Collections.................................................................................................................156 Ratios of Outstanding Debt by Type...................................................................................................................157 Ratios of General Bonded Debt Outstanding and Legal Debt Margin.................................................................158 Direct and Overlapping Debt..............................................................................................................................159 Pledged-Revenue Coverage...............................................................................................................................160 Demographic and Economic Statistics...............................................................................................................161 Principal Employers............................................................................................................................................162 Full-Time Equivalent City Government Employees by Function.........................................................................163 Operating Indicators by Function.......................................................................................................................164 Capital Assets Statistics by Function...................................................................................................................165

Council Meeting Agenda- February 5, 2026

This page intentionally left blank

Council Meeting Agenda- February 5, 2026

December 23, 2025

Honorable Mayor, Members of the City Council, and
Residents of the City of Indian Wells, California:

It is my privilege to present the Annual
Comprehensive Financial Report (ACFR) of
the City of Indian Wells for the fiscal year
ended June 30, 2025. This report reflects our
continuing commitment to sound financial
management, long-range strategic planning,
and transparency to our community.

Management Responsibility

Management is responsible for the preparation
and fair presentation of the City of Indian
Wells’ Annual Comprehensive Financial
Report (ACFR). This responsibility includes the selection and application of appropriate accounting principles; the maintenance of internal controls designed to ensure that financial information is reliable and that assets are safeguarded; and the assurance that the financial statements are free from material misstatement. Management believes that the data presented in this report are accurate in all material respects and that all disclosures necessary to enable readers to gain an understanding of the City’s financial activities have been included.

Overview and Fiscal Discipline

The City of Indian Wells remains one of California’s most fiscally secure municipalities. Guided by a conservative financial philosophy, the City Council — working closely with the Finance Committee and management staff — has maintained policies that preserve long-term fiscal resilience while supporting high-quality services and community priorities.

During FY 2024/25, tourism-driven revenues significantly exceeded projections. Record transient occupancy and admissions tax receipts underscore Indian Wells’ unique status as a premier resort destination, and confirm the strength and resilience of our local economy.

At the same time, fiscal prudence remains at the core of our strategy. We continue to maintain robust reserves, prioritize essential services, and make strategic investments in critical infrastructure — positioning the City to weather economic uncertainty while preserving fiscal flexibility for community needs and opportunities.

Council Meeting Agenda- February 5, 2026

ii

Public Safety, Pension Funding & Capital Reserves

Public safety remains our highest priority. We continue dedicating substantial resources to law enforcement and fire protection to ensure the safety and well-being of residents and visitors. In addition:

 We maintain a capital replacement reserve that exceeded $2 million during the fiscal year.

 We are proud that the pension program remains fully funded — a rare and commendable achievement that exemplifies long-term fiscal stewardship.

These actions reflect our commitment to sustainable service delivery and responsible financial planning for current and future generations.

This Transmittal Letter

This transmittal letter provides a high-level overview of the City’s financial condition. A more detailed analysis is presented in the accompanying Management’s Discussion and Analysis (MD&A). The audited financial statements, prepared in accordance with Generally Accepted Accounting Principles (GAAP), present a complete and accurate picture of the City’s financial position as of June 30, 2025. Internal controls are designed to ensure reliability and integrity while balancing cost efficiency.

In accordance with Government Code Section 26909(a), the City engaged Davis Farr, CPAs, to perform the annual independent audit. For FY 2024/25, Davis Farr issued an unmodified (clean) opinion, affirming that the financial statements present fairly the City’s financial position in all material respects.

Davis Farr also completed agreed-upon procedures reviews for the Golf Resort, Housing Authority properties, the Tennis Stadium, and hotel partners—supporting transparency and accountability across core operations.

Financial Strategy and Long-Term Outlook

The City Council maintains a long-term financial strategy focused on structural balance, disciplined reserve policies, full pension funding, sustainable capital investment, and thoughtful revenue diversification. This strategy ensures that the City continues to meet current service demands while preserving financial capacity for future generations.

Profile of the City of Indian Wells

Founded in 1967 and located in Riverside
County’s Coachella Valley, Indian Wells is a
premier residential and resort community situated
approximately 120 miles east of Los Angeles. The
City encompasses roughly 15 square miles and is
home to approximately 4,862 permanent
residents, with an additional 4,000 to 5,000
seasonal residents during the winter months.

Indian Wells operates under a Council–Manager form of government, with a five-member City Council responsible for policy direction and the appointment of the City Manager and City Attorney. The City provides a wide range of municipal services, including public safety, infrastructure maintenance, community development, code enforcement, cultural programming, and recreation. Fiscal operations are

Council Meeting Agenda- February 5, 2026

iii
guided by a biennial budget and five-year Capital Improvement Program aligned with GAAP and presented in a program-based format to strengthen accountability and alignment with community priorities.

Community Character & Quality of Life

Indian Wells offers an exceptional quality of life, anchored by luxury resorts, world-class amenities, and a rich calendar of cultural and community events. The City is home to the renowned Indian Wells Golf Resort, and hosts major events such as the BNP Paribas Open, Indian Wells Arts Festival, and cultural engagements like Desert Town Hall. Residents enjoy one of the lowest crime rates in the Coachella Valley, strong emergency-response services, and a variety of recreational and civic programs.

The Indian Wells Resident Benefit Program further distinguishes our community, offering exclusive resident discounts at local resorts and amenities, complimentary or reduced-cost access to major events, and year-round opportunities for civic engagement and enrichment.

Financial Communication

Transparent communication of financial performance remains a cornerstone of City policy. The Council and Finance Department employ multiple channels to ensure residents are well-informed, including:

 Regular Council meetings and study sessions.

 Annual Strategic Planning sessions with financial forecasts.

 Finance Committee meetings.

 Publication of annual audited financial statements.

 The City’s website and “Indian Wells Checkbook” transparency portal.

 Direct-to-resident communications, including mailers (“Budget at a Glance,” “Capital Improvements Overview,” and the “Financial Primer”).

 Fiscal updates via e-blasts and the Mayor’s letter.

 Coffee with the City Manager.

Together, these efforts underscore Indian Wells’ philosophy of fiscal prudence, accountability, and engagement—hallmarks of its enduring financial strength and civic excellence.

Factors Affecting Financial Condition

The national economic outlook is challenged by a high degree of policy uncertainty, particularly regarding federal tariff policies, shifting regulatory priorities, and labor market instability. This uncertainty has caused both businesses and households to postpone investment and major financial decisions. The Federal Reserve remains cautious, balancing inflationary risks associated with tariffs against potential labor contraction in key sectors.

Council Meeting Agenda- February 5, 2026

iv
Leading economic indicators—including the yield curve, consumer confidence, and equity markets— suggest elevated recession risk in late 2025 or early 2026. Nonetheless, most economists project continued, albeit slower, national economic growth over the next two years. Inflation is expected to remain above the Federal Reserve’s 2 percent target through 2026, limiting the likelihood of material reductions in interest rates.

These conditions are expected to dampen activity in the housing market, as homeowners with low-rate mortgages are unlikely to relocate, constraining supply and limiting turnover.

Economic Outlook for Indian Wells

Indian Wells is one of nine cities in the Coachella Valley, home to approximately 370,000 residents regionwide and roughly 500,000 residents across the broader metropolitan area. While Riverside County is part of the larger Los Angeles–Long Beach Combined Statistical Area, the Coachella Valley operates largely as a self-contained economic region, insulated from volatility in the Inland Empire's logistics sector.

The Coachella Valley remains the region’s premier tourism destination, drawing visitors from across the U.S. and abroad, particularly during the winter season. Major events—including the BNP Paribas Open, the Coachella and Stagecoach music festivals, and seasonal tourism—continue to drive strong economic performance.

Indian Wells’ formal lodging market consists of 1,587 rooms across five major resorts and hotels.

Average annual utilization is in the mid-50 percent range, peaking between February and April. Early 2025 occupancy exceeded historical levels, positioning the year to surpass all performance metrics since 2017. Average daily room rates have increased annually since 2021, contributing to strong nominal revenue growth of 8.3 percent annually since 2017.

Financial Risk Management and Fiscal Discipline

Given the current economic uncertainty, the City has intensified its focus on financial risk management.

Key actions include conservative revenue forecasting, strategic use of one-time revenues, active monitoring of market indicators, and continued adherence to the City’s 70 percent General Fund reserve requirement. These measures insulate the City from economic volatility and maintain long-term fiscal resilience.

Strategic Goals and Priorities

These principles formed the basis for discussions on the city's fiscal strategy and long-term community investment priorities during the April 17, 2025, City Council Strategic Planning Session. The City Council and Housing Authority adopted the following financial goals.

Fiscal Sustainability

Improve the City’s long-term sustainability
Time Frame: Next 12 Months
Responsible Department: Finance

 Maintain annual $2 million allocation for long-term capital replacement

 Advance revenue diversification efforts

Council Meeting Agenda- February 5, 2026

v

 Continue maintaining fully funded pension obligations

 Preserve a 70% General Fund reserve

 Develop strategies to address declining Housing Authority fund balances

Housing Authority

 Continue implementing the 6th Cycle Housing Element

 Begin planning for the 7th Cycle Housing Element

 Develop strategies to extend covenants at Indian Wells and Mountain View Villas

 Monitor and advocate for RHNA-related legislation

 Advance new affordable housing developments at Lissoy and Highway 111 sites

Indian Wells Golf Resort

 Review resident and guest rate structures

 Identify funding for Celebrity Course rehabilitation

 Engage design consultants for capital improvements

 Evaluate the feasibility of hosting a major golf tournament

 Activate the Celebrity Ballroom for expanded use

 Advance public art installations and enhancements

 Plan the November 2025 reopening of the Players Course

Commitment to the Future

Looking ahead, the City will continue to enhance financial transparency, invest strategically in capital assets, strengthen core services, and preserve the exceptional quality of life that defines Indian Wells.

Through disciplined governance and collaborative leadership, the City remains well-positioned for long- term success. Collectively, these safeguards reinforce the City’s longstanding commitment to fiscal integrity, accountability, and transparent financial management.

City of Indian Wells Key Achievements

A comprehensive set of achievements across finance, housing, economic development, tourism, public safety, and capital improvement projects. These accomplishments reflect disciplined financial management, strategic investment, and collaboration across City operations.

Council Meeting Agenda- February 5, 2026

vi
City Finances
 Strong Budget Performance: Achieved a $5.0 million surplus in the FY 2024–25 Mid-Cycle Budget Update, following an increase of the FY 2023–24 surplus to over $8.0 million.  Robust Cash Reserves: General Fund cash reserves are projected to reach $20.7 million by June 2024 and $26.4 million by June 2025.
 Pension Sustainability: Maintained a fully funded pension system, complemented by a new pre- funding program for future obligations.
 Public Safety Funding: Established a Community Facilities District (CFD) to provide a dedicated funding source for future public safety needs.  Enhanced Financial Transparency: Expanded resident communications through:
o Financial Primer — annual direct mailer highlighting financial performance. o Budget at a Glance — concise overview of Council goals, savings initiatives, public safety, and capital investments.
 External Funding Success: Secured more than $13.0 million in grant funding since 2019, with an additional $5.0 million in anticipated federal earmarks in FY 2026–27.  Developer Fee Modernization: Updated developer fees to reflect current infrastructure and service demands.

Housing
 Partnered with Abode to address maintenance needs at Indian Wells Villas and Mountain View Villas.
 Continued progress toward acquisition of the Lissoy Opportunity Parcel to support future housing initiatives.

Economic Development
 Supported the successful entitlement and grand opening of Sprouts Farmers Market (Council Goal).
 Implemented a streamlined electronic plan check and permit system to improve efficiency and customer service (Council Goal).
 Continued efforts to advance the Genton development project.

Housing Element
 Successfully completed the City’s Housing Element update in compliance with State requirements.

Tourism
 Appointed a new Director of Tourism.
 Strengthened collaboration among the City, the Indian Wells Golf Resort, and hotel partners.  Secured the Epson Tour event for October 2024, enhancing regional and national visibility.

Public Safety
 Presented and advanced a new public safety initiative (Council Goal).  Implemented traffic calming measures, including speed reductions along Fairway Drive and Eldorado Drive.
 Increased enforcement targeting excessive vehicle noise.  Participated in a regional task force addressing speeding throughout Indian Wells.  Completed installation of license plate recognition (LPR) technology to enhance public safety capabilities.

Council Meeting Agenda- February 5, 2026

vii

Parks and Community Facilities
 Celebrated the ribbon cutting of Fairway Park in April, completed under budget and with positive community impact.

City Council Governance
 Completed a comprehensive update to the City Council Policy Manual, strengthening governance clarity and consistency.

Indian Wells Golf Resort
 Renegotiated the Troon Management Agreement to include performance-based incentives.  Achieved Golf Resort profitability following capital adjustments, eliminating the need for resident subsidies.
 Initiated the redesign of the Players Course.
 Advanced a new restaurant concept by Chef Richard Blais, including Troon’s $1.25 million investment commitment.

Additional Citywide Initiatives
 Advanced a Sister City partnership with Kelowna, Canada.  Expanded event funding and improved resident communications across multiple platforms.  Earned Tree City USA designation and the Growth Award for excellence in urban forestry.  Finalized the Local Hazard Mitigation Plan and updated the Landscape Ordinance.  Hosted the City’s first HOA Community Workshop.
 Completed major citywide capital improvement projects, including Highway 111 pavement improvements, neighborhood repaving, and a new pedestrian path at the Indian Wells Golf Resort traffic circle.
 Supported the Council Ad-Hoc Committee on commissions and expanded resident benefits, including pickleball programming and enhanced community events.

Identification of Appropriated Governmental Funds

In accordance with applicable financial reporting standards, the governmental funds subject to biannual appropriation by the City Council are as follows:

 General Fund: This fund serves as the city's principal operating fund, supporting essential services such as public safety, public works, and administrative operations.

 Special Revenue Funds: These funds account for resources dedicated to specific purposes, such as public safety funds, state gas tax funds, and landscape and lighting maintenance district funds.

 Debt Service Funds: These funds are used to repay principal and interest on general obligation bonds and other long-term debt.

 Capital Projects Funds: These funds support the construction, acquisition, or improvement of significant capital assets, including infrastructure projects such as roads and facilities.

 Housing Funds: These funds provide financial resources to support affordable housing initiatives, including housing development, rehabilitation programs, and rental assistance.

Council Meeting Agenda- February 5, 2026

viii
 Enterprise Fund: This fund operates as a self-sustaining entity funded primarily through user fees and charges. It is accounted for separately to ensure the financial integrity of operations.

 Internal Service Fund: This fund accounts for services provided internally to other city departments.

The City Council appropriates these funds biannually during the formal budget process to ensure fiscal accountability and compliance with legal and policy guidelines. Midcycle updates are also performed to provide additional transparency and accountability. The appropriation of governmental funds reflects our ongoing commitment to transparency, accountability, and excellence in financial management.

Structure of This Report

This ACFR is presented in accordance with best practices recommended by the Government Finance Officers Association. It is organized into three principal sections:

 Introductory Section — includes this Letter of Transmittal, a list of principal City officials, and an organizational chart.

 Financial Section — comprises the independent auditor’s report, the required Management’s Discussion & Analysis (MD&A), the basic financial statements (government-wide and fund- based), notes to the financial statements, and combining and individual fund statements and schedules.

 Statistical Section — presents comparative financial and demographic data for multiple years, giving broader context to the City’s financial and operational trends.

Document Structure

In addition to the fund-by-fund financial information presented in the City’s financial statements, the Government-wide Financial Statements are presented. The Government-wide Financial Statements include a Statement of Net Position providing the City’s total net position, including infrastructure, and a Statement of Activities displaying the cost of delivering government services.

These statements are further analyzed in the Management’s Discussion and Analysis (MD&A) narrative section. The MD&A provides "financial highlights" and interprets the financial reports by analyzing trends and explaining changes, fluctuations, and variances in the economic data. In addition, the MD&A is intended to disclose any known noteworthy events or decisions affecting the City's financial condition.

The Annual Financial Report includes the financial activity for all funds of the City. The City provides various services, including planning, building, public works, engineering, maintenance, and general administrative activities. Contracted services include police and fire protection and landscape maintenance.

The following governmental agencies provide services to the City of Indian Wells citizens. They are excluded from this report because the City does not have financial accountability over these agencies: the State of California and its departments, the County of Riverside and its departments, Cove Communities Services Commission, Coachella Valley Association of Governments, Riverside County Transportation Commission, Riverside County Waste Management District, Desert Sands Unified School District, County Superintendent of Schools, Coachella Valley Unified School District, Desert Community College

Council Meeting Agenda- February 5, 2026

ix
District, Coachella Valley Mosquito, and Vector Control District, Coachella Valley Water District, Sunline Transit Agency, Greater Palm Springs Convention and Visitors Bureau, and the Desert Resorts Regional Airport Authority.

Established Financial Controls

The internal controls framework is designed to provide reasonable but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management.

Independent Audit

An annual independent audit of the City’s Financial Statements was conducted. The accounting firm of Davis Farr was appointed by the City Council and reported to the Finance Committee to perform the annual audit. The auditors' report on the basic financial statements, as well as the combining and individual fund statements and schedules, is included in the financial section of this report.

Annual Internal Control Review

The City is responsible for ensuring an adequate internal control structure. Accordingly, the internal control structure is subject to constant evaluation by the management of the City and annual review by independent auditors. Assessments determine the internal control structure's adequacy and whether the City complied with applicable laws and regulations. The results of the City’s annual audit for the fiscal year that ended June 30, 2025, provided no instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations.

Accounting Controls

In the public sector, a city government maintains a variety of "funds," which provide the basis for separately recording the financial data related to a specific activity. A fund is an accounting entity with complete self-balancing accounting records. Each fund is established due to some restriction on the use of the resources received by the fund. For example, in the private sector, a corporation may have many subsidiaries that comprise the parent corporation. Likewise, in the public sector, all the funds make up the complete financial resources of the City. This report includes the transactions of all entities over which the City Council has authority (as defined by the Governmental Accounting Standards Board).

The City's accounting system operates on a modified accrual basis of accounting for all governmental and agency-type funds. Under the modified accrual basis of accounting, revenues are recorded when received in cash or accrued when they are both measurable and collectible within the accounting period or soon enough after the end of the period to pay liabilities of the period. Expenditures other than interest or long- term debt are recorded when liabilities are incurred. At year-end, the City prepared the required entries necessary to report the City’s financial position and activities on an accrual basis of accounting, which recognizes revenues when earned and expenses when incurred.

In addition to maintaining funds to record accounting transactions, internal controls exist within the accounting system to ensure the safety of assets from misappropriation, unauthorized use, or disposition and to maintain the accuracy of financial record keeping. These internal controls must be established consistent with sound management practices based upon the cost/benefit of the controls imposed. The control cost should not be high for its derived use as viewed by City management. The internal controls at

Council Meeting Agenda- February 5, 2026

x
the City of Indian Wells are sufficient to ensure, in all material respects, the safety of the City's assets and the accuracy of the financial record-keeping system.

Certificate of Award for Outstanding Financial Reporting

For FY 2023/24, the City received the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting. The FY 2024/25 report continues to uphold the high standards required for this recognition.

Acknowledgments

This report reflects the dedicated efforts of the Finance Department, City staff, and the independent auditors at Davis Farr. The support and policy leadership of the City Council and Finance Committee continue to play a foundational role in sustaining the City’s long-standing record of financial integrity, transparency, and excellence.

Respectfully submitted,

___________________
Dr. Chris Freeland
City Manager

Council Meeting Agenda- February 5, 2026

xi

Council Meeting Agenda- February 5, 2026

xii

Council Meeting Agenda- February 5, 2026

xiii

CITY OF INDIAN WELLS

LIST OF PRINCIPAL OFFICIALS

JUNE 30, 2025

Council – Manager Form of Government

City Council

Bruce Whitman
Mayor

Dana Reed
Mayor Pro Tem

Dr. Toper Taylor
Council Member

Brian M. Penna
Council Member

Greg Sanders
Council Member

City Administration

Dr. Christopher J. Freeland
City Manager

Kevin McCarthy, Finance Director
Ken Seumalo, Public Works Director
Jon Berg, Community Development Director

Council Meeting Agenda- February 5, 2026

This page intentionally left blank

Council Meeting Agenda- February 5, 2026

Independent Auditor’s Report

The Honorable Mayor and Members of City Council
City of Indian Wells, California

Report on the Audit of the Financial Statements

Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Indian Wells (the “City”), as of and for the year June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Indian Wells, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter

The financial statements for the year ended June 30, 2025 reflect certain prior period adjustments as described further in note 19 to the financial statements. Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

1 Page 67 of 333
Council Meeting Agenda- February 5, 2026

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for one year after the date that the financial statements are issued.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

2 Page 68 of 333
Council Meeting Agenda- February 5, 2026

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, and Budgetary Comparison Schedules for the General Fund and each major special revenue fund, Schedule of Proportionate Share of the Net Pension Liability, Schedule of Plan Contributions, Schedule of Changes in the Net OPEB Liability and Related Ratios and Schedule of OPEB Contributions be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.

We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the Introductory Section and Statistical Section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

3 Page 69 of 333
Council Meeting Agenda- February 5, 2026

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 23, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Irvine, California
December 23, 2025

4 Page 70 of 333
Council Meeting Agenda- February 5, 2026

Management’s Discussion and Analysis

The management of the City of Indian Wells is pleased to present this Management’s Discussion and Analysis (MD&A) of the City’s financial activities for the fiscal year ended June 30, 2025. This narrative provides an overview of the City’s financial performance, position, and key trends, highlighting the results of operations and significant changes in fund balances, capital assets, and long-term obligations.

The MD&A is intended to complement, and should be read in conjunction with, the Letter of Transmittal on page i, the Basic Financial Statements on pages 31-32, and the accompanying notes. It is organized to provide both a high-level summary of financial highlights—including net position, fund balances, revenues, expenditures, and long-term obligations—and a more detailed analysis of Government-Wide and Fund Financial Statements, capital assets, and economic outlook.

The discussion begins with the City’s Financial Highlights, offering key measures of fiscal health and operational sustainability. Subsequent sections provide a comprehensive review of Governmental and Business-Type Activities, fund-level performance, budgetary compliance, and long-term strategic considerations, ensuring that readers gain a complete understanding of the City’s financial position and stewardship of public resources.

Financial Highlights

 Overall Financial Position: At June 30, 2025, the City’s assets exceeded liabilities by $309,956,722, reflecting strong fiscal health. Of this total, $195,517,298 represents net investment in capital assets, supporting long-term infrastructure and service delivery; $87,583,495 is unrestricted and available for operational needs or future projects; and $26,855,929 is restricted by external mandates. The City’s net position increased by $12,557,730, driven by revenue growth, prudent cost management, and strategic investments in both operational programs and capital infrastructure, as discussed in the Government-Wide Financial Analysis section.

 Governmental Fund Balances: The combined ending fund balance for all governmental funds totaled $104,467,935, demonstrating robust short-term liquidity. This total includes:

o Nonspendable: $9,594,750, primarily prepaids, long-term receivables, and other non- liquid assets
o Restricted: $27,041,841, constrained by external regulations or legal requirements o Committed: $782,232, formally designated by the City Council for capital projects o Assigned: $47,926,044, reflecting management’s intent for future capital investments and long-term priorities
o Unassigned: $19,123,068, available for any lawful purpose and serving as a financial cushion.
o These classifications, detailed further in the Analysis of Governmental Funds and Individual Fund Highlights, provide flexibility for operational needs while ensuring disciplined investment in future capital projects.

 General Fund Strength: The General Fund, the City’s primary operating fund, reported a fund balance of $30,319,217, including $9,574,948 in nonspendable assets and $20,744,269 in unassigned funds. This unassigned balance represents 110.4% of General Fund expenditures, providing substantial capacity to meet operational needs, respond to unforeseen contingencies, and support the City’s reserve policy, as discussed in the General Fund Budgetary Highlights section.
5 Page 71 of 333
Council Meeting Agenda- February 5, 2026

 Capital Assets: Net capital assets for Governmental Activities increased by $5,058,294 to $157,347,103, reflecting $9,328,428 in acquisitions, $40,322 in retirements, and $4,270,134 in depreciation. For Business-Type Activities (primarily the Indian Wells Golf Resort), net capital assets totaled $50,328,657, an increase of $7,620,381. These investments, detailed in the Capital Assets section, underscore the City’s commitment to maintaining and improving its infrastructure and enterprise operations.

 Long-Term Liabilities and Retirement Obligations: The City’s compensated absences liability rose to $1,346,146, while lease revenue bonds totaled $12,585,000 with a premium of $1,116,984. The net pension asset of $2,033,276 and net OPEB liability of $4,739,209 demonstrate the City’s proactive approach to retirement obligations. Strategic use of Section 115 Trusts, with total assets of $5,818,393, supports long-term fiscal sustainability, as described in the Long-Term Liabilities section.

 Revenue and Expenditure Highlights: Governmental Activities revenues increased to $54,862,133, driven by property tax growth, tourism recovery, the BNP Paribas tournament, and higher investment earnings. Governmental Activities expenses decreased to $43,418,341, primarily due to targeted cost containment in General Government. This resulted in net positive contributions to the City’s fund balances and net position. Business-Type Activities (Golf Resort) incurred an operating deficit of $4,682,316, offset by nonoperating revenues totaling $5,796,253, resulting in a net profit of $1,113,937 and demonstrating enterprise sustainability.

 Strategic Financial Positioning: The City’s combination of strong fund balances, disciplined expense management, prudent capital investment, and proactive long-term liability management positions Indian Wells to:

o Maintain high-quality municipal services
o Respond to unforeseen economic or operational contingencies o Fund both ongoing and future capital projects
o Ensure compliance with regulatory requirements for restricted and trust-held assets

 Outlook: Robust tourism and stable property tax growth provide favorable near-term revenue projections. The City will continue monitoring economic indicators, operational efficiencies, and long-term obligations to preserve financial stability and align with community expectations, as further discussed in the Economic Factors and Next Year’s Budgets and Rates section.

Overview of the Financial Statements

The discussion and analysis here will introduce the City of Indian Wells’ basic financial statements. The City of Indian Wells’ basic financial statements consist of three components: (1) Government‐Wide Financial Statements, (2) Fund Financial Statements, and (3) the Notes to Financial Statements. This report also includes supplementary information to furnish additional detail to support the basic financial statements.

Government‐wide Financial Statements. The Government‐Wide Financial Statements are designed to provide readers with a broad overview of the City of Indian Wells’ finances like a private‐sector business.

The statement of net position presents financial information on all of the City of Indian Wells’ assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over 6 Page 72 of 333
Council Meeting Agenda- February 5, 2026

time, increases or decreases in net position may serve as a valuable indicator of whether the City of Indian Wells’ financial position is improving or deteriorating.

The statement of activities presents information showing how the City of Indian Wells’ net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both Government-wide Financial Statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions intended to recover all or a sizable portion of their costs through user fees (business-type activities). The City’s governmental activities include general government, public safety, highways and streets, sanitation, economic development, and culture and recreation. The Government-wide Financial Statements include the City (the primary government) and a legally separate maintenance district for which the City is financially accountable.

The City of Indian Wells Fire Access Maintenance District No. 1, although legally separate, functions as a department of the City and is therefore included as an integral part of the primary government. The Government‐Wide Financial Statements are on pages 31-32 of this report.

Fund Financial Statements - A fund is a grouping of related accounts that control resources segregated for specific activities or objectives. The Fund Financial Statements provide information about the City’s most significant funds (major funds) rather than the City as a whole. Some funds are required by State and Federal law or by bond covenants. Other funds are utilized to control and manage resources intended for particular purposes. The City of Indian Wells, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds - Governmental funds account for the same functions reported as governmental activities in the Government-wide Financial Statements. However, unlike Government-wide Financial Statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources and balances of spendable resources available at the end of the fiscal year. Such information may help evaluate a government's near-term financing requirements.

Because the focus of governmental funds is narrower than the Government-wide Financial Statements, it is helpful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government-wide Financial Statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. The governmental fund balance sheet and the governmental fund statement of revenues, expenses, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenses, and changes in fund balances for the major funds of the government.

The City of Indian Wells maintains individual governmental funds, distinguishing between major and non -major funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures , and changes in fund balances. Data collected from governmental funds are combined into a single aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.
7 Page 73 of 333
Council Meeting Agenda- February 5, 2026

The City of Indian Wells chooses to report eighteen (18) Landscape and Lighting District funds as the Consolidated LLMD rather than separately reporting each of the funds. The City also combines five (5) Gas Tax funds as the Consolidated Gas Tax Fund for this reporting purpose.

The City adopts a biennial budget. The Biennial Operating Budget and the Capital Improvement Program are prepared and administered in accordance with established procedures set forth by the City Council. These procedures include guidelines, standards, and requirements for the preparation and monitoring of both the Operating and Capital Budgets. The budget is managed to ensure adequate funds are available to cover anticipated expenditures. Public input is considered throughout the process, with scheduled public meetings and study sessions at key City Council decision points. A budgetary comparison schedule is provided for the General Fund to demonstrate compliance with this budget.

Proprietary funds - Proprietary funds report the same functions as business-type activities in the Government-wide Financial Statements. Internal service funds accumulate and allocate costs internally among various functions. Proprietary funds provide the same information as the Government-wide Financial Statements, only in more detail.

Fiduciary funds - The City utilizes Fiduciary funds to account for assets held by the City in a trustee capacity or as an agent for other governmental entities, private organizations, or individuals. The City’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in net fiduciary position. We exclude these activities from the City’s Government-Wide Financial Statements because the City cannot use these assets to finance its operations.

Notes to the Financial Statements - The financial statements include the Notes to the Financial Statements , which provide essential narrative details about the information in the financial statements. Data in the Notes to the Financial Statements are critical to a reader's understanding of the Government-Wide and Fund Financial Statements.

Required Supplementary Information - Besides the required elements of the Basic Financial Statements, we included Required Supplementary Information, which provided budgetary information for the General Fund and major special revenue funds and required schedules for pension and other post-employment benefits.

Combining and individual fund statements and schedules - Provide combining fund information and budgetary schedules following the required supplementary information.

Government-Wide Overall Financial Analysis

This analysis focuses on the Statement of Net Position (Table 1) and the Statement of Net Activities (Table 2) of the City’s activities. The changes in net position over time may serve as a valuable indicator of a government’s financial position.

8 Page 74 of 333
Council Meeting Agenda- February 5, 2026

Analysis of the Statement of Net Position

The following table lists a condensed Statement of Net Position for the fiscal years ending June 30, 2025, and 2024.

2025 2024 2025 2024 2025 2024
120,033,972$ 127,525,367$ 4,623,459$ 1,004,121$ 124,657,431$ 128,529,488$ Capital assets 157,347,103 151,870,603 50,506,777 42,708,276 207,853,880 194,578,879 Total Assets 277,381,075 279,395,970 55,130,236 43,712,397 332,511,311 323,108,367 6,119,238 5,901,289 182,108 105,410 6,301,346 6,006,699 Current Liabilities 4,978,871 5,810,115 2,340,374 1,185,231 7,319,245 6,995,346 19,252,598 22,220,880 759,240 535,380 20,011,838 22,756,260 Total Liabilities 24,231,469 28,030,995 3,099,614 1,720,611 27,331,083 29,751,606 1,480,784 1,927,049 44,068 37,419 1,524,852 1,964,468 Net Position:
145,413,139 142,190,278 50,104,159 42,518,369 195,517,298 184,708,647 Restricted
Community
development 459,123 945,799 - - 459,123 945,799 Housing 12,646,741 12,034,055 - - 12,646,741 12,034,055 Public safety 7,652,573 5,863,937 - - 7,652,573 5,863,937 Public works 3,952,146 2,494,602 - - 3,952,146 2,494,602 Pension obligations 1,974,514 2,041,991 58,762 31,475 2,033,276 2,073,466 OPEB obligations 112,070 2,833,540 - - 112,070 2,833,540 Unrestricted 85,577,754 86,935,013 2,005,741 (490,067) 87,583,495 86,444,946 Total Net Position 257,788,060$ 255,339,215$ 52,168,662$ 42,059,777$ 309,956,722$ 297,398,992$ Net investment in
capital assets
Deferred Inflows of
Resources
Total Business -Type Activities Governmental Activities Non-current Liabilities
Table 1
Statement of Net Position
Deferred Outflows of
Resources
Current and restricted
assets

As of fiscal year-end, the City’s total assets exceeded total liabilities by $309,956,722, resulting in a favorable net position. That net position is comprised of three components:

 Net investment in capital assets — $195,517,298 represents the City’s investment in capital assets (e.g., land, buildings, infrastructure, equipment), net of accumulated depreciation and any outstanding debt attributable to those assets.

 Restricted net position — $26,855,929 is subject to externally-imposed constraints (by grantors, bondholders, or higher levels of government) and therefore is reserved for the specific purposes mandated by those external parties.

 Unrestricted net position — $87,583,495 remains available to the City for general use to meet ongoing obligations, fund operations, or finance future projects.

The unrestricted net position provides the City with financial flexibility to meet operating needs and respond to unforeseen contingencies. The net investment in capital assets — while a significant portion of total net position — reflects resources that are not available for future spending because they are tied up in long-term capital infrastructure.
9 Page 75 of 333
Council Meeting Agenda- February 5, 2026

Analysis of the Statement of Activities

Table 2 below lists a condensed Statement of Activities for the fiscal years ending June 30, 2025, and 2024.

2025 2024 2025 2024 2025 2024
Revenues
Program Revenues:

Charges for services 4,670,287$ 4,782,673$ 16,976,221$ 22,331,661$ 21,646,508$ 27,114,334$ 16,951,546 16,225,266 - - 16,951,546 16,225,266 200,791 68,032 1,250,000 - 1,450,791 68,032 - - General Revenues:

Taxes
Property taxes 4,406,703 4,362,305 - - 4,406,703 4,362,305 Transient occupancy
taxes 13,523,137 12,159,497 - - 13,523,137 12,159,497 Sales taxes 2,148,619 1,824,421 - - 2,148,619 1,824,421 Franchise taxes 1,388,780 1,398,516 - - 1,388,780 1,398,516 Business licenses taxes 217,528 225,554 - - 217,528 225,554 Admission taxes 5,266,503 5,067,845 - - 5,266,503 5,067,845 Investment income (loss)5,721,683 4,965,343 186,311 (9,374) 5,907,994 4,955,969 Other 366,556 296,204 210,000 - 576,556 296,204 Total Revenues 54,862,133 51,375,656 18,622,532 22,322,287 73,484,665 73,697,943 Expenses:

General government 11,604,322 14,392,102 - - 11,604,322 14,392,102 Public safety 13,355,081 13,334,797 - - 13,355,081 13,334,797 Community development 5,923,067 5,638,377 - - 5,923,067 5,638,377 Public works 12,136,865 12,071,338 - - 12,136,865 12,071,338 Interest 399,006 329,643 - - 399,006 329,643 Golf resort - - 17,508,594 22,307,753 17,508,594 22,307,753 Total Expenses 43,418,341 45,766,257 17,508,594 22,307,753 60,926,935 68,074,010 11,443,792 5,609,399 1,113,938 14,534 12,557,730 5,623,933 Transfers (8,994,947) (102,584) 8,994,947 102,584 - - 2,448,845 5,506,815 10,108,885 117,118 12,557,730 5,623,933 255,339,215 249,832,400 42,059,777 41,942,659 297,398,992 291,775,059 257,788,060$ 255,339,215$ 52,168,662$ 42,059,777$ 309,956,722$ 297,398,992$ Operating contributions
and grants
Capital contributions and
grants
Net Position, Beginning of Year,
as Restated
Net Position, End of Year
Table 2
Statement of Activities
Governmental Activities Business -Type Activities Total Increase (decrease) in net
position before transfers
Increase (decrease) in net
position

Revenues:

Governmental Activities: The City collected $54,862,133 in fiscal year 2024/25, up from $51,375,656 the previous year. This revenue increase was driven by property tax growth, a resurgence in tourism, the BNP Paribas tennis tournament, and higher investment earnings.

Business-Type Activities: The Golf Resort collected $18,622,532 in fiscal year 2024/25, compared to $22,322,287 the prior year. The decline in revenue was due to the closure of the restaurant, the closure of the Player’s golf course during remodeling and rehabilitation, and the closure of banquet events at the Pavilion during the remodeling and rehabilitation work.

10 Page 76 of 333
Council Meeting Agenda- February 5, 2026

Expenses:

Governmental Activities: Governmental activities reported total expenses of $43,418,341 for the fiscal year, representing a net decrease of $2,347,916 compared to the prior year. This overall reduction reflects both targeted decreases in certain functional areas and inflationary increases in others.

The most significant year-over-year change occurred within the General Government function, where expenditures decreased by $2,787,780. This decline is primarily attributable to deliberate cost- containment measures implemented during the fiscal year. These measures included the refinement of administrative operating procedures and continued emphasis on organizational efficiencies. As a result, the City realized material savings without compromising core municipal services.

While General Government experienced a notable reduction in operating costs, several other governmental functions recorded moderate increases. These increases were primarily the result of inflationary pressures affecting personnel services, utilities, contracted services, and materials. Rising market prices for commodities and professional services particularly contributed to cost growth in public safety, public works, and community services programs. Although these increases partially offset the savings achieved in General Government, the City’s overall governmental expenditures still decreased for the year.

It is important to note that the City’s expense profile continues to reflect its service priorities and long- term financial stewardship. The reduction in General Government costs demonstrates the City’s proactive approach to managing its administrative cost structure, while the inflation-driven increases in other functional areas highlight the external economic forces that influence service delivery costs. Despite these pressures, the City maintained stable operations and delivered essential services effectively.

Overall, the net decline in total governmental activities expenses underscores the City’s commitment to prudent financial management and its ability to adjust its expenditure patterns in response to economic conditions. The City will continue to monitor inflationary trends, evaluate operational efficiencies, and prioritize resource allocation to ensure that governmental activities remain sustainable and aligned with community expectations.

Business-Type Activities: The Golf Resort incurred $17,508,594 in operating costs, including $18,529,777 for operations, $494,777 for general and administrative expenses, $10,228 for interest expenses, a $4,160,170 gain on asset disposition, and $2,633,982 for depreciation.

Financial Analysis of Governmental Funds

Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. This information is useful in assessing the City’s short-term liquidity and financing requirements — that is, whether the City has sufficient resources available to meet upcoming expenditure needs.

11 Page 77 of 333
Council Meeting Agenda- February 5, 2026

General Fund All Other Funds Total Funds
Nonspendable:

Prepaid costs 102,331$ 19,802$ 122,133$ Notes and loans 9,472,617 - 9,472,617 Restricted for:

Community
development - 13,105,864 13,105,864 Public safety - 7,652,573 7,652,573 Public works - 3,952,146 3,952,146 Debt service - 2,331,258 2,331,258 Committed for:

Capital projects - 782,232 782,232 Assigned To:

Capital projects - 47,926,044 47,926,044 Unassigned: 20,744,269 (1,621,201) 19,123,068 Total Fund
Balances 30,319,217$ 74,148,718$ 104,467,935$ Table 3
Fund Balances by Category
Fiscal Year Ending 6/30/2025

At the close of the fiscal year, the combined ending fund balance for all governmental funds was $104,467,935. That total is composed of the following fund balance classifications:

 Nonspendable – $9,594,750: These are amounts that cannot be spent because they are either not in spendable form (e.g., prepaids, inventories, long-term receivables, or other non-liquid assets) or must be “maintained intact” under legal or contractual constraints.  Restricted – $27,041,841: These resources are constrained by external parties (such as grantors, bondholders or other government agencies) or by laws and regulations. They are reserved for specific purposes and cannot be used for general operations.  Committed – $782,232: These amounts have been formally set aside by the City Council (or other governing authority) for capital projects, per Council action consistent with applicable policy or ordinance. As such, they can be used only for those designated purposes, unless the Council formally rescinds or modifies the commitment.
 Assigned – $47,926,044: These amounts reflect the City’s intent — as expressed by the Governing Board — to use these funds for long-term capital projects, replacements, or other 12 Page 78 of 333
Council Meeting Agenda- February 5, 2026

long-term purposes. While they are not constrained by external mandate or formal Council commitment, they are not considered available for arbitrary general fund spending.  Unassigned – $19,123,068: This residual portion represents the fund balance in the General Fund that is not restricted, committed, or assigned. These resources are the City’s most flexible — available for any lawful purpose, and represent a “financial cushion” for unanticipated needs, contingencies, or near-term obligations.

The total fund balance of $104,467,935 demonstrates the City’s robust short-term financial position, with a balanced mix of flexibility (through unassigned and assigned balances) and fiscal discipline (through restricted, committed, and nonspendable classifications). This structure supports prudent cash-flow management, provides a buffer against economic or revenue fluctuations, and ensures resources are available for both general needs and future capital commitments.

Moreover, the significant assigned portion earmarked for long-term capital projects reflects strategic planning and sustainability — an important signal to stakeholders, rating agencies, and the public that the City is actively investing in infrastructure and future service delivery capacity without compromising operational stability.

This fund-balance composition positions the City well to meet near-term obligations while maintaining financial flexibility and fulfilling long-term capital and replacement needs.

Business-type activities The City’s business-type activities, shown in Table 4, are designed to recover all or a substantial portion of their costs through user fees and charges. The Indian Wells Golf Resort is the primary activity reported in this category. The City monitors these activities closely to ensure that revenues generally cover operating costs, while maintaining financial sustainability and high-quality service delivery.

During the fiscal year, the Indian Wells Golf Resort generated $16,976,220 in operating revenues, primarily from golf fees, food and beverage sales, and special events. Operating expenses totaled $21,658,536, which includes:

 Operations: $18,529,777

 General and administrative expenses: $494,777

 Depreciation: $2,633,982

This resulted in an operating loss of approximately $4,682,316. The operating deficit reflects a combination of planned depreciation, rising operational costs, and investments in maintaining high- quality facilities and service standards.

13 Page 79 of 333
Council Meeting Agenda- February 5, 2026

Golf Resort
Operations Total
Operating Revenues:

Charges for services 16,976,220$ 16,976,220$
Total Revenues 16,976,220 16,976,220
Operating Expenses:

Operations 18,529,777 18,529,777
General and Administration 494,777 494,777 Depreciation 2,633,982 2,633,982
Total Expenditures 21,658,536 21,658,536
Operating Income (loss)(4,682,316) (4,682,316) Non-operating Revenues (Expenses)
Investment Income (loss) 186,311 186,311 Capital contributions 1,250,000 1,250,000
Interest expense (10,228) (10,228)
Loss on disposition of capital assets 4,160,170 4,160,170 Other nonoperating revenue 210,000 210,000 Total nonoperating revenues (expenses) 5,796,253 5,796,253 Income before transfers 1,113,937 1,113,937 Transfers In 10,284,948 10,284,948
Transfers Out (1,290,000) (1,290,000)
Total transfers 8,994,948 8,994,948
Changes in Net Position 10,108,885 10,108,885 42,059,777 42,059,777
Net Position at End of Year 52,168,662$ 52,168,662$ Business-Type Activities
Table 4
Net Position, Beginning of the Year
Fiscal Year Ending 6/30/2025

Nonoperating revenues and expenses totaled $5,796,253, comprised of:

 Investment income: $186,311

 Capital contributions: $1,250,000

14 Page 80 of 333
Council Meeting Agenda- February 5, 2026

 Interest expense: ($10,228)

 Gain on disposition of capital assets: $4,160,170

 Other nonoperating revenue: $210,000

When combined, these nonoperating items offset the operating deficit, resulting in a net profit of $1,113,937 for the Resort.

Analysis of Individual Funds

The General Fund

The General Fund serves as the City’s primary operating fund, supporting essential municipal services and daily operations. At the close of the fiscal year, the General Fund reported a fund balance of $30,319,217, composed of:

 Nonspendable assets: $9,574,948, consisting primarily of notes and loans receivable that are not in spendable form.

 Unassigned fund balance: $20,744,269, representing resources available for any lawful purpose.

Assessing fund balance relative to total expenditures provides insight into the City’s liquidity and short-term financial flexibility. The unassigned fund balance represents 110.4% of total General Fund expenditures, while the total fund balance represents 161.3%, indicating a strong capacity to meet operational needs and respond to unforeseen contingencies.

Revenue performance remained robust, driven largely by tourism-related activities, which are the City’s primary revenue source. Transient occupancy tax and admissions tax revenues reached record levels, contributing to a 4.9% increase in General Fund revenues compared to the prior year. This growth reflects both increased visitation and effective revenue collection strategies.

On the expenditure side, General Fund spending decreased by $1,458,062 (7.2%) compared to the prior year, largely due to the removal of Golf Resort resident golf rate subsidies and targeted cost containment measures. The combination of increased revenues and reduced expenditures contributed to a strong net fund position, further enhancing the City’s financial stability and operational flexibility.

15 Page 81 of 333
Council Meeting Agenda- February 5, 2026

2025 2024 $ Change % Change
Revenues:

Taxes 26,521,861$ 24,526,087$ 1,995,774$ 8.1% Licenses and permits 514,897 683,169 (168,272) -24.6% Intergovernmental 882,078 942,282 (60,204) -6.4% Charges for services 502,588 666,372 (163,784) -24.6% Interest income (loss) 1,164,549 1,404,591 (240,042) -17.1% Fines and forfeitures 73,534 64,546 8,988 13.9% Other income 36,745 31,117 5,628 18.1% Total Revenues 29,696,252 28,318,164 1,378,088 4.9% Expenditures:

General government 8,268,874 10,405,052 (2,136,178) -20.5% Public safety 5,224,479 4,854,763 369,716 7.6% Community development 2,092,755 2,078,322 14,433 0.7% Public works 3,208,946 2,914,979 293,967 10.1% Total Expenditures 18,795,054 20,253,116 (1,458,062) -7.2% Excess (Deficiency) of Revenues
Over (Under) Expenditures 10,901,198 8,065,048 2,836,150 35.2% Other Financing Sources (Uses)
Transfer in - - - 100.0% Transfer out (21,870,034) (3,425,053) (18,444,981) 100.0% Total Transfers (21,870,034) (3,425,053) (18,444,981) 100.0% Net Change in Fund Balance (10,968,836)$ 4,639,995$ (15,608,831)$ 336.4% Table 5
General Fund Financial Summary

Refer to the Fund Financial Statements (pages 34–43) for additional detail on revenue and expenditure trends, as well as a detailed breakdown of fund balances.

The Housing Authority Fund

The Indian Wells Housing Authority was established to support the retention, rehabilitation, and development of affordable housing for households meeting HUD income limits. The Housing Authority Fund manages expenditures for affordable housing operations and provides annual reporting to the State Department of Housing and Community Development on community housing projects and initiatives.

At the close of fiscal year 2024/25, the Housing Authority Fund reported a fund balance of $12,646,741, demonstrating a strong financial position to support ongoing and future housing programs.

16 Page 82 of 333
Council Meeting Agenda- February 5, 2026

2025 2024 $ Change % Change
Revenues:

Intergovernmental 135,812$ 113,172$ 22,640$ 0.0% Interest income 560,004 434,381 125,623 28.9% Total Revenues 695,816 547,553 148,263 28.9% Expenditures:

General government 1,783,272 3,404,143 (1,620,871) -47.6% Community development 250,000 250,000 - 0.0% Total Expenditures 2,033,272 3,654,143 (1,620,871) -44.4% Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,337,456) (3,106,590) 1,769,134 -56.9% Other Financing Sources (Uses)
Transfer in 2,460,000 517,445 1,942,555 375.4% Transfer out (509,858) (806,269) 296,411 -36.8% Total Transfers 1,950,142 (288,824) 2,238,966 -775.2% Net Change in Fund Balance 612,686$ (3,395,414)$ 4,008,100$ -118.0% Table 6
Housing Authority Financial Summary

Revenues for the fiscal year totaled $695,816, including $135,812 in intergovernmental fees and $560,004 in interest income. Expenditures totaled $2,033,272, covering staff salaries and benefits, professional services (including audits and legal counsel), liability insurance premiums, contributions to nonprofit organizations addressing homelessness, and capital maintenance projects. This represents a decrease of $1,620,871 compared to the prior year, primarily due to the completion of major housing initiatives in the prior period and tighter cost management during the current fiscal year.

The net reduction in expenditures, coupled with consistent revenue collection, has contributed to a sustainable fund balance that positions the Housing Authority to continue its mission of supporting affordable housing programs. These resources provide flexibility to address both operational needs and future housing development opportunities, while ensuring compliance with state and federal reporting requirements.

Refer to the Fund Financial Statements (pages 34–43) for additional detail on revenues, expenditures, and fund balances.

The Emergency Services Upgrade Fund

The Emergency Services Upgrade Fund is dedicated to supporting fire suppression, prevention, investigation, safety education, emergency management, and paramedic services. These services are provided by the Riverside County Fire Department under a CALFIRE subcontract, ensuring high-quality emergency response throughout the City.

17 Page 83 of 333
Council Meeting Agenda- February 5, 2026

2025 2024 $ Change % Change
Revenues:

Taxes 7,075,678$ 4,206,481$ 2,869,197$ 68.2% Charges for services 745,461 737,398 8,063 1.1% Interest income (loss) 319,018 207,355 111,663 53.9% Assessments 629,744 610,241 19,503 3.2% Other income 20,623 21,171 (548) -2.6% Total Revenues 8,790,524 5,782,646 3,007,878 52.0% Expenditures:

Public safety 4,940,677 5,350,057 (409,380) -7.7% Capital Outlay 183,771 29,297 154,474 527.3% Total Expenditures 5,124,448 5,379,354 (254,906) -4.7% Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,666,076 403,292 3,262,784 809.0% Other Financing Sources (Uses)
Transfer out (1,644,983) (146,616) (1,498,367) 0.0% Total Transfers (1,644,983) (146,616) (1,498,367) 0.0% Net Change in Fund Balance 2,021,093$ 256,676$ 1,764,417$ 687.4% Table7
Emergency Services Upgrade Financial Summary

At the close of fiscal year 2024/25, the Emergency Services Upgrade Fund reported a fund balance of $6,750,305, reflecting a strong fiscal position to support ongoing emergency services and maintain operational readiness.

Revenues for the fiscal year totaled $8,790,524, comprised of:

 $7,075,678 from the fire tax credit collected by Riverside County on behalf of the City

 $745,461 from ambulance billing

 $629,744 from a citywide assessment

 $319,018 in interest income

 $20,623 in other income

Expenditures totaled $5,124,448, covering staff salaries and benefits, professional services, the fire services contract, liability insurance premiums, maintenance projects, and capital outlay. This represents a decrease of $254,906 from the prior year, primarily due to efficient management of the fire services contract and careful monitoring of operational expenses.

The fund balance and revenue structure provide the City with flexibility to ensure continuity of critical emergency services, respond to unforeseen events, and invest in safety and emergency management improvements. The strong fiscal position reflects disciplined financial management while maintaining compliance with funding and contractual requirements.
18 Page 84 of 333
Council Meeting Agenda- February 5, 2026

Refer to the Fund Financial Statements (pages 34–43) for additional detail on revenues, expenditures, and fund balances.

The Capital Improvements Fund

The Capital Improvements Fund supports the City’s multi-year Capital Improvement Program (CIP), which outlines planned capital projects over the next five years. Capital projects include the construction, acquisition, expansion, rehabilitation, or non-routine maintenance of facilities, infrastructure, or equipment costing $5,000 or more, resulting in a capital asset. The program identifies required capital maintenance, facility improvements, major equipment purchases, and capital-related studies or master plans.

2025 2024 $ Change % Change
Revenues:

Intergovernmental 3,048,943$ 3,911,420$ (862,477)$ -22.1% Investment income 827,071 566,598 260,473 46.0% Other income 13,867 1,096 12,771 100.0% Total Revenues 3,889,881 4,479,114 (589,233) -13.2% Expenditures:

General government 332,740 91,847 240,893 262.3% Capital outlay 10,936,146 6,411,443 4,524,703 70.6% Total Expenditures 11,268,886 6,503,290 4,765,596 73.3% Excess (Deficiency) of Revenues
Over (Under) Expenditures (7,379,005) (2,024,176) (5,354,829) 264.5% Other Financing Sources (Uses)
Transfer in 14,945,346 6,093,037 8,852,309 145.3% Transfer out (501,493) - - 100.0% Total Transfers 14,443,853 6,093,037 8,852,309 137.1% Net Change in Fund Balance 7,064,848$ 4,068,861$ 3,497,480$ 73.6% Table 8
Capital Improvements Financial Summary

At the close of fiscal year 2024/25, the Capital Improvements Fund reported a fund balance of $18,988,451, reflecting the City’s capacity to finance ongoing and future capital projects while maintaining fiscal flexibility.

Revenues for the fiscal year totaled $3,889,881, including:

 $3,048,943 in intergovernmental revenues

 $827,071 in interest income

 $13,867 in other miscellaneous income

Expenditures totaled $11,268,886, of which $332,740 was for general government costs and $10,936,146 represented new capital investments within the community, including facility improvements, infrastructure upgrades, and equipment acquisition.

19 Page 85 of 333
Council Meeting Agenda- February 5, 2026

The fund balance and revenue collections provide the City with the financial resources necessary to implement the multi-year CIP, enabling the timely completion of capital projects and long-term planning for community infrastructure needs. The strong fiscal position of the Capital Improvements Fund ensures that resources are available to address both planned projects and unforeseen capital requirements while supporting efficient and strategic investment in the City’s facilities and public assets.

Refer to the Fund Financial Statements (pages 34–43) for additional detail on revenues, expenditures, and fund balances.

City Streets Capital Reserve

The City Streets Capital Reserve Fund is part of the City’s long-term capital asset replacement plan, designated to support future capital improvement projects, including streets, bridges, and City facilities.

The capital asset replacement plan outlines annual contributions to ensure resources are available for the ongoing maintenance, rehabilitation, and replacement of municipal infrastructure.

2025 2024 $ Change % Change
Revenues:

Investment income 982,602$ 662,416$ 320,186$ 48.3% Total Revenues 982,602 662,416 320,186 48.3% Expenditures:

Capital outlay - - - 0.0% Total Expenditures - - - 0.0% Excess (Deficiency) of Revenues
Over (Under) Expenditures 982,602 662,416 320,186 48.3% Other Financing Sources (Uses)
Transfer in 162,500 162,500 - 100.0% Total Transfers 162,500 162,500 - 100.0% Net Change in Fund Balance 1,145,102$ 824,916$ 320,186$ 38.8% Table 9
City Streets Capital Reserve Financial Summary

Under the City’s Capital Contribution Policy, funds are allocated to the Capital Reserve program to maintain adequate reserves for lifecycle management of key assets. These reserves support prudent municipal asset management by ensuring that funds are available when needed for major infrastructure projects. Appropriations from the reserve are determined by the City Council, providing governance and oversight of long-term capital planning.

The City Streets Capital Reserve is funded primarily through interest income and transfers. When capital funding is required, the City Council authorizes transfers from the reserve to the Capital Improvements Fund, either as part of the annual budget cycle or for specific projects. Prior to any transfer, the City provides detailed financial information regarding the replacement funds, including beginning balances, projected revenues, and anticipated ending balances, ensuring transparency and informed decision- making.

20 Page 86 of 333
Council Meeting Agenda- February 5, 2026

This fund provides a dedicated, strategic resource for preserving and improving the City’s infrastructure, enhancing fiscal sustainability, and ensuring that essential capital projects are funded in a timely and financially responsible manner.

Refer to the Fund Financial Statements (pages 34–43) for additional detail on fund balances, revenues, and transfers.

Park Facilities In Lieu

The Park Facilities In Lieu Fund (sometimes referred to as a “Quimby‑in‑Lieu” or “park‑in‑lieu fee” fund) is established to collect and manage fees (or land dedications) paid by developers in lieu of providing on‑site park or recreational facilities, pursuant to statutory requirements under the Quimby Act.

These in‑lieu fees support the acquisition, development, expansion, and rehabilitation of parkland, open space, and recreation facilities for the benefit of new and existing residents.

2025 2024 $ Change % Change
Revenues:

Intergovernmental 177,952$ 3,328$ 174,624$ 0.0% Developer fees 6,334 40,341 (34,007) -84.3% Total Revenues 184,286 43,669 140,617 322.0% Expenditures:

General government 1,878 7,605 (5,727) -75.3% Capital Outlay - 78,571 (78,571) 0.0% Total Expenditures 1,878 86,176 (84,298) -97.8% Excess (Deficiency) of Revenues
Over (Under) Expenditures 182,408 (42,507) 224,915 -529.1% Other Financing Sources (Uses)
Transfer in 1,434 31,083 (29,649) 100.0% Total Transfers 1,434 31,083 (29,649) 100.0% Net Change in Fund Balance 183,842$ (11,424)$ 195,266$ -1709.3% Table 10
Park Facilities In Lieu Financial Summary

At the close of the fiscal year, the City’s Park Facilities In Lieu Fund reported a deficit fund balance of ($1,621,201). This deficit reflects expenditures on parkland acquisition, development, and capital improvements that exceeded the current-year collection of in-lieu fees and associated interest. The deficit is planned to be repaid in future years as additional in-lieu fees are collected from new residential development and interest income accrues.

Although currently in a deficit position, the fund remains a strategic resource for addressing the City’s park and open space needs, including acquisition of new parkland, construction or expansion of recreational facilities, and rehabilitation of existing parks. The fund’s long-term financial plan ensures compliance with state law, supports ongoing recreational planning, and helps maintain an adequate level of park/open space per capita as the community grows.

21 Page 87 of 333
Council Meeting Agenda- February 5, 2026

The City will continue to monitor growth trends, development activity, and park needs to allocate park-in- lieu resources efficiently. The ultimate goal is to translate these future revenues into high-quality, publicly accessible parks and recreation facilities, enhancing community livability and fulfilling the commitments associated with new development, without relying on general fund resources. Refer to the Fund Financial Statements (pages 34–43) for details on fee collections, interest income, expenditures (land purchases, capital improvements), and fund balance changes.

General Fund Budgetary Highlights

Actual General Fund revenues exceeded the final budget by $4,440,762, driven primarily by higher-than- projected receipts in the following categories:

 Property taxes. Collections outpaced projections due to higher assessed valuations and stronger- than-anticipated supplemental assessments.

 Tourism-related revenues. Recovery and growth in the tourism sector produced higher transient occupancy, admissions tax, and sales tax receipts than budgeted.

 Investment income. Rising interest rates and a larger available cash balance generated increased interest earnings.

On the expenditures side, final General Fund spending was $2,605,547 below the adopted (final) budget.

The underspending reflects a combination of factors, including:

 Controlled operating expenditures through conservative purchasing.

 The removal of Golf Resort resident golf rate subsidies.

Net effect on fund balance and reserves:

The combined revenue favorable variance and expenditure underrun increased the General Fund ending fund balance by $10,901,198 (before transfers), supporting the City’s policy-level reserves. As of year- end, the General Fund unassigned/unrestricted fund balance represents approximately 110.4% of annual expenditures, consistent with the City’s reserve policy.

Budget management and amendments:

During the year, the City Council approved budget amendments totaling $781,306 to address mid-year revenue adjustments, grant awards, and capital project carryover; the final budget amounts cited above reflect those amendments. The City continues to monitor revenue trends, with contingency appropriations maintained to manage volatility.

Outlook and key risks:

While the near-term outlook is favorable due to tourism growth and stronger property tax collections, risks remain: slower regional visitation, changes in assessed values, and potential increases in personnel costs (pensions/healthcare). The City will continue to update multi-year projections and adjust expenditure plans to preserve fiscal stability.

22 Page 88 of 333
Council Meeting Agenda- February 5, 2026

Analysis of Governmental Activities

The government-wide financial statements — including the Statement of Activities — present both the gross cost of the City’s major programs and the net cost after accounting for program revenues (charges for services, grants, contributions) that are directly associated with those programs.

2025 2024 2025 2024
Government Activities
General government 11,604,322$ 14,392,102$ (7,839,767)$ (9,814,604)$ Public safety 13,355,081 13,334,797 (3,844,167) (5,251,697) Community development 5,923,067 5,638,377 (1,970,760) (1,556,021) Public works 12,136,865 12,071,338 (7,542,017) (7,738,321) Interest 399,006 329,643 (399,006) (329,643) Total Governmental Activities 43,418,341 45,766,257 (21,595,717) (24,690,286) Business-Type Activities
Golf resort 17,508,594 22,307,753 717,627 23,908 Total Business-Type Activates 17,508,594 22,307,753 717,627 23,908 Total Primary Government 60,926,935$ 68,074,010$ (20,878,090)$ (24,666,378)$ Net Cost of ServicesTotal Cost of Services
Table 11
Net Cost of Governmental Activities

Table 11 highlights the City’s five largest governmental programs: General Government, Community Development, Public Safety, Public Works, and Golf Resort (for city‑wide features). For each of these programs, the table displays both total cost and net cost (total cost less direct program revenues), which reveals the portion of costs not covered by fees or user charges.

The net cost of services demonstrates that — consistent with the fundamental purpose of governmental activities — the cost of providing public services substantially exceeds the revenues generated directly by those services. Consequently, these net costs must be subsidized by the City’s general revenues (taxes, intergovernmental revenues, unrestricted grants, and other general sources).

In practical terms, this means that for core services such as public safety, public works, community development, and general administration, the City relies on its general revenue base — rather than solely on fees or charges — to meet the full cost of service delivery. This financing structure reflects a deliberate public policy choice: essential governmental services are provided for the benefit of all residents and not priced on a user‑fee basis alone.

This structure also provides transparency about the burden placed on taxpayers to support governmental operations, and helps taxpayers and decision‑makers understand which functions are self-supporting (if any) and which are inherently subsidized by general revenues.

As the City continues to deliver services, this analysis supports informed policy discussions about cost recovery, fee-setting, and the adequacy of general revenues to fund public‑serving programs.

23 Page 89 of 333
Council Meeting Agenda- February 5, 2026

Capital Assets

The City’s long-term investments in capital assets represent the foundation for providing high-quality services to the community. These assets include land, buildings, infrastructure (such as streets, bridges, sidewalks, storm drains, and traffic signals), vehicles, machinery and equipment, and enterprise systems.

All infrastructure assets, except land, are depreciated to reflect their declining service value over time.

Government Activities
Balance at Balance at
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being
depreciated:

Land 33,289,388$ -$ -$ -$ 33,289,388$ Construction in progress 8,002,574 292,322 - (7,382,342) 912,554 Total capital assets not
being depreciated 41,291,962 292,322 - (7,382,342) 34,201,942 Capital assets, being depreciated:

Intangible 2,500,000 - - - 2,500,000 Buildings and improvements 65,683,081 - - - 65,683,081 Equipment 1,641,257 317,917 (40,322) - 1,918,852 Infrastructure 119,738,122 8,718,189 - 7,382,342 135,838,653 Total capital assets
being depreciated 189,562,460 9,036,106 (40,322) 7,382,342 205,940,586 Less accumulated depreciation for:

Intangible (500,000) (250,000) - - (750,000) Buildings and improvements (34,241,189) (1,593,088) - - (35,834,277) Equipment (1,124,990) (206,752) 40,322 - (1,291,420) Infrastructure (42,699,434) (2,220,294) - - (44,919,728) Total accumulated
depreciation (78,565,613) (4,270,134) 40,322 - (82,795,425) Total capital assets
being depreciated, net 110,996,847 4,765,972 - 7,382,342 123,145,161 Total capital assets, net 152,288,809$ 5,058,294$ -$ -$ 157,347,103$ Table 12
Summary of Changes in Capital Assets
Governmental Activities

Governmental activities’ capital assets, net of accumulated depreciation, increased by $5,058,294, from $152,288,809 to $157,347,103. During the year:

 The City acquired $9,328,428 in new assets, including completed infrastructure, equipment, and buildings.

 Asset retirements totaled $40,322, reflecting the removal of fully depreciated or obsolete items.

 Net depreciation expense amounted to $4,229,812, consistent with the City’s capitalization and depreciation policies.

24 Page 90 of 333
Council Meeting Agenda- February 5, 2026

These investments demonstrate the City’s ongoing commitment to maintaining and enhancing public infrastructure, while balancing fiscal responsibility.

Business-Type Activities

Balance at Balance at
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being
depreciated:

Land 13,910,956$ -$ (139,830)$ -$ 13,771,126$ Construction in progress - 8,407,605 - - 8,407,605 Total capital assets not
being depreciated 13,910,956 8,407,605 (139,830) - 22,178,731 Capital assets, being depreciated:

Buildings and improvements 84,998,063 1,751,493 (14,755,715) - 71,993,841 Equipment 5,187,588 115,416 - - 5,303,004 Infrastructure 433,390 - - - 433,390 Right to use asset 555,109 119,679 (235,575) - 439,213 Total capital assets
being depreciated 91,174,150 1,986,588 (14,991,290) - 78,169,448 Less accumulated depreciation for:

Buildings and improvements (58,111,555) (1,973,554) 14,755,715 - (45,329,394) Equipment (3,756,469) (565,963) - - (4,322,432) Infrastructure (130,016) (7,224) - - (137,240) Right to use asset (378,790) (87,241) 235,575 - (230,456) Total accumulated
depreciation (62,376,830) (2,633,982) 14,991,290 - (50,019,522) Total capital assets
being depreciated, net 28,797,320 (647,394) - - 28,149,926 Total capital assets, net 42,708,276$ 7,760,211$ (139,830)$ -$ 50,328,657$ Table 13
Summary of Changes in Capital Assets
Business-Type Activities

Business-type activities, primarily the Indian Wells Golf Resort, reported net capital assets of $50,328,657, an increase of $7,620,381 over the prior year. During the year:

 New asset acquisitions totaled $10,394,193, including facility improvements, equipment upgrades, and other infrastructure.

 Asset retirements totaled $14,991,290, representing the removal or replacement of fully depreciated or obsolete assets.
 Net depreciation expense declined $12,357,308 due to retirements.

25 Page 91 of 333
Council Meeting Agenda- February 5, 2026

These investments support the City’s enterprise operations and reflect prudent stewardship of assets that generate revenue and provide community services.

Notes on Capitalization and Depreciation

 Capital assets are recorded at historical cost, or estimated historical cost for older assets, with donated assets recorded at fair value on the acquisition date.

 Normal maintenance and repairs are expensed and not capitalized.

 Depreciation is calculated using the straight-line method over estimated useful lives, varying by asset class.

 Construction in progress is capitalized as projects advance, and upon completion, reclassified to the appropriate asset class and depreciated accordingly.

For more detailed information, including asset classifications, additions, retirements, and depreciation by category, see Note 7 — Capital Assets in the Notes to Basic Financial Statements (pages 66-67).

Long-term Liabilities

At June 30, 2025, the City’s governmental activities reported $17,978,561 in long-term liabilities, reflecting obligations for employee benefits, public infrastructure financing, and retiree health. The following sections summarize these obligations and the City’s proactive management strategies.

Description 2025 2024 $ Change % Change
Compensated absences 1,346,146$ 1,067,620$ 278,526$ 26.1% 2022 Lease Revenue Bonds 12,585,000 13,080,000 (495,000) -3.8% Premium 1,116,984 1,183,340 (66,356) -5.6% Lease Payable 224,498 189,907 34,591 18.2% Net Pension Liability (asset) (2,033,276) (1,089,114) (944,162) 86.7% Net OPEB Liability (asset) 4,739,209 7,235,393 (2,496,184) -34.5% Total Long Term Debt 17,978,561$ 21,667,146$ (3,688,585)$ -17.0% Table 14
Summary of Changes in Long-Term Liabilities

Compensated Absences

The City’s compensated absences liability totaled $1,346,146, representing accrued vacation, sick leave, and other employee leave benefits that are earned but not yet used. These obligations are expected to be paid from future resources as employees take leave or retire.

Lease Revenue Bonds

The Indian Wells Financing Authority maintains $12,585,000 in outstanding lease revenue bonds, with a bond premium of $1,116,984. These bonds finance public infrastructure and energy efficiency improvements, supporting the City’s long-term capital and sustainability goals. 26 Page 92 of 333
Council Meeting Agenda- February 5, 2026

Net Pension Asset

The City recognized a net pension asset of $2,033,276, reflecting its proportional share of the Miscellaneous Plan’s net pension liability. This allocation is based on the City’s projected long-term contributions relative to all participating employers, as determined through actuarial analysis. The asset underscores the City’s strong funding position and prudent management of retirement obligations.

Net OPEB Liability

The City participates in the Public Employees Medical and Hospital Care Act (PEMHCA), administered by CalPERS, providing health insurance for employees and eligible retirees. As of June 30, 2025, the City reported a net OPEB liability of $4,739,209, representing the remaining unfunded retiree health benefit obligation after accounting for trust assets. This approach demonstrates the City’s commitment to fiscal stability and meeting long-term retiree obligations.

Section 115 Trusts

To strategically address pension and OPEB obligations, the City established Section 115 Trusts, administered by U.S. Bank and Public Agency Retirement Services (PARS), to accumulate assets dedicated to reducing long-term liabilities.

As of June 30, 2025:

 PARS – Pension: $1,104,177 in assets, $126,156 in interest income, $6,331 in plan costs

 PARS – OPEB: $4,714,216 in assets, $542,211 in interest income, $27,035 in plan costs

 Total restricted assets: $5,818,393

In accordance with GAAP, these trust assets are classified as restricted City assets rather than plan assets and will only be reclassified if transferred directly to the pension or OPEB plans. This structured approach demonstrates the City’s commitment to responsibly managing long-term obligations while ensuring compliance with regulatory standards.

The City’s long-term liabilities reflect a balanced approach to funding obligations for employees, retirees, and capital projects. The combination of proactive pre-funding for OPEB, strategic use of Section 115 trusts, and prudent management of bonds and compensated absences underscores the City’s commitment to fiscal sustainability.

For additional detail on long-term liabilities, see Note 8 (Long-Term Liabilities), Note 9 (Defined Benefit Pension Plan), Note 12 (Other Post-Employment Benefit Plan), and Note 13 (PARS and Shuster Advisory Group Section 115 Trusts) in the Notes to Basic Financial Statements (pages 45–89).

Economic Factors and Next Year’s Budgets and Rates

National and Regional Economic Outlook

The economic forecast for 2025–2026 remains uncertain due to ongoing federal policy changes, including tariff fluctuations and shifts in trade policy. These uncertainties can influence private-sector investment decisions, particularly in residential construction, and affect employment in certain industries.

27 Page 93 of 333
Council Meeting Agenda- February 5, 2026

The Federal Reserve is maintaining a cautious approach to monetary policy, balancing potential inflationary pressures against labor market conditions. Most leading economic indicators — including the yield curve, consumer sentiment, and financial markets — suggest moderate growth nationally over the next two years, with low risk of a full recession. Inflation is expected to remain above the 2 percent target, limiting the Federal Reserve’s ability to stimulate the housing market through lower interest rates.

Mortgage rates are therefore likely to remain elevated, constraining rapid growth in housing transactions.

Local Economic Conditions – Indian Wells and the Coachella Valley

Indian Wells is part of the nine-city Coachella Valley, with a combined population of just over 370,000.

The broader Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA) encompasses approximately 4.7 million residents, making it the 12th largest in the U.S. While regional dynamics affect overall economic conditions, Indian Wells’ economy is largely insulated from fluctuations in logistics, manufacturing, and other sectors that dominate the Inland Empire. The City primarily attracts employment and visitors from within the Coachella Valley, limiting exposure to external economic shocks.

The Coachella Valley is a premier visitor destination, drawing seasonal residents and tourists from across the U.S. and Canada. Major events such as the BNP Paribas Tennis Tournament, the Coachella Valley Music and Arts Festival, and the Stagecoach Music Festival generate substantial visitor activity.

Tourism and Lodging Market

Indian Wells’ hotel and resort inventory consists of 1,587 rooms across properties including:

 Grand Hyatt Indian Wells Resort & Villas

 Sands Hotel & Spa

 Renaissance Esmeralda Resort & Spa

 Tommy Bahama Miramonte Resort & Spa

 Indian Wells Resort Hotel

Occupancy rates average in the mid-50 percent range year-round, peaking from February through April.

Early 2025 occupancy was exceptionally strong, suggesting the annualized occupancy rate for the year may exceed all prior years since 2017. Average daily room rates have increased each year since 2021, driving nominal hotel revenues higher. Based on preliminary data, combined revenues for January and February 2025 were up 31 percent over the same period in 2024, and nominal revenues have grown at a compound annual rate of 8.3 percent since 2017.

Despite reports of temporary reductions in Canadian visitors due to national policy disagreements, historical patterns and seasonal behavior suggest that tourism levels will remain resilient.

Budget Implications

The City’s economic outlook informs budget planning, particularly for the General Fund and enterprise activities such as the Indian Wells Golf Resort and hotel accommodations. Forecasted revenues are tempered by national uncertainties and persistent inflation, but local tourism and hospitality activity are 28 Page 94 of 333
Council Meeting Agenda- February 5, 2026

expected to support continued revenue growth. The City will continue monitoring regional and national economic indicators to adjust expenditures and rates as necessary, ensuring fiscal stability while maintaining high-quality services and infrastructure.

Request for Information

This financial report provides a general overview of the City of Indian Wells’ finances. Questions regarding any information in this report or requests for additional financial details may be addressed to:

Kevin McCarthy, City Finance Director
44-950 Eldorado Drive
Indian Wells, California 92210
29 Page 95 of 333
Council Meeting Agenda- February 5, 2026

This page intentionally left blank
30 Page 96 of 333
Council Meeting Agenda- February 5, 2026

Governmental Business-Type
Activities Activities Total
Assets
Cash and investments 83,858,050$ 4,033,141$ 87,891,191$ Restricted cash and investments 8,740,184 - 8,740,184 Receivables
Accounts 3,201,187 180,133 3,381,320 Accrued interest 429,112 12,460 441,572 Prepaid costs 122,133 42,109 164,242 Deposits 12,140,000 - 12,140,000 Inventories - 474,974 474,974 Notes receivable 1,068,792 - 1,068,792 Due from Successor Agency 8,500,000 - 8,500,000 Net pension asset 1,974,514 58,762 2,033,276 Capital assets not being depreciated 34,201,942 22,178,731 56,380,673 Capital assets, net of depreciation 123,145,161 28,149,926 151,295,087 Total assets 277,381,075 55,130,236 332,511,311 Deferred Outflows of Resources
Deferred amounts related to pensions 1,869,495 55,636 1,925,131 Deferred amounts related to OPEB 4,249,743 126,472 4,376,215 Total deferred outflows of resources 6,119,238 182,108 6,301,346 Liabilities
Current liabilities
Accounts payable 3,442,026 1,633,160 5,075,186 Accrued liabilities 339,170 376,192 715,362 Deposits payable 1,085,975 331,023 1,416,998 Interest payable 111,700 - 111,700 Noncurrent liabilities
Due within one year
Compensated absences 202,336 99,445 301,781 Long-term debt 581,356 92,273 673,629 Due in more than one year
Compensated absences 746,032 298,334 1,044,366 Net OPEB liability 4,602,246 136,963 4,739,209 Long-term debt 13,120,628 132,225 13,252,853 Total liabilities 24,231,469 3,099,614 27,331,083 Deferred Inflows of Resources
Deferred amounts related to pensions 1,090,390 32,450 1,122,840 Deferred amounts related to OPEB 390,394 11,618 402,012 Total deferred inflows of resources 1,480,784 44,068 1,524,852 Net Position
Net investment in capital assets 145,413,139 50,104,159 195,517,298 Restricted for
Community development projects 459,123 - 459,123 Housing 12,646,741 - 12,646,741 Public safety 7,652,573 - 7,652,573 Public works 3,952,146 - 3,952,146 Pension 1,974,514 58,762 2,033,276 OPEB 112,070 - 112,070 Unrestricted 85,577,754 2,005,741 87,583,495 Total Net Position 257,788,060$ 52,168,662$ 309,956,722$ City of Indian Wells, California
Statement of Net Position
June 30, 2025
See Notes to Financial Statements 31 Page 97 of 333
Council Meeting Agenda- February 5, 2026

Operating Capital
Charges for Contributions Contributions Governmental Business-type Functions/Programs Expenses Services and Grants and Grants Activities Activities Total Government Activities
General government 11,604,322$ 73,534$ 3,691,021$ -$ (7,839,767)$ -$ (7,839,767)$ Public safety 13,355,081 745,461 8,765,453 - (3,844,167) - (3,844,167) Community development 5,923,067 3,815,061 137,246 - (1,970,760) - (1,970,760) Public works 12,136,865 36,231 4,357,826 200,791 (7,542,017) - (7,542,017) Interest 399,006 - - - (399,006) - (399,006) -
Total governmental activities 43,418,341 4,670,287 16,951,546 200,791 (21,595,717) - (21,595,717) Business-type Activities
Golf resort operations 17,508,594 16,976,221 - 1,250,000 - 717,627 717,627 Total business-type activities 17,508,594 16,976,221 - 1,250,000 - 717,627 717,627 Total Primary Government 60,926,935$ 21,646,508$ 16,951,546$ 1,450,791$ (21,595,717) 717,627 (20,878,090) General Revenues
Taxes
Property taxes, levied for general purpose 4,406,703 - 4,406,703 Transient occupancy taxes 13,523,137 - 13,523,137 Sales taxes 2,148,619 - 2,148,619 Franchise taxes 1,388,780 - 1,388,780 Business licenses taxes 217,528 - 217,528 Admission taxes 5,266,503 - 5,266,503 Investment income 5,721,683 186,311 5,907,994 Other 366,556 210,000 576,556 Total general revenues 33,039,509 396,311 33,435,820 Transfers (8,994,947) 8,994,947 - Change in Net Position 2,448,845 10,108,885 12,557,730 Net Position, Beginning of Year 255,339,215 42,059,777 297,398,992 Net Position, End of Year 257,788,060$ 52,168,662$ 309,956,722$ Program Revenues Net (Expense) Revenue and Changes in Net Position Primary Government
City of Indian Wells, California
Statement of Activities
June 30, 2025
See Notes to Financial Statements 32 Page 98 of 333
Council Meeting Agenda- February 5, 2026

This page intentionally left blank
33 Page 99 of 333
Council Meeting Agenda- February 5, 2026

Emergency City Streets Nonmajor Total
Housing Services Capital Capital Park Facilities Governmental Governmental General Authority Upgrade Improvements Reserve In Lieu Funds Funds Assets
Cash and investments 19,898,506$ 385,430$ 7,224,433$ 19,289,727$ 19,139,489$ -$ 15,756,306$ 81,693,891$ Restricted cash and investments - - - - - - 2,921,791 2,921,791 Receivables
Accounts 2,135,547 - 638,255 10,614 - - 416,771 3,201,187 Accrued interest 70,493 131,257 25,838 68,975 68,453 - 56,356 421,372 Prepaid costs 102,331 - 11,216 8,586 - - - 122,133 Deposits - 12,140,000 - - - - - 12,140,000 Due from other funds 1,115,831 - - 505,370 - - - 1,621,201 Notes receivable 972,617 - - 96,175 - - - 1,068,792 Due from Successor Agency 8,500,000 - - - - - - 8,500,000 Total assets 32,795,325$ 12,656,687$ 7,899,742$ 19,979,447$ 19,207,942$ -$ 19,151,224$ 111,690,367$ Liabilities and Fund Balances
Liabilities
Accounts payable 1,571,813$ 5,893$ 653,042$ 562,835$ -$ -$ 646,973$ 3,440,556$ Accrued liabilities 315,180 4,053 15,682 - - - 4,255 339,170 Deposits payable 509,465 - - 428,161 - - 148,349 1,085,975 Due to other funds - - - - - 1,621,201 - 1,621,201 Total liabilities 2,396,458 9,946 668,724 990,996 - 1,621,201 799,577 6,486,902 Deferred Inflows of Resources
Unavailable revenue 79,650 - 480,713 - - - 175,167 735,530 Fund Balances
Nonspendable
Prepaid costs 102,331 - 11,216 8,586 - - - 122,133 Notes and loans 9,472,617 - - - - - - 9,472,617 Restricted for
Community development - 12,646,741 - - - - 459,123 13,105,864 Public safety - - 6,739,089 - - - 913,484 7,652,573 Public works - - - 1,250,000 - - 2,702,146 3,952,146 Debt service - - - - - - 2,331,258 2,331,258 Committed to
Capital projects - - - - - - 782,232 782,232 Assigned
Capital projects - - - 17,729,865 19,207,942 - 10,988,237 47,926,044 Unassigned 20,744,269 - - - - (1,621,201) - 19,123,068 Total fund balances 30,319,217 12,646,741 6,750,305 18,988,451 19,207,942 (1,621,201) 18,176,480 104,467,935 Total Liabilities, Deferred Inflows
of Resources and Fund Balances 32,795,325$ 12,656,687$ 7,899,742$ 19,979,447$ 19,207,942$ -$ 19,151,224$ 110,954,837$ City of Indian Wells, California
Balance Sheet - Governmental Funds
June 30, 2025
Special Revenue Funds Capital Projects
See Notes to Financial Statements
34 Page 100 of 333
Council Meeting Agenda- February 5, 2026

Amounts reported for governmental activities in the statement of net position are different because:

Total fund balances - total governmental funds 104,467,935$ Capital assets net of related accumulated depreciation have not been included as financial resources in governmental fund activity.157,347,103 Unavailable revenue not collected within the availability period is included in revenue in the government wide financial statements.735,530 Compensated absences are not considered due and payable and therefore have not been included in the governmental funds.(948,368)
Long-term debt is not considered due and payable and therefore has not been included in the governmental funds.(13,701,984) Interest payable is not considered due and payable and therefore has not been included in the governmental funds.(111,700)
Deferred outflows related to pensions 1,869,495
Deferred inflows related to pensions (1,090,390)
Proportionate share of net pension asset is not a financial resource and, therefore, has not been included in governmental fund activity.1,974,514 Internal service funds are used by management to charge the costs of certain activities, such as employee benefits, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities of the statement of net position.7,245,925
Net Position of Governmental Activities 257,788,060$
City of Indian Wells, California
Reconciliation of the Statement of Net Position - Governmental Funds June 30, 2025
See Notes to Financial Statements 35 Page 101 of 333
Council Meeting Agenda- February 5, 2026

Emergency City Streets Nonmajor Total
Housing Services Capital Capital Park Facilities Governmental Governmental General Authority Upgrade Improvements Reserve In Lieu Funds Funds Revenues
Taxes 26,521,861$ -$ 7,075,678$ -$ -$ -$ 434,153$ 34,031,692$ Licenses and permits 514,897 - - - - - - 514,897 Intergovernmental 882,078 135,812 - 3,048,943 - 177,952 833,189 5,077,974 Charges for services 502,588 - 745,461 - - - - 1,248,049 Investment income (loss)1,164,549 560,004 319,018 827,071 982,602 - 1,059,470 4,912,714 Fines and forfeitures 73,534 - - - - - 36,231 109,765 Rental and lease income - - - - - - 2,797,576 2,797,576 Assessments - - 629,744 - - - 4,779,661 5,409,405 Developer fees - - - - - 6,334 165,401 171,735 Other income 36,745 - 20,623 13,867 - - 55,321 126,556 Total revenues 29,696,252 695,816 8,790,524 3,889,881 982,602 184,286 10,161,002 54,400,363 Expenditures
Current
General government 8,268,874 1,783,272 - 332,740 - 1,878 130,975 10,517,739 Public safety 5,224,479 - 4,940,677 - - - 1,777,947 11,943,103 Community development 2,092,755 250,000 - - - - 3,175,797 5,518,552 Public works 3,208,946 - - - - - 4,098,626 7,307,572 Capital outlay - - 183,771 10,936,146 - - 405,252 11,525,169 Debt service:

Principal retirement - - - - - - 495,000 495,000 Interest and fiscal charges - - - - - - 471,550 471,550 Total expenditures 18,795,054 2,033,272 5,124,448 11,268,886 - 1,878 10,555,147 47,778,685 Excess (Deficiency) of Revenues
over (under) Expenditures 10,901,198 (1,337,456) 3,666,076 (7,379,005) 982,602 182,408 (394,145) 6,621,678 Other Financing Sources (Uses)
Transfers in - 2,460,000 - 14,945,346 162,500 1,434 4,371,639 21,940,919 Transfers out (21,870,034) (509,858) (1,644,983) (501,493) - - (5,651,974) (30,178,342) Total other financing sources (uses)(21,870,034) 1,950,142 (1,644,983) 14,443,853 162,500 1,434 (1,280,335) (8,237,423) Net Change in Fund Balances (10,968,836) 612,686 2,021,093 7,064,848 1,145,102 183,842 (1,674,480) (1,615,745) Fund Balances, Beginning of Year, as previously reported 41,288,053 12,034,055 4,729,212 11,923,603 18,062,840 (1,386,737) 19,850,960 106,501,986 Correction of error (Note 19)- - - - - (418,306) - (418,306) Fund Balances, Beginning of Year, as restated 41,288,053 12,034,055 4,729,212 11,923,603 18,062,840 (1,805,043) 19,850,960 106,083,680 Fund Balances, End of Year 30,319,217$ 12,646,741$ 6,750,305$ 18,988,451$ 19,207,942$ (1,621,201)$ 18,176,480$ 104,467,935$ City of Indian Wells, California
Statement of Revenue, Expenditures and Changes in Fund Balances - Governmental Funds Year Ended June 30, 2025
Special Revenue Funds Capital Projects
See Notes to Financial Statements 36 Page 102 of 333
Council Meeting Agenda- February 5, 2026

Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances - total governmental funds (1,615,745)$ Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceed depreciation in the current period.

Capital outlay 9,288,006
Depreciation (4,229,812) 5,058,194
Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.(226,221) Governmental funds report pension contributions as expenditures.

However, in the statement of activities, pension expense is measured as the change in net pension liability and the amortization of deferred outflows and inflows related to pensions. This amount represents the net change in pension related amounts.(631,443)
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.

Principal repayments 495,000
Amortization of premium 66,356
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period.6,188
Revenues previously reported as unavailable revenue in the governmental funds are recognized as revenues in the current year, and recognized as revenues in the statement of activities in the prior year (347,199) Internal service funds are used by management to charge the costs of certain activities, such as employee benefits, to individual funds.

The net revenues (expenses) of the internal service fund is reported with governmental activities.(356,285)
Change in net position of governmental activities 2,448,845$ City of Indian Wells, California
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Year Ended June 30, 2025
Activities - Governmental Funds
See Notes to Financial Statements
37 Page 103 of 333
Council Meeting Agenda- February 5, 2026

Business-Type Governmental
Activities Activities
Golf Resort Internal Service
Operations Funds
Current Assets
Cash and investments 4,033,141$ 2,164,159$ Restricted cash and investments - OPEB - 4,714,316 Restricted cash and investments - pension - 1,104,077 Receivables
Accounts 180,133 -
Accrued interest 12,460 7,740
Prepaid costs 42,109 -
Inventories 474,974 -
Total current assets 4,742,817 7,990,292 Noncurrent Assets
Net pension asset 58,762 -
Capital assets, not being depreciated 22,178,731 - Capital assets, net of depreciation 28,149,926 - Total noncurrent assets 50,387,419 -
Total assets 55,130,236 7,990,292
Deferred Outflows of Resources
Deferred amounts related to pension 55,636 - Deferred amounts related to OPEB 126,472 4,249,743 Total deferred outflows of resources 182,108 4,249,743 Liabilities
Current Liabilities
Accounts payable 1,633,160 1,470
Accrued liabilities 376,192 -
Deposits payable 331,023 -
Compensated absences 99,445 -
Leases payable 92,273 -
Total current liabilities 2,532,093 1,470 Noncurrent Liabilities
Compensated absences, net of current 298,334 - Lease payable, net of current 132,225 - Net OPEB liability 136,963 4,602,246
Total noncurrent liabilities 567,522 4,602,246 Total liabilities 3,099,614 4,603,716
Deferred Inflows of Resources
Deferred amounts related to pension 32,450 - Deferred amounts related to OPEB 11,618 390,394 Total deferred inflows of resources 44,068 390,394 Net Position
Net investment in capital assets 50,104,159 - Restricted for Pension 58,762 1,104,077 Restricted for OPEB - 112,070 Unrestricted 2,005,741 6,029,778
Total Net Position 52,168,662$ 7,245,925$
Statement of Net Position - Proprietary Funds
.June 30, 2025
City of Indian Wells, California
See Notes to Financial Statements 38 Page 104 of 333
Council Meeting Agenda- February 5, 2026

Business-Type Governmental
Activities Activities
Golf Resort Internal Service
Operations Funds
Operating Revenues
Charges for services 16,976,220$ -$
Interdepartmental charges - 1,261,146 Total operating revenues 16,976,220 1,261,146 Operating Expenses
Operations 18,529,777 -
General and administration 494,777 1,668,876 Depreciation 2,633,982 -
Total operating expenses 21,658,536 1,668,876 Operating Income (Loss)(4,682,316) (407,730) Nonoperating Revenues (Expenses)
Investment income 186,311 808,969
Capital contributions 1,250,000 -
Interest expense (10,228) -
Gain (loss) on disposition of capital assets 4,160,170 - Other nonoperating revenue 210,000 - Total nonoperating
revenues (expenses)5,796,253 808,969
Income before transfers 1,113,937 401,239 Transfers In 10,284,948 -
Transfers Out (1,290,000) (757,524)
Total transfers 8,994,948 (757,524)
Changes in Net Position 10,108,885 (356,285) Net Position, Beginning of Year 42,059,777 7,602,210 Net Position, End of Year 52,168,662$ 7,245,925$ City of Indian Wells, California
Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds Year Ended June 30, 2025
See Notes to Financial Statements
39 Page 105 of 333
Council Meeting Agenda- February 5, 2026

Business-Type Governmental
Activities Activities
Golf Resort Internal
Operations Service Funds
Operating Activities
Cash received from customers 17,113,041$ -$
Cash received from interfund service provided - 1,261,146 Cash received from others 210,000 -
Cash payments to suppliers for goods and services (17,246,718) (6,513,085) Cash payments to employees for services (455,150) - Net Cash from (used for) Operating Activities (378,827) (5,251,939) Non-Capital Financing Activities
Cash received from other funds 9,498,752 -
Cash paid to other funds (1,094,446) (757,524) Net Cash from (used for) Noncapital Financing Activities 8,404,306 (757,524) Capital and Related Financing Activities
Purchase of capital assets (10,274,514) -
Proceeds from the sale of capital assets 4,300,000 - Cash received from capital contributions 1,250,000
Repayment of leases payable (85,088) -
Net Cash from (used for) Capital and Related Financing Activities (4,809,602) - Investing Activities
Investment income received 164,056 809,479 Net Change in Cash and Cash Equivalents 3,379,933 (5,199,984) Cash and Cash Equivalents, Beginning of Year 653,208 13,182,536 Cash and Cash Equivalents, End of Year 4,033,141$ 7,982,552$ City of Indian Wells, California
Statement of Cash Flows - Proprietary Funds
Year Ended June 30, 2025
See Notes to Financial Statements
40 Page 106 of 333
Council Meeting Agenda- February 5, 2026

Business-Type Governmental
Activities Activities
Golf Resort Internal
Operations Service Funds
Reconciliation of operating income (loss)
to net cash provided by (used for)
operating activities:

Operating income (loss)(4,682,316)$ (407,730)$
Adjustments to reconcile operating
income (loss) to net cash from
(used for) operating activities
Depreciation 2,633,982 -
Changes in
Accounts receivable 136,821 -
Prepaid costs 4,008 -
Inventory 71,602 -
Net OPEB liability 136,963 (2,633,147)
Deferred outflows related to OPEB (126,472) (1,917,614) Deferred inflows related to OPEB 11,618 (294,918) Net pension asset and related balances 17,518 - Accounts payable 784,553 1,470
Accrued liabilities 375,045 -
Compensated absences 52,305 -
Deposits payable (4,454) -
Net Cash from (used for) operating activities (378,827)$ (5,251,939)$ Noncash financing, capital and investing activities for the year ended June 30, 2025:

Right-of-use asset acquired through lease 119,679$ -$ Year Ended June 30, 2025
City of Indian Wells, California
Statement of Cash Flows - Proprietary Funds
See Notes to Financial Statements
41 Page 107 of 333
Council Meeting Agenda- February 5, 2026

Private-Purpose
Trust Fund
Successor
Agency of the
Former RDA
Assets
Cash and investments 8,919,029$
Restricted cash and investments 5,496
Receivables
Accrued interest 32,502
Prepaid costs 79,495
Total assets 9,036,522
Deferred Outflows of Resources
Deferred loss on refunding 100,518
Liabilities
Interest payable 675,136
Due to City 8,500,000
Long-term liabilities
Due in one year 4,416,716
Due in more than one year 46,772,913
Total liabilities 60,364,765
Net Position (Deficit)
Held in trust for other purposes (51,227,725)$
City of Indian Wells, California
Statement of Fiduciary Net Position - Fiduciary Funds
June 30, 2025
See Notes to Financial Statements
42 Page 108 of 333
Council Meeting Agenda- February 5, 2026

Private-Purpose
Trust Fund
Successor
Agency of the
Former RDA
Additions
Taxes 9,803,306$
Investment income 103,388
Total additions 9,906,694
Deductions
Administrative expenses 240,000
Interest and fiscal charges 1,471,557
Total deductions 1,711,557
Changes in Net Position 8,195,137
Net Position (Deficit), Beginning of the Year (59,422,862) Net Position (Deficit), End of the Year (51,227,725)$
City of Indian Wells, California
Statement of Changes in Fiduciary Net Position - Fiduciary Funds Year Ended June 30, 2025
See Notes to Financial Statements
43 Page 109 of 333
Council Meeting Agenda- February 5, 2026

This page intentionally left blank
44 Page 110 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 1 - Significant Accounting Policies

Reporting Entity

The City of Indian Wells (City) was incorporated during July 1967, under the General Laws of the State of California.

Indian Wells became a Charter City in 2003. The City operates under a Council-Manager form of government and provides the following services: public safety, highways and streets, sanitation, public improvements, planning and zoning, parks and recreation, and general administrative services.

Per GASB Statement No. 14, The Financial Reporting Entity and Statement No. 61, The Financial Reporting Entity:

Omnibus, the City (the primary government) has included within its reporting entity, for financial reporting purposes, all component units which meet the requirement described in these statements. GASB Statements No. 14 and No. 61 define financial accountability as follows: The primary government is accountable if the primary government appoints a voting majority of that organization and can impose its will or if there is a potential for the organization to provide specific financial burdens to or impose specific financial obligations on the primary government. A primary government may also be financially accountable for government organizations that are fiscally dependent on the primary government. For example, an organization is fiscally dependent if it cannot adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City. In some instances, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete.

All of the City’s component units are considered to be blended component units. Although legally separate entities, blended component units are, in substance, part of the City's operations, so data from these units are reported with the primary government. A brief description of each component unit follows:

The City of Indian Wells Fire Access Maintenance District No. 1 (FAMD No. 1) was established in April 1973 to provide for the maintenance of access roads for fire and safety vehicles within the special district referred to as FAMD No. 1. Even though the FAMD No. 1 is a legally separate entity, it is reported as if it were part of the City because the City Council serves as the governing board. The primary government and the component unit have a financial benefit or burden relationship. Therefore, separate financial statements are not prepared for FAMD No.

1. The Housing Authority (Housing Authority) of the City of Indian Wells was established in February 2012 to assume the housing activities from the former Redevelopment Agency. The activity of the Housing Authority is reported in the Special Revenue Funds. Even though the Housing Authority is a legally separate entity, it is reported as if it were part of the City because the City Council, along with two appointed tenant commissioners, serves as the governing board of the Housing Authority. The primary government and the component unit also have a financial benefit or burden relationship. Therefore, separate financial statements are not prepared for the Housing Authority.

The City of Indian Wells Financing Authority (the “Authority”) is a component unit of the City if Indian Wells, established to assist in financing public capital improvements and other projects for the benefit of the City. The Authority is governed by the City Council, which serves as its governing board. Although legally separate, the Authority is financially accountable to the City and its financial activities are blended into the City’s financial statements.
45 Page 111 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 1 - Significant Accounting Policies (continued)

Measurement Focus and Basis of Accounting

The basic financial statements of the City are composed of the following:

 Government-wide financial statements
 Fund financial statements
 Notes to the basic financial statements

Government-wide Financial Statements

Government-wide financial statements display information about the reporting government as a whole. These statements include separate columns for the governmental and business-type activities of the primary government (including its blended component units). All fiduciary activities are reported only in the fund financial statements.

Eliminations have been made in the statement of activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the City's various functions.

Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government-wide financial statements. The basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, liabilities, and deferred outflows/inflows of resources resulting from the exchange and exchange-like transactions are recognized when the exchange occurs.

Program revenues include charges for services, special assessments, and payments made by parties outside the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Internally dedicated resources, taxes, and other items not adequately included in program revenues are reported as general revenues.

Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements rather than reported as expenditures. Long-term debt proceeds are recorded as a liability in the government-wide financial statements rather than as another financing source. Amounts paid to reduce the long-term indebtedness of the reporting government are reported as a reduction of the related liability rather than as expenditure.

46 Page 112 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 1 - Significant Accounting Policies (continued)

Fund Financial Statements:

The underlying accounting system of the City is organized and operated based on separate funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows (inflows), liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and how spending activities are controlled.

Fund financial statements for the primary government’s governmental funds are presented after the government- wide financial statements. These statements display information about major funds individually and other governmental funds in the aggregate for governmental funds.

Governmental Funds

In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available. Measurable means that the amounts can be estimated or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days.

Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed non- exchange transactions are recognized as revenues in the period they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non-exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. Revenues, expenditures, gains, losses, assets, liabilities, and deferred inflows of resources resulting from non-exchange transactions are recognized in accordance with GASB Statement No. 33.

The fund financial statements present governmental funds using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets.

The reported fund balance (net current resources) is considered to be a measure of "available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current resources. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period.

Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets despite their spending measurement focus. However, special reporting treatments indicate that they should not be considered "available spendable resources" since they do not represent current resources.

47 Page 113 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 1 - Significant Accounting Policies (continued)

Due to their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Therefore, since they do not affect current resources, long-term amounts are not recognized as governmental fund-type expenditures or liabilities.

Amounts to acquire capital assets are recorded as expenditures in the year that resources were expended rather than as fund assets. Long-term debt proceeds are recorded as other financing sources rather than a fund liability.

Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

When both restricted and unrestricted resources are combined in a fund, expenditures are considered to be paid first from restricted resources, and then from unrestricted resources.

Proprietary Funds

The City’s enterprise funds, and internal service funds are proprietary funds. The proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The main operating revenues of the enterprise funds and the government’s internal service funds are charged to customers for services. Operating expenses for the proprietary funds include the cost of services, administrative fees, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Fiduciary Funds

The private purpose trust fund is reported using the economic resources measurement focus and the accrual basis of accounting. Accordingly, the fiduciary fund is excluded from the government-wide financial statements.

Fund Classifications

The City reports the following major governmental funds:

The General Fund is the primary operating fund of the City. The General Fund accounts for revenue and expenditures traditionally associated with the government but is not legally required or by sound financial management to be accounted for in another fund. The revenues and expenditures are often referred to as discretionary, meaning they can be allocated as directed by the City Council. The fund's primary revenues are transit occupancy, property, and sales tax. Most of the City's administrative and operating costs, such as salaries, benefits, professional consultants, supplies, and charitable contributions, are paid out of the General Fund.

The Housing Authority Fund is used to account for the housing activity of the former Redevelopment Agency for the benefit of providing low- and moderate-income housing in Indian Wells. The Indian Wells Housing Authority was created to promote and encourage affordable housing units' retention, rehabilitation, and development. The fund’s revenue sources include investment income. Revenues are restricted by government code for funding housing units to benefit low- and moderate-income households. 48 Page 114 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 1 - Significant Accounting Policies (continued)

The Emergency Services Upgrade Fund is used to accumulate the resources from a special fire tax levied and restricted to enhance fire protection, suppression, fire prevention, fire investigation, fire safety education, and paramedic services.

The Capital Improvement Fund is used to account for the transfer of monies from the General Fund for the acquisition and construction of general governmental capital projects.

The City Streets Capital Reserve Fund establishes reserve funding for streets throughout the City. Funding allows for various maintenance projects to extend the city roadways' life. In addition, the City follows the Pavement Management Program (PMP) to identify street projects in slurry seal, overlay, and reconstruction.

The Park Facilities in Lieu Fund is used to account for collection of fees to fund the construction of parks.

The City reports the following major enterprise fund:

The Golf Resort Operations Fund accounts for the Indian Wells Golf Resort operations. Customer purchases received by the course will be used to support the day-to-day activities of the golf course.

The City's fund structure also includes the following fund types:

The Debt Service Fund – Debt Service Fund is used to account for the accumulation of resources and the payment of principal and interest on long-term debt obligations of the City, including those issued through the City of Indian Wells Financing Authority.

The Proprietary Fund - Internal Service Funds account for employee benefits activities and services performed for other departments within the City on a cost reimbursement basis.

The Fiduciary Fund - Private Purpose Trust Fund is used to account for the assets and liabilities of the former redevelopment agency and is allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated.

Cash and Investments

Investments are reported in the accompanying balance sheet at fair value, except for specific certificates of deposit and investment contracts registered at cost. These investments are not transferable, and they have terms that are not affected by changes in market interest rates. Therefore, investment income includes interest earnings and the net increase (decrease) in the fair value of investments.

The City categorized the fair value measurements for its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

49 Page 115 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 1 - Significant Accounting Policies (continued)

The City pools cash and investments of all funds, except for amounts held within the Section 115 trust, amounts held by fiscal agents, and amounts held by management companies for the Indian Wells Golf Resort, Indian Wells Villas, and Mountain View Villas. Each fund’s share in this pool is displayed as pooled cash and investments in the accompanying financial statements. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance.

Cash and Cash Equivalents

For the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present an insignificant risk of changes in value because of changes in interest rates. Cash equivalents have an original maturity date of three months or less from the date of purchase. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City.

Restricted Section 115 Trust Cash and Investments

All assets in the Section 115 Trust are irrevocably dedicated to funding obligations of the City’s pension beneficiaries, other post-employment beneficiaries or costs of administering the Trust. The funds are not considered plan assets of either the pension plan or OPEB plan and are therefore considered restricted assets of the City.

Capital Assets

Capital assets, including property, plant, equipment, infrastructure, and intangible assets, are reported in the government-wide financial statements applicable governmental or business-type activities columns. Capital assets, other than infrastructure assets, are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life of over three years. The City has made one exception to this basic rule. All computer and computer-related equipment purchases will not be capitalized. The government reports infrastructure assets on a network and subsystem basis. Accordingly, the amounts spent for constructing or acquiring infrastructure assets are capitalized and reported in the government-wide financial statements.

As the government constructs or acquires additional capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value excludes routine maintenance and repairs, which are actual amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful life beyond the original estimate. In the case of donations, the government values these capital assets at the acquisition value of the item at the date of its donation.

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government-wide financial statements. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The ranges of lives used for depreciation purposes for each capital asset class are as follows:

50 Page 116 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 1 - Significant Accounting Policies (continued)

Intangible assets are amortized over their contractual useful lives using the straight-line method in government- wide financial statements. Amortization is charged as an expense against operations and accumulated amortization is reported on the respective balance sheet.

Deferred Outflows/Inflows of Resources

The City reports deferred outflows and inflows of resources. A deferred outflow of resources is the consumption of net assets by the government that is applicable to a future reporting period. A deferred inflow of resources represents an acquisition of net assets by the government that is applicable to a future period.

The City reports deferred outflows and inflows of resources related to pensions and other post-employment benefits on the government-wide statement of net position and the proprietary fund’s statement of the net position under the full accrual basis of accounting. Refer to Notes 9 and 12 for items identified as deferred inflows and outflows related to pension and other post-employment benefits, respectively, as of June 30.

Property Taxes

Property taxes attach as an enforceable lien on the property as of January 1. Taxes are levied on July 1, payable in two equal installments due November 1 and February 1, respectively, and delinquent if not paid by December 10 and April 10, respectively. The County of Riverside bills and collects the property taxes and remits them to the City in installments during the year. All material amounts associated with the reporting period are collected soon enough to be considered "available" to finance the expenditures of the reporting period.

The County of Riverside is permitted by State law (Proposition 13) to levy taxes at one percent of total market value (at time of purchase). It can increase the assessed values by no more than two percent annually. The City receives a share of this basic levy proportionate to what was received from 1976 to 1978.

The City of Indian Wells is one of thirty-nine cities in the State of California categorized as a No/Low property tax city because the City did not have an established property tax rate before Proposition 13. Cities without an established tax rate received the minimum tax rate formula. The rate has increased over time from 1% of the 1% of the assessed valuation to the maximum of 7% of the 1% of the assessed valuation.

Building and Improvements 10-50 years
Equipment 3-15 years
Infrastructure 5-60 years
Intangible Assets Depreciated over contractual life
Right to Use Assets The estimated life of the lease asset or the contract term whichever is shorter
51 Page 117 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 1 - Significant Accounting Policies (continued)

After applying the formula, the City receives approximately 4.6% (net) of the property tax. This means that for every $100 of property tax collected by the County, the City receives $4.60. Therefore, as a No/Low city, Indian Wells receives only about half the property tax as other cities receive.

Inventory

Inventory in the Golf Resort Operations Enterprise Fund is carried at cost using the consumption method on a first-in, first-out basis.

Prepaid Costs

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The City uses the consumption method to record prepaid costs.

Compensated Absences

Governmental and Business-Type funds recognize the vested vacation and compensatory time as an expenditure in the current year to the extent it is paid during the year. Accrued vacation and compensatory time relating to governmental and business-type funds is included as a liability in the long-term liabilities as those amounts are payable from future resources.

The liability for compensated absences is reported in the government-wide financial statements and represents the amount that is due to employees for unused vacation and sick leave that has vested. The liability is calculated using current pay rates and includes employer-paid fringe benefits.

Fund Balances

In the fund financial statements, governmental funds report the following fund balance classifications:

 Nonspendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.  Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws or regulations of other governments or (b) by law through constitutional provisions or enabling legislation.
 Committed include amounts that can only be used for specific purposes according to constraints imposed by formal action of the City’s highest authority, the city council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is by resolution.  Assigned include amounts constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed. The City Manager and Finance Director are authorized to assign amounts to a particular purpose, established by the governing body in Resolution No. 2011-30.

52 Page 118 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 1 - Significant Accounting Policies (continued)

 Unassigned classification is to be used when negative residual resources are in excess of what can be appropriately classified as nonspendable, restricted, committed, or assigned in funds outside the General Fund. Within the General Fund, the unassigned classification represents the residual amounts that have not been restricted, committed, or assigned to specific purposes.

A guiding principle of the City is to maintain an unassigned fund balance in the General Fund at fiscal year-end of not less than 25 percent of the operating budget. In addition, the City Council intends to limit the use of fund balances in the General Fund to address unanticipated one-time needs.

The City maintains a contingency reserve of $2,250,000 in the unassigned General Fund balance. The purpose of this reserve is to meet unexpected circumstances, such as a General Fund revenue shortfall.

Net Position and Fund Balance Flow Assumptions

Sometimes the City will fund outlays for a particular purpose from restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. To calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. The City’s policy considers the restricted – net position to have been depleted before the unrestricted – net position is used.

Sometimes the City will fund outlays for a particular purpose from restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). To calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. The City's policy is to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of the unrestricted fund balance can be used for the same purpose, the committed fund balance is depleted first, followed by the assigned fund balance. The unassigned fund balance is applied last.

Use of Estimates

Preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Accordingly, actual results could differ from those estimates.

Leases

At the commencement of the lease, the City initially measures the lease payable at the present value of payments expected to be paid during the lease term. Subsequently, the lease payable is reduced by the principal portion of lease payments made.

53 Page 119 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 1 - Significant Accounting Policies (continued)

Key estimates and judgments include how the City determines the discount rate it uses to discount the expected lease payments to present value.

• The City used the incremental borrowing rate for leases. • The lease term includes the noncancellable period of the lease.

The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease pay certain if changes occur that are expected to significantly affect the amount of the lease payable.

Pension

In government-wide financial statements, the retirement plan (pension) is required to be recognized and disclosed using the accrual basis of accounting, regardless of the amount recognized as pension expenditures on the governmental fund statements, which use the modified accrual basis of accounting.

In general, the City recognizes a net pension liability, which represents the City’s proportionate share of the excess of the total pension liability over the fiduciary net position of the pension reflected in the actuarial report provided by the California Public Employees’ Retirement System (CalPERS). The net pension liability is measured as the City’s prior fiscal year-end. Changes in the net pension liability are recorded in the period incurred as pension expense or as deferred inflows of resources or deferred outflows of resources, depending on the nature of the change. The changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or experience) are amortized over the weighted average remaining service life of all participants in the respective pension plan. They are recorded as a component of pension expenses beginning with the period in which they are incurred.

For purposes of measuring the net pension liability and deferred outflows/inflows of resources relating to pensions and pension expenses, information about the fiduciary net position of the City's pension plan with CalPERS and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as CalPERS reports them. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the terms of the benefit. Investments are reported at fair value.

Projected earnings on pension investments are recognized as a component of pension expense. Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred. Each subsequent year will incorporate an additional closed basis five-year period of recognition.

Historically, the government has liquidated pensions (such as employer contributions and benefit payments) through the General Fund. It is expected that the General Fund will continue to be used for this purpose in future periods.
54 Page 120 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 1 - Significant Accounting Policies (continued)

Other Post-Employment Benefits (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis.

For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Generally accepted accounting principles require that the reported results pertain to liability and asset information with specific timeframes. Accordingly, for this report, the following timeframes are used:

Historically, the government has liquidated OPEB-related obligations (such as employer contributions and benefit payments) through the General Fund. It is expected that the General Fund will continue to be used for this purpose in future periods.

New Accounting Pronouncements

Effective in Current Year

 GASB Statement 102 – “Certain Risk Disclosures”, effective for reporting periods beginning after June 15, 2024.

Effective in Future Years

The City is evaluating the potential impact of the following issued, but not yet effective, accounting standards.

 GASB Statement 103 – “Financial Reporting Model Improvements”, effective for reporting periods beginning after June 15, 2025.
 GASB Statement 104 – “Disclosure of Certain Capital Assets”, effective for fiscal years beginning after June 15, 2025.

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
55 Page 121 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 2 - Cash and Investments

Cash and investments at June 30, 2025, are classified in the accompanying financial statements as follows:

Cash and investments at June 30, 2025, consisted of the following:

Investments Authorized by the California Government Code and the City's Investment Policy

The table on the next page identifies the investment types authorized for the City by the California Government Code or the City's investment policy. The table also identifies certain provisions of the California Government Code or the City's investment policy that address interest rate risk, credit risk, and concentration of credit risk. This table does not manage investments of debt proceeds held by bond trustee that is governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Petty cash 2,000$
Demand accounts 5,122,700
Investments 100,431,200
Total cash and investments 105,555,900$
Governmental Business-Type Fiduciary
Activities Activities Activities Total
Cash and investments 83,858,050$ 4,033,141$ 8,919,029$ 96,810,220$ Restricted assets
Restricted cash and
investments 8,740,184 - 5,496 8,745,680 92,598,234$ 4,033,141$ 8,924,525$ 105,555,900$ 56 Page 122 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 2 - Cash and Investments (continued)

Investments Authorized by Debt Agreements

Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements and the general provisions of the California Government Code, rather than the City’s investment policy. Investments authorized for funds held by fiscal agents include U.S. Treasury Obligations, U.S. Government Sponsored Entities Securities, Certificates of Deposits, Commercial Paper, Local Agency Bonds, Money Market Mutual Funds, Investment Contracts, and Repurchase Agreements. There are no limitations on the maximum amount that can be invested in one issuer, the maximum percentage allowed or the maximum maturity of an investment, except for the maturity of Banker's Acceptance which are limited to one year.

Investments Authorized by the City Section 115 Trust

Trust investments are governed by the City of Indian Wells Section 115 Trust Agreement rather than the general provisions of the California Government Code or the City’s investment policy. Investments authorized for funds held in the Section 115 Trust include Equity and Fixed Income Mutual Funds. The strategic range allowed for Equity and Fixed Income Mutual Funds is 50-70% and 30-50%, respectively. There are no limitations on the maximum amount that can be invested in one issuer or the maximum maturity of an investment.

Maximum Maximum
Maximum Percentage Investment
Investment Types Maturity Allowed in One Issuer
U.S. Treasury Bills, Bonds and Notes 5 Years*70%N/A
Federal Agency Securities 5 Years*70%N/A
Local Agency Bonds 5 Years*30%5,000,000$
State of California Obligations 5 Years*30%5,000,000$
California Local Agency Obligations 5 Years*30%5,000,000$ Money Market Funds N/A 20%10% per
Single Issue
Certificate of Deposit and Negotiable
Certificates of Deposit 5 Years 30%250,000$
Per Issuer
Repurchase Agreements 30 Days 10%2,000,000$
Medium-Term Corporate notes 5 Years 30%3,000,000$
Local Agency Investment Fund (LAIF)N/A 70%30,000,000$
per Entity
* Per the City's Investment Policy, the portfolio shall equal the amount of two years current General Fund operating reserves maturing at no more than five years from the date of the purchase. Once this requirement is met, a maximum of 30% of the total portfolio may be invested in maturities greater than five years, but not exceeding 10 years consisting of those investments listed in Government Code Section 53601 where there is no limitation specified therein regarding the term or remaining maturity of the instrument. Investments greater than five years from the date of purchase shall be brought to the City Council for review and approval prior to purchase.
57 Page 123 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 2 - Cash and Investments (continued)

Disclosures Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer an investment's maturity, the greater its fair value sensitivity to changes in market interest rates. Accordingly, one of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter-term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City's investments (including investments held by fiscal agents) to market interest rate fluctuations is provided in the following table that shows the distribution of the City's investments by maturity:

Fair Value Classifications

Fair value measurements are categorized based on the valuation inputs used to measure fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investments categorized as Level 2 are valued using the market approach using quoted market prices of similar assets.
12 Months
Type of Investment or Less 13 - 36 Months 37 - 60 Months Total Federal Agency Securities 5,861,110$ 5,891,200$ 4,006,860$ 15,759,170$ Negotiable Certificates of Deposit 734,710 1,711,988 3,255,696 5,702,394 Local Agency Investment Fund 4,156,111 - - 4,156,111 Medium Term Corporate Notes 3,887,890 1,983,490 1,008,020 6,879,400 Local Agency Bonds 299,238 - - 299,238 U.S. Treasury Obligations - 10,091,400 15,610,570 25,701,970 Reverse Repurchase Agreements 256,538 - - 256,538 Section 115 Trust
PARS Balanced Index Investment Pool 5,818,393 - - 5,818,393 Held by Fiscal Agent
Money Market Mutual Funds 35,857,986 - - 35,857,986 Total 56,871,976$ 19,678,078$ 23,881,146$ 100,431,200$ Remaining Maturity (in Months)
58 Page 124 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 2 - Cash and Investments (continued)

Investments' fair value measurements are as follows as of June 30, 2025:

Investments in LAIF are uncategorized as deposits, and withdrawals are made on the basis of $1, and not fair value. Money market mutual funds are valued at a net asset value of $1 dollar per share (amortized cost) and are uncategorized in the fair value hierarchy.

Disclosures Relating to Credit Risk

Generally, credit risk is the risk that the issuer of an investment will not fulfill its obligation to the holder of the investment. The assignment of a rating measures this by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the Standards and Poor's credit rating as of year-end for each investment type:

Investment Level 1 Level 2 Level 3 Fair Value
Federal Agency Securities -$ 15,759,170$ -$ 15,759,170$ Medium Term Corporate Notes - 6,879,400 - 6,879,400 Negotiable Certificates of Deposit - 5,702,394 - 5,702,394 U.S. Treasury Obligations - 25,701,970 - 25,701,970 Reverse Repurchase Agreements - 256,538 - 256,538 Local Agency Bonds - 299,238 - 299,238 -$ 54,598,710$ -$ 54,598,710 Local Agency Investment Fund 4,156,111
Section 115 Trust
PARS Balanced Index Investment Pool 5,818,393
Held by Fiscal Agent
Money Market Mutual Funds 35,857,986
Total Investment Portfolio 100,431,200$
59 Page 125 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 2 - Cash and Investments (continued)

Concentration of Credit Risk

Investments in any one issuer that represent five percent or more of total City's investments are as follows:

Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits.

Investment Reported Percent of
Issuer Type Amount Portfolio
Federal Home Loan Bank Federal Agency Securities 15,759,170$ 14% Minimum
Legal Total as of
Investment Type Rating June 30, 2025 Not Rated AA A
Federal Agency Securities N/A 15,759,170$ -$ 15,759,170$ -$ Negotiable Certificates of Deposit N/A 5,702,394 5,702,394 - - Local Agency Investment Fund N/A 4,156,111 4,156,111 - - Medium Term Corporate Notes A 6,879,400 - 1,946,180 4,933,220 U.S. Treasury Obligations *25,701,970
Reverse Repurchase Agreements N/A 256,538 256,538 - - Local Agency Bonds A 299,238 - 299,238 - Section 115 Trust
PARS Balanced Index Investment Pool N/A 5,818,393 5,818,393 - - Held by Fiscal Agent
Money Market Mutual Funds A 35,857,986 - - 35,857,986 Total 100,431,200$ 15,933,436$ 18,004,588$ 40,791,206$ N/A - Not applicable
* - U.S. Treasury Obligations are Exempt from rating
60 Page 126 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 2 - Cash and Investments (continued)

Investment in State Investment Pool

The City is a voluntary participant in the Local Agency Investment Fund (LAIF), which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF is not registered with the Securities and Exchange Commission and is not rated.

Note 3 - Accounts Receivable

Receivables at June 30, 2025, are composed of the following:

Note 4 - Notes Receivable

Outstanding at
June 30, 2025
Governmental Activities
Indian Wells Village Utility Undergrounding 96,175$
Club Drive Property Sale 972,617
1,068,792$
Other Taxes
Receivable Receivable Interest Total
Governmental Activities:

General Fund 2,392,313$ -$ 70,493$ 2,462,806$ Housing Authority Fund - - 131,257 131,257 Emergency Services Upgrade Fund 619,960 18,295 25,838 664,093 Capital Improvements Fund 10,614 - 68,975 79,589 City Streets Capital Reserve Fund - - 68,453 68,453 Nonmajor Governmental Funds 67,498 92,507 56,356 216,361 Internal Service Funds - - 7,740 7,740 Total Governmental Funds 3,090,385$ 110,802$ 429,112$ 3,630,299$ Business-type Activities
Golf Course Operations 180,133$ -$ 12,460$ 192,593$ 61 Page 127 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 4 - Notes Receivable (continued)

The notes issued relating to the Indian Wells Village Utility Undergrounding relate to the costs the City covered for the tenants of the Indian Wells Village to run electricity from the streets up to the individual properties. The tenants are responsible for repaying the City. The notes are due and payable in full on the earlier of (i) the date of any transfer not authorized by the Lender; (ii) the date of any default; or (iii) twenty years from the effective date of the Loan Agreement. The outstanding principal balance bears simple interest at the rate of one percent per annum, and if a default occurs, interest on the principal balance shall accrue at the lesser of ten percent compounded annually or the maximum amount permitted by law from the date of default to the date of repayment in full of the disbursed principal amount of the loan and any interest due thereon. The notes are secured by a Deed of Trust against the Property.

The note issued relating to the Club Drive Property sale at 45200 Club Drive to Indian Wells Medical Offices, LLC is amortized over 20 years commencing on May 1, 2018. During the fiscal year 2020-21, the City granted Indian Wells Medical Offices, LLC a three-month payment deferral due to economic hardship during the coronavirus pandemic. The final payment of the note is due and payable on July 1, 2038. Payments are due monthly in the amount of $8,703. Prepayment in full of the principal sum plus a $50,000 premium is allowed within the five years following the date of this note. No penalty or premium is due for prepayment following the initial five years of the note. The note is secured by a deed of Trust against the property.

Note 5 - Due to and Due from Other Funds

Interfund receivables and payable balances at June 30, 2025, are as follows:

The General Fund Receivable from the Park Facilities in Lieu Fund of $1,115,831 represents monies advanced to the Park Facilities in Lieu Fund for certain construction at the Golf Resort. As Park-in-Lieu fees are collected, the advance will be paid down. The advance is estimated to be paid off in 18 years based on the development of certain commercial projects along the Highway 111 corridor.

The Capital Improvements Fund Receivable from the Park Facilities in Lieu Fund of $505,370 represents monies advanced to the Park Facilities in Lieu Fund for parkland acquisition. As Park-in-Lieu fees are collected, the advance will be paid down. The advance is estimated to be paid off in 18 years.

Due to Other Funds Due From Other Funds Amount
Park Facilities in Lieu Fund General Fund 1,115,831$
Park Facilities in Lieu Fund Capital Improvements Fund 505,370 1,621,201$
62 Page 128 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 5 - Due to and Due from Other Funds (continued)

The amount due to the City reported in the accompanying financial statements consisted of the following:

In a letter dated November 22, 2013, from the California Department of Finance, the loan between the Successor Agency and the City of Indian Wells for $16,400,000 was determined to be for legitimate redevelopment purposes and therefore, approved as an enforceable obligation.

Note 6 - Interfund Transfers

Transfers in and out for the year ended June 30, 2025, are as follows:

Due to Due from Amount
General Fund Successor Agency 8,500,000$
Transfer Out of Fund Transfer In to Fund Amount
General Fund Housing Authority Fund 620,000$
General Fund Golf Resort Operations Fund 8,894,049
Capital Improvements Fund Golf Resort Operations Fund 501,493 Internal Service Fund Golf Resort Operations Fund 757,524 Non-major Governmental Funds Housing Authority Fund 550,000 Golf Resort Operations Fund Housing Authority Fund 1,290,000 Housing Authority Non-major Governmental Funds 1,229,937 Emergency Services Upgrade Fund Capital Improvements Fund 1,500,000 Emergency Services Upgrade Fund Non-major Governmental Funds 144,984 Non-major Governmental Funds Golf Resort Operations Fund 131,881 Non-major Governmental Funds Non-major Governmental Funds 53,233 General Fund Capital Improvements Fund 9,250,000
General Fund City Streets Capital Reserve 162,500
Non-major Governmental Funds Capital Improvements Fund 4,195,347 General Fund Non-major Governmental Funds 2,943,484
Non-major Governmental Funds Park Facilities in Lieu Fund 1,434 32,225,866$
63 Page 129 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 6 - Interfund Transfers (continued)

The General Fund transferred $620,000 to the Housing Authority Fund for the 20% set aside portion of the Redevelopment Property Tax Trust Fund (RPTTF) Loan repayments for the year consistent with Housing Law.

The Housing Authority Fund transferred $422,868 to the Housing Authority’s affordable housing communities, Indian Wells Villas and Mountain View Villas, respectively.

The Emergency Services Upgrade Fund transferred $144,984 to the Non-major Governmental Funds for the annual debt service contribution.

The Transportation Facilities Fund and the Recreation Facilities Fund transferred $14,498 to the Non-major Governmental Funds for the annual debt service contribution.

The General Fund transferred $162,500 to the Capital Improvements Fund for the annual contribution for future city streets projects.

The Financing Authority Fund transferred $4,195,347 in bond proceeds to the Capital Improvements Fund to reimburse energy efficiency, infrastructure, and roadway capital projects.

The Park Facilities Fund transferred $1,434 to the Park Facilities in Lieu Fund for the Fairway park expansion project.

The General Fund transferred $9,250,000 to the City’s Capital Improvement Fund for ongoing capital projects.

The General Fund transferred $8,894,049 to the Golf Resort Operations Fund to fund operations and the Golf Resort remodel in fiscal year 2024-25.

The Golf Resort Operations Fund transferred $1,290,000 to the Housing Authority Fund for its 30% share of the sale of Hole 17 land.

The Housing Authority Fund transferred $807,069 for the annual debt service contribution.

Non-major Governmental Funds transferred $550,000 to the Housing Authority Fund to fully fund operations for fiscal year 2024-25.

The Emergency Services Fund transferred $1,500,000 to the Capital Improvements Fund for cost of the Golf Redesign fire access road.

The Art in Public Places Fund transferred $131,881 to the Golf Resort Operations Fund for artwork purchases.

The General Fund transferred $2,943,484 to the Non-major Governmental Funds for the annual contribution for disaster recovery, capital replacements, public improvements and the LLMDs for fiscal year 2024-25.

64 Page 130 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 6 - Interfund Transfers (continued)

The Compensated Absences Fund transferred $757,524 to the Golf Resort Operations Fund to close out the Compensated Absences Fund.

The Highway 111 Circulation Improvement Fund transferred $38,735 to the Transportation Facilities Fees Fund to close out activities.

The Capital Improvements Fund transferred $501,493 to the Golf Resort Operations Fund to fund a portion of the Kestrel Restaurant Remodel project.

65 Page 131 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 7 - Capital Assets

Capital asset activity for the year ended June 30, 2025, was as follows:

Balance at
July 1, 2024 Additions Deletions Transfers
Balance at
June 30, 2025
Governmental Activities
Capital assets, not being depreciated
Land 33,289,388$ -$ -$ -$ 33,289,388$ Construction in progress *8,002,574 292,322 - (7,382,342) 912,554 Total capital assets, not
being depreciated 41,291,962 292,322 - (7,382,342) 34,201,942 Capital assets, being depreciated
Intangible 2,500,000 - - - 2,500,000 Buildings and improvements 65,683,081 - - - 65,683,081 Equipment 1,641,257 317,917 (40,322) - 1,918,852 Infrastructure 119,738,122 8,718,189 - 7,382,342 135,838,653 Total capital assets, not
being depreciated 189,562,460 9,036,106 (40,322) 7,382,342 205,940,586 Less accumulated depreciation
Intangible (500,000) (250,000) - - (750,000) Buildings and improvements (34,241,189) (1,593,088) - - (35,834,277) Equipment (1,124,990) (206,752) 40,322 - (1,291,420) Infrastructure (42,699,434) (2,220,294) - - (44,919,728) Total accumulated depreciation (78,565,613) (4,270,134) 40,322 - (82,795,425) Total capital assets being
depreciated, net 110,996,847 4,765,972 - 7,382,342 123,145,161 Governmental activities
capital assets, net 152,288,809$ 5,058,294$ -$ -$ 157,347,103$ * Construction in progress beginning balance was restated. 66 Page 132 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 7 - Capital Assets (continued)

Depreciation Expense

Depreciation expense was charged to the following functions in the statement of activities:

Governmental Activities
General government 322,366$
Community development 1,380,117
Public safety 191,293
Public works 2,376,358
Total governmental activities 4,270,134$
Business-type Activities
Golf resort operations 2,633,982$
Balance at
July 1, 2024 Additions Deletions Transfers
Balance at
June 30, 2025
Business-type Activities
Capital assets, not being depreciated
Land 13,910,956$ -$ (139,830)$ -$ 13,771,126$ Construction in progress - 8,407,605 - - 8,407,605 Total capital assets, not
being depreciated 13,910,956 8,407,605 (139,830) - 22,178,731 Capital assets, being depreciated
Buildings and improvements 84,998,063 1,751,493 (14,755,715) - 71,993,841 Equipment 5,187,588 115,416 - - 5,303,004 Infrastructure 433,390 - - - 433,390 Right to use asset 555,109 119,679 (235,575) - 439,213 Total capital assets, not
being depreciated 91,174,150 1,986,588 (14,991,290) - 78,169,448 Less accumulated depreciation
Buildings and improvements (58,111,555) (1,973,554) 14,755,715 - (45,329,394) Equipment (3,756,469) (565,963) - - (4,322,432) Infrastructure (130,016) (7,224) - - (137,240) Right to use asset (378,790) (87,241) 235,575 - (230,456) Total accumulated depreciation (62,376,830) (2,633,982) 14,991,290 - (50,019,522) Total capital assets being
depreciated, net 28,797,320 (647,394) - - 28,149,926 Business-type activities
capital assets, net 42,708,276$ 7,760,211$ (139,830)$ -$ 50,328,657$ 67 Page 133 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 8 - Long-Term Liabilities

The changes in long-term liabilities for the year ended June 30, 2025, were as follows:

Compensated Absences

The City's policies relating to compensated absences are described in Note 1. The City reserves the outstanding compensated absences liability in the Compensated Absences Fund. The long-term strategy of the Compensated Absences Reserve Fund is to set aside cash reserves in case of changes in staff. On June 30, 2025, the net position of the Compensated Absences Reserve Fund was $0.

Several distinct types of paid leave accrue to full-time employees. These include vacation, holiday, administrative leave, sick leave, and compensatory time accruals. Employee leave accruals are governed by the Memorandum of Understandings (MOUs), personnel contracts, and the Personnel Rules and Regulations.

City Issued Debt

2022 Lease Revenue Refunding Bonds

In February 2022, the Indian Wells Financing Authority issued lease revenue bonds in the amount of $13,930,000 to provide funds to finance public improvements and energy efficiency improvements in the City. The bonds dated February 10, 2022, were issued at a premium of $1,338,171 are payable semiannually on April 1 and October 1 of each year, commencing October 1, 2022, and mature in 2042. The bonds are payable from base rental payments to be made by the City for the right to the use of certain real property and improvements of the City pursuant to a Lease Agreement dated February 1, 2022. The balance at June 30, 2025, including the unamortized bond premium of $1,116,984 amounted to $13,701,984. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:

Balance at Balance at Due Within
July 1, 2024 Additions Reductions June 30, 2025 One Year Governmental activities:

Compensated absences 722,147$ 632,358$ (406,137)$ 948,368$ 202,336$ 2022 Lease revenue bonds 13,080,000 - (495,000) 12,585,000 515,000 Premium 1,183,340 - (66,356) 1,116,984 66,356 14,985,487$ 632,358$ (967,493)$ 14,650,352$ 783,692$ Balance at Balance at Due Within
July 1, 2024 Additions Reductions June 30, 2025 One Year Business-type activities:

Compensated absences 345,473$ 274,757$ (222,452)$ 397,778$ 99,445$ Lease payable 189,907 119,679 (85,088) 224,498 92,273 535,380$ 394,436$ (307,540)$ 622,276$ 191,718$ 68 Page 134 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 8 - Long-Term Liabilities (continued)

The outstanding bonds contain a provision that if any event of default should occur, the Trustee, as assignee of the Authority under the Lease Agreement, may terminate the Lease Agreement and recover certain damages from the City or may retain the Lease Agreement and hold the City liable for all base rental payments thereunder on an annual basis.

Lease Payable

The Golf Fund has maintenance equipment, office equipment, and GPS Units as a lease payable with lease terms ranging from 36 months to 60 months. The City is required to make monthly payments ranging from $5,124 to $6,160 with discount rates ranging from 5.49% to 7.00%. As of June 30, 2025, the value of the lease payable is $224,498. Future lease payable requirements are as follows:

Year Ending June 30, Principal Interest Total
2026 515,000$ 446,800$ 961,800$ 2027 545,000 421,050 966,050 2028 570,000 393,800 963,800 2029 600,000 365,300 965,300 2030 630,000 335,300 965,300 2031-2035 3,605,000 1,216,000 4,821,000 2036-2040 4,260,000 557,375 4,817,375 2041-2043 1,860,000 70,000 1,930,000 12,585,000 3,805,625 16,390,625
Bond Premium 1,116,984 - 1,116,984 13,701,984$ 3,805,625$ 17,507,609$
Year Ending June 30, Principal Interest Total
2026 92,273$ 10,555$ 102,828$ 2027 71,284 5,978 77,262 2028 28,611 4,063 32,674 2029 28,260 3,052 31,312 2030 4,070 1,611 5,681 224,498$ 25,259$ 249,757$ 69 Page 135 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 9 - Defined Benefit Pension Plan

Miscellaneous Plan

Description of Plan

All qualified permanent and probationary employees are eligible to participate in the City of Indian Well’s Employee Pension Plan, a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees Retirement System (CalPERS). Employees hired before January 1, 2013, and those who have CalPERS credited service prior to that date who are hired by the City less than six months after separation from that CalPERS contracting employer are “Classic” members with a classic formula benefit.

Employees hired on or after January 1, 2013, or who separated from a CalPERS contracting employer more than six months prior to their date of hire with the City are “New” or “PEPRA” members with a PEPRA formula benefit.

The CalPERS Plan consists of separate miscellaneous pools for Classic and PEPRA members, and separate safety pools for both Classic and PEPRA members (referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. The City does not participate in the CalPERS safety plans. The risk pools are included within the Public Employees’ Retirement Fund C (PERF C). Benefit provisions under the Plan are established by State statute under the Public Employees’ Retirement Law (PERL), where optional provisions may be adopted by amendment of the City’s CalPERS contract if not added at contract inception. CalPERS issues publicly available reports that include a complete description of the pension plans regarding benefit provision, assumption, and membership information. Copies of the reports can be found on the CalPERS website.

Benefits Provided

CalPERS provides service retirement, disability, and pre-retirement death benefits, credited service for unused sick leave, and the annual cost of living adjustments for plan members, who must be public employees or beneficiaries. Benefits are based on years of credited service, where 1,720 compensated hours in a fiscal year equates to one year of credited service. After achieving five years of total credited service, classic members are eligible to retire at age 50, and PEPRA members are eligible to retire at age 52, both with statutorily reduced benefits. All members are eligible for non-duty disability benefits after ten years of service. The pre-retirement death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2025 are summarized below:

Classic Members PEPRA Members
Benefit formula 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years of credited service 5 years of credited service Benefit payments monthly for life monthly for life
Retirement age 50 and up 52 and up
Monthly benefits, as a % of eligible compensation 2.0% to 2.7%1% to 2.5% Required employee contribution rates 8.00%8.25%
Required employer contribution rates*16.94%8.18%
Miscellaneous Plan
70 Page 136 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 9 - Defined Benefit Pension Plan (continued)

*The percentage reflects the normal cost rate only. The portion of the required employer contribution that is attributed to amortization of the unfunded actuarial liability (UAL) for the miscellaneous plans is reflected as a fixed dollar value.

For the classic plan, for illustrative purposes only, the combined normal cost rate and the UAL payment reflected as a percentage of payroll equals as total of 16.94%.

For the PEPRA plan, for illustrative purposes only, the combined normal cost rate and the UAL payment reflected as a percentage of payroll equals as total of 8.18%.

Contribution Description

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contributes rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarial determination rate is the estimated amount necessary to finance costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.

Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

Pension Liabilities (Assets), Pension Expenses and Deferred Outflows/Inflows of Resources

The City reported a net pension liability (asset) for its proportionate share of the net pension liability of the Miscellaneous Plan as of June 30, 2025, in the amount of $(2,033,276).

The City’s net pension liability (asset) for the Miscellaneous Plan is measured as the proportionate share of the net pension liability of the collective cost-sharing plan. The City’s net pension liability (asset) of the Plan is measured as of June 30, 2024, and the total pension liability for the Miscellaneous Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024 using standard updated procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers in those plans, actuarially determined. The City’s proportionate share of the net pension liability (asset) for the Miscellaneous Plans as of June 30, 2024 and 2025 was as follows:

Proportion - June 30, 2024 (0.02178%)
Proportion - June 30, 2025 (0.04204%)
Change - Increase/(Decrease)(0.02026%)
71 Page 137 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 9 - Defined Benefit Pension Plan (continued)

For the year ended June 30, 2025, the City recognized pension expense of $1,268,403 for the Miscellaneous Plan.

At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

The amount of $662,213 reported as deferred outflows of resources related to contributions after the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2026. In addition, other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 662,213$ -$ Changes of Assumptions - 52,259 Changes in proportion and difference between City's
contributions and proportionate share of contributions 1,256,059 161,232 Net difference between projected and actual earnings
on pension plan investments - 117,053 Difference between expected and actual experience 6,859 175,795 Difference between employer's contributions and
proportionate share of contributions - 616,501 1,925,131$ 1,122,840$
Deferred
Outflows/(Inflows)
Ended June 30, of Resources
2026 518,808$
2027 (400,351)
2028 (18,493)
2029 40,114
140,078$
72 Page 138 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 9 - Defined Benefit Pension Plan (continued)

Actuarial Assumptions

The total pension liabilities in the June 30, 2023, actuarial valuation was determined using the following actuarial assumptions.

1 - The mortality table was developed based on CalPERS-specific data. The probabilities of mortality are based on 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

All other actuarial assumptions used in the June 30, 2023 valuation were based on the results of the 2023 CalPERS Experience Study and Review of Actuarial Assumptions, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website.

Discount Rate

The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table 1 Derived using CalPERS Membership Data for All Funds Post Retirement Benefit Increase The lessor of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power
applies, 2.30% thereafter
73 Page 139 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 9 - Defined Benefit Pension Plan (continued)

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are summarized in the table below:

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the City’s proportionate share of the net pension liability (asset), calculated using the discount rate of 6.90 percent, as well as what the City’s proportionate share of net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage point lower (5.90 percent), or 1-percentage point higher (7.90 percent), than the current rate:

Pension Plan Fiduciary Net Position

Detailed information about the Plan’s fiduciary net position is available in a separately issued CalPERS financial report.
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(5.90%)(6.90%)(7.90%)
City's Proportionate Share of the
Plan's Net Pension Liability/(Asset)3,382,939$ (2,033,276)$ (6,491,618)$ Assumed Asset Real
Asset Class (1)Allocation Return (1,2)
Global Equity - Cap weighted 30%4.54%
Global Equity - Non-Cap weighted 12%3.84%
Private Equity 13%7.28%
Treasury 5%0.27%
Mortgage-backed Securities 5%0.50%
Investment Grade Corporates 10%1.56%
High Yield 5%2.27%
Emerging Market Debt 5%2.48%
Private Debt 5%3.57%
Real Assets 15%3.21%
Leverage -5%-0.59%
1 An expected inflation of 2.30% used for this period
2 Figures are based on the 2021 Asset Liability Management study. 74 Page 140 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 10 - Defined Contribution Plan

The City contributes to the ICMA Retirement Corporation Prototype Money Purchase Plan and Trust, a defined contribution plan 401(a). The reportable payroll for the employees covered by the plan is $4,117,998 compared with a total payroll of $4,776,462 for the fiscal year ended June 30, 2025. The plan provisions are established and may be amended by the City Council.

All full-time employees are eligible to participate in the plan and benefits vest immediately. The required period of service is six months. Eligible employees at age 50 or more may begin to collect defined contribution benefits immediately upon retirement. The employer contribution is 2.5 percent of compensation, as that term is defined under the plan. No employee contributions are permitted. The total contribution made by the City was $121,212.

Contributions are established and amended by State Law and City Resolution.

Note 11 - Defined Compensation Payable

The City has adopted a deferred compensation plan in accordance with Internal Revenue Code Section 457(b) for its eligible employees wherein they may execute an individual agreement with the City for amounts earned by them to be paid at a future date when certain circumstances are met. These circumstances include death, disability, retirement, or an unforeseeable emergency. Employees may contribute to the deferred compensation plan up to $23,500 in 2025. Employees aged fifty or older may contribute up to an additional $7,500 in 2025 for a total of $31,000. These amounts are adjusted annually by the Internal Revenue Service (IRS) for cost-of-living increases. The City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor.

On January 1, 1997, the City formally established a trust in accordance with IRC 457(g) for its deferred compensation plan for the exclusive benefit of plan participants and their beneficiaries. Accordingly, the deferred compensation assets placed in the Trust were not reported in the financial statements.

Note 12 - Other Post Employment Benefit Plan (OPEB)

The City participates in the Public Employees’ Medical and Hospital Care Act (“PEMHCA”) which is administered by CalPERS in order to make health insurance coverage available to its employees. Pursuant to its contract with CalPERS for participation in PEMHCA, the City is obligated to provide retiree health coverage to eligible retirees.

The City’s retiree health liability is pre-funded through another post-employment benefit account (“OPEB Account”) with the California Employers’ Retiree Benefit Fund (CERBT) trust, which is also administered by CalPERS. The CERBT trust is an agent multiple employer Section 115 governmental trust.

A summary of the OPEB amounts for the City’s plan is shown below:

Net OPEB Liability 4,739,209$
Deferred Outflows related to OPEB 4,376,215
Deferred Inflows related to OPEB (402,012)
OPEB Expense 1,564,564
75 Page 141 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 12 - Other Post Employment Benefit Plan (OPEB) (continued)

Plan Description

The City provides retiree health benefits to all employees of the City that have retired, or will retire, from service with the City and meet the eligibility requirements set forth in Government Code Section 22760(c) to be considered an annuitant (“Annuitant”). The amount of the retiree health benefit allowance (“Allowance”) available to an Annuitant is based on the date of hire as summarized below.

The Allowance is provided in two forms. The first is a direct payment to CalPERS equal to the minimum employer contribution required pursuant to Government Code Section 22893(b) (“PEMHCA Minimum”). The PEMHCA Minimum for 2025 is $158 per month. If an Annuitant is eligible for a more significant retiree health benefit, the Annuitant will receive a reimbursement from a health reimbursement arrangement sponsored by the City for the health insurance premiums actually paid by the Annuitant in an amount not to exceed the difference between the applicable Allowance and the PEMHCA Minimum.

The amount of the Allowance depends on the tier for which the Annuitant is eligible as described below:

 Tier A Allowance:
 The allowance for Annuitants hired before February 1, 2009 (“Tier A”) is equal to up to 100% of the premium of any CalPERS health insurance plan in which the Tier A Annuitant, and eligible family members, enroll.
 Tier B Allowance:
 The allowance for Annuitants hired on or after February 1, 2009 but before July 1, 2020 who retire from the City with at least 10 years of CalPERS service credit, including five years of service credit with the City (“Tier B”) is equal to a percentage of the Government Code Section 22893 premium for the applicable coverage level based on years of CalPERS service credit. The percentage is equal to 50% for the first 10 years of CalPERS service credit, including five years of service credit with the City, plus an additional 5% for each additional year of service with any CalPERS employer after satisfying the 10 year minimum.
 Tier C Allowance:
 The allowance for Annuitants hired on or after July 1, 2020, and employees hired by the City on or after February 1, 2009 but before July 1, 2020 that do not qualify for Tier B, is equal to the PEMHCA Minimum.

The amount of the Allowance is established through contracts between the City and the employee associations and may be amended by agreements between the City and the employee association.

The amount of the Allowance is established through contracts between the City and the employee associations and may be amended by agreements between the City and the employee association. 76 Page 142 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 12 - Other Post Employment Benefit Plan (OPEB) (continued)

Employees Covered by Benefit Terms

At June 30, 2025, the most recent measurement date, the following current and former employees were covered by the benefit terms of the plan:

Contributions

The annual contribution to the City’s OPEB Account is based on the actuarially determined contribution.

Employees do not make contributions to the OPEB Account but are responsible for the share of retiree health coverage that exceeds the value of the allowance. Contributions are typically paid by the Employee Benefits Fund.

The municipal administration employs a prioritized funding mechanism to finance the Employee Benefits Fund.

The foremost priority pertains to the accrued interest income within the fund, with the secondary priority being contingent on the allocation of payroll resources. The allocated payroll encompasses contributions from the Solid Waste Fund, the Emergency Services Fund, the Housing Authority, the Golf Resort, Recycling, and the General Fund. It is noteworthy that the General Fund assumes a prominent role as the primary source of funding for the Employee Benefits Fund due to its utilization of administrative services.

As described further in footnote 13, the City also contributes to the PARS Section 115 Trusts with total assets at June 30, 2025 of $4,714,216 irrevocably restricted for the payment of OPEB benefits.

Net OPEB Liability

The City’s net OPEB liability for the retiree health benefits was measured as the total OPEB liability, less the OPEB plan’s fiduciary net position. The net OPEB liability was calculated as of June 30, 2025, using an annual actuarial valuation as of June 30, 2023. A summary of principal assumptions and methods used to determine the net OPEB liability is shown below.

Active employees 33
Inactive employees or beneficiaries currently receiving benefits 35 68 77 Page 143 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 12 - Other Post Employment Benefit Plan (OPEB) (continued)

Actuarial Assumptions

The total OPEB liability in the June 30, 2023, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Mortality rates were based on the CalPERS 2000-2019 Experience Study, which assumed future mortality improvements using Society of Actuaries (SOA) Scale MP-2021. The Experience Study report can be obtained on the CalPERS website under Forms and Publications.

The actuarial assumptions used in the June 30, 2023, valuation was based on the results of an actuarial experience study for the period.

Changes in Actuarial Assumptions

Certain key assumptions were changed as part of the actuary’s updated study. Those changes are summarized below.

 During fiscal year 2024/2025, the CERBT trust was liquidated and transferred to the Shuster Trust. The Fiduciary Net Position as of June 30, 2024 reflects the Shuster Trust asset value.

Discount Rate

The discount rate used to measure the total OPEB liability was 5.75 percent. The projection of cash flows used to determine the discount rate assumed that the City’s contributions will be made at rates equal to the difference between actuarially determined contributions rates and the employee rate. Based on those assumptions, the fiduciary net position for the City’s retiree health benefits was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on OPEB Account investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 5.75%
Inflation 2.50%
Investment Rate of Return 5.75%
Mortality CalPERS 2000-2019 experience study
Healthcare Trend Rate Non-Medicare - 8.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076 and later years
Medicare (Non-Kaiser) - 7.50% for 2025, decreasing to an ultimate rate of

3.45% in 2076 and later years
Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% in 2076 and later years
78 Page 144 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 12 - Other Post Employment Benefit Plan (OPEB) (continued)

The long-term expected rate of return on the OPEB investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and most recent best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Changes in Net OPEB Liability (Asset)

Long-term Expected
Target Real Rate
Asset Class Allocation of Return
Global Equity 34.00%4.56%
Fixed Income 41.00%1.56%
TIPS 5.00%(0.08%)
Commodities 3.00%1.22%
REITs 17.00%4.06%
100.00%
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability (Asset)
Balance at June 30, 2024 10,207,721$ 2,972,328$ 7,235,393$ Changes in the year:

Service cost 296,713 - 296,713 Interest on the total OPEB liability 590,051 - 590,051 Contributions - employer - 488,925 (488,925) Net investment income - 335,581 (335,581) Benefit payments (485,373) (485,373) - Administrative expenses - (5,142) 5,142 Transfer of fiduciary assets - 2,563,584 (2,563,584) Net changes 401,391 2,897,575 (2,496,184) Balance at June 30, 2025 10,609,112$ 5,869,903$ 4,739,209$ 79 Page 145 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 12 - Other Post Employment Benefit Plan (OPEB) (continued)

Changes in the Discount Rate

The following presents the net OPEB asset of the City, as well as what the City’s net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (4.75 percent) or 1-percentage-point higher (6.75 percent) than the current discount rate:

Net OPEB Liability (Asset) to Changes in the Healthcare Cost Trend Rates

The following presents the net OPEB liability (asset) of the City, as well as what the City's net OPEB liability (asset) would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage- point higher than the current healthcare cost trend rates:

OPEB Plan Fiduciary Net Position

Detailed information about the OPEB plan's fiduciary net position is available in the separately issued CalPERS financial reports.

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

For the year ended June 30, 2025, the City recognized OPEB expense of $1,564,564. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions made subsequent to measurement date 3,051,917$ -$ Changes in assumptions 559,818 124,103 Net difference between projected and actual earnings
on plan investments 656,010 - Difference between expected and actual experience 108,470 277,909 4,376,215$ 402,012$
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(4.75%)(5.75%)(6.75%)
Net OPEB Liability (Asset)6,155,046$ 4,739,209$ 3,572,975$ 1% Decrease Trend Rate 1% Increase
Net OPEB Liability (Asset)3,372,336$ 4,739,209$ 6,429,515$ 80 Page 146 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 12 - Other Post Employment Benefit Plan (OPEB) (continued)

The $3,051,917 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the fiscal year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Note 13 - PARS Section 115 Trusts

In June 2018, the City Council approved the creation of a Section 115 Trust Agreement with U.S. Bank National Association and Public Agency Retirement Services (PARS), Trust Administrator. The Section 115 Trust was established as a means to set aside monies to fund the City's pension and OPEB obligations. Contributions to the Section 115 Trust are irrevocable, the assets provide benefits to plan members, and the assets are protected from creditors of the City.

The Section 115 Trusts were created to address the City's pension and OPEB obligations by accumulating assets to reduce the net pension and OPEB liability. However, in accordance with generally accepted accounting principles, the assets in the Section 115 Trusts are not considered to have present service capacity as plan assets and are therefore regarded as restricted assets of the City rather than pension and OPEB plan assets. Accordingly, the Section 115 Trusts’ assets are recorded as restricted for pension and OPEB benefits in the City's Employee Benefits Internal Service Fund rather than assets of the pension and OPEB plan during the measurement of the net pension and OPEB liability. The assets held in Trust will be considered pension and OPEB plan assets at the time they are transferred out of the Trust into the pension or OPEB plan.

The balance in the PARS Trust’s pension assets for the fiscal year ended June 30, 2025, was $1,104,177. During the fiscal year, the Trust earned $126,156 in interest income, and plan costs totaled $6,331.

The balance in the PARS Trust’s OPEB assets for the fiscal year ended June 30, 2025, was $4,714,216. During the fiscal year, the Trust earned $542,211 in interest income, and plan costs totaled $27,025.

Deferred
Fiscal Year Outflows/(Inflows)
Ended June 30, of Resources
2026 181,090$
2027 514,587
2028 161,284
2029 65,325
2030 -
922,286$
81 Page 147 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 13 - PARS Section 115 Trusts (continued)

The restricted trust assets are as follows at June 30, 2025:

PARS – Pension $1,104,177
PARS – OPEB 4,714,216

Total restricted assets $5,818,393

Note 14 - Risk Management

Description of Self-Insurance Pool Pursuant to Joint Powers Agreement

The City of Indian Wells is a California Joint Powers Insurance Authority (Authority) member. The Authority comprises over 120 California public entities and is organized under a joint powers’ agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, purchase excess insurance or reinsurance, and arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

Primary Self-Insurance Programs of the Authority

Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self- insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.

Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority's website: https://cjpia.org/coverage/risk-sharing-pools/ . 82 Page 148 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 14 - Risk Management (continued)

Primary Workers’ Compensation Program

Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes costs incurred up to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes costs incurred from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2024-25, the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

Purchased Insurance

Property Insurance

The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City property is currently insured according to a schedule of covered property submitted by the City to the Authority. The City property currently has all-risk property insurance protection in the amount of $131,582,726. There is a $10,000 deductible per occurrence except for non- emergency vehicle insurance which has a $2,500 deductible.

Earthquake and Flood Insurance

The City of Indian Wells purchases earthquake and flood insurance on a portion of its property. Earthquake insurance is part of the property protection insurance program of the Authority. City of Indian Wells property currently has earthquake protection in the amount of $126,786,202. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

Crime Insurance

The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.

Adequacy of Protection

During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2024-25.
83 Page 149 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 15 - Other Required Disclosures

Deficit Fund Balance and Net Position

The following funds reported a deficit fund balance at June 30, 2025:

The deficit in the Park Facilities in Lieu Capital Projects Fund will be eliminated through Quimby Act Park fees to be collected from developers. This deficit balance is temporary although it will take several years to expunge.

The deficit in the Successor Agency of the former RDA Private-Purpose Trust Fund was caused by the dissolution of the Redevelopment Agency. See Note 17 and 18 for additional information.

Note 16 - Contingencies

Various claims and suits have been filed against the City in the normal course of business. Although the outcome of these matters is not presently determinable in the opinion of legal counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the City.

On July 18, 2011, the California Redevelopment Association (“CRA”) and the League of California Cities (“League”) filed a petition for writ of mandate with the California Supreme Court, requesting the Court to declare unconstitutional two bills that were passed as part of the 2011-12 State Budget, AB X1 26 and 27 (California Redevelopment Association v. Matosantos). AB X1 26 dissolves redevelopment agencies effective October 1, 2011. AB X1 27 gave redevelopment agencies an option to avoid dissolution if it commits to making defined payments for the benefit of the State, school districts and certain special districts.

On August 17, 2011, the Supreme Court issued a stay of the implementation of AB X1 26 and 27 which allowed a redevelopment agency to continue if it adopted an AB X1 27 ordinance. However, because of the effect of the stay order, the authority for the Redevelopment Agency to engage in most activities was suspended.

The Supreme Court heard oral arguments on November 10, 2011, and on December 29, 2011, announced its decision in California Redevelopment Association v. Matosantos. The court upheld AB X1 26 which dissolves redevelopment agencies but invalidated in its entirety AB X1 27 which allowed redevelopment agencies to continue as long as they made the required payments. AB X1 26 established deadlines for the process of Redevelopment Agency dissolution and the handling of existing obligations. The full text of AB X1 26 may be obtained from the California legislative information website maintained by the Legislative Counsel of the State of California at: http://www.leginfo.ca.gov/bilinfo.html .

Park Facilities in Lieu Capital Projects Fund 1,621,201$ Successor Agency of the Former Redevelopment Agency Private Purpose Trust Fund 51,227,725 84 Page 150 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 17 - California Redevelopment Agency Dissolution

On February 1, 2012, the Redevelopment Agency was dissolved, and the City of Indian Wells elected to become the Successor Agency. AB X1 26 provides that a successor agency is to be designated as the successor entity to the former Redevelopment Agency, vested with all authority, rights, powers, duties, and obligations previously vested with the former Agency under the Community Redevelopment Law (Health & Safety Code, § 33000 et seq.), with certain exceptions. The Successor Agency is responsible for winding down the remaining activities of the dissolved Redevelopment Agency.

The California Supreme Court decision impacted the reporting entity of the City that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provided that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 12, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-03.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations, or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

Successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. Payments for these enforceable obligations are secured from incremental tax revenues generated within the redevelopment project areas. It is essential to differentiate the Successor Agency from the City of Indian Wells, in that, the City itself has no outstanding debt or any obligation to fund Successor Agency debt.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

Cash and Investments

Cash and investments reported in the accompanying financial statements consisted of the following:

Cash and investments pooled with the City 8,919,029$
Cash and investments with fiscal agent 5,496
8,924,525$
85 Page 151 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 18 - Successor Agency Trust for Assets of the Former Redevelopment Agency

Due to City

The amount due to the City reported in the accompanying financial statements consisted of the following:

Long-Term Debt

The following debt is recorded in the Successor Agency:

A description of long-term debt outstanding of the Successor Agency as of June 30, 2025, follows:

2015 A Tax Allocation Refunding Bonds

On September 1, 2015, the Successor Agency issued $20,575,000 of Refunding Tax Allocation Bonds to provide funds to refund the 2005 Refunding Tax Allocation Bonds and a portion of the 2006 A Tax Allocation Bonds.

The Series 2015A Bonds are special obligations payable solely from certain payments from the Successor Agency and certain other funds.

The bonds are payable in annual installments ranging from $865,000 to $2,435,000 until maturity on September 1, 2027. Interest is payable semiannually on March 1 and September 1 of year, with rates ranging from 2.00 to

5.00 percent per annum. Bonds outstanding at June 30, 2025 were $6,960,000.

In a letter dated November 22, 2013, from the California Department of Finance, the loan between the Successor Agency and the City of Indian Wells for $16,400,000 was determined to be for legitimate redevelopment purposes and therefore, approved as an enforceable obligation.8,500,000$ Balance at Balance at Due Within
Project Area 1 July 1, 2024 Additions Repayments June 30, 2025 One Year 2015 Refunding Tax Allocation Bonds 9,065,000$ -$ 2,105,000$ 6,960,000$ 2,205,000$ 2016 A Tax Allocation Bonds 35,475,000 - 1,010,000 34,465,000 1,055,000 2020 A Tax Allocation Bonds 5,850,000 - 480,000 5,370,000 490,000 50,390,000$ -$ 3,595,000$ 46,795,000$ 3,750,000$ Adjustments:

Unamortized net original issue (discount) or Premium 4,394,629 666,716 Net Long-term Debt 51,189,629$ 4,416,716$
86 Page 152 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 18 - Successor Agency Trust for Assets of the Former Redevelopment Agency (continued)

Long-Term Debt (continued)

Future debt service requirements on these bonds are as follows:

2016 A Tax Allocation Refunding Bonds

On September 1, 2016, the Successor Agency issued $37,470,000 in Series 2016A Tax Allocation Refunding Bonds to provide funds to refund the 2006 A Tax Allocation Bonds.

The Series 2016A Bonds are special obligations payable solely from certain payments from the Successor Agency and certain other funds.

The bonds are payable in annual installments ranging from $515,000 to $5,050,000 until maturity on September 1, 2034. Interest is payable semiannually on March 1 and September 1 of year, with rates ranging from 4.00 to

5.00 percent per annum. Bonds outstanding at June 30, 2025 were $34,465,000.

Future debt service requirements on these bonds are as follows:

Year Ending June 30,Principal Interest Total
2026 2,205,000$ 292,875$ 2,497,875$ 2027 2,320,000 179,750 2,499,750 2028 2,435,000 60,875 2,495,875 6,960,000 533,500 7,493,500 Bond Premium 531,435 - 531,435 7,491,435$ 533,500$ 8,024,935$
Year Ending June 30,Principal Interest Total
2026 1,055,000$ 1,563,475$ 2,618,475$ 2027 1,110,000 1,509,350 2,619,350 2028 1,165,000 1,452,475 2,617,475 2029 3,880,000 1,326,350 5,206,350 2030 4,065,000 1,127,725 5,192,725 2031-2034 23,190,000 2,790,650 25,980,650 34,465,000 9,770,025 44,235,025
Bond Premium 3,863,194 - 3,863,194 38,328,194$ 9,770,025$ 48,098,219$
87 Page 153 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 18 - Successor Agency Trust for Assets of the Former Redevelopment Agency (continued)

2020 A Tax Allocation Refunding Bonds

On June 12, 2020, the Successor Agency issued $7,220,000 in Series 2020A Tax Allocation Refunding Bonds to refund the 2010 A Tax Allocation Bonds.

The Series 2020A Bonds are special obligations payable solely from certain payments from the Successor Agency and certain other funds.

The bonds are payable in annual installments ranging from $450,000 to 590,000 until maturity on September 1, 2034. Interest is payable semiannually on March 1 and September 1 of year, with rates ranging from 4.00 to 5.00 percent per annum. Bonds outstanding at June 30, 2025 were $5,370,000.

These bonds resulted in a full defeasance of the 2010A Tax Allocation Bonds, and the related liability has been removed from the financial statements of the City. The refunding resulted in a deferred loss of $28,936, which represents the difference between the defeased bonds, and the amount placed in escrow. The advanced refunding also resulted in future cash flow savings of approximately $2,974,000 and an economic gain (difference between the present value of the debt service payments on the old and new debt) of approximately $2,000,000.

Future debt service requirements on these bonds are as follows:

Insurance

The Successor Agency of the former redevelopment agency is covered under the insurance policy of the City of Indian Wells at June 30, 2025.

Commitments and Contingencies

The Successor Agency is subject to litigation arising in the normal course of business. In the opinion of the legal counsel there is no pending litigation, which is likely to have a material adverse effect on the financial position of the Successor Agency.

Year Ending June 30,Principal Interest Total
2026 490,000$ 110,188$ 600,188$ 2027 500,000 99,545 599,545 2028 505,000 88,741 593,741 2029 515,000 77,776 592,776 2030 535,000 66,489 601,489 2031-2034 2,825,000 154,535 2,979,535 5,370,000$ 597,274$ 5,967,274$
88 Page 154 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Financial Statements
June 30, 2025

Note 19 - Restatement

The accompanying financial statements for the year ended June 30, 2025, have been restated to correct an error in the recording of capital outlay expenditures of $418,206 in the Park Facilities in Lieu Fund. This restatement increased construction in progress and accounts payable in governmental activities but had no impact on net position.

Park Facilities
in Lieu Fund
Beginning net position, as previously reported (1,386,737)$ Correction of an error (418,306)
Beginning net position, as restated (1,805,043)$
89 Page 155 of 333
Council Meeting Agenda- February 5, 2026

This page intentionally left blank
90 Page 156 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Required Supplementary Information
June 30, 2025

Required Supplementary Information

The Schedule of Proportionate Share of Net Position Liability in accordance with GASB 68. The Schedule of Plan Contributions in accordance with GASB 68. The Schedule of Changes in the Net OPEB Liability in accordance with GASB 75. The Schedule of OPEB Contributions in accordance with GASB 75.

General Fund

This fund has been classified as a major fund and is used to account for resources traditionally associated with government which are not required legally or by sound fiscal management to be accounted for in another fund.

Special Revenue Funds

The Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for a particular purpose. The following funds have been classified as major funds and budget-actual comparisons for these funds have been presented in the accompanying financial statements as required supplementary information.

Housing Authority - This fund is used to account for the housing activity of the former Redevelopment Agency for the benefit of providing low- and moderate-income housing in Indian Wells. The Housing Authority was created to promote and encourage the retention, rehabilitation, and development of affordable housing units.

Emergency Services Upgrade – This fund is used to accumulate the resources accruing from a special fire tax levied to provide enhancement levels of fire protection, suppression, and emergency paramedic services. 91 Page 157 of 333
Council Meeting Agenda- February 5, 2026

Measurement period 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Plan's proportion of the net pension liability 0.0017%0.0017%0.0017%0.0017%-0.0072%-0.0119%0.0008%0.0154%0.0480%0.0695% Plan's proportionate share of the net pension liability (asset)(2,033,276)$ (1,089,114)$ (700,736)$ (6,449,180)$ (781,863)$ (1,218,808)$ 73,946$ 1,526,915$ 4,152,019$ 4,769,476$ Plan's covered payroll 3,694,552$ 3,529,517$ 3,241,802$ 3,207,039$ 3,038,144$ 2,889,192$ 2,943,396$ 2,812,372$ 2,902,571$ 2,814,500$ -55.03%-30.86%-21.62%-201.09%-25.73%-42.19%2.51%54.29%143.05%169.46%

79.91%77.97%78.19%90.49%77.71%75.30%75.30%73.31%74.06%78.40% Notes to Schedule:

Benefit changes
Changes in assumptions
There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs. Additionally, the figures above do not include any liability impact that occurred after the June 30, 2022 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flow. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, and 7.65% for measurement dates June 30, 2015 through June 30, 2016.

City of Indian Wells, California
Schedule of the City's Proportionate Share of the Net Pension Liability - Miscellaneous Plan Last 10 Fiscal Years
Plan's fiduciary net position as a percentage of the total pension liability
Plan's proportionate share of the net pension liability (asset) as a percentage of covered payroll
92 Page 158 of 333
Council Meeting Agenda- February 5, 2026

Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 Actuarially determined contributions 554,909$ 502,145$ 452,975$ 408,794$ 455,250$ 475,302$ 430,310$ 974,198$ 544,107$ 566,489$ Contributions in relation to the actuarially
determined contributions (662,213) (1,124,057) (1,390,856) (1,300,007) (428,319) (428,319) (358,582) (1,334,875) (3,731,723) (2,566,489) Contribution deficiency (excess)(107,304)$ (621,912)$ (937,881)$ (891,213)$ 26,931$ 46,983$ 71,728$ (360,677)$ (3,187,616)$ (2,000,000)$ Covered payroll 3,916,114$ 3,694,552$ 3,529,517$ 3,241,802$ 3,207,039$ 3,038,144$ 2,889,192$ 2,943,396$ 2,812,372$ 2,902,571$ Contributions as a percentage of covered
payroll 16.91%30.42%39.41%40.10%13.36%14.10%12.41%45.35%132.69%88.42% Notes to Schedule
Fiscal Year: June 30, 2025
Valuation Date: June 30, 2022
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Actuarial Cost Method
Amortization method/period Varies by date established and source. May be level dollar or level percent of pay and may include direct rate smoothing.

Asset valuation method
Inflation 2.30%
Projected salary increases Varies by category, entry age and duration of service.

Discount rate 6.90% (net of investment and administrative expenses) City of Indian Wells, California
Schedule of Plan Contributions - Miscellaneous Plan
Last 10 Fiscal Years
Market Value of Assets
93 Page 159 of 333
Council Meeting Agenda- February 5, 2026

Measurement Period 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 Total OPEB liability
Service cost 296,713$ 275,595$ 282,966$ 259,910$ 252,340$ 323,517$ 314,094$ 305,000$ Interest on the total OPEB liability 590,051 523,241 498,483 576,779 554,551 513,612 485,756 459,000 Changes of benefit terms - - - (15,495) - - - - Differences between expected and actual experience - 170,452 - (1,204,273) - 239,406 - - Changes of assumptions - 641,067 (279,230) 658,095 - 71,328 - - Benefit payments, including refunds of member contributions (485,373) (453,761) (462,932) (463,466) (454,170) (389,144) (338,000) (331,000) Net change in total OPEB liability 401,391 1,156,594 39,287 (188,450) 352,721 758,719 461,850 433,000 Total OPEB liability - beginning 10,207,721 9,051,127 9,011,840 9,200,290 8,847,569 8,088,850 7,627,000 7,194,000 Total OPEB liability - ending (a)10,609,112$ 10,207,721$ 9,051,127$ 9,011,840$ 9,200,290$ 8,847,569$ 8,088,850$ 7,627,000$ OPEB fiduciary net position
Contributions - employer 488,925$ 459,025$ 466,353$ 677,553$ 1,190,919$ 389,962$ 607,000$ 614,000$ Net investment income 335,581 348,850 (1,409,406) 1,830,412 448,019 524,434 423,619 459,000 Benefit payments, including refunds of member contributions (485,373) (453,761) (462,932) (463,466) (454,170) (389,144) (338,000) (331,000) Administrative expense (5,142) (8,071) (6,254) (5,590) (5,115) (2,424) (13,582) (4,000) Section 115 trust adjustment (4,606,319) - - - - - - - Distribution of fiduciary assets1 7,169,903 (7,169,903) - - - - - - Net change in plan fiduciary net position 2,897,575 (6,823,860) (1,412,239) 2,038,909 1,179,653 522,828 679,037 738,000 Plan fiduciary net position - beginning 2,972,328 9,796,188 11,208,427 9,169,518 7,989,865 7,467,037 6,788,000 6,050,000 Plan fiduciary net position - ending (b)5,869,903 2,972,328 9,796,188 11,208,427 9,169,518 7,989,865 7,467,037 6,788,000 Plan net OPEB liability (asset) - ending (a) - (b)4,739,209$ 7,235,393$ (745,061)$ (2,196,587)$ 30,772$ 857,704$ 621,813$ 839,000$ Plan fiduciary net position as a percentage
of the total OPEB Liability 55.33%29.12%108.23%124.37%99.67%90.31%92.31%89.00% Covered-employee payroll 4,310,233$ 4,176,150$ 3,707,177$ 3,666,820$ 3,451,419$ 3,263,961$ 3,407,217$ 3,237,969$ Plan net OPEB liability (asset) as a percentage
of covered-employee payroll 109.95%173.26%-20.10%-59.90%0.89%26.28%18.25%25.91% * Fiscal Year 2017-18 was the first year of implementation; therefore, only eight years of information are shown. 1 Fiduciary assets were transferred to the PARS and Shuster Section 115 trusts that are irrevocably restricted for payment of OPEB benefits City of Indian Wells, California
Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Fiscal Years*
94 Page 160 of 333
Council Meeting Agenda- February 5, 2026

Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 Actuarially determined contribution (ADC)-$ -$ -$ 422,001$ 411,874$ 354,000$ 607,000$ 614,000$ Contributions in relation to the ADC (550,750) (488,925) (459,025) (386,181) (677,553) (1,190,919) (389,962) (573,377) Contribution deficiency (excess)(550,750)$ (488,925)$ (459,025)$ 35,820$ (265,679)$ (836,919)$ 217,038$ 40,623$ Covered employee payroll**4,540,554$ 4,310,233$ 4,176,150$ 3,707,177$ 3,666,820$ 3,451,419$ 3,263,961$ 3,407,217$ Contributions as a percentage of covered
employee payroll 12.13%11.34%10.99%10.42%18.48%34.51%11.95%16.83% Notes to Schedule
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percent of payroll
Asset valuation method Investment gains and losses spread over 5-year rolling period Inflation 2.5% annually
Healthcare cost trend rates Non-Medicare - 8.5% for 2025, decreasing to an ultimate

3.45% in 2076 and later years
Investment rate of return 5.75%
Retirement age 55
Mortality CalPERS 2000-2019 experience study
** Contributions are made on an ad hoc basis.
* Fiscal Year 2017-18 was the first year of implementation; therefore, only eight years of information are shown.

City of Indian Wells, California
Schedule of OPEB Contributions
Last Ten Fiscal Years*
Actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024-25 were from the June 30, 2023 actuarial valuation report. 95 Page 161 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues
Taxes 21,827,560$ 21,827,560$ 26,521,861$ 4,694,301$ Licenses and permits 938,510 938,510 514,897 (423,613) Intergovernmental 830,360 830,360 882,078 51,718 Charges for services 694,550 694,550 502,588 (191,962) Investment income (loss)710,000 710,000 1,164,549 454,549 Fines and forfeitures 49,390 49,390 73,534 24,144 Other income 205,120 205,120 36,745 (168,375) Total revenues 25,255,490 25,255,490 29,696,252 4,440,762 Expenditures
Current
General government 8,130,928 9,113,940 8,268,874 845,066 Public safety 6,425,187 6,188,337 5,224,479 963,858 Community development 2,489,594 2,458,976 2,092,755 366,221 Public works 3,573,586 3,639,348 3,208,946 430,402 Total expenditures 20,619,295 21,400,601 18,795,054 2,605,547 Other financing sources (uses)
Transfers out (4,359,225) (4,363,883) (21,870,034) (17,506,151) Total other financing sources (uses)(4,359,225) (4,363,883) (21,870,034) (17,506,151) Net change in fund balance 276,970 (508,994) (10,968,836) (10,459,842) Fund balance, beginning 41,288,053 41,288,053 41,288,053 - Fund balance, ending 41,565,023$ 40,779,059$ 30,319,217$ (10,459,842)$ Budgeted Amounts
City of Indian Wells, California
Budgetary Comparison Schedule - General Fund
Year Ended June 30, 2025
See Notes to Required Supplementary Information
96 Page 162 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues
Intergovernmental -$ -$ 135,812$ 135,812$ Investment income (loss)135,000 135,000 560,004 425,004 Total revenues 6,135,000 6,135,000 695,816 (5,439,184) Expenditures
Current
General government 6,725,392 11,567,112 1,783,272 9,783,840 Community development 250,000 250,000 250,000 - Total expenditures 6,975,392 11,817,112 2,033,272 9,783,840 Other financing sources (uses)
Transfers in 550,000 550,000 2,460,000 1,910,000 Transfers out (86,990) (86,990) (509,858) (422,868) Total other financing sources (uses)463,010 463,010 1,950,142 1,487,132 Net change in fund balance (377,382) (5,219,102) 612,686 5,831,788 Fund balance, beginning 12,034,055 12,034,055 12,034,055 - Fund balance, ending 11,656,673$ 6,814,953$ 12,646,741$ 5,831,788$ Budgeted Amounts
City of Indian Wells, California
Budgetary Comparison Schedule - Housing Authority Special Revenue Fund Year Ended 30, 2025
See Notes to Required Supplementary Information
97 Page 163 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues
Taxes 4,608,800$ 4,608,800$ 7,075,678$ 2,466,878$ Charges for services 672,750 672,750 745,461 72,711 Investment income (loss)119,030 119,030 319,018 199,988 Assessments 671,840 671,840 629,744 (42,096) Other income 9,320 9,320 20,623 11,303 Total revenues 6,081,740 6,081,740 8,790,524 2,708,784 Expenditures
Current
Public safety 5,049,458 5,056,050 4,940,677 115,373 Capital outlay 1,575,000 1,583,500 183,771 1,399,729 Total expenditures 6,624,458 6,639,550 5,124,448 1,515,102 Other financing sources (uses)
Transfers out (144,983) (144,983) (1,644,983) (1,500,000) Total other financing sources (uses)(144,983) (144,983) (1,644,983) (1,500,000) Net change in fund balance (687,701) (702,793) 2,021,093 4,223,886 Fund balance, beginning 4,729,212 4,729,212 4,729,212 - Fund balance, ending 4,041,511$ 4,026,419$ 6,750,305$ 4,223,886$ Budgeted Amounts
City of Indian Wells, California
Budgetary Comparison Schedule - Emergency Services Upgrade Special Revenue Fund Year Ended June 30, 2025
See Notes to Required Supplementary Information
98 Page 164 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Required Supplementary Information
June 30, 2025

Note 1 - Budgets and Budgetary Accounting

The City follows these procedures in establishing the budgetary data reflected in the basic financial statements:

In June, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing July 1. The operating budget includes proposed expenditures and the means of financing them.

Public hearings are conducted at public workshops and City Council meetings to obtain taxpayer comments.

Prior to July 1, the budget is adopted by Council action.

Formal budgetary integration is employed as a management control device during the year. The City presents a comparison of annual budgets to actual results for all governmental funds. Budgeted revenue amounts represent the original budget modified by Council-authorized adjustments during the year which were contingent upon new or additional revenue sources. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year. Budgets are prepared in accordance with accounting principles generally accepted in the United States of America, using the modified-accrual basis of accounting.

The Finance Director is authorized by City Council to transfer any amounts within a fund between administrative control accounts, as well as budget adjustments between departments and programs within a fund. The transfer of appropriations between funds or between capital projects in the capital budget must be approved by City Council. Any subsequent appropriations of additional amounts of moneys for the fiscal year ended June 30, 2025, shall be approved by the City Council in advance of any authorization to purchase services or goods; with the exception that the City Manager may appropriate funds under the emergency provision of State Law to effect repairs or make acquisitions to protect life and property of the City.

All appropriations for prior fiscal year shall lapse at the end of the fiscal year and any remaining amounts shall be credited to their respective fund balances, with the exception of any unexpected amounts deemed necessary by the Finance Director for specific orders or encumbrances outstanding at the end of the year, and any unexpected appropriations for uncompleted capital projects in the capital budget at the end of the year. These amounts shall be charged against the incumbent fiscal year operating budget, as directed by the Finance Director.

99 Page 165 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Notes to Required Supplementary Information
June 30, 2025

Note 1 - Budgets and Budgetary Accounting (continued)

The following funds had expenditures in excess of appropriations for the year ended June 30, 2025:

Final Budget Actual
Excess Over
Appropriation
Traffic Safety 18,000$ 45,019 (27,019) Public Safety 1/2% Tax 37,500$ 43,999 (6,499) Measure "A" Transportation Fund 305,000$ 327,378 (22,378) Citizens Option for Public Safety Program Fund 186,550$ 195,131 (8,581) Gas Tax Fund 116,400$ 130,975 (14,575) Solid Waste Fund 1,269,969$ 1,873,434 (603,465) 100 Page 166 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Combining Balance Sheet - Nonmajor Governmental Funds
June 30, 2025

Special Revenue Funds

The following Special Revenue funds have been classified as other governmental funds in the accompanying financial statements.

Traffic Safety – This fund is used to account for the revenue from traffic fines and forfeitures and used to pay the costs of issuing tickets.

Public Safety ½% Tax – This fund is used to account for the half-cent sales tax collected by the State of California and allocated to the City for public safety.

Measure “A” Transportation – This fund is used to account for the City’s allocation of the sales tax increase, one- half cent, authorized by the Riverside County residents within November 1988. The funds collected are divided into four categories: Regional Transportation board (40%) administered by the Coachella Valley Association of Governments (CVAG), Sunline Transit (10%), State Highways (15%), and local agencies (35%). The local share is based 50% on population and 50% on point-of-sale. The local monies are legally restricted for the acquisition, construction and improvements of the public streets.

Fire Access Maintenance District No. 1 – This fund is used to account for the accumulation of special assessments, ad valorem taxes and other revenues accruing to the benefit and for expenses of the special district referred to as the Fire Access Maintenance District No. 1.

South Coast Air Quality Management District Vehicle Registration – This fund is used to account for the City’s share of vehicle registration fees that the State of California has allocated to address air quality concerns in California. These monies are to be used in air quality maintenance programs locally.

Citizens Option for Public Safety Program – This fund is used for front line municipal police services including anti- gang and community crime prevention programs.

Gas Tax – This fund is used to account for the City’s share of motor vehicle gas tax imposed under the provisions of the Street and Highway Code of the State of California under Sections 2105, 2106, 2107 and 2107.5 which are legally restricted for the acquisition, construction, improvement, and maintenance of public streets.

AB 939 Recycling – This fund is used to account for the revenues and expenditures incurred in recycling.

Solid Waste – This fund is used to account for city-wide assessment revenues and related expenditures incurred in providing residential garbage and refuse collection to the various benefiting assessment districts.

Consolidated LLMD – This fund is used to account for the revenues and expenditures incurred in providing lighting and landscaping maintenance services to the various benefiting assessment districts.

Street Lighting District 2001-1 – This fund is used to account for the revenues and expenditures incurred in providing lighting maintenance services within the City.

Affordable Housing Operations – This fund is used to account for revenues and expenditures associated with the retention and development of affordable housing units.
101 Page 167 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Combining Balance Sheet - Nonmajor Governmental Funds
June 30, 2025

Debt Service Funds

The following Debt Service Funds have been classified as other governmental funds in the accompanying financial statements:

Indian Wells Financing Authority Fund – This fund was created in 2022 to account for the issuance and debt service payments for the 2022 Solar and Infrastructure Lease Revenue Bonds.

Capital Projects Funds

The following Capital Projects Funds have been classified as other governmental funds in the accompanying financial statements:

Hwy 111 Circulation Improvement – This fund accounts for fees collected from projects, which will create adverse impacts on the existing public facilities. It will finance future projects to mitigate the traffic impact.

Park Facilities Fees – This fund accounts for the accumulated fees collected to fund the park facilities needed to serve new development. It is a fee-in-lieu of land dedication charged under the Quimby Act to new residential development occurring in a subdivision.

Transportation Facilities Fees – This fund accounts for the accumulation of fees collected to fund transportation facilities needed to serve new development to fund capacity-expanding transportation projects. This fee replaces the Highway 111 Circulation Improvement Fee.

Recreation Facilities Fees – This fee accounts for the accumulation of fees collected to fund recreation facilities needed to serve new development. As new development occurs, the City will need to make additional, capacity- expanding improvements to the golf course as demand for use of the facility increases.

Citywide Public Improvement – This fund is used to account for the accumulation of resources from the citywide public improvement fee for the acquisition and construction of general government capital projects.

Art in Public Places – This fund is used to account for fees collected through the building permit process to support art in public places with the community. The program supports arts and culture throughout the City.

Bridges Capital Reserve – This fund establishes reserve funding for bridges in the City.

Building Capital Reserve – This fund establishes reserve funding for the City’s assets in and around the City’s Civic Center complex. These assets include City Hall, the Fire Station, Emergency Operations Command, and surrounding Public Works facilities.

Medians & Parkways Capital Reserve – This fund establishes reserve funding for medians and parkways throughout the City.

Storm Drains Capital Reserve – This fund establishes reserve funding for storm drains throughout the City. Funding is for construction and preventative maintenance of storm drains to extend roadway infrastructure.

102 Page 168 of 333
Council Meeting Agenda- February 5, 2026

Traffic Signals Capital Reserve – This fund establishes reserve funding for traffic signals throughout the City.

Technology Capital Reserve – This fund establishes reserve funding for citywide information technology.

City Vehicles Capital Reserve – This fund establishes reserve funding for the purchase and replacement of City vehicles and fleet. Vehicles and fleet are to be replaced as needed to reduce the cost of ongoing maintenance costs.

Disaster Recovery Reserve – This reserve sets aside funds for the initial stages of disaster recovery prior to the inclusion of County, State, and Federal funding. Reserve funds allow for immediate response and recovery under a range of domestic emergencies like floods or earthquakes. The funds are earmarked, remain unspent if not used for disaster recovery, and cannot be used for any other purpose.

103 Page 169 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Combining Balance Sheet - Nonmajor Governmental Funds
.June 30, 2025
Debt Service
Funds
Citizens
Indian Wells Fire Access South Coast Option for
Financing Public Safety Measure "A"Maintenance AQMD Vehicle Public Safety AB 939 Authority Traffic Safety 1/2% Tax Transportation District No. 1 Registration Program Gas Tax Recycling Solid Waste Assets
Cash and investments 15,834$ -$ -$ -$ 987,199$ 21,579$ -$ -$ 237,195$ 57,170$ Restricted cash and investments 2,315,367 - - - - - - - - - Receivables
Accounts - 10,951 2,841 56,683 49,688 1,670 101,537 22,857 6,862 78,142 Accrued interest 57 - - - 3,531 77 - - - 1,053 Total assets 2,331,258$ 10,951$ 2,841$ 56,683$ 1,040,418$ 23,326$ 101,537$ 22,857$ 244,057$ 136,365$ Liabilities and Fund Balances
Liabilities
Accounts payable -$ -$ -$ -$ 101,143$ 3,572$ -$ -$ 553$ 77,084$ Accrued liabilities - - - - - - - - 2,122 2,133 Deposits payable - - - - 11,221 - - - - - Total liabilities - - - - 112,364 3,572 - - 2,675 79,217 Deferred Inflow of Resources
Unavailable revenue - 4,542 - - 17,411 1,670 101,537 - 594 30,931 Fund Balances
Restricted for
Community development - - - - - - - - - - Public safety - - 2,841 - 910,643 - - - - - Public works - 6,409 - 56,683 - 18,084 - 22,857 240,788 26,217 Debt service 2,331,258 - - - - - - - - - Committed to
Capital projects - - - - - - - - - - Assigned
Capital projects - - - - - - - - - - Unassigned - - - - - - - - - - Total fund balances 2,331,258 6,409 2,841 56,683 910,643 18,084 - 22,857 240,788 26,217 Total Liabilities, Deferred Inflows
of Resources and Fund Balances 2,331,258$ 10,951$ 2,841$ 56,683$ 1,040,418$ 23,326$ 101,537$ 22,857$ 244,057$ 136,365$ Special Revenue Funds
104 Page 170 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Combining Balance Sheet - Nonmajor Governmental Funds
.June 30, 2025
Affordable Hwy 111 Transportation Recreation Citywide
Consolidated Street Lighting Housing Circulation Park Facilities Facilities Facilities Public Art in Public LLMD District 2001-1 Operations Improvement Fees Fees Fees Improvement Places Assets
Cash and investments 2,292,671$ 22,645$ 393,494$ -$ -$ 1,999$ 4,004$ 669$ 779,443$ Restricted cash and investments - - 606,424 - - - - - - Receivables
Accounts 85,501 39 - - - - - - - Accrued interest 8,201 81 1,406 - - 7 15 2 2,789 Total assets 2,386,373$ 22,765$ 1,001,324$ -$ -$ 2,006$ 4,019$ 671$ 782,232$ Liabilities and Fund Balances
Liabilities
Accounts payable 59,548$ -$ 405,073$ -$ -$ -$ -$ -$ -$ Accrued liabilities - - - - - - - - - Deposits payable - - 137,128 - - - - - - Total liabilities 59,548 - 542,201 - - - - - - Deferred Inflow of Resources
Unavailable revenue 18,482 - - - - - - - - Fund Balances
Restricted for
Community development - - 459,123 - - - - - - Public safety - - - - - - - - - Public works 2,308,343 22,765 - - - - - - - Debt service - - - - - - - - - Committed to
Capital projects - - - - - - - - 782,232 Assigned
Capital projects - - - - - 2,006 4,019 671 - Unassigned - - - - - - - - - Total fund balances 2,308,343 22,765 459,123 - - 2,006 4,019 671 782,232 Total Liabilities, Deferred Inflows
of Resources and Fund Balances 2,386,373$ 22,765$ 1,001,324$ -$ -$ 2,006$ 4,019$ 671$ 782,232$ Special Revenue Funds Capital Projects Funds
105 Page 171 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Combining Balance Sheet - Nonmajor Governmental Funds
.June 30, 2025
Medians &Total
Bridges Buildings Parkways Storm Drains Traffic Signals Technology City Vehicles Disaster Nonmajor Capital Capital Capital Capital Capital Capital Capital Recovery Governmental Reserve Reserve Reserve Reserve Reserve Reserve Reserve Reserve Funds Assets
Cash and investments 2,308,021$ 2,527,545$ 1,908,458$ 1,136,783$ 995,801$ 939,676$ 484,461$ 641,659$ 15,756,306$ Restricted cash and investments - - - - - - - - 2,921,791 Receivables
Accounts - - - - - - - - 416,771 Accrued interest 8,255 9,040 6,826 4,066 3,561 3,361 1,733 2,295 56,356 Total assets 2,316,276$ 2,536,585$ 1,915,284$ 1,140,849$ 999,362$ 943,037$ 486,194$ 643,954$ 19,151,224$ Liabilities and Fund Balances
Liabilities
Accounts payable -$ -$ -$ -$ -$ -$ -$ -$ 646,973$ Accrued liabilities - - - - - - - - 4,255 Deposits payable - - - - - - - - 148,349 Total liabilities - - - - - - - - 799,577 Deferred Inflow of Resources
Unavailable revenue - - - - - - - - 175,167 Fund Balances
Restricted for
Community development - - - - - - - - 459,123 Public safety - - - - - - - - 913,484 Public works - - - - - - - - 2,702,146 Debt service - - - - - - - - 2,331,258 Committed to
Capital projects - - - - - - - - 782,232 Assigned
Capital projects 2,316,276 2,536,585 1,915,284 1,140,849 999,362 943,037 486,194 643,954 10,988,237 Unassigned - - - - - - - - - Total fund balances 2,316,276 2,536,585 1,915,284 1,140,849 999,362 943,037 486,194 643,954 18,176,480 Total Liabilities, Deferred Inflows
of Resources and Fund Balances 2,316,276$ 2,536,585$ 1,915,284$ 1,140,849$ 999,362$ 943,037$ 486,194$ 643,954$ 19,151,224$ Capital Projects Funds
106 Page 172 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended June 30, 2025
Debt Service
Funds
Citizens
Indian Wells Fire Access South Coast Option for
Financing Public Safety Measure "A"Maintenance AQMD Vehicle Public Safety AB 939 Authority Traffic Safety 1/2% Tax Transportation District No. 1 Registration Program Gas Tax Recycling Solid Waste Revenues
Taxes -$ -$ -$ -$ 434,153$ -$ -$ -$ -$ -$ Intergovernmental - - 36,858 325,086 1,460 4,724 194,663 270,398 - - Investment income (loss)250,674 219 118 75 44,330 1,039 468 193 - 20,417 Fines and forfeitures - 36,231 - - - - - - - - Rental income - - - - - - - - - - Assessments - - - - 1,195,107 - - - 153,628 1,784,931 Developer fees - - - - - - - - - - Other income - - - - 54,264 - - - - 1,057 Total revenues 250,674 36,450 36,976 325,161 1,729,314 5,763 195,131 270,591 153,628 1,806,405 Expenditures
Current
General government - - - - - - - 130,975 - - Public safety - - 43,999 - 1,538,817 - 195,131 - - - Community development - - - - - - - - - - Public works - 45,019 - 327,378 - 5,999 - 139,891 169,224 1,873,434 Capital outlay - - - - 405,252 - - - - - Principal retirement 495,000 - - - - - - - - - Interest and fiscal charges 471,550 - - - - - - - - - Total expenditures 966,550 45,019 43,999 327,378 1,944,069 5,999 195,131 270,866 169,224 1,873,434 Excess (Deficiency) of Revenues
over (under) Expenditures (715,876) (8,569) (7,023) (2,217) (214,755) (236) - (275) (15,596) (67,029) Other Financing Sources (Uses)
Transfers in 966,551 - - - - - - - - - Transfers out (4,195,346) - - - - - - - - - Total other financing
sources (uses)(3,228,795) - - - - - - - - - Net Change in Fund Balances (3,944,671) (8,569) (7,023) (2,217) (214,755) (236) - (275) (15,596) (67,029) Fund Balances, Beginning of Year 6,275,929 14,978 9,864 58,900 1,125,398 18,320 - 23,132 256,384 93,246 Fund Balances, End of Year 2,331,258$ 6,409$ 2,841$ 56,683$ 910,643$ 18,084$ -$ 22,857$ 240,788$ 26,217$ Special Revenue Funds
107 Page 173 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended June 30, 2025
Affordable Hwy 111 Transportation Recreation Citywide
Consolidated Street Lighting Housing Circulation Park Facilities Facilities Facilities Public Art in Public LLMD District 2001-1 Operations Improvement Fees Fees Fees Improvement Places Revenues
Taxes -$ -$ -$ -$ -$ -$ -$ -$ -$ Intergovernmental - - - - - - - - - Investment income (loss)116,863 1,123 18,677 18 - 48 96 15 38,693 Fines and forfeitures - - - - - - - - - Rental income - - 2,797,576 - - - - - - Assessments 1,643,770 2,225 - - - - - - - Developer fees - - - - 1,434 41,783 31,861 16,505 73,818 Other income - - - - - - - - - Total revenues 1,760,633 3,348 2,816,253 18 1,434 41,831 31,957 16,520 112,511 Expenditures
Current
General government - - - - - - - - - Public safety - - - - - - - - - Community development - - 3,175,797 - - - - - - Public works 1,537,489 192 - - - - - - - Capital outlay - - - - - - - - - Debt service
Principal retirement - - - - - - - - - Interest and fiscal charges - - - - - - - - - Total expenditures 1,537,489 192 3,175,797 - - - - - - Excess (Deficiency) of Revenues
over (under) Expenditures 223,144 3,156 (359,544) 18 1,434 41,831 31,957 16,520 112,511 Other Financing Sources (Uses)
Transfers in 113,883 - 422,868 - - 261,867 999,492 319,478 - Transfers out - - (550,000) (38,735) (1,434) (150,000) (434,578) (150,000) (131,881) Total other financing
sources (uses)113,883 - (127,132) (38,735) (1,434) 111,867 564,914 169,478 (131,881) Net Change in Fund Balances 337,027 3,156 (486,676) (38,717) - 153,698 596,871 185,998 (19,370) Fund Balances, Beginning of Year 1,971,316 19,609 945,799 38,717 - (151,692) (592,852) (185,327) 801,602 Fund Balances, End of Year 2,308,343$ 22,765$ 459,123$ -$ -$ 2,006$ 4,019$ 671$ 782,232$ Capital Projects FundsSpecial Revenue Funds
108 Page 174 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended June 30, 2025
Medians &Total
Storm Drains Bridges Buildings Parkways Traffic Signals Technology City Vehicles Disaster Nonmajor Capital Capital Capital Capital Capital Capital Capital Recovery Governmental Reserve Reserve Reserve Reserve Reserve Reserve Reserve Reserve Funds Revenues
Taxes -$ -$ -$ -$ -$ -$ -$ -$ 434,153$ Intergovernmental - - - - - - - - 833,189 Investment income (loss)58,956 119,046 130,309 98,547 52,204 48,840 25,001 33,501 1,059,470 Fines and forfeitures - - - - - - - - 36,231 Rental income - - - - - - - - 2,797,576 Assessments - - - - - - - - 4,779,661 Developer fees - - - - - - - - 165,401 Other income - - - - - - - - 55,321 Total revenues 58,956 119,046 130,309 98,547 52,204 48,840 25,001 33,501 10,161,002 Expenditures
Current
General government - - - - - - - - 130,975 Public safety - - - - - - - - 1,777,947 Community development - - - - - - - - 3,175,797 Public works - - - - - - - - 4,098,626 Capital outlay - - - - - - - - 405,252 Debt service
Principal retirement - - - - - - - - 495,000 Interest and fiscal charges - - - - - - - - 471,550 Total expenditures - - - - - - - - 10,555,147 Excess (Deficiency) of Revenues
over (under) Expenditures 58,956 119,046 130,309 98,547 52,204 48,840 25,001 33,501 (394,145) Other Financing Sources (Uses)
Transfers in 162,500 162,500 162,500 162,500 162,500 162,500 162,500 150,000 4,371,639 Transfers out - - - - - - - - (5,651,974) Total other financing
sources (uses)162,500 162,500 162,500 162,500 162,500 162,500 162,500 150,000 (1,280,335) Net Change in Fund Balances 221,456 281,546 292,809 261,047 214,704 211,340 187,501 183,501 (1,674,480) Fund Balances, Beginning of Year 919,393 2,034,730 2,243,776 1,654,237 784,658 731,697 298,693 460,453 19,850,960 Fund Balances, End of Year 1,140,849$ 2,316,276$ 2,536,585$ 1,915,284$ 999,362$ 943,037$ 486,194$ 643,954$ 18,176,480$ Capital Projects Funds
109 Page 175 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income 25,000$ 250,674$ 225,674$ Total revenues 25,000 250,674 225,674 Expenditures
Debt service
Principal retirement - 495,000 (495,000) Interest and fiscal charges 477,050 471,550 5,500 Total expenditures 477,050 966,550 (489,500) Other financing sources (uses)
Transfers in 966,550 966,551 1 Transfers out - (4,195,346) (4,195,346) Total other financing sources (uses)966,550 (3,228,795) (4,195,345) Net change in fund balance 514,500 (3,944,671) (4,459,171) Fund balance, beginning 6,275,929 6,275,929 - Fund balance, ending 6,790,429$ 2,331,258$ (4,459,171)$ City of Indian Wells, California
Budgetary Comparison Schedule - IWFA Debt Service Fund
Year Ended June 30, 2025
110 Page 176 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)10$ 219$ 209$ Fines and forfeitures 18,000 36,231 18,231 Total revenues 18,010 36,450 18,440 Expenditures
Current
Public works 18,000 45,019 (27,019) Total expenditures 18,000 45,019 (27,019) Net change in fund balance 10 (8,569) (8,579) Fund balance, beginning 14,978 14,978 - Fund balance, ending 14,988$ 6,409$ (8,579)$ City of Indian Wells, California
Budgetary Comparison Schedule - Traffic Safety
Year Ended June 30, 2025
111 Page 177 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Intergovernmental 36,500$ 36,858$ 358$ Investment income (loss)500 118 (382) Total revenues 37,000 36,976 (24) Expenditures
Current
Public safety 37,500 43,999 (6,499) Total expenditures 37,500 43,999 (6,499) Net change in fund balance (500) (7,023) (6,523) Fund balance, beginning 9,864 9,864 - Fund balance, ending 9,364$ 2,841$ (6,523)$ City of Indian Wells, California
Budgetary Comparison Schedule - Public Safety 1/2% Tax
Year Ended June 30, 2025
112 Page 178 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Intergovernmental 300,000$ 325,086$ 25,086$ Investment income 560 75 (485) Total revenues 300,560 325,161 24,601 Expenditures
Current
Public works 305,000 327,378 (22,378) Total expenditures 305,000 327,378 (22,378) Net change in fund balance (4,440) (2,217) 2,223 Fund balance, beginning 58,900 58,900 - Fund balance, ending 54,460$ 56,683$ 2,223$ City of Indian Wells, California
Budgetary Comparison Schedule - Measure "A" Transportation Year Ended June 30, 2025
113 Page 179 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Taxes 345,500$ 434,153$ 88,653$ Licenses and permits 1,110 - (1,110) Intergovernmental 1,880 1,460 (420) Investment income (loss)49,200 44,330 (4,870) Assessments 1,195,000 1,195,107 107 Other income 3,540 54,264 50,724 Total revenues 1,596,230 1,729,314 133,084 Expenditures
Current
Public safety 1,744,816 1,538,817 205,999 Capital outlay 406,770 405,252 1,518 Total expenditures 2,151,586 1,944,069 207,517 Net change in fund balance (555,356) (214,755) 340,601 Fund balance, beginning 1,125,398 1,125,398 - Fund balance, ending 570,042$ 910,643$ 340,601$ City of Indian Wells, California
Budgetary Comparison Schedule - Fire Access Maintenance District No. 1 Year Ended June 30, 2025
114 Page 180 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Intergovernmental 6,970$ 4,724$ (2,246)$ Investment income (loss)170 1,039 869 Total revenues 7,140 5,763 (1,377) Expenditures
Current
Public works 7,500 5,999 1,501 Total expenditures 7,500 5,999 1,501 Net change in fund balance (360) (236) 124 Fund balance, beginning 18,320 18,320 - Fund balance, ending 17,960$ 18,084$ 124$ City of Indian Wells, California
Budgetary Comparison Schedule - South Coast AQMD Vehicle Registration Year Ended June 30, 2025
115 Page 181 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Intergovernmental 184,500$ 194,663$ 10,163$ Investment income (loss)2,050 468 (1,582) Total revenues 186,550 195,131 8,581 Expenditures
Current
Public safety 186,550 195,131 (8,581) Total expenditures 186,550 195,131 (8,581) Net change in fund balance - - - Fund balance, beginning - - - Fund balance, ending -$ -$ -$ City of Indian Wells, California
Budgetary Comparison Schedule - Citizens Option for Public Safety Program Year Ended June 30, 2025
116 Page 182 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Intergovernmental 261,180$ 270,398$ 9,218$ Investment income 1,725 193 (1,532) Total revenues 262,905 270,591 7,686 Expenditures
Current
General government 116,400 130,975 (14,575) Public works 146,710 139,891 6,819 Total expenditures 263,110 270,866 (7,756) Net change in fund balance (205) (275) (70) Fund balance, beginning 23,132 23,132 - Fund balance, ending 22,927$ 22,857$ (70)$ City of Indian Wells, California
Budgetary Comparison Schedule - Gas Tax
Year Ended June 30, 2025
117 Page 183 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Assessments 125,000$ 153,628$ 28,628$ Total revenues 125,000 153,628 28,628 Expenditures
Current
Public works 251,772 169,224 82,548 Total expenditures 251,772 169,224 82,548 Net change in fund balance (126,772) (15,596) 111,176 Fund balance, beginning 256,384 256,384 - Fund balance, ending 129,612$ 240,788$ 111,176$ City of Indian Wells, California
Budgetary Comparison Schedule - AB 939 Recycling
Year Ended June 30, 2025
118 Page 184 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)20,000$ 20,417$ 417$ Assessments 1,205,000 1,784,931 579,931 Other income 2,500 1,057 (1,443) Total revenues 1,227,500 1,806,405 578,905 Expenditures
Current
Public works 1,269,969 1,873,434 (603,465) Total expenditures 1,269,969 1,873,434 (603,465) Net change in fund balance (42,469) (67,029) (24,560) Fund balance, beginning 93,246 93,246 - Fund balance, ending 50,777$ 26,217$ (24,560)$ City of Indian Wells, California
Budgetary Comparison Schedule - Solid Waste
Year Ended June 30, 2025
119 Page 185 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)31,195$ 116,863$ 85,668$ Assessments 1,586,800 1,643,770 56,970 Total revenues 1,617,995 1,760,633 142,638 Expenditures
Current
Public works 1,908,661 1,537,489 371,172 Total expenditures 1,908,661 1,537,489 371,172 Other financing sources (uses)
Transfers in 113,883 113,883 - Total other financing sources (uses)113,883 113,883 - Net change in fund balance (176,783) 337,027 513,810 Fund balance, beginning 1,971,316 1,971,316 - Fund balance, ending 1,794,533$ 2,308,343$ 513,810$ City of Indian Wells, California
Budgetary Comparison Schedule - Consolidating LLMD
Year Ended June 30, 2025
120 Page 186 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)350$ 1,123$ 773$ Assessments 1,370 2,225 855 Total revenues 1,720 3,348 1,628 Expenditures
Current
Public works 1,480 192 1,288 Total expenditures 1,480 192 1,288 Net change in fund balance 240 3,156 2,916 Fund balance, beginning 19,609 19,609 - Fund balance, ending 19,849$ 22,765$ 2,916$ City of Indian Wells, California
Budgetary Comparison Schedule - Street Lighting District 2001-1 Year Ended June 30, 2025
121 Page 187 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)130,000$ 18,677$ (111,323)$ Rental income 2,636,400 2,797,576 161,176 Total revenues 2,766,400 2,816,253 49,853 Expenditures
Current
Community development 2,770,000 3,175,797 (405,797) Total expenditures 2,770,000 3,175,797 (405,797) Other financing sources (uses):

Transfers in - 422,868 422,868 Transfers out - (550,000) (550,000) Total other financing sources (uses)- (127,132) (127,132) Net change in fund balance (3,600) (486,676) (483,076) Fund balance, beginning 945,799 945,799 - Fund balance, ending 942,199$ 459,123$ (483,076)$ City of Indian Wells, California
Budgetary Comparison Schedule - Affordable Housing Operations Year Ended June 30, 2025
122 Page 188 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Intergovernmental 500,000$ 3,048,943$ 2,548,943$ Investment income (loss)195,000 827,071 632,071 Rental income - - - Other income 1,000 13,867 12,867 Total revenues 696,000 3,889,881 3,193,881 Expenditures
Current
General government 350,683 332,740 17,943 Capital outlay 24,976,258 10,936,146 14,040,112 Total expenditures 25,326,941 11,268,886 14,058,055 Other financing sources (uses)
Transfers in 3,500,000 14,945,346 11,445,346 Total other financing sources (uses)3,500,000 14,945,346 11,445,346 Net change in fund balance (21,130,941) 7,566,341 28,697,282 Fund balance, beginning 11,923,603 11,923,603 - Fund balance, ending (9,207,338)$ 19,489,944$ 28,697,282$ Year Ended June 30, 2025
Budgetary Comparison Schedule - Capital Improvements
City of Indian Wells, California
123 Page 189 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)579,130$ 982,602$ 403,472$ Total revenues 579,130 982,602 403,472 Other financing sources (uses)
Transfers in 162,500 162,500 - Total other financing sources (uses)162,500 162,500 - Net change in fund balance 741,630 1,145,102 403,472 Fund balance, beginning 18,062,840 18,062,840 - Fund balance, ending 18,804,470$ 19,207,942$ 403,472$ City of Indian Wells, California
Budgetary Comparison Schedule - City Streets Capital Reserve Year Ended June 30, 2025
124 Page 190 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)2,000$ 18$ (1,982)$ Developer fees 50,000 - (50,000) Total revenues 52,000 18 (51,982) Other financing sources (uses):

Transfers out - (38,735) (38,735) Total other financing sources (uses)- (38,735) (38,735) Net change in fund balance 52,000 (38,717) (90,717) Fund balance, beginning 38,717 38,717 - Fund balance, ending 90,717$ -$ (90,717)$ City of Indian Wells, California
Budgetary Comparison Schedule - Highway 111 Circulation Improvements Year Ended June 30, 2025
125 Page 191 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Developer fees -$ 1,434$ 1,434$ Total revenues - 1,434 1,434 Other financing sources (uses):

Transfers out - (1,434) (1,434) Total other financing sources (uses)- (1,434) (1,434) Net change in fund balance - - - Fund balance, beginning - - - Fund balance, ending -$ -$ -$ City of Indian Wells, California
Budgetary Comparison Schedule - Park Facilities Fees
Year Ended June 30, 2025
126 Page 192 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Intergovernmental -$ 177,952$ 177,952$ Developer fees 174,250 6,334 (167,916) Total revenues 174,250 184,286 10,036 Expenditures
Current
General government - 1,878 (1,878) Capital outlay 383,155 - 383,155 Total expenditures 383,155 1,878 381,277 Other financing sources (uses):

Transfers in - 1,434 1,434 Total other financing sources (uses)- 1,434 1,434 Net change in fund balance (208,905) 183,842 392,747 Fund balance, beginning, as previously reported (1,386,737) (1,386,737) - Correction of error (418,206) (418,206) - Fund balance, beginning, as restated (1,804,943) (1,804,943) - Fund balance, ending (2,013,848)$ (1,621,101)$ 392,747$ City of Indian Wells, California
Budgetary Comparison Schedule - Park Facilities in Lieu Capital Projects Fund Year Ended June 30, 2025
127 Page 193 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)1,610$ 48$ (1,562)$ Developer fees 150,000 41,783 (108,217) Total revenues 151,610 41,831 (109,779) Other financing sources (uses)
Transfers in - 261,867 261,867 Transfers out - (150,000) (150,000) Total other financing sources (uses)- 111,867 111,867 Net change in fund balance 151,610 153,698 2,088 Fund balance, beginning (151,692) (151,692) - Fund balance, ending (82)$ 2,006$ 2,088$ City of Indian Wells, California
Budgetary Comparison Schedule - Transportation Facilities Fees Year Ended June 30, 2025
128 Page 194 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)3,080$ 96$ (2,984)$ Developer fees 445,880 31,861 (414,019) Total revenues 448,960 31,957 (417,003) Other financing sources (uses)
Transfers in - 999,492 (999,492) Transfers out - (434,578) 434,578 Total other financing sources (uses)- 564,914 (564,914) Net change in fund balance 448,960 596,871 (981,917) Fund balance, beginning (592,852) (592,852) - Fund balance, ending (143,892)$ 4,019$ (981,917)$ City of Indian Wells, California
Budgetary Comparison Schedule - Recreation Facilities Fees Year Ended June 30, 2025
129 Page 195 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)100$ 15$ (85)$ Developer fees 153,750 16,505 (137,245) Total revenues 153,850 16,520 (137,330) Other financing sources (uses)
Transfers in - 319,478 319,478 Transfers out - (150,000) (150,000) Total other financing sources (uses)- 169,478 169,478 Net change in fund balance 153,850 185,998 32,148 Fund balance, beginning (185,327) (185,327) - Fund balance, ending (31,477)$ 671$ 32,148$ Budgetary Comparison Schedule - City Wide Public Improvements Year Ended June 30, 2025
City of Indian Wells, California
130 Page 196 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)10,000$ 38,693$ 28,693$ Developer fees 15,380 73,818 58,438 Total revenues 25,380 112,511 87,131 Other financing sources (uses):

Transfers out - (131,881) (131,881) Total other financing sources (uses)- (131,881) (131,881) Net change in fund balance 25,380 (19,370) (44,750) Fund balance, beginning 801,602 801,602 - Fund balance, ending 826,982$ 782,232$ (44,750)$ City of Indian Wells, California
Budgetary Comparison Schedule - Art in Public Places
Year Ended June 30, 2025
131 Page 197 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)25,370$ 58,956$ 33,586$ Total revenues 25,370 58,956 33,586 Other financing sources (uses)
Transfers in 162,500 162,500 - Total other financing sources (uses)162,500 162,500 - Net change in fund balance 187,870 221,456 33,586 Fund balance, beginning 919,393 919,393 - Fund balance, ending 1,107,263$ 1,140,849$ 33,586$ City of Indian Wells, California
Budgetary Comparison Schedule - Storm Drains Capital Reserve Year Ended June 30, 2025
132 Page 198 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)36,900$ 119,046$ 82,146$ Total revenues 36,900 119,046 82,146 Other financing sources (uses)
Transfers in 162,500 162,500 - Total other financing sources (uses)162,500 162,500 - Net change in fund balance 199,400 281,546 82,146 Fund balance, beginning 2,034,730 2,034,730 - Fund balance, ending 2,234,130$ 2,316,276$ 82,146$ City of Indian Wells, California
Budgetary Comparison Schedule - Bridges Capital Reserve Year Ended June 30, 2025
133 Page 199 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)47,150$ 130,309$ 83,159$ Total revenues 47,150 130,309 83,159 Other financing sources (uses)
Transfers in 412,500 162,500 (250,000) Total other financing sources (uses)412,500 162,500 (250,000) Net change in fund balance 459,650 292,809 (166,841) Fund balance, beginning 2,243,776 2,243,776 - Fund balance, ending 2,703,426$ 2,536,585$ (166,841)$ City of Indian Wells, California
Budgetary Comparison Schedule - Buildings Capital Reserve Year Ended June 30, 2025
134 Page 200 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)36,900$ 98,547$ 61,647$ Total revenues 36,900 98,547 61,647 Other financing sources (uses)
Transfers in 162,500 162,500 - Total other financing sources (uses)162,500 162,500 - Net change in fund balance 199,400 261,047 61,647 Fund balance, beginning 1,654,237 1,654,237 - Fund balance, ending 1,853,637$ 1,915,284$ 61,647$ City of Indian Wells, California
Budgetary Comparison Schedule - Medians & Parkways Capital Reserve Year Ended June 30, 2025
135 Page 201 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)21,010$ 52,204$ 31,194$ Total revenues 21,010 52,204 31,194 Other financing sources (uses)
Transfers in 162,500 162,500 - Total other financing sources (uses)162,500 162,500 - Net change in fund balance 183,510 214,704 31,194 Fund balance, beginning 784,658 784,658 - Fund balance, ending 968,168$ 999,362$ 31,194$ City of Indian Wells, California
Budgetary Comparison Schedule - Traffic Signals Capital Reserve Year Ended June 30, 2025
136 Page 202 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)15,840$ 48,840$ 33,000$ Total revenues 15,840 48,840 33,000 Other financing sources (uses)
Transfers in 162,500 162,500 - Total other financing sources (uses)162,500 162,500 - Net change in fund balance 178,340 211,340 33,000 Fund balance, beginning 731,697 731,697 - Fund balance, ending 910,037$ 943,037$ 33,000$ City of Indian Wells, California
Budgetary Comparison Schedule - Technology Capital Reserve Year Ended June 30, 2025
137 Page 203 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)3,690$ 25,001$ 21,311$ Total revenues 3,690 25,001 21,311 Other financing sources (uses)
Transfers in 162,500 162,500 - Total other financing sources (uses)162,500 162,500 - Net change in fund balance 166,190 187,501 21,311 Fund balance, beginning 298,693 298,693 - Fund balance, ending 464,883$ 486,194$ 21,311$ City of Indian Wells, California
Budgetary Comparison Schedule - City Vehicles Capital Reserve Year Ended June 30, 2025
138 Page 204 of 333
Council Meeting Agenda- February 5, 2026

Variance with
Budget
Budgeted Positive
Amounts Actual (Negative)
Revenues
Investment income (loss)3,000$ 33,501$ 30,501$ Total revenues 3,000 33,501 30,501 Other financing sources (uses)
Transfers in 150,000 150,000 - Total other financing sources (uses)150,000 150,000 - Net change in fund balance 153,000 183,501 30,501 Fund balance, beginning 460,453 460,453 - Fund balance, ending 613,453$ 643,954$ 30,501$ City of Indian Wells, California
Budgetary Comparison Schedule - Disaster Recovery Reserve Year Ended June 30, 2025
139 Page 205 of 333
Council Meeting Agenda- February 5, 2026

Employee Compensated
Benefits Absences Totals
Assets
Current Assets
Cash and investments 2,164,159$ -$ 2,164,159$ Restricted Section 115 Trust cash and investments 5,818,393 - 5,818,393 Receivables
Accrued interest 7,740 - 7,740 Total current assets 7,990,292 - 7,990,292 Total assets 7,990,292 - 7,990,292 Deferred Outflows of Resources
Deferred amounts related to OPEB 4,249,743 - 4,249,743 Liabilities
Current Liabilities
Accounts payable 1,470 - 1,470 Net OPEB liability 4,602,246 - 4,602,246 Total liabilities 4,603,716 - 4,603,716 Deferred Inflows of Resources
Deferred amounts related to OPEB 390,394 - 390,394 Net Position
Restricted for OPEB 231,795 - 231,795 Restricted for Pension 984,352 - 984,352 Unrestricted 6,029,778 - 6,029,778 Total net position 7,245,925$ -$ 7,245,925$ Governmental Activities -
Internal Service Funds
City of Indian Wells, California
Combining Statement of Net Position - Internal Service Funds .June 30, 2025
140 Page 206 of 333
Council Meeting Agenda- February 5, 2026

Employee Compensated
Benefits Absences Totals
Operating Revenues
Interdepartmental charges 1,261,146$ -$ 1,261,146$ Total operating revenues 1,261,146 - 1,261,146 Operating Expenses
Administration and general 1,668,876 - 1,668,876 Total operating expenses 1,668,876 - 1,668,876 Operating Income (Loss)(407,730) - (407,730) Nonoperating Revenue (Expenses)
Investment income (loss)810,343 (1,374) 808,969 Total nonoperaƟng revenues (expenses)810,343 (1,374) 808,969 Transfers Out - (757,524) (757,524) Changes in Net Position 402,613 (758,898) (356,285) Net Position, Beginning of Year 6,843,312 758,898 7,602,210 Net Position, End of Year 7,245,925$ -$ 7,245,925$ Governmental Activities -
Internal Service Funds
City of Indian Wells, California
Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds Year Ended June 30, 2025
141 Page 207 of 333
Council Meeting Agenda- February 5, 2026

Employee Compensated
Benefits Absences Totals
Operating Activities
Cash received from interfund services provided 1,261,146$ -$ 1,261,146$ Cash paid to suppliers for goods and services (6,513,085) - (6,513,085) Net Cash from (used for) Operating Activities (5,251,939) - (5,251,939) Non-Capital Financing Activities
Cash received from other funds - (757,524) (757,524) Net Cash from (used for) Non-Capital Financing Activities - (757,524) (757,524) Investing Activities
Investment income 807,924 1,555 809,479 Net Cash from (used for) Investing Activities 807,924 1,555 809,479 Net Change in Cash and Cash Equivalents (4,444,015) (755,969) (5,199,984) Cash, Restricted Cash, and Cash Equivalents, Beginning of Year 12,426,567 755,969 13,182,536 Cash, Restricted Cash, and Cash Equivalents, End of Year 7,982,552$ -$ 7,982,552$ -
Reconciliation of Operating Income to Net Cash
from (used for) Operating Activities
Operating income (loss)(407,730)$ -$ (407,730)$ Changes in:

Accounts receivable - - - Net OPEB asset/liability (2,633,147) - (2,633,147) Deferred outflows related to OPEB (1,917,614) - (1,917,614) Deferred inflows related to OPEB (294,918) - (294,918) Accounts payable 1,470 - 1,470 Net Cash from (used for) Operating Activities (5,251,939)$ -$ (5,251,939)$ Governmental Activities -
Internal Service Funds
City of Indian Wells, California
Combining Statement of Cash Flows - Internal Service Funds Year Ended June 30, 2025
142 Page 208 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Statistical Section (Unaudited)
June 30, 2025

This part of the City of Indian Wells' annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

Contents Page

Financial Trends – These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Net Position by Component 145
Changes in Net Position 146
Fund Balances of Governmental Funds 147
Changes in Fund Balances of Governmental Funds 148

Revenue Capacity – These schedules contain information to help the reader assess the City’s most significant local revenue sources, general and Redevelopment property taxes.

Tax Revenues by Source - Governmental Funds 149
Assessed Value and Estimated Actual Value of Taxable Property 150 Assessed Value of Property by Use Code, Citywide 151
Direct and Overlapping Property Tax Rates 152
Principal Property Taxpayers 153
Principal Sales Tax Producers 154
Property Tax Levies and Collections 155
Transient Occupancy Tax Collections 156

Debt Capacity – These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Ratios of Outstanding Debt by Type 157
Ratios of General Bonded Debt Outstanding and Legal Debt Margin 158 Direct and Overlapping Debt 159
Pledged-Revenue Coverage 160

Demographic and Economic Information – These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Demographic and Economic Statistics 161
Principal Employers 162
143 Page 209 of 333
Council Meeting Agenda- February 5, 2026

City of Indian Wells, California
Statistical Section (Unaudited)
June 30, 2025

Contents Page

Operating Information – These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

Full-time Equivalent City Employees by Function 163
Operating Indicators by Function 164
Capital Assets Statistics by Function 165

Sources: Unless otherwise noted, the information in these schedules was derived from the City's annual comprehensive financial reports for the relevant year.
144 Page 210 of 333
Council Meeting Agenda- February 5, 2026

2025 2024 2023 2022 2021**2020 2019 2018 2017 2016
Governmental activities:

Net investment in
capital assets 145,413,139$ 142,190,278$ 147,924,061$ 145,969,138$ 148,375,228$ 163,856,985$ 167,002,186$ 172,007,625$ 172,494,796$ 175,639,386$ Restricted for:

Community development 459,123 945,799 725,787 4,718,908 4,439,261 3,801,007 3,108,085 2,661,415 2,401,909 2,294,829 Housing 12,646,741 12,034,055 15,429,469 13,016,874 15,486,485 12,961,532 13,870,180 14,632,707 12,842,189 13,352,710 Public safety 7,652,573 5,863,937 6,183,630 7,054,610 6,548,304 6,728,419 5,737,133 5,308,643 6,034,523 9,535,112 Public works 3,952,146 2,494,602 2,345,243 2,317,493 2,793,046 2,657,863 2,412,413 2,223,810 2,135,793 2,201,769 Debt service - - - - - - - - - - Section 115 Trust - - - - 937,402 - - - - - Pension obligations 1,974,514 2,041,991 5,567,799 11,369,223 - - - - - - OPEB obligations 112,070 2,833,540 1,798,141 2,301,464 - - - - - - Unrestricted 85,577,754 86,935,013 70,023,935 69,606,313 65,899,752 69,738,721 71,786,558 61,884,894 65,150,651 50,054,925 Total governmental activities
net position 257,788,060 255,339,215 249,998,065 256,354,023 244,479,478 259,744,527 263,916,555 258,719,094 261,059,861 253,078,731 Business-type activites:

Net investment in
capital assets**50,104,159 42,518,369 44,597,589 46,751,387 47,197,377 49,122,479 49,821,298 51,198,409 52,758,255 57,498,601 Restricted for:

Pension Obligations 58,762 31,475 139,371 338,347 - - - - - - Unrestricted 2,005,741 (490,067) (2,915,969) (4,547,545) (5,609,097) (5,258,314) (1,809,374) 1,024,501 1,657,668 1,798,085 Total business-type activities
net position 52,168,662 42,059,777 41,820,991 42,542,189 41,588,280 43,864,165 48,011,924 52,222,910 54,415,923 59,296,686 Primary government:

Net investment in 195,517,298 184,708,647 192,521,650 192,720,525 195,572,605 212,979,464 216,823,484 223,206,034 225,253,051 233,137,987 capital assets
Restricted 24,769,345 21,369,868 24,823,500 27,446,232 29,267,096 26,148,821 25,127,811 24,826,575 23,414,414 27,384,420 Unrestricted 87,583,495 86,444,946 67,107,966 65,058,768 60,290,655 64,480,407 69,977,184 62,909,395 66,808,319 51,853,010 Total primary government
net position 309,956,722$ 297,398,992$ 291,819,056$ 298,896,212$ 286,067,758$ 303,608,692$ 311,928,479$ 310,942,004$ 315,475,784$ 312,375,417$ *As of 7/1/15, two business-type activities were created, Indian Wells Golf Resort and Club Drive Property **As of 7/1/21, GASB 87 was implemented
Fiscal Year
City of Indian Wells
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
145