Agenda — Indio City Council, November 15, 2023 (part 2 of 5)

AGENDA ITEM #11.10
Second Reading of Ordinance No. 1799 Amending Title IX, Chapter 101 Rela... Page 162 of 538 2 exempt identification number. Every year, the City Clerk shall review all applications for timeliness and proper qualifications and shall issue a maximum of nine permits in any given year to qualified, timely applicants, one of which shall go to the Indio Youth Task Force. If the City Clerk shall have in excess of nine timely applications, the City Clerk shall select a total of eight permitees from the pool of qualified, timely applicants based on a lottery. 3) Notice. Applicants shall be notified of the granting or denial of the permit on or before the first Monday in May of each calendar year. 4) Limitations.
a) Retail sales of safe and sane fireworks shall be authorized only during the period of 12:00 noon and 10:00 p.m. on June 28 of each year and 9:00 a.m. through 10:00 p.m. each day from June 29 through July 6 of the same calendar year and such license shall expire at the end of such period. Retail sales of safe and sane fireworks shall be prohibited on any other date or time during any calendar year.
b) No temporary safe and sane fireworks stand may be erected prior to June 18 or remain in place after July 6 of the same calendar year.
(C) Permit authority. The City Clerk may grant or deny the issuance of a permit for erection of a temporary safe and sane fireworks stand and the retail sales of safe and sane fireworks pursuant to the delegation of such authority by the city. If an applicant believes its application was improperly excluded from the pool of qualified and timely applications, the applicant may receive a hearing by the City Manager to appeal the denial of a permit, at which time the City Manager may reverse, modify, or sustain the denial.
(D) Permit requirements. The following provisions apply to each of the nine permittees for the retail sale of safe and sane fireworks:
1) By August 1 of each year following the sales period authorized in Subsection (B)(4) above, each applicant shall remit to the City an amount equal to Seven Percent (7%) of gross receipts, as that term is defined in Section 110.01 of this Code as a pro rata portion payment of the cost to the City of processing and issuing payments, inspection of fireworks stands, public education and awareness campaigns regarding fireworks, and fire operation and suppression efforts related to safe and sane fireworks;

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AGENDA ITEM #11.10
Second Reading of Ordinance No. 1799 Amending Title IX, Chapter 101 Rela... Page 163 of 538 3 2) Once issued, permits shall not be transferable, assignable or renewable. Any permit issued shall be valid only for the dates and location specified in the permit. Only one temporary safe and sane fireworks stand may be operated by each permittee;
3) The applicant must be insured for the minimum coverage amounts of $1,000,000/$1,000,000 for potential public liability and property damage in connection with the operation of the temporary safe and sane fireworks stand. The city must be named as an additional insured under the insurance policy;
4) Each permittee is required to obtain a City of Indio Special Events Business License;
5) Each permittee is required to obtain a State Board of Equalization Permit;
6) All permit requirements must be completed and returned to the City Clerk by 5:00 p.m. on June 1 of the calendar year for which the permit is sought;
7) Each organization must be issued a license from the State Fire Marshal pursuant to Cal. Health and Safety Code §§ 12500, et seq.;
8) Each organization must be a nonprofit association or corporation organized primarily for veteran, youth, patriotic, welfare, civic betterment, or charitable purposes;
9) Each organization must have its principal and permanent meeting place within the territorial limits of the city, must have been organized and established for a minimum of one year continuously preceding the filing of the application for the retail sales permit, and must have a bona fide membership of at least 20 members, the majority of whom reside in the city;
10) No permit issued or authorized to be issued by the provisions of this section shall be transferable; and
11) Failure to meet any of the requirements will result in revocation of the application permit.
(E) Temporary safe and sane fireworks stand requirements. Each of the nine selected permittees must submit to the Fire Chief a plot plan approved by the owner of the property upon which the applicant will construct a temporary fireworks stand for the sale of safe and sane fireworks. The Fire

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AGENDA ITEM #11.10
Second Reading of Ordinance No. 1799 Amending Title IX, Chapter 101 Rela... Page 164 of 538 4 Chief shall make an investigation of the proposed site to ensure compliance with the following:
1) The temporary fireworks stand erected for the retail sale of safe and sane fireworks must be constructed under the supervision of the City Building Department Inspector in such a manner as will reasonably ensure the safety of salespersons and patrons. An electrical permit must be obtained if a temporary power pole is required.
2) The temporary fireworks stand shall have at least two exits, each at least 30 inches in width, in locations to be approved by the Fire Chief. The stand shall be located at least 25 feet from any other structure or property line of adjoining land. Minimum setback from the public sidewalk shall be ten feet. No stand shall have a floor area in excess of 260 square feet;
3) At least two water base fire extinguishers shall be present in each temporary fireworks stand. The extinguishers shall be subject to inspection by the Fire Chief;
4) There shall be at least one adult present in the temporary fireworks stand who is 21 years of age or over during all hours of retail sales.

No person under 18 years of age shall sell fireworks at such stand; 5) No smoking shall be allowed in the temporary fireworks stand nor within ten feet thereof. No alcoholic beverages shall be allowed on the premises;
6) All weeds and combustible material shall be cleared from the location of the temporary fireworks stand including a distance of at least 25 feet surrounding the stand;
7) Signs stating "NO SMOKING" and "NO SALES TO ANYONE
UNDER SIXTEEN (16) YEARS OF AGE:" and all permits must be posted in a conspicuous place;
8) An alert night watchman, at least 21 years of age, must be provided by the permittee to guard the temporary fireworks stand during the hours of storage;
9) If a portable power generator is utilized, it shall be screened or otherwise isolated to prevent public access and shall be located a minimum of 25 feet from the temporary fireworks stand. No combustible material shall be stored/placed within 25 feet of the

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AGENDA ITEM #11.10
Second Reading of Ordinance No. 1799 Amending Title IX, Chapter 101 Rela... Page 165 of 538 5 portable generator. A minimum 2A10BC extinguisher shall be on site;
10) Motor vehicles shall be parked or otherwise located a minimum of 25 feet from the temporary fireworks stand;
11) A safety handout in English and Spanish shall be provided with each purchase, and the handout shall also be posted on the temporary fireworks stand in a location visible to the public; 12) No dangerous fireworks or exempt fireworks shall be sold, offered for sale, distributed from, offered for distribution, given away, offered to be given away, displayed, or stored on any temporary fireworks stand; and
13) No other merchandise, goods, or items of any kind shall be sold, offered for sale, distributed from, offered for distribution, given away, offered to be given away, displayed, or stored on any temporary fireworks stand.
(F) Revocation: remedies. In addition to all other remedies set forth in this chapter, failure to remove the temporary fireworks stand in accordance with this chapter will result in the assessment of a penalty of $50 per day that the stand remains in place, or portion thereof. The Fire Chief may revoke the permit granted to any permittee that is operating a temporary fireworks stand in violation of the provisions of the permit, or of this chapter. Such permittee shall not be eligible for a new permit for a period of one year thereafter. The remedies and penalties prescribed by this section or which are available under any other provision of this code are cumulative and non-exclusive.

Section 2. Section 101.06 of the Indio Municipal Code is hereby amended to read as follows:
§ 101.06 DANGEROUS FIREWORKS PROHIBITED - EXCEPTIONS.
(A) Except as otherwise provided by law, this chapter, or as part of a public display of fireworks permitted by the city under § 101.07 of this chapter, it is unlawful for any person to sell, offer to sell, give away, offer to give away, distribute, offer to distribute, possess, keep, store, discharge or use dangerous fireworks within the city, or to permit another person offer to sell, give away, offer to give away, distribute. offer to distribute, possess, keep, store, discharge or use dangerous fireworks within the city. (B) It is unlawful for any person to implicitly or expressly, directly or indirectly, permit, allow, or consent to the discharge or use of dangerous fireworks

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AGENDA ITEM #11.10
Second Reading of Ordinance No. 1799 Amending Title IX, Chapter 101 Rela... Page 166 of 538 6 on property within the city that is owned, leased, rented, or otherwise lawfully possessed by such person.
(C) Any enforcement official of the City shall have the authority to remove or cause to be removed or disposed of in an approved manner, at the expense of the owner, explosives, explosive materials or fireworks offered or exposed for sale, stored, possessed or used in violation of this Section.

Section 3. Not Subject to California Environmental Quality Act. The Council finds that this Ordinance and its provisions are not subject to the California Environmental Quality Act (CEQA) pursuant to: (i) Section 15060(c)(2) (the regulatory activity undertaken herein will not result in a direct or reasonably foreseeable indirect physical change in the environment) and (ii) Section 15060(c)(3) (the regulatory activity undertaken herein is not a project as defined in Section 15378), both Sections being a part of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this regulatory ordinance has no potential for resulting in physical changes to the environment, directly or indirectly. Therefore, no environmental assessment is required or necessary.

Section 4. Severability. If any section, subsection, sentence, clause, phrase or word ("Part") of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this Ordinance. The Council hereby declares that it would have passed this Ordinance, and each and every Part not declared invalid or unconstitutional, without regard to or reliance upon the passage of any such Part deemed invalid or unconstitutional.

Section 5. Certification. The City Clerk shall certify the adoption of this ordinance and shall cause the same to be published or posted in the manner prescribed by law.

PASSED, APPROVED AND ADOPTED this ____________________, 2023. ___________________________

OSCAR ORTIZ,
MAYOR
ATTEST:
__________________________

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AGENDA ITEM #11.10
Second Reading of Ordinance No. 1799 Amending Title IX, Chapter 101 Rela... Page 167 of 538 7 SABDI SANCHEZ, CMC

CITY CLERK ADMINISTRATOR

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AGENDA ITEM #11.10
Second Reading of Ordinance No. 1799 Amending Title IX, Chapter 101 Rela... Page 168 of 538 1 RESOLUTION NO. 1799

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO,

CALIFORNIA, SETTING THE ADMINISTRATIVE FINES FOR
VIOLATIONS OF CHAPTER 101 OF THE INDIO MUNICIPAL CODE

RELATED TO FIREWORKS

THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. In addition to any criminal, civil, or other legal remedies that may be available to the City of Indio:

A. Any violation of Chapter 101 of the Indio Municipal Code involving dangerous fireworks shall be assessed an administrative civil penalty as follows:
1) $2,000 for a first violation;
2) $3,000 for a second violation within one year of a previous violation; and
3) $5,000 for each additional violation within one year of the first violation.

B. Any violation of Chapter 101 of the Indio Municipal Code not involving dangerous fireworks shall be assessed an administrative civil penalty of $1,000 per violation.

Section 2.Ability to-pay determinations.

A. Any penalty issued under this Resolution shall be accompanied by a notice of and instruction regarding a person's right to request an ability-to-pay determination.

B. When assessing an administrative civil penalty under this article, the City will take into consideration a person’s ability to pay the fine as follows:
1) If a person cited is receiving public benefits under Government Code §68632(a), or has a monthly income which is 125 percent or less than the current poverty guidelines updated periodically in the Federal Register by the United States Department of Health and Human Services, the civil penalty shall be limited to 20 percent of the amount assessed.
2) The City may allow the person cited to complete community service in lieu of paying all or part of the administrative civil penalty.

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AGENDA ITEM #11.10
Second Reading of Ordinance No. 1799 Amending Title IX, Chapter 101 Rela... Page 169 of 538 2 Section 3. Severability. If any section, subsection, sentence, clause, phrase or word ("Part") of this Resolution is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this Resolution. The Council hereby declares that it would have passed this Resolution, and each and every Part not declared invalid or unconstitutional, without regard to or reliance upon the passage of any such Part deemed invalid or unconstitutional.

Section 4. Effective Date. This Resolution shall go into effect immediately upon adoption.

PASSED, APPROVED AND ADOPTED this ____________________, 2023. ___________________________

OSCAR ORTIZ,
MAYOR
ATTEST:
__________________________

SABDI SANCHEZ, CMC

CITY CLERK ADMINISTRATOR

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AGENDA ITEM #11.10
Second Reading of Ordinance No. 1799 Amending Title IX, Chapter 101 Rela... Page 170 of 538 City of Indio
City Council
November 15, 2023

STAFF REPORT
To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Kevin H. Snyder, Dir. Of Community Development Subject: Second Reading of Ordinance No. 1801 authorizing a one (1) year extension of the Design Review approval from December 31, 2023 to December 31, 2024 for Citrus Plaza II - Planning Area 2 (DR 21-04-488) comprised of approximately 3.38 acres on a portion of land with a current Assessor's Parcel Number designation of 602-090-006 located northeast of Avenue 50 and Jefferson Street
RECOMMENDATION:

Approve Second Reading of Ordinance No. 1801 authorizing a one (1) year extension of the Design Review approval from December 31, 2023 to December 31, 2024 for Citrus Plaza II - Planning Area 2 (DR 21-04-488) comprised of approximately 3.38 acres on a portion of land with a current Assessor's Parcel Number designation of 602-090-006 located northeast of Avenue 50 and Jefferson Street
SUMMARY:

Request by Canopy LP for a one (1) year extension of the Design Review approval for Citrus Plaza II - Planning Area 2 (DR 21-04-488).

BACKGROUND INFORMATION:

The City Council adopted the Citrus Plaza II Specific Plan on July 15, 2020. The Specific Plan covers approximately 9 acres northeast of Avenue 50 and Jefferson Street and north of the existing Citrus Plaza shopping center that is anchored by the Ralph’s grocery store. The Specific Plan is comprised of two planning areas defined as Planning Area 1 and Planning Area 2. On December 9, 2020, the Planning Commission approved the design review for Planning Area 1 and a portion of Planning Area 2. On July 14, 2021, the Planning Commission approved Resolution No. 1997 granting conditional approval to the Design Review application for the remainder of Citrus Plaza II - Planning Area 2 (DR 21-04-488). The Applicant, Lichter Equities L.P. c/o Robert Lichter, sought this land use entitlement to authorize the full development of the remaining portion of undeveloped land in Planning Area 2 comprised of approximately 3.38 acres. The approved project was comprised of eight (8) two-story residential buildings consisting of a total of 62 multi-family units with a single garage space for each unit, a recreation facility, community pool, sports court, 1 monument sign and 58 covered and uncovered parking spaces.

On November 4, 2020, the Indio City Council passed Ordinance No. 1757 extending the expiration date of conditional use permits and design review approvals to December 31, 2023 for qualifying AGENDA ITEM #11.11
Second Reading of Ordinance No. 1801 authorizing a one (1) year extensio... Page 171 of 538 projects. The City Council passed this Ordinance in response to the then significant impacts resulting from the COVID-19 pandemic to the funding and construction of new development projects in the City of Indio.

The Community Development Director has conferred with the City Attorney regarding extension requests for projects under the authority of Ordinance No. 1757. The City Attorney has advised that the City Council must take ordinance action to approve extension requests beyond the period specified in this Ordinance.

On August 17, 2022, the City Council approved Tentative Parcel Map 38262 (TPM 22-03-415) subdividing Assessor's Parcel Number 602-090-006 into four (4) commercial parcels and one (1) remainder parcel. On August 16, 2023, the City Council approved the final map for Tentative Parcel Map 38262.

On September 19, 2023, Canopy LP submitted a written request for a one (1) year extension of the aforementioned Design Review approval. Canopy LP identified that delays associated with the construction, completion and leasing of Planning Area 1 have limited its ability to focus on Planning Area 2. Canopy LP identified in its request letter its intent to focus on Planning Area 2 in 2024.

ATTACHMENTS:

Attachment1_OrdinanceNo1801_CitrusPlazaIIPlanningArea2_DR1YearExtension Attachment2_DESIGN EXTENSION CANOPY II
Attachment3_Project Location Map
Attachment4_OrdinanceNo1757
Attachment5_ColorRenderings
Attachment6_SitePlan
Attachment7_TENTATIVE PARCEL MAP 38262 CANOPY AT CITRUS

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AGENDA ITEM #11.11
Second Reading of Ordinance No. 1801 authorizing a one (1) year extensio... Page 172 of 538 1 ORDINANCE NO. 1801

AN ORDINANCE OF THE CITY OF INDIO AUTHORIZING A ONE
(1) YEAR EXTENSION OF THE DESIGN REVIEW APPROVAL
FROM DECEMBER 31, 2023 TO DECEMBER 31, 2024 FOR
CITRUS PLAZA II - PLANNING AREA 2 (DR 21 -04-488)
COMPRISED OF APPROXIMATELY 3.38 ACRES ON A PORTION

OF LAND WITH A CURRENT ASSESSOR'S PARCEL NUMBER
DESIGNATION OF 602 -090-006 LOCATED NORTHEAST OF
AVENUE 50 AND JEFFERSON STREET

WHEREAS, the City Council adopted the Citrus Plaza II Specific Plan on July 15, 2020. The Specific Plan covers approximately 9 acres northeast of Avenue 50 and Jefferson Street and north of the existing Citrus Plaza shopping center that is anchored by the Ralph’s grocery store; and,

WHEREAS, the Specific Plan is comprised of two planning areas defined as Planning Area 1 and Planning Area 2. On December 9, 2020, the Planning Commission approved the design review for Planning Area 1 and a portion of Planning Area 2; and,

WHEREAS, on July 14, 2021, the Planning Commission approved Resolution No. 1997 granting conditional approval to the Design Review application for the remainder of Citrus Plaza II - Planning Area 2 (DR 21-04-488); and,

WHEREAS, the Applicant, Lichter Equities L.P. c/o Robert Lichter, sought this land use entitlement to authorize the full development of the remaining portion of undeveloped land in Planning Area 2 comprised of approximately 3.38 acres; and,

WHEREAS, the approved project was comprised of eight (8) two-story residential buildings consisting of a total of 62 multi-family units with a single garage space for each unit, a recreation facility, community pool, sports court, 1 monument sign and 58 covered and uncovered parking spaces; and,

WHEREAS, on November 4, 2020, the Indio City Council passed Ordinance No. 1757 extending the expiration date of conditional use permits and design review approvals to December 31, 2023 for qualifying projects. The City Council passed this Ordinance in response to the then significant impacts resulting from the COVID -19 pandemic to the funding and construction of new development projects in the City of Indio; and,

WHEREAS, the Community Development Director has conferred with the City Attorney regarding extension requests for projects under the authority of Ordinance No. 1757. The City Attorney has advised that the City Council must take ordinance action to approve extension requests beyond the period specified in this Ordinance; and,

WHEREAS, on August 17, 2022, the City Council approved Tentative Parcel Map 38262 (TPM 22-03-415) subdividing Assessor's Parcel Number 602-090-006 into

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AGENDA ITEM #11.11
Second Reading of Ordinance No. 1801 authorizing a one (1) year extensio... Page 173 of 538 2 four (4) commercial parcels and one (1) remainder parcel; and,

WHEREAS, on August 16, 2023, the City Council approved the final map for Tentative Parcel Map 38262; and,

WHEREAS, on September 19, 2023, Canopy LP submitted a written request for a one (1) year extension of Citrus Plaza II - Planning Area 2 (DR 21-04-488); and,

WHEREAS, Canopy LP identified that delays associated with the construction, completion and leas ing of Planning Area 1 resulting in part from the impacts of the COVID-19 pandemic have limited its ability to focus on Planning Area 2 and that it intends to focus on Planning Area 2 in 2024.

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

Section 1. That the above recitations are true and correct.

Section 2. The City Council finds and determines that t he extension request is consistent with the City of Indio General Plan 2040 as said request will support the City’s economic development by providing additional time for development planning for the subject site that was impacted by external market forces resulting from the COVID -19 pandemic.

Therefore, the City Council finds that the one (1)-year extension request is consistent with the goals, objectives, and policies of the General Plan 2040.

Section 3. The current extension request was previously covered under the provisions of Ordinance No. 1757 as the Design Review approval by the Indio Planning Commission on July 14, 2021 was within the nature and timeframe of the project approvals, the project approval had not expired as of 30 days from the date of the final passage of Ordinance No. 1757 and the subject site has been maintained in accordance with Chapters 95A and 950 of the Indio Municipal Code and all fees applicable to the site's development have been paid.

Section 4. The City Council finds that adoption of this extension request is exempt from CEQA pursuant to Section 15061(b)(3) of the State CEQA Guidelines because this action will not have the potential for causing a significant effect on the environment as the ordinance only extends the expiration of a previously approved land use entitlement that was previously analyzed in conformance with CEQA.

Section 5. The City Council hereby approves a one (1) year extension of the conditional approval of Citrus Plaza II – Planning Area 2 (DR 21-04-488).

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AGENDA ITEM #11.11
Second Reading of Ordinance No. 1801 authorizing a one (1) year extensio... Page 174 of 538 3 Section 6. Severability. If any section, subsection, sentence, clause, or phrase of this uncodified ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this uncodified ordinance. The City Council hereby declares that it would have passed this uncodified ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

Section 7. The City Clerk shall certify to the adoption of this ordinance and shall cause the same to be published or posted in the manner prescribed by law .

PASSED, APPROVED and ADOPTED this 15th day of November 2023.

___________________________

OSCAR ORTIZ
MAYOR

ATTEST:

__________________________________

SABDI SANCHEZ, CMC

CITY CLERK ADMINISTRATOR

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AGENDA ITEM #11.11
Second Reading of Ordinance No. 1801 authorizing a one (1) year extensio... Page 175 of 538 lCanopy,LP1620FifthAve.,Suite770SanDiego,CA92101(619)300-4795Septemberl9,20231KevinSnyderCommunityDevelopmentDirector1 CityofIndio100CivicCenterMallIndio,CA92201RE:DesignReview21-04-488(CitrusPlazaII~ PlanningArea2)l11Thisletterisinreferencetotheapprovaloftheabove-referencedDesignReview.Canopy,LP,assuccessor-in-interesttoLichterEquitiesL.P.,theoriginalapplicant,requeststhe1.extensionoftheapprovalforsolongasispermissible.1Currently,CitrusPlazaII— PlanningArea1isnearingcompletion.Thisprojectwassigni?cantlydelayedduetoahostoffactors,nottheleastofwhichweredelayscausedbyCOVID-19,supplychainissuesandtepiddemand;fromtenantsduringaperiodofsuchuncertainty.WithPlanningArealnearingcompletion,weexpectthatwewillhavetheopportunitytoturnourattentiontoPlamiingAreaillcommencingin2024.

DearKevin:

Pleasecontacttheundersignedwithanyquestionsorcommentsyoumayhave.Sincerely,CANOPYP RobertJ.Lichter

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Second Reading of Ordinance No. 1801 authorizing a one (1) year extensio... Page 176 of 538

Project Location Map – Citrus Plaza Phase II
(Canopy @ Citrus) Design Review Approval Extension

Citrus Plaza
Citrus Plaza
Canopy @ Citrus
Phase I

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AGENDA ITEM #11.11
Second Reading of Ordinance No. 1801 authorizing a one (1) year extensio... Page 177 of 538 ORDINANCE NO. 1757

AN UNCODIFIED ORDINANCE OF THE CITY OF INDIO EXTENDING THE

EXPIRATION DATE OF CONDITIONAL USE PERMITS AND DESIGN REVIEW APPROVALS TO DECEMBER 31, 2023 FOR ENTITLEMENTS NOT EXPIRED 30

DAYS FROM THE DATE OF FINAL PASSAGE OF THIS UNCODIFIED ORDINANCE WHEREAS, on August 20, 2020, the City of Indio initiated an uncodified ordinance that would extend the expiration date of certain land use entitlements specifically conditional use permits and design review entitlements up and through December 31, 2023, as long as the entitlement has not expired 30 days from the date of final passage of the uncodified ordinance; and,
WHEREAS, on September 9, 2020, the Planning Commission conducted a duly noticed public hearing to consider its recommendation to the City Council on this uncodified ordinance and after receiving public comments, closed the public hearing, and approved Resolution No. 1963, recommending that the City Council adopt this uncodified ordinance; and,
WHEREAS, on October 21, 2020, the City Council conducted a duly noticed public hearing to consider adoption of this uncodified ordinance.

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

Section 1. That the above recitations are true and correct.

Section 2. The City Council finds and determines as follows:

A. The proposed uncodified ordinance is consistent with the City of Indio General Plan 2040 ( and/ or General Plan 2020 as some of subject entitlements were approved under the General Plan 2020) as the ordinance is a tool for economic development within the City by providing additional time for development during the unusual circumstances brought about by COVID- 19. Therefore, the City Council finds that the proposed uncodified ordinance is consistent with the goals, objectives, and policies of the General Plan 2040 ( and/ or General Plan 2020).

B. The proposed uncodified ordinance is consistent with the objectives of Chapter 15 of the Indio Code of Ordinances ( Zoning Ordinance) as it extends the expiration of permits issued in conformance with the City' s Zoning Ordinance. Therefore, the City Council finds that the proposed uncodified ordinance is in consistent with the objectives of Title XV ( Land Usage) of the Indio Municipal Code and the purpose of the district in which the site is located.

Section 3. Notwithstanding Indio Municipal Code Section 159. 730 and 159.760, the expiration date of approved conditional use permits and design review approvals that

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AGENDA ITEM #11.11
Second Reading of Ordinance No. 1801 authorizing a one (1) year extensio... Page 178 of 538 have not expired as of 30 days from the date of the final passage of Ordinance No. 1757 shall be extended to December 31, 2023, provided that the site that is subject of the conditional use permit or design review is maintained in accordance with Chapters 95A and 95D of the Indio Municipal Code and that all fees applicable to the site' s development have been paid. Compliance with this ordinance shall be subject to review by the Community Development Director or his/ her designee. ~
Section 4. The environmental impacts of this uncodified ordinance were analyzed pursuant to the California Environmental Quality Act (" CEQA") and the State CEQA Guidelines ( California Code of Regulations, Title 14, Sections 15000 et. seq.). The City Council finds that adoption of this uncodified ordinance is exempt from CEQA pursuant to Section 15061( b)( 3) of the State CEQA Guidelines because these actions will not have the potential for causing a significant effect on the environment as the ordinance only extends the expiration of permits that were previously issued in conformance with CEQA. As such, the proposed ordinance is subject to the general rule exemption that states where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment that activity is not subject to CEQA.

Section 5. Severability. If any section, subsection, sentence, clause, or phrase of this uncodified ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this uncodified ordinance. The City Council hereby declares that it would have passed this uncodified ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

Section 6. The City Clerk shall certify to the adoption of this ordinance and shall cause the same to be published or posted in the manner prescribed by law.

PASSED, APPROVED, and ADOPTED this 4th day of November 2020.

V& -
l- /' U.6--

ENN MILLER, MAYOR
ATTEST:
4 CYNTHIA HERNA EZ, CMC

CITY CLERK

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CERTIFICATION
I, Sabdi Sanchez, City Clerk Administrator of the City of Indio, California, hereby certify that Ordinance No. 1757 was duly and regularly adopted at a meeting of the City Council of said City at its meeting held on the 4th day of November 2020 by the following vote, to wit:

Ayes: Ramos Amith, Ortiz, Fermon, Holmes and Miller
Noes: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Indio, California, this 4th day of November 2020.

S9,

S SANCHEZ, CMC
City Clerk Administrator
City of Indio
111

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Page 16 of 17 ends

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Page 17 of 17 ends

AGENDA ITEM #11.11
Second Reading of Ordinance No. 1801 authorizing a one (1) year extensio...Page 187 of 538 City of Indio
Indio Electric Finance Authority
November 15, 2023

STAFF REPORT
To: Indio Electric Finance Authority
From: Bryan Montgomery, Executive Director
Prepared by: Bryan Montgomery, Executive Director
Subject: Resolution 2023-03 approving the form and authorizes the execution of an Official Statement and Continuing Disclosure Agreement relating to the issuance actions additional approving and Revenue Electric of Bonds related thereto.

RECOMMENDATION:

Adopt IEFA Resolution 2023-03 approving the form and authorizing the execution of an Official Statement and Continuing Disclosure Agreement relating to the issuance of Electric Revenue Bonds and approving additional actions related thereto.

SUMMARY:

This resolution is required in the process of issuing electric revenue bonds that will provide financing for some much needed electrical infrastructure within the City of Indio.

BACKGROUND INFORMATION:

At its September 18, 2023 meeting, you as the Board of Directors of the Indio Electric Financing Authority (the “Authority”) approved the issuance of not to exceed $70,000,000 aggregate principal amount of electric revenue bonds (the “Bonds”), approved the execution and delivery of an Indenture and a First Supplemental Indenture, each by and between the Authority and U.S. Bank Trust Company, National Association, as trustee, and a Bond Purchase Contract by and between the Authority and Piper Sandler & Co. (the “Underwriter”), approved certain capital infrastructure improvement projects, approved the execution and delivery of project agreements with the Imperial Irrigation and cost a of delivery execution therewith, approved connection in District the reimbursement agreement with the City of Indio (“Indio”) and certain other matters.

In connection with the sale of the Bonds to potential investors, the Authority has prepared a Preliminary the Bonds, the about Statement contains that Official Authority, information the surcharge that is pledged to the repayment of the Bonds (the “Surcharge”) and certain information regarding the Indio. When made available to investors, the Preliminary Official Statement will be considered to be “final” except for certain information allowed to be omitted pursuant to federal securities law (which generally consists of information that is only known after the sale of the Bonds). Following the sale of the Bonds, the Authority will prepare a final Official Statement that will contain the terms of the Bonds established during the pricing of the Bonds (i.e., the par amounts, maturity dates, interest rates, etc.). The Preliminary Official Statement is subject to federal securities and must contain all material information relating to the sale of the Bonds and cannot contain any material false statements or omissions of material information. If Board members AGENDA ITEM #12.1
IEFA Resolution 2023-03 approving the form and authorizes the execution ... Page 188 of 538 during their review of the Preliminary Official Statement determine that it contains any material false statements or omissions of material information, they should bring this to the attention of Authority staff.

The Authority, in connection with the issuance of the Bonds, will enter into a Continuing Disclosure Agreement. Under the Continuing Disclosure Agreement, the Authority will agree to annually provide certain financial information relating to the Authority and notices of certain enumerated events to the market. Such information will be provided through the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access website.

Attachments:

1. Resolution of the Board of Directors the Indio Electric Financing Authority Approving the form and Authorizing the Execution of an Official Statement and Continuing Disclosure Agreement Relating to the Issuance of Electric Revenue Bonds and Approving Additional Actions Related Thereto

2. Preliminary Official Statement

3. Continuing Disclosure Agreement
FINANCIAL SUMMARY:

Current FY Financial
Impact:
0 In current year budget: N/A
Current FY General
Fund Impact:
0 Budget adjustment: No
Next FY Financial
Impact:
0 Strategic Objective: Community Infrastructure
Source of funds: Electric Revenue Bonds Fund-Org-Object Reference:

IEFA Special Revenue
Fund
Additional Financial Details:

The costs relating to the preparation of the Preliminary Official Statement, final Official Statement and Continuing Disclosure Agreement will be included in the financing costs of the Bonds that will be paid from proceeds of the Bonds.

ALTERNATIVES:

Not adopt the resolution.

ATTACHMENTS:

Attachment 1 - Resolution 2023-03 IEFA Approving POS
Attachment 2 - Official Statement - IEFA Electric Revenue Bonds Series 2023, 4874-5152- 5245_9
Attachment 3 - Continuing Disclosure Agreement - IEFA Electric Revenue Bonds Series 2023 4876-8722-5484_2
APPROVAL(S):

Steven Graham, City Attorney Approved - 09 Nov 2023

Page 2 of 83 ends

AGENDA ITEM #12.1
IEFA Resolution 2023-03 approving the form and authorizes the execution ... Page 189 of 538 Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 09 Nov 2023

Page 3 of 83 ends

AGENDA ITEM #12.1
IEFA Resolution 2023-03 approving the form and authorizes the execution ... Page 190 of 538 1 RESOLUTION NO. 2023-03

RESOLUTION OF THE BOARD OF DIRECTORS OF THE INDIO

ELECTRIC FINANCING AUTHORITY APPROVING THE FORM AND

AUTHORIZING THE EXECUTION OF AN OFFICIAL STATEMENT AND

CONTINUING DISCLOSURE AGREEMENT RELATING TO THE

ISSUANCE OF ELECTRIC REVENUE BONDS AND APPROVING

ADDITIONAL ACTIONS RELATED THERETO
WHEREAS, the Indio Electric Financing Authority (the “Authority”) has previously adopted Resolution No. 2023-02 on September 18, 2023 (“Resolution No. 2023-02”) approving, among other things, the issuance of Indio Electric Financing Authority Electric Revenue Bonds in an aggregate principal amount not to exceed $70,000,000 (the “Bonds”), approving the form and authorizing the execution of an Indenture and a First Supplemental Indenture, each by and between the Authority and U.S. Bank Trust Company, National Association, as trustee, and a Bond Purchase Contract by and between the Authority and Piper Sandler & Co., as underwriter, and approving additional actions related thereto; and WHEREAS, the Authority desires to approve the form of and authorize the execution of an Official Statement and Continuing Disclosure Agreement relating to the Bonds;

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE INDIO ELECTRIC

FINANCING AUTHORITY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1.The Board hereby specifically finds and declares that the actions authorized hereby constitute and are with respect to public affairs of the Authority and that the statements, findings and determinations set forth above are true and correct.

Section 2.The Preliminary Official Statement in substantially the form on file with the Authority is hereby approved. The Chair, Vice Chair, the Executive Director and Treasurer of the Authority, and any designee thereof (the “Authorized Officers”), are hereby authorized to make such changes to the Preliminary Official Statement as are necessary to make it final as of its date and are authorized and directed to execute and deliver a certificate deeming the Preliminary Official Statement final as of its date in accordance with Rule 15c2-12 promulgated under the Securities Exchange Act of 1934, as amended. Each of the Authorized Officers is hereby authorized and directed to execute, approve and deliver the final Official Statement, in the form of the Preliminary Official Statement with such changes, insertions and omissions as the Authorized Officer executing said document may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof by one or more of the Authorized Officers.

Section 3.The Continuing Disclosure Agreement between the City and Willdan Financial Services (the “Continuing Disclosure Agreement”) in substantially the form on file with the Authority is hereby approved. Each of the Authorized Officers is hereby authorized and directed to execute and deliver the Continuing Disclosure Agreement in substantially said form, with such changes, insertions and omissions as therein as the Authorized Officer executing such document may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.

Page 4 of 83 ends

AGENDA ITEM #12.1
IEFA Resolution 2023-03 approving the form and authorizes the execution ... Page 191 of 538 2 Section 4.The officers and agents of the Authority are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable in order to consummate the transactions herein authorized, to sell, issue and deliver the Bonds and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution. All actions heretofore taken by the officers and agents of the Authority with respect to the transactions set forth above are hereby approved, confirmed and ratified.

Section 5.The Board hereby approves the execution and delivery of all agreements, documents, certificates and instruments referred to herein and in Resolution 2023-02 with electronic signatures as may be permitted under the California Uniform Electronic Transactions Act and digital signatures as may be permitted under Section 16.5 of the California Government Code using DocuSign.

Section 6.This resolution shall take effect immediately upon its passage.

PASSED, APPROVED AND ADOPTED this 15th of November, 2023 _______________________________

OSCAR ORTIZ
CHAIR
ATTEST:
________________________________

SABDI SANCHEZ, CMC

SECRETARY

Page 5 of 83 ends

AGENDA ITEM #12.1
IEFA Resolution 2023-03 approving the form and authorizes the execution ... Page 192 of 538 Stradling Yocca Carlson & Rauth
Draft of November 9, 2023
4874-5152-5245v9/200973-0004
This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold, nor may offers to buy them be accepted, prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

PRELIMINARY OFFICIAL STATEMENT DATED _____, 2023
NEW ISSUE – FULL BOOK-ENTRY ONLY INSURED RATING: Moody’s: “_____” UNDERLYING RATING: Moody’s: “A1”
See “RATINGS” herein.

In the opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described in this Official Statement, interest (and original issue discount) on the Series 2023 Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals. In the further opinion of Bond Counsel, interest (and original issue discount) on the Series 2023 Bonds is exempt from State of California personal income tax. See “TAX MATTERS” herein with respect to tax consequences with respect to the Series 2023 Bonds, including with respect to the alternative minimum tax imposed on certain large corporations for tax years beginning after December 31, 2022.

Page 6 of 83 ends

AGENDA ITEM #12.1
IEFA Resolution 2023-03 approving the form and authorizes the execution ... Page 193 of 538 4874-5152-5245v9/200973-0004
$62,000,000

INDIO ELECTRIC FINANCING AUTHORITY
ELECTRIC REVENUE BONDS, SERIES 2023A
Dated: Date of Delivery Due: January 1, as shown on inside cover This cover page contains certain information for general reference only and is not a summary of the issue. Potential investors are advised to read the entire Official Statement to obtain information essential to the making of an informed investment decision. See “CERTAIN RISK FACTORS” herein for a description of certain risks associated with an investment in the Series 2023 Bonds. Capitalized terms used on this cover page and not otherwise defined shall have the meanings set forth herein.

The Indio Electric Financing Authority Electric Revenue Bonds, Series 2023 (the “Series 2023 Bonds”) are being issued by the Indio Electric Financing Authority (the “Authority”) to (i) finance the costs of electrical substations and related improvements to be located within the territorial boundaries of the City of Indio (“Indio”), owned by the Authority and maintained and operated by the Imperial Irrigation District (“IID”) as a part of IID’s electric system, (ii) pay capitalized interest on the Series 2023 Bonds through June 1, 2024, (iii) fund a debt service reserve fund for the Series 2023 Bonds, and (iv) pay costs of issuance of the Series 2023 Bonds. See “ESTIMATED SOURCES AND USES OF FUNDS” and “THE SERIES 2023 PROJECT.”
The Series 2023 Bonds will be issued in book-entry form only, initially registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository of the Series 2023 Bonds. Beneficial owners of Series 2023 Bonds will not receive physical certificates representing their interest in the Series 2023 Bonds purchased. The Series 2023 Bonds will be issued in fully registered form in denominations of $5,000 or any integral multiple thereof. Interest on the Series 2023 Bonds will be payable semiannually on January 1 and July 1, commencing July 1, 2024. Payments of interest on and principal of the Series 2023 Bonds will be made to DTC. DTC is obligated in turn to remit such interest and principal to the DTC participants for subsequent disbursement to the beneficial owners of the Series 2023 Bonds. See APPENDIX E – “BOOK-ENTRY ONLY SYSTEM.” The Series 2023 Bonds are subject to optional and mandatory sinking account redemption prior to maturity as described herein. See “THE SERIES 2023 BONDS – Redemption Provisions.”
The Series 2023 Bonds are being issued pursuant to an Indenture, dated as of December 1, 2023, as supplemented by the First Supplemental Indenture, dated as of December 1, 2023 (as supplemented, the “Indenture”), between the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). The Series 2023 Bonds are limited obligations of the Authority and are secured by a pledge of and payable solely from the Pledged Revenues, which generally consist of Surcharge Revenues and other amounts pledged under the Indenture as part of the Trust Estate. “Surcharge Revenues” are defined in the Indenture to mean the revenues derived by the Surcharge charged by the Authority pursuant to the Surcharge Resolution and collected by IID pursuant to a Servicing Agreement, minus administrative fees imposed by the IID for its performance of its responsibilities under the Servicing Agreement and amounts withheld by IID as a bad debt allowance. The “Surcharge” is a charge per kilowatt hour of electricity used by each class of customer applicable to all electric sales within the territorial boundaries of Indio. See “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2023 BONDS.” Pursuant to the Indenture, the Authority may issue additional bonds (together with the Series 2023 Bonds, the “Bonds”) and incur other obligations (“Parity Obligations”) payable from and secured by the Pledged Revenues on a parity basis with the outstanding Bonds, subject to the terms of the Indenture. The Indenture does not limit the ability of the Authority to issue or incur obligations which are payable from the Trust Estate or any portion thereof (including the Surcharge Revenues) on a basis junior and subordinate to the Bonds and Parity Obligations.

See “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2023 BONDS.” The Series 2023 Bonds are limited obligations of the Authority and are secured by a pledge of and payable, both as to principal and interest and as to any premiums upon the redemption thereof, solely from the Trust Estate as provided in the Indenture, and the Authority is not obligated to pay the Series 2023 Bonds except from the Trust Estate. The Series 2023 Bonds are not secured by a legal or equitable pledge of, or charge, lien or encumbrance upon, any of the property of the Authority or any of its income or receipts, except the Trust Estate as provided in the Indenture.
[The scheduled payment of principal of and interest on the Series 2023 Bonds when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the Series 2023 Bonds by ___________. See the captions “INTRODUCTION—Bond Insurance” and “BOND INSURANCE” and Appendix E—“SPECIMEN MUNICIPAL BOND INSURANCE POLICY.”]
[Insurer logo]
The Series 2023 Bonds will be offered when, as and if issued and received by the Underwriter, subject to the approval of validity of the Series 2023 Bonds and certain other legal matters by Stradling Yocca Carlson & Rauth, a Professional Corporation, Bond Counsel to the Authority, and certain other conditions. Certain legal matters will be passed upon for the Underwriter by its counsel, Best Best & Krieger LLP, Los Angeles, California, and for the Authority by Stradling Yocca Carlson & Rauth, a Professional Corporation, as Disclosure Counsel to the Authority, and by Cole Huber LLP, as General Counsel to the Authority. It is expected that the Series 2023 Bonds in definitive form will be available for delivery to DTC in New York, New York on or about December __, 2023.

Piper Sandler& Co.

Dated: _____, 2023
 Preliminary, subject to change.

Page 7 of 83 ends

AGENDA ITEM #12.1
IEFA Resolution 2023-03 approving the form and authorizes the execution ... Page 194 of 538 4874-5152-5245v9/200973-0004

MATURITY SCHEDULES
$62,000,000

INDIO ELECTRIC FINANCING AUTHORITY
ELECTRIC REVENUE BONDS, SERIES 2023
$__________ Series 2023 Serial Bonds
Maturity
(January 1) Principal Amount
Interest
Rate Yield CUSIP†
$__________ _____% Series 2023 Term Bonds due January 1, 20__; Yield: _____%; CUSIP† __________  Preliminary, subject to change.
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein are provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. CUSIP numbers have been assigned by an independent company not affiliated with the City and are included solely for the convenience of the holders of the Series 2023 Bonds. Neither the Authority or the Underwriter is responsible for the selection or use of these CUSIP numbers and no representation is made as to their correctness on the Series 2023 Bonds or as indicated above. The CUSIP number for a specific maturity is subject to being changed after the issuance of the Series 2023 Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part of such maturity or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of the Series 2023 Bonds.

Page 8 of 83 ends

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No dealer, broker, salesperson or other person has been authorized by the Authority or the Underwriter to give any information or to make any representations other than those contained in this Official Statement and, if given or made, such other information or representation must not be relied upon. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Series 2023 Bonds in any jurisdiction in which it is unlawful to make such offer, solicitation or sale.

This Official Statement is not to be construed as a contract with the purchasers of the Series 2023 Bonds.

Statements contained in this Official Statement that involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact.

The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in affairs of the Authority since the date hereof. This Official Statement, including any supplement or amendment hereto, is intended to be deposited with the Municipal Securities Rulemaking Board through the Electronic Municipal Market Access website.

The Underwriter has provided the following two paragraphs for inclusion in this Official Statement:

The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

In connection with this offering, the Underwriter may overallot or effect transactions which may stabilize or maintain the market price of the Series 2023 Bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. __________________________

CAUTIONARY STATEMENTS REGARDING

FORWARD-LOOKING STATEMENTS IN

THIS OFFICIAL STATEMENT
Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements.” Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “budget” or other similar words. Such forward-looking statements include, but are not limited to, certain statements contained in the information under the captions “THE SURCHARGE” and “OTHER FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY” in this Official Statement. Forward-looking statements in this Official Statement are subject to risks and uncertainties, including particularly those relating to wholesale and retail electric energy and capacity prices, federal and state legislation and regulations, industry restructuring and the economy of the electric service area within Indio.

The achievement of any results or the realization of other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. No assurance is given that actual results will meet the Authority’s forecasts in any way. Except as set forth in the Continuing Disclosure Agreement, the Authority does not plan to issue any updates or revisions to those forward-looking statements if or when its expectations, or events, conditions or circumstances on which such statements are based occur or do not occur.

The Series 2023 Bonds have not been registered under the Securities Act of 1933, as amended, in reliance upon an exemption contained in such act. The Series 2023 Bonds have not been registered or qualified under the securities laws of any state. The Indenture has not been qualified under the Trust Indenture Act of 1939, as amended, in reliance upon an exemption contained in such act.

Indio and IID each maintain a website. However, the information presented there is not part of this Official Statement and should not be relied upon in making an investment decision with respect to the Series 2023 Bonds.

References to web site addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the reader’s convenience. Unless specified otherwise, such web sites and the information or links contained therein are not incorporated into, and are not part of, this final official statement for purposes of, and as that term is defined in, Rule 15c2-12 of the United States Securities and Exchange Commission.

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INDIO ELECTRIC FINANCING AUTHORITY

BOARD OF DIRECTORS
Oscar Ortiz, Chair
Lupe Ramos Amith, Vice Chair
Glenn Miller, Member
Elaine Holmes, Member
Waymond Fermon, Member
_____________

AUTHORITY OFFICERS
Bryan Montgomery, Executive Director
Steven Graham, General Counsel
Rob Rockwell, Treasurer
Sabdi Sanchez, Secretary
_____________

BOND COUNSEL AND DISCLOSURE COUNSEL
Stradling Yocca Carlson & Rauth,
a Professional Corporation
Newport Beach, California
_____________

MUNICIPAL ADVISOR
Fieldman, Rolapp & Associates, Inc.

Irvine, California
_________________

TRUSTEE
U.S. Bank Trust Company, National Association
Los Angeles, California
_________________

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TABLE OF CONTENTS
Page
INTRODUCTION..................................................................................................................................................1 Authority for Issuance and Purpose ................................................................................................................1 The Authority, the City of Indio and the Imperial Irrigation District .............................................................1 Security and Sources of Payment for the Series 2023 Bonds .........................................................................2 Bond Insurance................................................................................................................................................3 Rate Covenant .................................................................................................................................................3 Series 2023 Bonds Reserve Fund....................................................................................................................4 Rate Stabilization Fund ...................................................................................................................................4 Continuing Disclosure.....................................................................................................................................5 Certain Risk Factors ........................................................................................................................................5 Other Matters...................................................................................................................................................5 ESTIMATED SOURCES AND USES OF FUNDS .............................................................................................5 DEBT SERVICE SCHEDULE..............................................................................................................................6 THE SERIES 2023 PROJECT...............................................................................................................................6 THE SERIES 2023 BONDS ..................................................................................................................................7 General ............................................................................................................................................................7 Redemption Provisions ...................................................................................................................................8 SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2023 BONDS............................................10 Pledge of Trust Estate; Revenue Fund ..........................................................................................................10 Allocation of Moneys in the Revenue Fund..................................................................................................11 Rate Covenant ...............................................................................................................................................13 Rate Stabilization Fund .................................................................................................................................13 Series 2023 Bonds Reserve Fund..................................................................................................................13 Additional Bonds and Other Obligations Payable from System Revenues ..................................................14 BOND INSURANCE...........................................................................................................................................16 THE CITY OF INDIO .........................................................................................................................................16 THE INDIO ELECTRIC FINANCING AUTHORITY ......................................................................................17 Background ...................................................................................................................................................17 The Imperial Irrigation District .....................................................................................................................18 The 1934 Agreement.....................................................................................................................................18 The Projects...................................................................................................................................................19 Certain Provisions of the JPA Agreement.....................................................................................................20 THE SURCHARGE.............................................................................................................................................21 General ..........................................................................................................................................................21 The Servicing Agreement..............................................................................................................................21 Historical Information Regarding Electric Sales in Indio.............................................................................23 Projected Surcharge Revenues and Debt Service Coverage .........................................................................26 CERTAIN RISK FACTORS ...............................................................................................................................30 General ..........................................................................................................................................................30 Limited Obligation ........................................................................................................................................30 Pledged Revenues; Rate Covenant................................................................................................................30 Limited Service Area; Concentration of Customers .....................................................................................31 COVID-19 Pandemic; Infectious Disease Outbreak.....................................................................................31 Uncertainties of Projections, Forecasts and Assumptions ............................................................................31 Seismic and Other Natural Disasters.............................................................................................................32 Wildfire Risks ...............................................................................................................................................32 Climate Change .............................................................................................................................................33

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Cybersecurity ................................................................................................................................................33 Changing Law and Requirements Generally.................................................................................................33 Effect of Authority Bankruptcy.....................................................................................................................34 Initiative and Referendum.............................................................................................................................35 Limitation on Remedies ................................................................................................................................35 Risks Associated with Bond Insurance .........................................................................................................36 OTHER FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY....................................................36 CONSTITUTIONAL LIMITATIONS ON TAXES AND FEES IN CALIFORNIA .........................................37 Article XIIIA of the State Constitution .........................................................................................................37 Constitutional Limitations on Governmental Spending................................................................................38 Propositions 218 and 26 ................................................................................................................................38 Other Initiatives.............................................................................................................................................39 LITIGATION.......................................................................................................................................................39 CONTINUING DISCLOSURE ...........................................................................................................................40 TAX MATTERS..................................................................................................................................................40 APPROVAL OF LEGALITY..............................................................................................................................42 RATINGS ............................................................................................................................................................42 UNDERWRITING...............................................................................................................................................42 MUNICIPAL ADVISOR.....................................................................................................................................43 MISCELLANEOUS ............................................................................................................................................43 APPENDIX A GENERAL INFORMATION CONCERNING THE CITY OF INDIO...............................A-1 APPENDIX B SUMMARY OF THE INDENTURE....................................................................................B-1 APPENDIX C PROPOSED FORM OF BOND COUNSEL OPINION .......................................................C-1 APPENDIX D FORM OF CONTINUING DISCLOSURE AGREEMENT ................................................D-1 APPENDIX E BOOK-ENTRY ONLY SYSTEM.........................................................................................E-1 APPENDIX F SPECIMEN MUNICIPAL BOND INSURANCE POLICY .................................................F-1

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SUMMARY STATEMENT

THIS SUMMARY STATEMENT IS SUBJECT IN ALL RESPECTS TO THE MORE

COMPLETE INFORMATION AND THE DEFINITIONS FOUND IN THE ENTIRE OFFICIAL STATEMENT, AND THE OFFERING OF THE SERIES 2023 BONDS TO POTENTIAL INVESTORS IS MADE ONLY BY MEANS OF THE ENTIRE OFFICIAL STATEMENT.

Purpose:The Series 2023 Bonds are being issued by the Indio Electric Financing Authority, which is a joint exercise of powers agency formed by the City of Indio and the Imperial Irrigation District for the purpose of procuring, designing, financing, constructing, owning, operating and maintaining energy system improvements, system efficiency and reliability improvements and energy service enhancements in order to facilitate the provision and enhancement of electrical service within the territorial boundaries of Indio.

The Authority:The City Council of Indio serves as the Board of Directors of the Authority, and the City Manager of Indio serves as the Executive Director of the Authority. The Authority does not provide retail electrical services to customers in Indio. The Electric Service provided by the Authority’s Electric System is intended to provide system efficiency and reliability and energy service enhancement in order to facilitate the provision and enhancement of electrical service by Imperial Irrigation District within the territorial boundaries of Indio. Imperial Irrigation District is the exclusive provider of retail electrical distribution services to all of Indio.

Security for the Bonds:The Series 2023 Bonds are limited obligations of the Authority and are secured by a pledge of and payable solely from the Pledged Revenues, which generally consist of Surcharge Revenues and other amounts pledged under the Indenture as part of the Trust Estate. Surcharge Revenues are the revenues derived by a Surcharge charged by the Authority and collected by Imperial Irrigation District, minus administrative fees imposed by the Imperial Irrigation District and amounts withheld by Imperial Irrigation District as a bad debt allowance. The Surcharge is a charge per kilowatt hour of electricity used by each class of customer applicable to all electric sales within the territorial boundaries of Indio.

The Series 2023 Bonds are limited obligations of the Authority and are secured by a pledge of and payable, both as to principal and interest and as to any premiums upon the redemption thereof, solely from the Trust Estate as provided in the Indenture, and the Authority is not obligated to pay the Series 2023 Bonds except from the Trust Estate. The Series 2023 Bonds are not secured by a legal or equitable pledge of, or charge, lien or encumbrance upon, any of the property of the Authority or any of its income or receipts, except the Trust Estate as provided in the Indenture.

The Surcharge:On July 19, 2023, the Authority adopted Resolution No. 2023-01 establishing and authorizing the charge of the Surcharge at a flat charge of $0.0055 per kilowatt hour of electricity used by each class of customer. The Surcharge became effective on November 1, 2023. The first bill containing the Surcharge is expected to be sent out by Imperial Irrigation District on or about December 1, 2023, with collections expected to be remitted to the Trustee to be available for debt service on the Series 2023 Bonds by February 15, 2024.

The Surcharge is charged by the Authority and, pursuant to a Servicing Agreement between the Authority and Imperial Irrigation District, collected by Imperial Irrigation District on it’s monthly electric billing statements, and Imperial

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Irrigation District is required to remit to the Authority monthly all amounts representing the Surcharge not later than the 15 th day of the second calendar month succeeding the month in which such amounts were collected and received by Imperial Irrigation District. The Authority has covenanted in the Indenture to cause all Surcharge Revenues to be transmitted by Imperial Irrigation District directly to the Trustee for deposit in the Revenue Fund. Pursuant to the Servicing Agreement, in order to recover the costs of collecting the Surcharge, Imperial Irrigation District will charge, as against collected Surcharge Revenues, an administration fee and a bad debt allowance. The administration fee is retained by Imperial Irrigation District on a monthly basis from Imperial Irrigation District’s monthly remittance of the Surcharge in the amount of 1.5% of the Surcharge collected. The bad debt allowance is 0.45% of the Surcharge collected.

The Series 2023 Bonds:The Series 2023 Bonds will be issued in book-entry form only, initially registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York. DTC will act as securities depository of the Series 2023 Bonds.

Beneficial owners of Series 2023 Bonds will not receive physical certificates representing their interest in the Series 2023 Bonds purchased. The Series 2023 Bonds will be issued in fully registered form in denominations of $5,000 or any integral multiple thereof.

Payment of Interest:Interest on the Series 2023 Bonds will be payable semiannually on January 1 and July 1, commencing July 1, 2024. Payments of interest on and principal of the Series 2023 Bonds will be made to DTC. DTC is obligated in turn to remit such interest and principal to the DTC participants for subsequent disbursement to the beneficial owners of the Series 2023 Bonds. Interest on the Series 2023 Bonds will be capitalized through June 1, 2024.

Redemption:The Series 2023 Bonds are subject to optional and mandatory sinking account redemption prior to maturity as described herein.

Reserve Fund: Upon the issuance of the Series 2023 Bonds, a Series 2023 Bonds Reserve Fund will be established under the Indenture. The Series 2023 Bonds Reserve Fund will be funded from the proceeds of the Series 2023 Bonds in an amount equal to the Series 2023 Bonds Reserve Requirement (initially, $__________). All money in the Series 2023 Bonds Reserve Fund will be used and withdrawn by the Trustee solely for the purpose of paying the interest on and principal of the Series 2023 Bonds as such interest and principal becomes due and payable in the event the money in the Interest Fund or Principal Fund is at any time insufficient for such purpose, for the defeasance or redemption of all or a portion of the Series 2023 Bonds or for the payment of the final principal and interest payment on the Series 2023 Bonds. Amounts on deposit in the Series 2023 Bonds Reserve Fund will secure only the Series 2023 Bonds and do not secure in any manner any future Series of Bonds. Amounts on deposit in any Bond Reserve Fund for any one or more Series of Bonds or in any debt service reserve for any Parity Obligations will not secure in any manner the Series 2023 Bonds.

Rate Stabilization Fund: The Indenture establishes a Rate Stabilization Fund to be held by the Trustee. The Authority may, from time to time, instruct the Trustee to deposit into the Rate Stabilization Fund, from current Pledged Revenues, such amounts as determined by the Authority, and the amount of available current Pledged Revenues will be reduced by the amounts so deposited. The Authority may, from time to time, also direct the Trustee to deposit to the Rate Stabilization Fund amounts from any other lawfully available source other than current Pledged Revenues transferred to the

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Trustee by the Authority and the amount of available current Pledged Revenues will not be reduced by the amounts so deposited. The Authority may direct the Trustee to transfer amounts on deposit in the Rate Stabilization Fund to the Revenue Fund, and any amounts so transferred during or within 270 days after the end of a Fiscal Year may be deemed Pledged Revenues for such Fiscal Year.

Upon the issuance of the Series 2023 Bonds, the balance in the Rate Stabilization Fund will be $0.

The Series 2023 Project:The Series 2023 Project consists of the design, engineering and construction of two new substations and additional expansion banks adjacent to two existing Imperial Irrigation District owned and operated substations and all appurtenant costs, as described further below. Each of the Projects composing the Series 2023 Project will be owned by the Authority and maintained and operated by Imperial Irrigation District.

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OFFICIAL STATEMENT
$62,000,000

INDIO ELECTRIC FINANCING AUTHORITY
ELECTRIC REVENUE BONDS, SERIES 2023A

INTRODUCTION
This introduction contains only a brief summary of certain of the terms of the Indio Electric Financing Authority Electric Revenue Bonds, Series 2023 (the “Series 2023 Bonds”) being offered hereby. All statements contained in this introduction are qualified in their entirety by reference to the entire Official Statement. References to, and summaries of, provisions of the Constitution and laws of the State of California (the “State”) and any documents referred to herein do not purport to be complete, and such references are qualified in their entirety by reference to the complete provisions. Capitalized terms used in this Official Statement and not defined elsewhere herein have the meanings given such terms under the Indenture (defined below). See APPENDIX B—“SUMMARY OF THE INDENTURE.”
Authority for Issuance and Purpose
The purpose of this Official Statement (which includes the cover page and Appendices hereto) is to set forth certain information concerning the issuance and sale by the Indio Electric Financing Authority (the “Authority”) of the Series 2023 Bonds in the aggregate principal amount of $62,000,000 *. The Series 2023 Bonds are being issued pursuant to the Joint Exercise of Powers Agreement, dated June 21, 2023 (the “JPA Agreement”) and an Indenture, dated as of December 1, 2023 (the “Master Indenture”), as supplemented by the First Supplemental Indenture, dated as of December 1, 2023 (the “First Supplemental Indenture” and collectively with the Master Indenture, the “Indenture”), each between the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). The Series 2023 Bonds are being issued by the Authority to (i) finance the costs of electrical substations and related improvements to be located within the territorial boundaries of the City of Indio (“Indio”), owned by the Authority and operated and maintained by the Imperial Irrigation District (“IID”) as part of IID’s electric system, (ii) pay capitalized interest on the Series 2023 Bonds through June 1, 2024, (iii) fund a debt service reserve fund for the Series 2023 Bonds and (iv) pay costs of issuance of the Series 2023 Bonds. See “ESTIMATED SOURCES AND USES OF FUNDS” and “THE SERIES 2023 PROJECT.”
The Authority, the City of Indio and the Imperial Irrigation District The Authority. The Authority is a joint exercise of powers agency formed by Indio and IID for the purpose of procuring, designing, financing, constructing, owning, operating and maintaining energy system improvements, system efficiency and reliability improvements and energy service enhancements in order to facilitate the provision and enhancement of electrical service within the territorial boundaries of Indio pursuant to Project Agreements between the Authority and IID. The Indenture defines the “Electric Service” as the electric services made available or provided by the Electric System. The “Electric System” is defined in the Indenture as the whole and each and every part of the properties, works, and facilities owned or leased by the Authority for the purposes of providing system efficiency and reliability and energy service enhancement in order to facilitate the provision and enhancement of electrical service by IID within the territorial boundaries of Indio, including all additions, betterments, extensions, replacements, and improvements to such system or any part thereof and later acquired or constructed.

The Authority does not provide retail electrical services to customers in Indio. The Electric Service provided by the Electric System is intended to provide system efficiency and reliability and energy service  Preliminary, subject to change.

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enhancement in order to facilitate the provision and enhancement of electrical service by IID within the territorial boundaries of Indio.

The City Council of Indio serves as the Board of Directors of the Authority, and the City Manager of Indio serves as the Executive Director of the Authority.

For more information regarding the Authority and the JPA Agreement, see the caption “THE INDIO ELECTRIC FINANCING AUTHORITY.”
The City of Indio. Indio was incorporated in 1930 and encompasses approximately 33 square miles.

Indio is the geographic mid-point of Riverside County (the “County”) and is located approximately 125 miles east of the center of the Los Angeles region, 75 miles north of the California-Baja California Mexican border and 30 miles southeast of Palm Springs. Its neighboring communities include Indian Wells, La Quinta and Palm Desert to the west and Coachella and Mecca to the east. For more detailed economic and demographic information regarding Indio, see the caption “THE CITY OF INDIO” and APPENDIX A“GENERAL INFORMATION CONCERNING THE CITY OF INDIO.”
Imperial Irrigation District. IID is a public entity organized in 1911 pursuant to the Irrigation District Law (California Water Code sections 20500, et. seq.). IID has the power under the Irrigation District Law to provide irrigation and electric service within its boundaries (an area of approximately 1,658 square miles for irrigation and 6,741 square miles for electric). IID’s electric service area includes all of the territory within Indio. To provide electric service within its service area, IID owns and operates an electric system, which includes generation, transmission and distribution facilities. IID also purchases capacity and energy from others and participates in other utility arrangements. IID is the exclusive provider of retail electrical distribution services to all of Indio. For more information regarding IID, see the caption “THE INDIO ELECTRIC FINANCING AUTHORITY—The Imperial Irrigation District.” Security and Sources of Payment for the Series 2023 Bonds General. The Series 2023 Bonds are limited obligations of the Authority and are secured by a pledge of and payable solely from the “Trust Estate,” which consists of (i) all “Pledged Revenues,” which are defined in the Indenture as all Surcharge Revenues, all Swap Revenues, interest earnings and other investment income transferred to the Revenue Fund, and amounts transferred from the Rate Stabilization Fund to the Revenue Fund; (ii) all amounts, including proceeds of the Bonds, held on deposit in the funds and accounts established under the Indenture (other than the Rebate Fund, all Letter of Credit Funds, and all Purchase Funds), (iii) all investment earnings on amounts held by the Trustee in the funds and accounts established under the Indenture (other than the Rebate Fund, all Letter of Credit Funds, and all Purchase Funds); and (iv) all proceeds of the foregoing, subject to the provision of the Indenture permitting the application thereof for the purposes and on the terms and conditions set forth in the Indenture. “Surcharge Revenues” is defined in the Indenture to mean the revenues derived by the Surcharge charged by the Authority pursuant to the Surcharge Resolution and collected by IID pursuant to the Servicing Agreement (as defined herein), minus administrative fees imposed by the IID for its performance of its responsibilities under the Servicing Agreement and amounts withheld by IID as a bad debt allowance.

The Surcharge. The “Surcharge” is a charge per kilowatt hour of electricity used by each class of customer applicable to all electric sales within the territorial boundaries of Indio. On July 19, 2023, the Authority adopted Resolution No. 2023-01 (the “Surcharge Resolution”) establishing and authorizing the charge of the Surcharge at a flat charge of $0.0055 per kilowatt hour of electricity used by each class of customer. The Surcharge became effective on November 1, 2023. The first bill containing the Surcharge is expected to be sent out by IID on or about December 1, 2023, with collections expected to be remitted to the Trustee and available for debt service on the Series 2023 Bonds by February 15, 2024. The JPA Agreement limits the ability of the Authority to increase the Surcharge by an amount in excess of 10% of the then-existing System Average Rate without the approval of IID and Indio. “System Average Rate” means the total revenues generated by IID from the sale of electricity to all rate classes divided by the total kilowatt hours of electricity

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sold by IID to all rate classes. There are no welfare or public agency exemptions from the Surcharge. The System Average Rate for calendar year 2022 was $0.1628 per kilowatt hour of electricity. Based on the System Average rate for calendar year 2022, the Authority, under the JPA Agreement, could raise the Surcharge by an additional $0.01078 per kilowatt hour of electricity without the consent of IID and Indio.

The Surcharge is charged by the Authority and collected by IID on IID’s monthly electric billing statements pursuant to a Servicing Agreement, dated as of August 1, 2023 (the “Servicing Agreement”) between IID and the Authority. Pursuant to the Servicing Agreement, IID is required to remit to the Authority monthly all amounts representing the Surcharge not later than the 15 th day of the second calendar month succeeding the month in which such amounts were collected and received by IID. The Authority has covenanted in the Indenture to cause all Surcharge Revenues to be transmitted by IID directly to the Trustee for deposit in the Revenue Fund. Pursuant to the Servicing Agreement, in order to recover the costs of collecting the Surcharge, IID will charge, as against collected Surcharge Revenues, an administration fee and a bad debt allowance. The administration fee is retained by IID on a monthly basis from IID’s monthly remittance of the Surcharge in the amount of 1.5% of the Surcharge collected. The bad debt allowance is

0.45% of the Surcharge collected.

Additional Bonds and Parity Obligations. Upon their issuance, the Series 2023 Bonds will be the only outstanding bonds issued under the Indenture. Pursuant to the Indenture, the Authority may issue additional bonds (together with the Series 2023 Bonds, the “Bonds”) payable from and secured by the Trust Estate and incur other obligations (“Parity Obligations”) payable from and secured by a pledge of the Pledged Revenues on a parity basis with the Bonds. The Indenture does not limit the ability of the Authority to issue or incur obligations which are payable from the Trust Estate or any portion thereof (including the Surcharge Revenues) on a basis junior and subordinate to the Bonds and Parity Obligations. See “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2023 BONDS—Additional Bonds and Other Obligations Payable from Pledged Revenues.”
The Series 2023 Bonds are limited obligations of the Authority and are secured by a pledge of and payable, both as to principal and interest and as to any premiums upon the redemption thereof, solely from the Trust Estate as provided in the Indenture, and the Authority is not obligated to pay the Series 2023 Bonds except from the Trust Estate. The Series 2023 Bonds are not secured by a legal or equitable pledge of, or charge, lien or encumbrance upon, any of the property of the Authority or any of its income or receipts, except the Trust Estate as provided in the Indenture.

Bond Insurance
[The scheduled payment of principal of an interest on the Series 2023 Bonds when due will be guaranteed under a municipal bond insurance policy (the “Insurance Policy”), which will be issued concurrently with the delivery of the Series 2023 Bonds by _________ (the “Insurer”). See the captions “— Authority for Issuance and Purpose” and “BOND INSURANCE.”] Rate Covenant
Pursuant to the Indenture, the Authority has covenanted that it will, to the fullest extent permitted by law, and subject to the provisions of the JPA Agreement, fix and prescribe, at the commencement of each Fiscal Year, the Surcharge in an amount, together with other Pledged Revenues, that is reasonably expected to be at least sufficient to yield during each Fiscal Year Pledged Revenues equal to one hundred ten percent (110%) of the Debt Service for such Fiscal Year. The Authority may make adjustments from time to time in the amount of the Surcharge and may make such classification thereof as it deems necessary, but is not permitted to reduce the amount of the Surcharge then in effect unless the Pledged Revenues after such reduced Surcharge will at all times be sufficient to meet the foregoing requirements.

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Event of Default under the Indenture, so long as the Authority has complied with the rate convent described above at the commencement of the succeeding Fiscal Year. See “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2023 BONDS—Rate Covenant.”
Furthermore, as described under the captions “THE INDIO ELECTRIC FINANCING AUTHORITY—Certain Provisions of the JPA Agreement” and “THE SURCHARGE—General,” the JPA Agreement limits the ability of the Authority to increase the Surcharge by an amount in excess of 10% of the then-existing System Average Rate (defined as the total revenues generated by IID from the sale of electricity to all rate classes divided by the total kilowatt hours of electricity sold by IID to all rate classes) without approval from IID and Indio. There is no assurance that, in the event the Authority is required to increase the Surcharge above the System Average Rate in order to comply with the Authority’s Rate Covenant, IID and Indio will approve such an increase. See the captions “THE SURCHARGE” and “CERTAIN RISK FACTORS—Pledged Revenues; Rate Covenant.”
Series 2023 Bonds Reserve Fund
Upon the issuance of the Series 2023 Bonds, a Series 2023 Bonds Reserve Fund will be established under the Indenture. The Series 2023 Bonds Reserve Fund will be funded from the proceeds of the Series 2023 Bonds in an amount equal to the Series 2023 Bonds Reserve Requirement (initially, $__________). The Series 2023 Bonds Reserve Fund is to be held by the Trustee in trust for the benefit of the registered owners of the Series 2023 Bonds. All money in the Series 2023 Bonds Reserve Fund will be used and withdrawn by the Trustee solely for the purpose of paying the interest on and principal of the Series 2023 Bonds as such interest and principal becomes due and payable in the event the money in the Interest Fund or Principal Fund is at any time insufficient for such purpose, for the defeasance or redemption of all or a portion of the Series 2023 Bonds or for the payment of the final principal and interest payment on the Series 2023 Bonds.

The Indenture provides that the Authority may at its sole discretion at the time of issuance of any Series of Bonds or at any time thereafter by Supplemental Indenture provide for the establishment of a Bond Reserve Fund as security for one or more Series of Bonds or may provide for no debt service reserve for any such Series of Bonds. Any Bond Reserve Fund so established by the Authority may secure one or more Series of Bonds as determined and specified by the Authority in the Supplemental Indenture establishing such Bond Reserve Fund. Amounts on deposit in any Bond Reserve Fund established for any Series of Bonds will be used and withdrawn as provided in the Supplemental Indenture authorizing the issuance of such Series of Bonds.

Amounts on deposit in the Series 2023 Bonds Reserve Fund will secure only the Series 2023 Bonds and do not secure in any manner any future Series of Bonds. Amounts on deposit in any Bond Reserve Fund for any one or more Series of Bonds or in any debt service reserve for any Parity Obligations will not secure in any manner the Series 2023 Bonds. See “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2023 BONDS—Series 2023 Bonds Reserve Fund.”
Rate Stabilization Fund
The Indenture establishes a Rate Stabilization Fund to be held by the Trustee. The Authority may, from time to time, instruct the Trustee to deposit into the Rate Stabilization Fund, from current Pledged Revenues, such amounts as determined by the Authority, and the amount of available current Pledged Revenues will be reduced by the amounts so deposited. The Authority may, from time to time, also direct the Trustee to deposit to the Rate Stabilization Fund amounts from any other lawfully available source other than current Pledged Revenues transferred to the Trustee by the Authority and the amount of available current Pledged Revenues will not be reduced by the amounts so deposited. The Authority may direct the Trustee to transfer amounts on deposit in the Rate Stabilization Fund to the Revenue Fund, and any amounts so transferred during or within 270 days after the end of a Fiscal Year may be deemed Pledged Revenues for such Fiscal Year. Upon the issuance of the Series 2023 Bonds, the balance in the Rate Stabilization Fund will be $0.

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Continuing Disclosure
The Authority has covenanted for the benefit of the holders and Beneficial Owners of the Series 2023 Bonds to provide certain financial information and operating data relating to the Authority, the Electric System and the Surcharge by not later than nine months following the end of the Authority’s fiscal year (which presently ends on June 30) (the “Annual Report”), commencing with the report for the fiscal year ending [June 30, 2023 due March 31, 2023], and to provide notices of the occurrence of certain enumerated events.

The Annual Report and notices of the enumerated events will be filed by or on behalf of the Authority with the Municipal Securities Rulemaking Board (the “MSRB”) through its Electronic Municipal Market Access (“EMMA”) system. The specific nature of the information to be contained in the Annual Report and the notices of enumerated events is set forth in APPENDIX D—“FORM OF CONTINUING DISCLOSURE AGREEMENT.” This covenant has been made in order to assist the Underwriter (as defined herein) in complying with Securities and Exchange Commission Rule 15c2-12(b)(5) (the “Rule”). The Authority has not previously entered into a continuing disclosure undertaking pursuant to the Rule. [DISCUSS INITIAL REPORT DATE AND REQUIRED INFORMATION FOR ANNUAL REPORTS] Certain Risk Factors
See “CERTAIN RISK FACTORS” for a description of certain risks associated with an investment in the Series 2023 Bonds.

Other Matters
Copies of the Indenture will be available for inspection at the Authority’s offices in Indio, California, and will be available upon request and payment of duplication costs from the Trustee.

ESTIMATED SOURCES AND USES OF FUNDS
The estimated sources and uses of funds for the Series 2023 Bonds, rounded to the nearest dollar, are as follows:

Total
Sources:

Principal Amount........................................................................ [Net] Original Issue [Premium/Discount]...................................

Total Sources................................................................

Uses:

Series 2023 Project Fund ............................................................

Interest Fund(1) ............................................................................

Series 2023 Bonds Reserve Fund ...............................................

Costs of Issuance (2) ....................................................................

Total Uses..................................................................... (1) Represents capitalized interest on the Series 2023 Bonds through June 1, 2024. (2) Includes fees of Bond Counsel, Disclosure Counsel, the Municipal Advisor and the Trustee, Underwriter’s discount, rating agency fees, printing costs, premiums for the Insurance Policy and certain miscellaneous expenses.

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DEBT SERVICE SCHEDULE
The following table shows the combined annual debt service required for the Series 2023 Bonds.

Principal amounts set forth in the table below include sinking fund payments.

Bond Year
Ending
January 1 Principal Interest Total Debt Service
2025(1)
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
Total
(1) Interest on the Series 2023 Bonds will be capitalized through June 1, 2024.

Source: The Underwriter.

THE SERIES 2023 PROJECT
The “Series 2023 Project” consists of the design, engineering and construction of two new substations and two expansion banks of substations adjacent to existing IID owned and operated substations and all appurtenant costs, as described further below. Each of the components of the Series 2023 Project will be owned by the Authority and maintained and operated by IID. The Series 2023 Project consists of the following:

Avenue 42 Project. The Avenue 42 Project consists of construction of one additional 28 megavolt- amperes (“MVA”) substation bank at an existing IID substation bank site located north of Interstate 10, south of Avenue 42, and west of the All-American Canal, resulting in a post-project condition of three 28 MVA

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substation banks on the project site. Construction of the Avenue 42 Project is expected to begin in June 2024 and last approximately four months.

Avenue 40 Project. The Avenue 40 Project consists of construction of a new electrical substation with up to two 28 MVA electrical transformer banks on an approximately 2.3-acre site located east of Burr Street. Construction is expected to begin in _____ 20__ and last approximately _____ months.

Dr. Carreon Project. The Dr. Carreon Project consists of the expansion of the existing IID-owned and operated Dr. Carreon Substation, located east of Monroe Street and north of Dr. Carreon Boulevard, with construction of up to two additional 28 MVA substation banks. Construction is expected to begin in June 2024 and last approximately four months.

Northgate Project. The Northgate Project consists of the construction of an electrical substation with up to two 28 MVA substation banks on an approximately 2.3-acre site located southeast of the terminus of Avenue 43. Construction is expected to begin in June 2024 and last approximately eight months.

The City advanced funds for a portion of the costs associated with ordering five transformers for the Series 2023 Project in the aggregate amount of approximately [$3.3 million] and will be reimbursed by the Authority for such costs from a portion of the proceeds of the Series 2023 Bonds. The Authority expects to pay for the costs of the Series 2023 Project from a combination of Series 2023 Bond proceeds, developer contributions, interest earnings and Surcharge Revenues.

The Authority may make such modifications, additions or substitutions of different components of the Series 2023 Project as approved by IID. The Authority’s ability to charge the surcharge is not contingent on the successful completion of the Series 2023 Project. For a further description of potential future Projects paid for from proceeds of future Bonds or the Surcharge, see the caption “THE INDIO ELECTRIC FINANCING AUTHORITY.”
THE SERIES 2023 BONDS
General
The Series 2023 Bonds are being issued in the respective aggregate principal amounts set forth on the inside cover page of this Official Statement. The Series 2023 Bonds will be issued in fully registered form, without coupons, in denominations of $5,000 or any integral multiple thereof (each, an “Authorized Denomination”), will be dated their date of delivery, and will bear interest from such date at the respective per annum rates set forth on the inside cover of this Official Statement. Interest on the Series 2023 Bonds will be payable on January 1 and July 1 of each year, commencing July 1, 2024 (each, an “Interest Payment Date”), and will be computed on the basis of a 360-day year, composed of twelve 30-day months.

The Series 2023 Bonds will be registered in the name of Cede & Co., as registered owner and nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Series 2023 Bonds. Individual purchases will be made in book-entry form only. Purchasers will not receive a bond certificate representing their beneficial ownership interest in Series 2023 Bonds purchased. So long as Cede & Co. as nominee of DTC, is the registered owner of the Series 2023 Bonds, references herein to Bondholders, Holders or owners of the Series 2023 Bonds shall mean Cede & Co. as aforesaid, and shall not mean the Beneficial Owners (as defined in Appendix E hereto) of Series 2023 Bonds.

So long as Cede & Co. is the registered owner of the Series 2023 Bonds, principal of and interest on the Series 2023 Bonds will be payable by wire transfer of same day funds by the Trustee to Cede & Co., as nominee for DTC. DTC is obligated, in turn, to remit such amounts to the DTC Participants for subsequent disbursement to Beneficial Owners of the Series 2023 Bonds. See APPENDIX E—“BOOK-ENTRY ONLY SYSTEM.”

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In the event the use of the book-entry system is discontinued, principal of the Series 2023 Bonds will be payable upon surrender thereof at the designated office of the Trustee. All interest payable on the Series 2023 Bonds will be paid by check mailed by first-class mail on each Interest Payment Date to the person in whose name each Series 2023 Bond is registered in the registration books maintained by the Trustee as of the close of business on the 15th day of the calendar month immediately preceding the Interest Payment Date (whether or not such day is a Business Day) (each, a “Record Date”); provided, that registered owners of at least $1,000,000 in aggregate principal amount of Series 2023 Bonds may, at any time prior to a Record Date, give the Trustee written instructions for payment of such interest on each succeeding Interest Payment Date by wire transfer, in accordance with the provisions set forth in the Indenture.

Redemption Provisions
Optional Redemption. The Series 2023 Bonds maturing on and after January 1, 20__, are subject to redemption prior to their stated maturities, at the option of the Authority, such option to be exercised by a Request of the Authority given to the Trustee at least 30 days prior to the redemption date (or such shorter time as may be acceptable to the Trustee), from any source of available funds, on any date on or after January 1, 20__, as a whole, or in part by such maturity or maturities as may be specified by Request of the Authority (and by lot within a maturity), at a Redemption Price equal to the principal amount thereof to be redeemed, plus accrued interest thereon to the date fixed for redemption, without premium.

Mandatory Sinking Account Redemption. The Series 2023 Bonds maturing on January 1, 20__ are subject to mandatory redemption from Mandatory Sinking Account Payments for such Series 2023 Bonds, on each date a Mandatory Sinking Account Payment for such Series 2023 Bonds is due, and in the principal amount equal to the Mandatory Sinking Account Payment due on such date at a Redemption Price equal to the principal amount thereof to be redeemed, plus accrued interest thereon to the redemption date, without premium.

Mandatory Sinking Account Payments for the Series 2023 Bonds maturing on January 1, 20__ shall be due in such amounts and on such dates as follows (except that if any of such Series 2023 Bonds are optionally redeemed as described above, the amounts of the remaining Mandatory Sinking Account Payments for such Series 2023 Bonds shall be revised as directed in writing by the Authority):

Series 2023 Bonds Maturing on January 1, 20__
Mandatory Sinking
Account Payment Date
(January 1)
Mandatory Sinking
Account Payment
†
† Final Maturity.

Selection of Series 2023 Bonds for Redemption. In the event of optional redemption of Series 2023 Bonds, the Authority shall designate which Series and maturities of the Series 2023 Bonds are to be called for optional redemption pursuant to the Indenture. If less than all Series 2023 Bonds maturing by their terms on any one date are to be redeemed at any one time, the Trustee shall select the Series 2023 Bonds of such maturity date to be redeemed by lot and shall promptly notify the Authority in writing of the numbers of the Series 2023 Bonds so selected for redemption. For purposes of such selection, Series 2023 Bonds shall be deemed to be composed of multiples of minimum authorized denominations and any such multiple may be separately redeemed.

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Notice of Redemption. Each notice of redemption shall be given by the Trustee to each registered owner of a Series 2023 Bond and the MSRB or any other entity designated or authorized by the Securities and Exchange Commission or any successor agency thereto to receive reports and notices pursuant to the Rule (the “Repository”) not less than 20 nor more than 60 days prior to the redemption. A copy of such notice shall also be provided to each of the Notice Parties with respect to the Series 2023 Bonds to which such notice relates.

Notice of redemption to the Holders, the Repository, and the applicable Notice Parties shall be given by first- class mail, electronic means. Each notice of redemption shall state the date of such notice, the date of issue of the Series 2023 Bonds, the redemption date, the Redemption Price, the place or places of redemption (including the name and appropriate address or addresses of the Trustee), the CUSIP number (if any) of the maturity or maturities, and, in the case of Series 2023 Bonds to be redeemed in part only, the portions of the principal amount thereof to be redeemed. Each such notice shall also state that on the redemption date there will become due and payable on each of the Series 2023 Bonds the Redemption Price thereof (or of the specified portion of the principal amount thereof in the case of a Bond to be redeemed in part only) together with interest accrued thereon to the date fixed for redemption, that from and after such redemption date interest thereon shall cease to accrue, and that such Series 2023 Bonds shall be surrendered on the redemption date at the address or addresses of the Trustee specified in the redemption notice. Neither the Authority nor the Trustee shall have any responsibility for any defect in the CUSIP number that appears on any Bond or in any redemption notice with respect thereto, and any such redemption notice may contain a statement to the effect that CUSIP numbers have been assigned by an independent service for convenience of reference and that neither the Authority nor the Trustee shall be liable for any inaccuracy in such CUSIP numbers.

The sufficiency or validity of the proceedings for redemption shall not be affected by the Trustee’s failure to give notice to any Notice Party or the Repository; or by the failure of any Holder, any Notice Party, or any Repository to receive notice; or by any defect in any such notice.

With respect to any notice of optional redemption of Series 2023 Bonds delivered pursuant to the Indenture, unless, upon the giving of such notice, such Series 2023 Bonds shall be deemed to have been paid within the meaning of the Indenture, such notice shall state that such redemption shall be conditional upon the receipt by the Trustee on or prior to the date fixed for such redemption of amounts sufficient to pay the principal of, and premium (if any) and interest on, such Series 2023 Bonds to be redeemed and that if such amounts shall not have been so received the notice shall be of no force and effect and the Authority shall not be required to redeem such Series 2023 Bonds. The Authority may also instruct the Trustee to provide conditional notice of optional redemption, which may be conditioned on the occurrence of any other event if such notice states that if such event does not occur the notice shall be of no force and effect and the Authority shall not be required to redeem such Series 2023 Bonds. In the event that such notice of optional redemption contains such a condition and such amounts are not so received or such event does not occur, the optional redemption shall not be made and the Trustee shall within a reasonable time thereafter give notice to the Holders to the effect that such amounts were not so received or such event did not occur and such redemption was not made, such notice to be given by the Trustee in the manner in which the notice of redemption was given. Such failure to optionally redeem such Series 2023 Bonds shall not constitute an Event of Default.

Any notice of optional redemption given pursuant to the Indenture may be rescinded by written notice or electronic means given to the Trustee by the Authority no later than five Business Days prior to the date specified for redemption. The Trustee shall give notice of such rescission as soon thereafter as practicable in the same manner, and to the same Persons, as notice of such redemption was given pursuant to the Indenture.

For so long as the Series 2023 Bonds are in book-entry form, all notices of redemption and all other notices described under this caption, shall be delivered to DTC, as securities depository. Neither the Authority nor the Trustee can or do give any assurance that any such notice will be distributed by DTC to Beneficial Owners or that any such notice will be distributed on a timely basis. See APPENDIX E – “BOOK-ENTRY ONLY SYSTEM.”
Effect of Redemption. Notice of redemption having been duly given pursuant to the Indenture, and moneys for payment of the Redemption Price of, together with interest accrued to the redemption date on, the

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Series 2023 Bonds (or portions thereof) so called for redemption being held by the Trustee, on the redemption date designated in such notice, the Series 2023 Bonds (or portions thereof) so called for redemption shall become due and payable at the Redemption Price specified in such notice together with interest accrued thereon to the redemption date, interest on the Series 2023 Bonds (or portions thereof) so called for redemption shall cease to accrue, the Series 2023 Bonds (or portions thereof) shall cease to be entitled to any benefit or security under this Indenture and the Holders of the Series 2023 Bonds (or portions thereof) shall have no rights in respect thereof except to receive payment of the Redemption Price and accrued interest to the date fixed for redemption from funds held by the Trustee for such payment and such funds are pledged by the Indenture to such payment. All Series 2023 Bonds redeemed pursuant to the provisions of the Indenture shall be canceled upon surrender thereof.

SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2023 BONDS Pledge of Trust Estate; Revenue Fund
The Bonds, including the Series 2023 Bonds, are limited obligations of the Authority and are secured by a pledge of and payable solely from the Trust Estate, which consists of (i) all Pledged Revenues; (ii) all amounts, including proceeds of the Bonds, held on deposit in the funds and accounts established under the Indenture (other than the Rebate Fund, all Letter of Credit Funds, and all Purchase Funds), (iii) all investment earnings on amounts held by the Trustee in the funds and accounts established under the Indenture (other than the Rebate Fund, all Letter of Credit Funds, and all Purchase Funds); and (iv) all proceeds of the foregoing, subject to the provision of the Indenture permitting the application thereof for the purposes and on the terms and conditions set forth in the Indenture.
“Pledged Revenues” is defined in the Indenture to mean (i) all Surcharge Revenues, (ii) all Swap Revenues, (iii) interest earnings and other investment income transferred to the Revenue Fund and (iv) amounts transferred from the Rate Stabilization Fund to the Revenue Fund. As provided in the Indenture, the amount of current Pledged Revenues will be reduced by the amount of current Pledged Revenues deposited to the Rate Stabilization Fund and the amount of current Pledged Revenues will be increased by any amounts transferred from the Rate Stabilization Fund to the Revenue Fund. For purposes of issuing Additional Bonds, Pledged Revenues will exclude amounts transferred from the Rate Stabilization Fund to the Revenue Fund.” “Surcharge Revenues” is defined in the Indenture to mean the revenues derived by the Surcharge charged by the Authority pursuant to the Surcharge Resolution and collected by IID pursuant to the Servicing Agreement, minus any administrative fees imposed by the IID for its performance of its responsibilities under the Servicing Agreement and any amounts withheld by IID as a bad debt allowance.

The “Surcharge” is a charge per kilowatt hour of electricity used by each class of customer applicable to all electric sales within the territorial boundaries of Indio for the Electric Service.

The Indenture provides that the Authority shall cause Surcharge Revenues to be transmitted by IID directly to the Trustee. The Trustee shall then deposit such Surcharge Revenues in a trust fund, designated as the “Revenue Fund,” which fund the Trustee shall maintain under the Indenture. The Surcharge Revenues and all other amounts deposited into the Revenue Fund pursuant to the Indenture, shall be received and held in trust by the Trustee for the benefit of the Holders of the Bonds and the Parity Obligations and shall be disbursed, allocated and applied solely for the uses and purposes set forth in the Indenture. Investment income on amounts held by the Trustee under the Indenture (other than amounts held in the Rebate Fund or for which particular instructions, such as with respect to a Project Fund, a Letter of Credit Account or a Purchase Fund, are provided in a Supplemental Indenture), shall also be deposited in the Revenue Fund. All moneys at any time held in the Revenue Fund shall be held in trust for the benefit of the Holders of the Bonds and the holders of Parity Obligations and shall be disbursed, allocated and applied solely for the uses and purposes set forth in the Indenture. The obligation of Authority to make payments of principal of, interest on and redemption premium of Bonds and Parity Obligations shall be an absolute obligation.

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The Trustee shall hold all funds and accounts established under the Indenture and required to be held by the Trustee (other than the Rebate Fund, all Letter of Credit Funds, and all Purchase Funds), and all investments, money, instruments, and other property credited thereto or on deposit therein, in trust for the benefit of the holders of the Bonds. Such property shall be applied solely as provided in the Indenture.

If no Event of Default has occurred and is continuing under the Indenture and all payments then due and payable by the Authority pursuant to the Indenture have been paid, then, except as the Authority otherwise directs in writing or as is otherwise provided in a Supplemental Indenture, amounts remaining in the Revenue Fund after all transfers currently required to be made by the Indenture to the Interest Fund, the Principal Fund and Sinking Accounts, the Reserve Funds and to any Subordinate Obligations, shall be transferred to the Authority on the same Business Day or as soon as practicable thereafter, to be used by the Authority for any lawful purpose and after such transfer to the Authority, such amounts shall be released from the lien of the Indenture and shall no longer constitute Pledged Revenues thereunder.

Allocation of Moneys in the Revenue Fund
So long as any Bonds are Outstanding and Parity Obligations and all other amounts payable under the Indenture remain unpaid, the Trustee shall set aside in each month following receipt of the Surcharge Revenues the moneys in the Revenue Fund in the following respective funds (each of which the Trustee shall establish, maintain and hold in trust for the benefit of the Holders of the Bonds and, as and to the extent applicable, the holders of Parity Obligations) in the following amounts, in the following order of priority, the requirements of each such fund (including the making up of any deficiencies in any such fund resulting from lack of Pledged Revenues sufficient to make any earlier required deposit) at the time of deposit to be satisfied before any deposit is made to any fund subsequent in priority; provided that on a parity with such deposits the Trustee may set aside or transfer amounts with respect to any outstanding Parity Obligations as provided in the proceedings for such Parity Obligations delivered to the Trustee pursuant to the Indenture (which shall be proportionate in the event such amounts are insufficient to provide for all deposits required as of any date to be made with respect to the Bonds and such Parity Obligations); provided further that the Authority, may, to the extent provided in the Indenture and subject to the allocation of Pledged Revenues set forth in the Indenture, instruct the Trustee to deposit Pledged Revenues and other amounts to the Rate Stabilization Fund or transfer amounts on deposit in the Rate Stabilization Fund to the Revenue Fund; provided further that payments on Interest Rate Swap Agreements that are payable on a parity with the Bonds shall be payable from the Interest Fund and the required deposits below shall be adjusted to include payments on such Interest Rate Swap Agreements in accordance with the Indenture:

Interest Fund. Upon the receipt of Surcharge Revenues in each month, the Trustee shall set aside in the Interest Fund Pledged Revenues until the amount on deposit in the Interest Fund is equal to the aggregate amount of interest becoming due and payable on the Outstanding Bonds during the then-current Bond Year (excluding any interest for which there are moneys deposited in the Interest Fund from the proceeds of any Series of Bonds or other source and reserved as capitalized interest to pay such interest on the Interest Payment Date). No deposit need be made into the Interest Fund with respect to any Bonds if the amount contained therein is at least equal to the interest to become due and payable on each remaining Interest Payment Date occurring during the then-current Bond Year. On the final Interest Payment Date of the then-current Bond Year, any excess amounts in the Interest Fund not needed to pay interest on such Interest Payment Date shall be transferred to the Revenue Fund (excepting any moneys deposited in the Interest Fund from the proceeds of any Series of Bonds or other source and reserved as capitalized interest to pay interest on any future Interest Payment Dates following such Interest Payment Date).

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If Liquidity Facility Bonds are outstanding at the time of any required deposits to the Interest Fund, such deposits shall take into account and include the Liquidity Facility Rate on Liquidity Facility Bonds required by the Liquidity Facility then in effect with respect to such Bonds.

All Swap Revenues received by the Authority with respect to Interest Rate Swap Agreements that are Parity Obligations shall be transferred by Authority to the Trustee and deposited in the Interest Fund and credited to the above required deposits. All Subsidy Payments received by Authority shall be transferred by Authority to the Trustee and deposited in the Interest Fund and credited to the above required deposits.

Principal Fund; Sinking Accounts. Upon the receipt of Surcharge Revenues in each month, the Trustee shall set aside in the Principal Fund Pledged Revenues until the amount on deposit in the Principal Fund is equal to (a) the aggregate amount of Bond Obligation becoming due and payable on during the then current Bond Year on the Outstanding Serial Bonds of all Series plus (b) the aggregate of the Mandatory Sinking Account Payments to be paid during the then current Bond Year into the Sinking Accounts for the Term Bonds of all Series. If, however, the Authority certifies to the Trustee that any principal payments are expected to be paid from amounts on deposit in a Bond Reserve Fund that would be in excess of the Bond Reserve Requirement applicable to such Reserve Fund upon such payment, no amounts need be set aside towards such principal to be so refunded or paid. All of the aforesaid deposits made in connection with Mandatory Sinking Account Payments shall be made without priority of any payment over any other such payment.

No deposit need be made into the Principal Fund on any date so long as there shall be in such fund (a) moneys sufficient to pay the Bond Obligations of all Serial Bonds issued under the Indenture and then Outstanding and maturing by their terms during the then-current Bond Year plus (b) the aggregate of all Mandatory Sinking Account Payments required to be made during the then-current Bond Year. On the final Principal Payment Date occurring during the then-current Bond Year or as soon as practicable thereafter, any excess amounts in the Principal Fund not needed to pay Bond Obligation or Mandatory Sinking Account Payments on such Principal Payment Date shall be transferred to the Bond Fund.

If any Liquidity Facility Bonds are outstanding at the time of any required deposits to the Principal Fund, such deposits shall take into account and include any amortizations or redemptions of any Liquidity Facility Bonds required by the Liquidity Facility then in effect with respect to such Bonds. For purposes of the provisions above relating to the Principal Fund, Liquidity Facility Bonds shall be treated as Serial Bonds with maturity dates on the payment dates of any amortization or redemptions.

Reserve Funds. Upon the occurrence of any deficiency in any Reserve Fund, the Trustee shall make such deposit to such Reserve Fund, as is required pursuant to the Indenture, each such deposit to be made as soon as possible in each month, until the balance therein is at least equal to the applicable Bond Reserve Requirement.

Subordinate Obligations. Upon the receipt of Surcharge Revenues in each month, the Trustee shall transfer to the applicable trustee or the payee for the respective Subordinate Obligations Pledged Revenues until the aggregate amount transferred to such trustee or payee is equal to the aggregate amount of principal and interest coming due on the outstanding Subordinate Obligations during the then-current Bond Year.

Transfer to the Authority. If no Event of Default has occurred and is continuing and all payments then due and payable by the Authority pursuant to the Indenture have been paid, then, except as the Authority otherwise directs in writing or as is otherwise provided in a Supplemental Indenture, amounts remaining in the Revenue Fund after all transfers currently required to be made by the Indenture to the Interest Fund, the Principal Fund and Sinking Accounts, the Reserve Funds and to any Subordinate Obligations, on the same Business Day or as soon as practicable thereafter, shall be (i) transferred to the Authority to be used by the Authority for any lawful purpose and after such transfer to the Authority, such amounts shall be released from the lien of the Indenture and shall no longer constitute Pledged Revenues thereunder or (ii), upon the written direction of the Authority to the Trustee, deposited into the Rate Stabilization Fund.

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Rate Covenant
Pursuant to the Indenture, the Authority has covenanted that it will, to the fullest extent permitted by law, and subject to the provisions of the JPA Agreement, fix and prescribe, at the commencement of each Fiscal Year, the Surcharge in an amount, together with other Pledged Revenues, that is reasonably expected to be at least sufficient to yield during each Fiscal Year Pledged Revenues equal to one hundred ten percent (110%) of the Debt Service for such Fiscal Year. This obligation of the Authority in the Indenture is referred to herein as the “Rate Covenant.” The Authority may make adjustments from time to time in the amount of the Surcharge and may make such classification thereof as it deems necessary, but is not permitted to reduce the amount of the Surcharge then in effect unless the Pledged Revenues after such reduced Surcharge will at all times be sufficient to meet the foregoing requirements.

So long as the Authority has complied with its obligations described above, the failure of Surcharge Revenues to meet the threshold set forth above at the end of a Fiscal Year will not constitute a default or an Event of Default under the Indenture, so long as the Authority has complied with the rate convent described above at the commencement of the succeeding Fiscal Year. See APPENDIX B—“SUMMARY OF THE INDENTURE.”
Furthermore, as described under the captions “THE INDIO ELECTRIC FINANCING AUTHORITY—Certain Provisions of the JPA Agreement” and “THE SURCHARGE—General,” the JPA Agreement limits the ability of the Authority to increase the Surcharge by an amount in excess of 10% of the then-existing System Average Rate (defined as the total revenues generated by IID from the sale of electricity to all rate classes divided by the total kilowatt hours of electricity sold by IID to all rate classes) without approval from IID. There is no assurance that, in the event the Authority is required to increase the Surcharge above the System Average Rate in order to comply with the Authority’s Rate Covenant, IID will approve such an increase. See the captions “THE SURCHARGE” and “CERTAIN RISK FACTORS—Pledged Revenues; Rate Covenant.”
Rate Stabilization Fund
The Indenture establishes a Rate Stabilization Fund to be held by the Trustee. The Authority may, from time to time, instruct the Trustee to deposit into the Rate Stabilization Fund, from current Pledged Revenues, such amounts as determined by the Authority, and the amount of available current Pledged Revenues will be reduced by the amounts so deposited. The Authority may, from time to time, also direct the Trustee to deposit to the Rate Stabilization Fund amounts from any other lawfully available source other than current Pledged Revenues transferred to the Trustee by the Authority and the amount of available current Pledged Revenues will not be reduced by the amounts so deposited. The Authority may direct the Trustee to transfer amounts on deposit in the Rate Stabilization Fund to the Revenue Fund, and any amounts so transferred during or within 270 days after the end of a Fiscal Year may be deemed Pledged Revenues for such Fiscal Year. Upon the issuance of the Series 2023 Bonds, the balance in the Rate Stabilization Fund will be $0.

Series 2023 Bonds Reserve Fund
Upon the issuance of the Series 2023 Bonds, a Series 2023 Bonds Reserve Fund is to be established under the Indenture. The Series 2023 Bonds Reserve Fund will be funded from the proceeds of the Series 2023 Bonds in an amount equal to the Series 2023 Bonds Reserve Requirement. The Series 2023 Bonds Reserve Fund is to be held by the Trustee in trust for the benefit of the registered owners of the Series 2023 Bonds.

The Indenture defines the “Series 2023 Bonds Reserve Requirement” to mean, as of any date of calculation, an amount equal to the least of (a) 10% of the principal amount of the 2023 Bonds, (b) the Maximum Annual Debt Service for the 2023 Bonds, and (c) 125% of the Average Annual Debt Service for the 2023 Bonds.

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The Series 2023 Bonds Reserve Fund will initially be funded from the proceeds of the Series 2023 Bonds in an amount equal to the Series 2023 Bonds Reserve Requirement ($__________ upon the delivery of the Series 2023 Bonds). In lieu of funding any portion of the Series 2023 Bonds Reserve Fund with cash or in replacement of moneys then on deposit in the Series 2023 Bonds Reserve Fund, the Authority may, at any time and from time to time, provide for all or a portion of the Series 2023 Bonds Bond Reserve Fund by delivery to the Trustee of an insurance policy, letter of credit, surety bond or other instrument (a “Reserve Facility”) issued by a financial institution or insurance company, as applicable, having a long-term rating at the time of delivery of such insurance policy, letter of credit, surety bond or other instrument in one of the two highest Rating Categories from at least one Rating Agency.

All amounts in the Series 2023 Bonds Reserve Fund (including all amounts which may be obtained from any Reserve Facility on deposit in the Series 2023 Bonds Reserve Fund) shall be used and withdrawn by the Trustee solely: (i) for the purpose of making up any deficiency in the Interest Fund or Principal Fund relating to the Series 2023 Bonds; or (ii) together with any other moneys available therefor, (x) for the payment of all of the Series 2023 Bonds then Outstanding, (y) for the defeasance or redemption of all or a portion of the Series 2023 Bonds then Outstanding; provided however, that if funds on deposit in the Series 2023 Bonds Reserve Fund are applied to the defeasance or redemption of a portion of the Series 2023 Bonds, the amount on deposit in the Series 2023 Bonds Reserve Fund immediately subsequent to a partial defeasance or redemption shall equal the Series 2023 Bonds Reserve Requirement applicable to all Series 2023 Bonds Outstanding immediately subsequent to such partial defeasance or redemption, or (z) for the payment of the final principal and interest payment on the Series 2023 Bonds.

The Indenture provides that the Authority may at its sole discretion at the time of issuance of any Series of Bonds or at any time thereafter by Supplemental Indenture provide for the establishment of a Bond Reserve Fund as security for one or more Series of Bonds or may provide for no debt service reserve for any such Non-Participating Bonds. Any Bond Reserve Fund so established by the Authority may secure one or more Series of future Bonds as the Authority shall determine and shall specify in the Supplemental Indenture establishing such Bond Reserve Fund. Amounts on deposit in any Bond Reserve Fund established for any Series of future Bonds shall be used and withdrawn as provided in the Supplemental Indenture authorizing the issuance of such Series of future Bonds.

Amounts on deposit in the Series 2023 Bonds Reserve Fund established in connection with the Series 2023 Bonds secure only the Series 2023 Bonds and do not secure in any manner any future Series of Bonds or any other Parity Obligations of the Authority. Amounts on deposit in any Bond Reserve Fund for any one or more Series of future Bonds or in any debt service reserve for any Parity Obligations will not secure in any manner the Series 2023 Bonds.

Additional Bonds and Other Obligations Payable from System Revenues Additional Bonds. The Authority may, by Supplemental Indenture, issue one or more additional Series of Bonds that, subject to the provision of the Indenture permitting the application thereof for the purposes of and on the terms and conditions set forth in the Indenture, are payable from the Trust Estate and secured by the pledge thereof made under the Indenture equally and ratably with the Outstanding Bonds.

Additional Series of Bonds may be issued upon compliance by the Authority with the provisions set forth in the Indenture and subject to certain specific conditions precedent set forth in the Indenture.

Conditions precedent to the issuance of an additional Series of Bonds, include, but are not limited to, the following:
(a) No Event of Default shall have occurred and then be continuing (or the issuance of such additional Series of Bonds will cure any such Event of Default). (b) Subject to the provisions of the Indenture, in the event a Supplemental Indenture providing for the issuance of an additional Series of Bonds shall require either (i) the establishment of a Bond Reserve

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Fund to provide additional security for such Series of Bonds, or (ii) that the balance on deposit in an existing Bond Reserve Fund be increased, forthwith upon the receipt of the proceeds of the sale of such Series, to an amount at least equal to the Bond Reserve Requirement (as specified in the Supplemental Indenture establishing such Bond Series Reserve Fund) with respect to such Series of Bonds and all other Bonds secured by such Bond Reserve Fund to be considered Outstanding upon the issuance of such additional Series of Bonds, the Supplemental Indenture providing for the issuance of such additional Series of Bonds shall require deposit of the amount necessary. The deposit shall be made as provided in the Supplemental Indenture providing for the issuance of such additional Series of Bonds and may be made from the proceeds of the sale of such Series of Bonds or from other funds of the Authority or from both such sources or may be made in the form of a Reserve Facility.
(c) The aggregate principal amount of Bonds issued shall not exceed any limitation imposed by law or by any Supplemental Indenture.
(d) The Authority shall deliver to the Trustee a Certificate setting forth that:
(1) The Pledged Revenues for the most recent audited Fiscal Year for which audited financial statements are available or for any other period of 12 consecutive months (selected by the Authority) during the 18 months immediately preceding the date on which such additional Series of Bonds will become Outstanding shall have been, as the case may be, as evidenced by both a calculation prepared by the Authority and a special report prepared by a Consultant on such calculation on file with the Authority, shall have produced a sum equal to at least 115% of the Debt Service for such Fiscal Year; and (2) The Pledged Revenues for the most recent audited Fiscal Year for which audited financial statements are available or for any other period of 12 consecutive months (selected by the Authority) during the 18 months immediately preceding the date on which such additional Series of Bonds will become Outstanding, as the case may be, including adjustments to give effect as of the first day of such Fiscal Year to increases or decreases in the amount of the Surcharge approved and in effect as of the date of calculation, as evidenced by a calculation prepared by the Authority, shall have produced a sum equal to at least 115% of the Debt Service for such Fiscal Year plus the Debt Service which would have accrued on any Bonds issued or Parity Obligations incurred since the end of such Fiscal Year assuming such Bonds had been issued and such Parity Obligations had been incurred at the beginning of such Fiscal Year, plus the Debt Service which would have accrued had such Bonds been issued at the beginning of such Fiscal Year.

In addition, Refunding Bonds may be issued without satisfaction of the tests described in paragraph (d) above if the Debt Service on all Bonds Outstanding and all Parity Obligations outstanding following the issuance of such Refunding Bonds will not be increased by more than 5% in any Fiscal Year in which Bonds or Parity Obligations not being refunded are Outstanding.

Parity Obligations. In addition to additional Bonds, the Authority may also issue or incur other obligations, including Interest Rate Swap Agreements (but excluding fees and expenses and termination payments on Interest Rate Swap Agreements), payable in whole or in part from, and secured by a pledge of Pledged Revenues on a parity basis with the Outstanding Bonds, subject to the provisions of the Indenture, provided that certain conditions precedent to the issuance or incurrence of such Parity Obligations, as set forth in the Indenture, are satisfied.

Conditions precedent to the issuance or incurrence of Parity Obligations include, but are not limited to, the following:
(a) No Event of Default shall have occurred and then be continuing (or the issuance or incurrence of such Parity Obligations will cure any such Event of Default), as evidenced by the delivery to the Trustee of a Certificate of the Authority to that effect; and

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(b) The Authority shall deliver to the Trustee a Certificate of the Authority, which Certificate of the Authority shall also set forth the computations upon which such Certificate of the Authority is based, demonstrating one of the following:
(1) Such Parity Obligations are being issued or incurred for purposes of refunding as described in the Indenture and Debt Service on all Bonds Outstanding and all Parity Obligations outstanding following the issuance or incurrence of such Parity Obligations will not be increased by more than 5% in any Fiscal Year in which Bonds or Parity Obligations not being refunded are Outstanding; or (2) The requirements set forth in paragraph (d) above under “– Additional Bonds” shall have been satisfied with respect to the issuance or incurrence of such Parity Obligations; provided, however that if the Parity Obligation being issued or incurred consists of an Interest Rate Swap Agreement that relates to a Series of Bonds or Parity Obligations (excluding fees and expenses and termination payments on such Interest Rate Swap Agreement), the Authority shall be deemed to have complied with the requirements described in this paragraph with respect to such Interest Rate Swap Agreement to the extent that the Series of Bonds or Parity Obligations to which the Interest Rate Swap Agreement relates (x) satisfies the requirements described in paragraph (d) above under “– Additional Bonds” after taking into account the adjustment of Debt Service on such Series of Bonds or Parity Obligations to reflect the impact of the Interest Rate Swap Agreement (in the case of Interest Rate Swap Agreements entered into concurrently with, or subsequent to, the issuance of such Bonds or Parity Obligations), or (y) is expected to satisfy the requirements described in paragraph (d) above under “– Additional Bonds” after taking into account the adjustment of Debt Service on such Series of Bonds or Parity Obligations to reflect the impact of the Interest Rate Swap Agreement (in the case of Interest Rate Swap Agreements entered into in advance of the issuance of such Bonds or Parity Obligations); or
(3) Such Parity Obligations consist of Reimbursement Obligations relating to Bonds or Parity Obligations.

Subordinate Obligations. Nothing in the Indenture shall limit the ability of the Authority to issue or incur obligations, in addition to the Interfund Loan Agreement, payable from the Trust Estate or any portion thereof (including the Pledged Revenues) on a basis that is junior and subordinate in both payment and lien priority to the Bonds and Parity Obligations.

See also APPENDIX B—“SUMMARY OF THE INDENTURE—Issuance of Additional Bonds.” Requirements of JPA Agreement. As described further under the caption “THE INDIO ELECTRIC FINANCING AUTHORITY,” pursuant to the JPA Agreement the Authority is only permitted to issue Bonds or incur Parity Obligations for the purpose of paying the costs of Projects subject to Project Agreements (as such terms are defined in the JPA Agreement). Under the JPA Agreement, all Project Agreements are required to be executed by both the Authority and IID; therefore, in addition to the requirements of the Indenture described above, the JPA Agreement limits the Authority’s ability to issue additional Bonds without the approval of IID regarding additional Projects and Project Agreements.

BOND INSURANCE
[BOND INSURANCE PROVISIONS TO COME]

THE CITY OF INDIO
As described in this Official Statement, the Surcharge is only permitted to be charged within the territorial boundaries of Indio and the amount of Surcharge Revenues depends in significant part on electrical sales within Indio. The following is general information regarding Indio. For more detailed economic and demographic information regarding Indio, see APPENDIX A“GENERAL INFORMATION CONCERNING THE CITY OF INDIO.”

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Indio was incorporated in 1930 and encompasses approximately 33 square miles. Indio is the geographic mid-point of the County and is located approximately 125 miles east of the center of the Los Angeles region, 75 miles north of the California-Baja California Mexican border and 30 miles southeast of Palm Springs. Its neighboring communities include Indian Wells, La Quinta and Palm Desert to the west and Coachella and Mecca to the east.

Known as the “City of Festivals,” Indio hosts multiple annual festivals, such as the Coachella Valley Music and Arts Festival (known as the Coachellafest), the Stagecoach Country Music Festival, Riverside County Fair & Date Festival, Palm Springs Kennel Club Dog Show, Southwest Arts Festival, Indio International Tamale Festival, collectively drawing more than one million people to Indio annually. Indio’s ability to draw and host worldwide festivals is based on being home to the Riverside County Fairgrounds and the adjoining Empire Polo Club Grounds and Eldorado Polo Club Grounds (site of the Coachellafest), which are large-scale, outdoor entertainment venues unique to Indio within the Coachella Valley.

Indio is the largest city, by population, in the Coachella Valley, a sub-region located in eastern Riverside County. Indio is a center for business, government and entertainment within the region. Other cities in the Coachella Valley include Palm Springs, Palm Desert, Rancho Mirage, Indian Wells, La Quinta, Cathedral City, Desert Hot Springs and Coachella. The Coachella Valley is a premium golf region with many well-known golf courses (including PGA West, Indian Wells Country Club, the Quarry at La Quinta and many others), as well as hotels and resorts, gated retirement communities. Significant industries in the Coachella Valley include leisure, tourism, agriculture, wind farming, construction, Indian gaming, mining and entertainment.

THE INDIO ELECTRIC FINANCING AUTHORITY
Background
As described further under the caption “—The Imperial Irrigation District,” IID is the electric service provider within the territorial boundaries of Indio. The Authority was created by IID and Indio pursuant to the JPA Agreement for the express purpose of providing and enhancing electrical service within the territorial boundaries of Indio through the procurement, design, construction, financing, leasing, ownership, operation and maintenance of energy system improvements, system efficiency and reliability improvements and energy service enhancements (previously defined herein as the “Electric Service”). The Authority has the power to exercise the common power of its members and certain other powers authorized by law, including the power to provide electrical service and to establish the provision of such electrical service. For a further description of certain provisions of the JPA Agreement, see the caption “—Certain Provisions of the JPA Agreement,” below.

Indio and IID identified key electric infrastructure needs impacting electric power consumers located within Indio. In analyzing the needs of the electric system within Indio, Indio and IID looked not only at the current load within Indio, but also the expected impact that legislative and regulatory mandates that aim to reduce fossil fuel consumption will have on existing infrastructure and the ability to reliably provide electricity to power consumers within Indio. In addition, the Authority, in its evaluation of the infrastructure needs within Indio, considered the additional burden that other applicable policies and regulations, such as water treatment regulations and policy objectives to address housing access, will have on the current electric system. With an emphasis on enhancing the reliability and resiliency of the existing IID electric system infrastructure located within Indio, the Authority identified the construction of new substations or the upgrading and expansion of existing substations as the most the effective means to prepare the electric system for the expected increase in demand resulting from the transition to electrification and away from fossil fuels.

The City Council of Indio serves as the Board of Directors of the Authority, and the City Manager of Indio serves as the Executive Director of the Authority.

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The Imperial Irrigation District
IID is a public entity organized in 1911 pursuant to the Irrigation District Law (California Water Code sections 20500, et. seq.). IID has the power under the Irrigation District law to provide irrigation and electric service within its boundaries (an area of approximately 1,658 square miles for irrigation and 6,741 square miles for electric). IID entered the power business in 1936 to utilize the hydroelectric generation potential on the All-American Canal. In 1943, IID acquired the electric system and certain properties of the California Electric Company in Imperial County and portions of Riverside County. As a consequence, IID became the source of electric energy for an approximately 6,741 square-mile service area, including substantially all of the Imperial Valley and of the Coachella Valley in Riverside County and a small portion of San Diego County.

IID’s electric service area includes all of the territory within Indio. To provide electric service within its service area, IID owns and operates an electric system, which includes generation, transmission and distribution facilities. IID also purchases capacity and energy from others and participates in other utility arrangements. IID is the exclusive provider of retail electric distribution services within Indio.

As described in this Official Statement, the Series 2023 Project and any future Projects paid for with proceeds of future Series of Bonds or Parity Obligations will be owned by the Authority but operated and maintained by IID. Additionally, the Surcharge is collected with respect to each kilowatt hour of electricity sold by IID in Indio. Therefore, IID, its finances and its ability to continue providing electrical service within Indio may be relevant to Holders of the Series 2023 Bonds. See the caption “CERTAIN RISK FACTORS.” IID has entered into certain continuing disclosure agreements pursuant to which IID is contractually obligated for the benefit of owners of certain outstanding obligations to file with certain information repositories annual reports, notices of certain material events as defined under the Rule and annual audited financial statements (the “IID Information”). This information is to be filed by IID with the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System for municipal securities disclosures, maintained on the Internet at http://emma.msrb.org/. IID disclosure documents and annual reports should be reviewed for information pertaining to matters related to IID, its finances and its electric system.

Although certain of the information presented in this Official Statement has been obtained from IID, IID has not entered into any contractual commitment with the Authority, the Trustee or the Holders of the Series 2023 Bonds to provide IID Information to the Authority, the Trustee or the Holders of the Series 2023 Bonds. The Authority has not incorporated by reference the information filed by IID described above and neither the Authority nor the Underwriter assume any responsibility for the accuracy of IID Information.

The 1934 Agreement
General. A significant portion of the electric customers served by IID in 2022 reside outside its water service boundaries, principally in the Coachella Valley (the “IID Coachella Service Area”). The IID Coachella Service Area includes all the territorial boundaries of Indio. IID acquired the IID Coachella Service Area in 1943 through the purchase of the electric system and certain properties of California Electric Company in Imperial County and parts of Riverside County. Under state law, only water service customers may elect IID board members. Accordingly, only those electric customers who reside in the IID's water service boundaries may elect IID board members.

A portion of the IID Coachella Service Area (including Indio) overlaps the service territory of the Coachella Valley Water District (“CVWD”). CVWD, located primarily in Riverside County, was organized in 1918 as a county water district solely for the purpose of providing water for agricultural and other development in the Coachella Valley. CVWD continues to serve as the wholesale water service provider within Indio. In 1934, prior to the acquisition by IID of the electric system from California Electric Company in Riverside County, IID and CVWD executed an Agreement of Compromise, dated February 14, 1934 (the “1934 Agreement”) in order to settle a dispute regarding the rights of water and power on and from the All- American Canal, including canals off of the All-American Canal in the CVWD water service area (now known as the Coachella Canal) in connection with the construction of the All-American Canal.

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Under the 1934 Agreement, the parties intended to enter into a long-term lease regarding CVWD’s rights in the power generation potential of the Coachella Canal. Under the proposed lease, IID was to pay to CVWD a percentage of the IID's energy “net proceeds” as a rental fee for the power potential rights to IID.

The lease was to have a 99-year term (expiring in January 1, 2033). The Coachella Canal was eventually built without any hydroelectric generating facilities. The lease, intended to be executed in 1934, was never entered into. IID, however, has made annual payments to CVWD.

For a number of reasons, including the lack of representation of the electric customers in the IID Coachella Service Area on IID’s board and uncertainty over the effect of the terms of the 1934 Agreement on IID’s continuing right to provide electric service to the IID Coachella Service Area, particularly as to the provisions relating to the intended lease of the power generation potential of the Coachella Canal, questions have been raised from time to time regarding the disposition of the IID Coachella Service Area by IID following the expiration of the 1934 Agreement on January 1, 2033. In response to these questions, the IID’s then existing board unanimously adopted Resolution No. 15-2007 on August 12, 2007 to the effect that IID has no intention of divesting itself of the IID Coachella Service Area.

Expiration of 1934 Agreement. The Authority can provide no assurances regarding the ability of IID to continue providing electrical service within the IID Coachella Service Area, including within the territorial boundaries of Indio, after January 1, 2033. However, the JPA Agreement provides that, until all Bonds are no longer outstanding pursuant to their terms and the Surcharge is no longer being charged and collected by the Authority, title to any improvements financed with the proceeds of any Bonds or funded with the proceeds of the Surcharge shall remain held solely by the JPA, and the improvements financed with the proceeds of any Bonds or funded with the proceeds of the Surcharge shall not be considered assets, works, facilities or power rights in which IID has an interest or investment, and the improvements financed with the proceeds of any Bonds or funded with the proceeds of the Surcharge are not transferrable for any reason to any party, including any successor to IID. The JPA Agreement further provides that certain provisions of the 1934 Agreement which provide for the segregation and/or adjustment of IID’s and CVWD’s power rights within the IID Coachella Service Area upon termination of the 1934 Agreement are inapplicable to the improvements financed with the proceeds of any Bonds or funded with the proceeds of the Surcharge.

Furthermore, the Authority has covenanted in the Indenture that, in the event that IID is no longer providing electrical services within the boundaries of Indio, and the Servicing Agreement is terminated pursuant to the terms thereof, the Authority will take all necessary action to the enter into an agreement with the successor to IID that is providing electrical service within the boundaries of Indio to replace the Servicing Agreement to provide for the collection of the Surcharge and the remittance of the Surcharge Revenues to the Trustee. See also APPENDIX B—“SUMMARY OF THE INDENTURE.” In addition to the Surcharge, IID also collects a utility user’s tax on behalf of Indio, which is imposed upon the provision electrical service by IID within Indio on all non-exempt electrical accounts within Indio.

The Projects
The JPA Agreement provides for the design, acquisition and construction of “Projects,” which are defined as the energy system improvements, system efficiency and reliability improvements and energy service enhancements or other facilities necessary and appropriate for carrying out the purposes of the JPA Agreement and the applicable Project Agreement. A “Project Agreement” is defined as an agreement between the Authority and IID, or a successor thereto entered into for a Project that, among other things, will identify the Project (or any subcomponents of such Project, if applicable), establish the scope of the Project, establish the ownership of the components of the Project, the terms of the lease of equipment, property or all or a portion of the Project, if applicable, to IID, define the responsibilities of the Authority and IID with respect to the design, acquisition, and construction, and the obligation of IID to operate, maintain and repair such Project in accordance with the JPA Agreement, and provides for the interconnection of such Project into IID’s electrical system.

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The Projects are expected to be integrated into IID’s overall electrical system that serves Indio.

Accordingly, IID and Indio agree in the JPA Agreement that IID can most efficiently operate, maintain and repair such Projects and, as a result, IID shall be responsible for the operation, maintenance and repair of the Projects pursuant to the terms the Project Agreement relating to the applicable Project. The costs of operating, maintaining and repairing the Projects shall be paid from amounts collected by IID through the rates and charges that IID charges for electrical service provided by IID. In the event that IID no longer provides electrical service within the boundaries of Indio and the Projects are no longer part of IID’s electrical system, IID shall no longer be responsible for operating, maintaining or repairing the Projects.

For more information on the initial Projects being financed with the proceeds of the Series 2023 Bonds, which are referred to collectively in this Official Statement as the Series 2023 Project, see the caption “THE SERIES 2023 PROJECT.”
Certain Provisions of the JPA Agreement
Term. The JPA Agreement shall continue in full force and effect until IID and Indio terminate the JPA Agreement in writing; provided however the JPA Agreement shall not terminate so long as any Bonds or other obligations of the Authority remain outstanding under the terms of any Indenture, contract, agreement, lease, sublease or other instrument pursuant to which such Bonds are issued or other obligations are incurred.

Powers of the Authority. The JPA Agreement provides that the geographic boundaries of the Authority shall be coextensive with the territorial boundaries of Indio, and that the Authority shall have any and all power which are common powers of its members, as well as the powers separately conferred by law upon the Authority. In addition to the general powers described above, the JPA Agreement also provides the authority for the Authority, in its own name, to do all acts necessary, convenient and appropriate for the exercise of the foregoing powers for the purposes set forth in this Agreement and to do any or all of the following: (1) to make and enter into contracts; (2) to employ agents and employees; (3) to lease, acquire, design, construct, manage, maintain or operate any building, works or improvements for the purposes set forth in the JPA Agreement; (4) to enter into a real or personal property lease or leases with IID to facilitate the purposes set forth in the JPA Agreement; (5) to acquire, hold or dispose of property or the right to use property or facilities for the purposes set forth in the JPA Agreement; (6) to incur debts, liabilities, or obligations which do not constitute a debt, liability, or obligation of any member of the Authority; (7) to charge the Surcharge; (8) to receive gifts, contributions, and donations of property, funds, services, and other forms of assistance from persons, firms, corporations, and governmental entities, provided that the Authority consents to such gifts, contributions, and donations; (9) to prescribe the duties, compensation, and other terms and conditions of employment of other agents, officers, and employees; (10) to adopt reasonable rules and regulations for the conduct of the day-to-day operations of the Authority; (11) to apply for, accept, receive, and disburse grants and loans from local, state, or federal agencies or from individuals or businesses; (12) to sue and be sued in its own name; (13) to fund and maintain adequate reserve funds to support debt and operational requirements; (14) to invest money in its treasury, pursuant to Government Code Section 6505.5 et seq., that is not required for the immediate necessities of the Authority, as the Authority determines advisable, in the same manner and on the same conditions as local agencies, pursuant to Section 53601 of the Government Code; (15) to enter into Project Agreements in connection with any Projects; (16) to enter into the Servicing Agreement with IID; (17) to issue Bonds or incur other obligations of the Authority; (18) to exercise any and all powers which are provided for in the Act and in Government Code Section 6584 et seq., including, without limitation Government Code Section 6588, as they exist on the date of the JPA Agreement or may later be amended; (19) to take action by resolution, ordinance, or motion, as approved by the Board as specified in the JPA Agreement; (20) to carry out and enforce all provisions of the JPA Agreement with respect to the activities necessary to undertake the acquisition, design, construction, ownership, operation and maintenance of any Projects; (21) to conduct such other activities as are necessary and appropriate to carry out purposes set forth in the JPA Agreement; and (22) to exercise any power necessary or incidental to the foregoing powers.

Limitation on Powers. In no event is the Authority authorized to provide electrical service consisting of the distribution of electrical power directly to end user customers.

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Limitations on Board Action; Matters Reserved to Members. The JPA Agreement provides that, notwithstanding any other provision of the JPA Agreement, in addition to approval of the Board, the written approval of IID and Indio shall be required to: (1) amend the JPA Agreement in any manner; (2) alter the purpose, powers or authority of the Authority or the Board; (3) initiate litigation or an alternative dispute resolution process against any party; (4) in connection with any litigation or alternative dispute resolution process, hire counsel, or defend any action or claim without conferring and cooperating with the other member; (5) borrow funds in excess of the amount reasonably necessary to pay for a Project identified in an executed Project Agreement; (6) enter into a Project Agreement, Servicing Agreement or Lease Agreement with any party other than IID; (7) modify any executed Project Agreement, Service Agreement or Lease Agreement; or (8) increase the Surcharge by an amount in excess of 10% of the then-existing System Average Rate.

THE SURCHARGE
General
As described in this Official Statement, the Surcharge is a flat charge of $0.0055 per kilowatt hour of electricity used by each class of customer applied to all electric sales within the territorial boundaries of Indio for the provision and enhancement by the Authority of electrical service within the boundaries of Indio.

Pursuant to both the JPA Agreement and the Surcharge Resolution, the Authority is only permitted to charge the Surcharge to electric customers within the territorial boundaries of Indio. The JPA Agreement limits the ability of the Authority to increase the Surcharge by an amount in excess of 10% of the then-existing System Average Rate without the approval of IID and Indio. The System Average Rate for calendar year 2022 was $0.1628 per kilowatt hour of electricity. Based on the System Average rate for calendar year 2022, the Authority, under the JPA Agreement, could raise the Surcharge by an additional $0.01078 per kilowatt hour of electricity without the consent of IID and Indio.

This Official Statement sets forth certain information regarding Indio and the historical billable kilowatt hours of electricity within the territorial boundaries of Indio; however, the Authority can provide no assurance that future electric usage within the territorial boundaries of Indio will result in sufficient Pledged Revenues to make timely payments of debt service on the Series 2023 Bonds. See the caption “CERTAIN RISK FACTORS.”
The Servicing Agreement
General. In order to set forth the procedures for the billing and collection of the Surcharge by IID, IID and Indio entered into the Servicing Agreement. The following is summary of certain provisions of the Servicing Agreement.

Billing and Collection of the Surcharge. In the Servicing Agreement, IID agrees to include the Surcharge on the billing statement (each an “IID Billing Statement”) delivered to each of the IID electric customers within Indio (the “Indio Customers”) and to calculate the Surcharge in the manner set forth in the Surcharge Resolution. The Servicing Agreement provides that the Surcharge shall appear as a separate line item on the IID Billing Statement, or as otherwise prescribed by IID’s then-current billing procedures, and IID shall bill the Surcharge in the same manner as IID bills Indio Customers for electrical service and the utility user tax billed by IID on behalf of Indio.

The Servicing Agreement further provides that the Surcharge authorized by the Authority under the Surcharge Resolution is for the purpose of improving the delivery of electrical service by adding Authority financed or funded improvements, but is not and shall not be considered a rate charged for the consumption of electrical service in the Coachella Valley. The Surcharge shall have no impact on, and shall be entirely independent of, the rate IID charges to IID electrical service customers in the Coachella and Imperial Valleys, or the utility user’s tax imposed by Indio and collected by IID.

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IID bills its energy customers on a monthly basis. Delinquent notices go out only on accounts with an amount due greater than $50. A Final Notice letter is mailed out for non-payment if an account is unpaid seven days from the bill due date. If an account continues to be delinquent for 14 days the customer receives a 9-Day Notice with notification of shut-off if payment is not made within the notice period. If the delinquent payment is not received within the shut-off notice period, an email notice is issued two days later advising the customer that power will be disconnected for nonpayment one business day from the email date. An automated telephone call is made the day after the email offering customers the payment options to avoid disconnection.

If a payment is not received the day after the automated call, an order is scheduled for termination of electric service.

Boundary Information. The Authority shall assure the accuracy of Indio’s boundary information (including the reflection of the latest annexation and municipal reorganizations) needed for the Surcharge billing and collection purpose by providing IID with written notice whenever boundary changes are made to the boundaries of Indio. Such notice shall include an updated boundary map reflecting such boundary changes.

Following receipt of such notice from the Authority, if the boundaries of Indio have expanded, IID shall use its best efforts to include the Surcharge on IID bills of electric customers residing in the additional territory of Indio within the next two IID billing cycles. If the change in boundaries results in a contraction of the boundaries of Indio, IID will use its best efforts to remove the Surcharge from the bills of IID customers residing in the territory that is no longer part of Indio within the next two IID billing cycles. IID shall not be responsible for the collection or payment of any Surcharges that were not collected due to the inaccuracy of information provided by the Authority.

Surcharge Appeals. The Authority may hear objections, claims and appeals to determine whether IID customers should be subject to the collection of the Surcharge. Should an IID customer’s status change as a result of the Authority’s final and nonappealable resolution of any objection, claim, or appeal, the Authority shall so advise IID. If the Authority is required by law to refund all or any part of the Surcharge, it shall be the sole responsibility of the Authority to refund the Surcharge.

Collection of the Surcharge by IID. IID agrees to collect the Surcharge on behalf of the Authority in the regular course of its business. IID agrees to adhere to and carry out its disconnection policies in connection with delinquent payments of the Surcharge. IID will determine the amount of the uncollectable Surcharge owed by IID customers for each year consistent with its write off policy as approved by IID’s Board of Directors each year.

Until IID remits the Surcharge amounts to the Authority pursuant to the Servicing Agreement, IID shall hold the Surcharge in an account established by IID that will segregate the Surcharge from the other funds and accounts of IID. IID and Indio agree and acknowledge in the Servicing Agreement that at all times the Surcharge collected by IID on behalf of the Authority shall be the property of the Authority and that the Surcharge is not revenue of IID.

Remittance of Surcharge to the Authority. IID is required by the Servicing Agreement to remit to the Authority all amounts representing the Surcharge not later than the 15th day of the second calendar month succeeding the month in which such amounts were collected and received by IID (e.g., amounts representing the Surcharge collected in January shall be remitted by no later than March 15). Such amounts will include any delinquent payments of the Surcharge received by IID. In the Indenture, the Authority has covenanted to cause IID to remit such amounts directly to the Trustee for deposit in the Revenue Fund. See the caption “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2023 BONDS.” Over or Under Collection of Surcharge. To insure the appropriate Surcharge has been collected and remitted by IID, representatives of the Authority and IID shall meet annually to review Surcharge accounting and records of the Authority and IID as necessary to determine if such an over or under collection occurred:
(a) Over Collection. In the event of an over collection of the Surcharge, the Authority shall be responsible for processing any refunds to IID customers.

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(b) Under Collection. If IID determines that the Authority has changed the list of electric service categories designated by the Authority ordinance or resolution to be charged as part of a Surcharge, IID will implement the change at the next billing cycle after the IID billing records are updated to reflect the change, and IID will not be required to back bill. If new IID electric service customers have been added within Indio’s jurisdictional boundary subject to the Surcharge, IID will begin charging Indio’s designated customers at the next billing cycle after the IID billing records are updated to reflect the change. Should IID recover previously uncollectable and written off electric service revenue, IID shall proportionally remit recovered Surcharge revenue to the Authority.

Administration Fee and Bad Debt Allowance. In order to recover the costs of collecting the Surcharge, IID shall charge, as against collected Surcharge revenue, an administration fee and a bad debt allowance. The administration fee is retained by IID on a monthly basis from IID’s monthly remittance of the Surcharge in the amount of 1.50% of the Surcharge collected. The bad debt allowance is 0.45% of the Surcharge collected.

Term of Agreement. The Servicing Agreement will continue to be in full force and effect until the Business Day that is six months after the later of (a) the date that the Surcharge is no longer being charged to Indio Customers by the Authority and (b) the date on which all Bonds are no longer outstanding pursuant to their terms; provided that in the event that IID is no longer providing electrical services within the boundaries of Indio during a period when the Surcharge is being charged by the Authority, the Servicing Agreement shall terminate on the date on which IID ceases to provide electrical services within the boundaries of Indio; provided further that IID’s obligations (i) to collect amounts representing Surcharge billed to Indio Customers prior to the termination of this Agreement and (ii) to remit such Surcharge amounts to the Authority, shall survive the termination of the Servicing Agreement.

Historical Information Regarding Electric Sales in Indio Pursuant to the Servicing Agreement, IID is required to remit all amounts representing the Surcharge not later than the 15th day of the second calendar month succeeding the month in which such amounts were collected and received by IID. See the caption “—The Servicing Agreement” herein. The Surcharge was first charged on November 1, 2023, and therefore the first monthly collections of the Surcharge are expected to be collected by IID in December 2023, and the first remittance of the Surcharge by IID is expected to occur not later than February 15, 2024, with the first full month of collections expected to be received by the Authority no later than March 15, 2024.

Table 1 below sets forth the historical monthly billable kilowatt hours of electricity within the territorial boundaries of Indio for calendar years 2018 through 2022.

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TABLE 1

INDIO ELECTRIC FINANCING AUTHORITY

HISTORICAL MONTHLY BILLABLE KILOWATT HOURS

WITHIN THE CITY OF INDIO
CALENDAR YEARS 2018 THROUGH 2022
Month 2018 2019 2020 2021 2022
January 49,491,616 49,835,513 51,387,991 48,805,537 50,020,589 February 43,041,966 45,764,378 46,028,395 44,015,434 44,855,363 March 45,299,501 45,478,252 47,419,277 45,040,242 48,230,960 April 52,901,860 50,545,452 41,646,493 54,927,415 56,150,709 May 64,968,919 62,502,300 69,796,789 66,551,338 69,665,911 June 80,878,255 71,260,234 87,239,541 90,713,550 89,367,817 July 103,725,419 99,319,291 105,458,962 119,559,695 116,087,198 August 117,572,962 109,692,224 116,184,695 119,598,764 118,312,675 September 108,385,789 111,345,276 117,492,175 112,206,472 121,453,181 October 82,340,795 72,253,346 91,373,257 78,097,174 88,252,638 November 56,714,365 52,212,518 61,696,212 55,547,162 58,472,782 December 48,111,103 52,122,076 52,287,786 53,281,217 50,827,908 Total 853,432,549 822,330,859 888,011,572 888,344,000 911,697,730 Source: Imperial Irrigation District.

Table 2 below sets forth the hypothetical historical monthly revenues from the Surcharge for calendar years 2018 through 2022, assuming the Surcharge was charged during such period at a rate of $0.0055 per kilowatt hour of electricity used by each class of customer, and based on the actual historical monthly billable kilowatt hours of electricity within the territorial boundaries of Indio.

TABLE 2

INDIO ELECTRIC FINANCING AUTHORITY

HYPOTHETICAL HISTORICAL SURCHARGE REVENUES

WITHIN THE CITY OF INDIO
CALENDAR YEARS 2018 THROUGH 2022(1)
Month 2018 2019 2020 2021 2022
January $ 272,204 $ 274,095 $ 282,634 $ 268,430 $ 275,113 February 236,731 251,704 253,156 242,085 246,704
March 249,147 250,130 260,806 247,721 265,270
April 290,960 278,000 229,056 302,101 308,829
May 357,329 343,763 383,882 366,032 383,163
June 444,830 391,931 479,817 498,925 491,523
July 570,490 546,256 580,024 657,578 638,480
August 646,651 603,307 639,016 657,793 650,720
September 596,122 612,399 646,207 617,136 667,992
October 452,874 397,393 502,553 429,534 485,390
November 311,929 287,169 339,329 305,509 321,600
December 264,611 286,671 287,583 293,047 279,553
Total $ 4,693,879 $ 4,522,820 $ 4,884,064 $ 4,885,892 $ 5,014,338 (1) Hypothetical historical revenues are calculated using historical monthly billable kilowatt hours of electricity multiplied by $0.0055 per billable kilowatt hour of electricity.

Source: Imperial Irrigation District for historical billable kilowatt hours of electricity.

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Table 2 below sets forth the number of customers and historical billable kilowatt hours of electricity by customer class within the territorial boundaries of Indio for calendar years 2018 through 2022.

TABLE 3

INDIO ELECTRIC FINANCING AUTHORITY

HISTORICAL BILLABLE KILOWATT HOURS BY CUSTOMER CLASS

WITHIN THE CITY OF INDIO
CALENDAR YEARS 2018 THROUGH 2022
Year Ended December 31
2018 2019 2020 2021 2022
Electric Customers
Residential 39,137 39,516 39,809 40,165 40,696
Commercial 4,035 4,068 4,049 4,098 4,129
Other 27 26 26 24 24
Total Electric Customers 43,199 43,610 43,884 44,287 44,849 Energy Sold (kWh)
Residential 564,997,047 536,212,605 607,693,893 601,122,689 616,712,628 % of Total Energy Sales 63.62% 60.38% 68.43% 67.69% 69.45% Commercial 287,745,908 285,441,883 279,619,885 286,588,240 294,286,946 % of Total Energy Sales 32.40% 32.14% 31.49% 32.27% 33.14% Other 689,593 676,371 697,794 633,071 698,156
% of Total Energy Sales 0.08% 0.08% 0.08% 0.07% 0.08%
Total Energy Sold 853,432,548 822,330,859 888,011,572 888,344,000 911,697,730 Source: Imperial Irrigation District.

Table 4 below sets forth the top ten electric customers in Indio by billable kilowatt hour of electricity for calendar year 2022 in alphabetical order. In calendar year 2022, the top ten electric customers in Indio by billable kilowatt hour of electricity accounted for approximately 5.95% of the total billable kilowatt hours of electricity, and no customer accounted for more than 1.26% of the total billable kilowatt hours of electricity.

TABLE 4

INDIO ELECTRIC FINANCE AUTHORITY

TOP TEN CUSTOMERS BY BILLABLE KILOWATT HOUR

WITHIN THE CITY OF INDIO
CALENDAR YEAR 2022 (IN ALPHABETICAL ORDER)
Customer Name

COACHELLA VALLEY WATER DISTRICT

COUNTY OF RIVERSIDE

CITY OF INDIO
FOOD 4 LESS

JFK MEMORIAL HOSPITAL INC
RALPHS #160

TESLA INC

VALLEY SANITARY DISTRICT

WALMART

WINCO FOODS LLC
Source: Imperial Irrigation District.

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Projected Surcharge Revenues and Debt Service Coverage
Table 5 below sets forth the projected monthly Surcharge Revenues and debt service coverage through the Bond Year ending January 1, 2028 based on actual calendar year 2022 billings by IID for IID electrical customers in Indio and debt service on the Series 2023 Bonds and assuming that electrical usage remains constant at calendar year 2022 levels throughout the projection period.

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TABLE 5

INDIO ELECTRIC FINANCING AUTHORITY

PROJECTED MONTHLY SURCHARGE REVENUES AND DEBT SERVICE COVERAGE THROUGH BOND YEAR ENDING JANUARY 1, 2027
Billing
Month
Month
Billed
Surcharge
Collected
Date
Remitted Total kWh(1)
Surcharge
Revenues at
$.0055(2)
Surcharge
Revenues
Available July 1
and January 1(3)
Net Debt
Service(4)* Surplus*
Total Annual
Surplus
Annual Net
Debt Service*
Annual Net
Coverage*
11/1/2023 12/1/2023 Jan-24 3/15/2024 58,472,782 $315,329 12/1/2023 1/1/2024 Feb-24 4/15/2024 50,827,908 274,102
1/1/2024 2/1/2024 Mar-24 5/15/2024 50,020,589 269,749
2/1/2024 3/1/2024 Apr-24 6/15/2024 44,855,363 241,894
3/1/2024 4/1/2024 May-24 7/15/2024 48,230,960 260,098
4/1/2024 5/1/2024 Jun-24 8/15/2024 56,150,709 302,807
5/1/2024 6/1/2024 Jul-24 9/15/2024 69,665,911 375,691
6/1/2024 7/1/2024 Aug-24 10/15/2024 89,367,817 481,938
7/1/2024 8/1/2024 Sep-24 11/15/2024 116,087,198 626,029 $1,101,074 $274,016 $827,058 8/1/2024 9/1/2024 Oct-24 12/15/2024 118,312,675 638,031 9/1/2024 10/1/2024 Nov-24 1/15/2025 121,453,181 654,967 10/1/2024 11/1/2024 Dec-24 2/15/2025 88,252,638 475,924 11/1/2024 12/1/2024 Jan-25 3/15/2025 58,472,782 315,329 12/1/2024 1/1/2025 Feb-25 4/15/2025 50,827,908 274,102
1/1/2025 2/1/2025 Mar-25 5/15/2025 50,020,589 269,749 2,684,593 2,494,094 190,500 $1,017,558 $2,768,109 1.37x 2/1/2025 3/1/2025 Apr-25 6/15/2025 44,855,363 241,894
3/1/2025 4/1/2025 May-25 7/15/2025 48,230,960 260,098
4/1/2025 5/1/2025 Jun-25 8/15/2025 56,150,709 302,807
5/1/2025 6/1/2025 Jul-25 9/15/2025 69,665,911 375,691
6/1/2025 7/1/2025 Aug-25 10/15/2025 89,367,817 481,938
7/1/2025 8/1/2025 Sep-25 11/15/2025 116,087,198 626,029 2,231,965 1,622,844 609,121 8/1/2025 9/1/2025 Oct-25 12/15/2025 118,312,675 638,031 9/1/2025 10/1/2025 Nov-25 1/15/2026 121,453,181 654,967 10/1/2025 11/1/2025 Dec-25 2/15/2026 88,252,638 475,924 11/1/2025 12/1/2025 Jan-26 3/15/2026 58,472,782 315,329 12/1/2025 1/1/2026 Feb-26 4/15/2026 50,827,908 274,102
1/1/2026 2/1/2026 Mar-26 5/15/2026 50,020,589 269,749 2,684,593 2,647,844 36,750 645,870 4,270,688 1.15x 2/1/2026 3/1/2026 Apr-26 6/15/2026 44,855,363 241,894
3/1/2026 4/1/2026 May-26 7/15/2026 48,230,960 260,098
4/1/2026 5/1/2026 Jun-26 8/15/2026 56,150,709 302,807
5/1/2026 6/1/2026 Jul-26 9/15/2026 69,665,911 375,691
6/1/2026 7/1/2026 Aug-26 10/15/2026 89,367,817 481,938
7/1/2026 8/1/2026 Sep-26 11/15/2026 116,087,198 626,029 2,231,965 1,597,219 634,746 8/1/2026 9/1/2026 Oct-26 12/15/2026 118,312,675 638,031 9/1/2026 10/1/2026 Nov-26 1/15/2027 121,453,181 654,967 10/1/2026 11/1/2026 Dec-26 2/15/2027 88,252,638 475,924 11/1/2026 12/1/2026 Jan-27 3/15/2027 58,472,782 315,329 12/1/2026 1/1/2027 Feb-27 4/15/2027 50,827,908 274,102
1/1/2027 2/1/2027 Mar-27 5/15/2027 50,020,589 275,113 2,684,593 2,677,219 7,375 642,120 4,274,438 1.15x (Footnotes on next page)

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* Preliminary, subject to change.
(1) Based on actual calendar year 2022 billings by IID for IID electrical customers in Indio and assumes such billings remain constant throughout the projection period. See Table 1 under the caption “—Historical Information Regarding Indio Electric Customers.” See also the captions “CERTAIN RISK FACTORS” and “OTHER FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY.
(2) Surcharge Revenues are reduced to reflect the 1.95% administration fee retained by IID. (3) Surcharge Revenues available for debt service on July 1 include the Surcharge remitted to the Trustee by IID January 15 through June 15 of each year. Surcharge Revenues available for January 1 payments include Surcharge remitted to the Trustee by IID July 15 through December 15.
(4) Interest on the Series 2023 Bonds will be capitalized through June 1, 2024.

Source: Imperial Irrigation District for historical billable kilowatt hours of electricity; the Underwriter for debt service on the Series 2023 Bonds.

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Table 6 below sets forth the projected annual Surcharge Revenues and debt service coverage through maturity of the Series 2023 Bonds based on actual calendar year 2022 billings by IID for IID electrical customers in Indio and debt service on the Series 2023 Bonds.

TABLE 6

INDIO ELECTRIC FINANCING AUTHORITY

PROJECTED ANNUAL SURCHARGE REVENUES AND DEBT SERVICE COVERAGE THROUGH MATURITY OF THE SERIES 2023 BONDS
Period Ending Principal* Interest(1)*
Total Debt
Service*
Surcharge
Revenues(2)
Debt Service
Coverage*
1/1/2025 $ 850,000 $ 3,397,794 $ 4,247,794 $ 3,785,667 137% 1/1/2026 1,025,000 3,245,688 4,270,688 4,916,558 115
1/1/2027 1,080,000 3,194,438 4,274,438 4,916,558 115
1/1/2028 1,130,000 3,140,438 4,270,438 4,916,558 115
1/1/2029 1,190,000 3,083,938 4,273,938 4,916,558 115
1/1/2030 1,250,000 3,024,438 4,274,438 4,916,558 115
1/1/2031 1,310,000 2,961,938 4,271,938 4,916,558 115
1/1/2032 1,375,000 2,896,438 4,271,438 4,916,558 115
1/1/2033 1,445,000 2,827,688 4,272,688 4,916,558 115
1/1/2034 1,515,000 2,755,438 4,270,438 4,916,558 115
1/1/2035 1,595,000 2,679,688 4,274,688 4,916,558 115
1/1/2036 1,675,000 2,599,938 4,274,938 4,916,558 115
1/1/2037 1,755,000 2,516,188 4,271,188 4,916,558 115
1/1/2038 1,845,000 2,428,438 4,273,438 4,916,558 115
1/1/2039 1,935,000 2,336,188 4,271,188 4,916,558 115
1/1/2040 2,040,000 2,234,600 4,274,600 4,916,558 115
1/1/2041 2,145,000 2,127,500 4,272,500 4,916,558 115
1/1/2042 2,260,000 2,014,888 4,274,888 4,916,558 115
1/1/2043 2,375,000 1,896,238 4,271,238 4,916,558 115
1/1/2044 2,500,000 1,771,550 4,271,550 4,916,558 115
1/1/2045 2,640,000 1,634,050 4,274,050 4,916,558 115
1/1/2046 2,785,000 1,488,850 4,273,850 4,916,558 115
1/1/2047 2,935,000 1,335,675 4,270,675 4,916,558 115
1/1/2048 3,100,000 1,174,250 4,274,250 4,916,558 115
1/1/2049 3,270,000 1,003,750 4,273,750 4,916,558 115
1/1/2050 3,450,000 823,900 4,273,900 4,916,558 115
1/1/2051 3,640,000 634,150 4,274,150 4,916,558 115
1/1/2052 3,840,000 433,950 4,273,950 4,916,558 115
1/1/2053 4,050,000 222,750 4,272,750 4,916,558 115
[$ 62,005,000] $ 61,884,769 $ 123,889,769 $141,449,289
* Preliminary, subject to change.
(1) Interest on the Series 2023 Bonds will be capitalized through June 1, 2024. (2) Based on actual calendar year 2022 billings by IID for IID electrical customers in Indio and assumes such billings remain constant throughout the projection period. See Table 1 under the caption “—Historical Information Regarding Indio Electric Customers.” See also the captions “CERTAIN RISK FACTORS” and “OTHER FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY. Surcharge Revenues are reduced to reflect the 1.95% administration fee retained by IID.

Source: Imperial Irrigation District for historical billable kilowatt hours of electricity; the Underwriter for debt service on the Series 2023 Bonds.

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CERTAIN RISK FACTORS
The following factors, which represent certain risk factors, should be considered along with all other information in this Official Statement by potential investors in evaluating the Series 2023 Bonds. The following description of risks is not an exhaustive list of the risks associated with the purchase of the Series 2023 Bonds and the order in which the information below is presented does not necessarily reflect the relative importance of the various risks or the probability of their occurrence. Other factors and events, including those described elsewhere in this Official Statement, could adversely affect the operations or financial condition of the Authority and the ability of the Authority to charge, and IID to collect, the Surcharge. Investors must read the entire Official Statement to obtain information essential to making an informed investment decision.

General
The ability of the Authority to comply with its covenants under the Indenture and to generate Pledged Revenues sufficient to pay principal of and interest on the Series 2023 Bonds may be adversely affected by actions and events outside of the control of the Authority and may be adversely affected by actions taken (or not taken) by IID or voters, property owners, taxpayers or persons obligated to pay the Surcharge. Among other matters, general and local economic conditions and changes in law and government regulations could adversely affect the amount of Pledged Revenues realized by the Authority.

In addition, the realization of future Pledged Revenues is subject to, among other things, the capabilities of management of IID’s electric system, both within and outside of Indio, the ability of IID to provide electric services to its customers within Indio, the ability of the Authority to establish and maintain, and the ability of IID to collect, the Surcharge in amounts sufficient to pay debt service on the Series 2023 Bonds and any other obligations payable from Pledged Revenues.

Limited Obligation
The Series 2023 Bonds are limited obligations of the Authority and are secured by a pledge of and payable, both as to principal and interest and as to any premiums upon the redemption thereof, solely from the Trust Estate as provided in the Indenture, and the Authority is not obligated to pay the Series 2023 Bonds except from the Trust Estate. The Series 2023 Bonds are not secured by a legal or equitable pledge of, or charge, lien or encumbrance upon, any of the property of the Authority or any of its income or receipts, except the Trust Estate as provided in the Indenture.

The Series 2023 Bonds are not secured by a legal or equitable pledge of, or lien or charge upon or security interest in, any property of IID or Indio. The Series 2023 Bonds do not constitute a debt, liability or obligation of the State or any public agency thereof, including Indio or IID, other than the special obligation of the Authority as described in the Indenture. Neither the faith and credit nor the taxing power of the State or any public agency thereof, including IID or Indio, is pledged to the payment of the principal or purchase price of, or the premium, if any, or interest on the Series 2023 Bonds, nor is the State or any public agency or instrumentality thereof, including IID or Indio, in any manner be obligated to make any appropriation for such payment. The Authority has no taxing power.

Pledged Revenues; Rate Covenant
Pledged Revenues are dependent upon the demand for electric service within Indio, which can be affected by economic and other factors. See also the caption “OTHER FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY” for a discussion of factors that could cause a reduction in the demand for electrical service within Indio.

There can be no assurance that demand for electric services within Indio will be consistent with the levels contemplated in this Official Statement. A decrease in demand could require an increase in the Surcharge in order to comply with the Rate Covenant contained in the Indenture or pay debt service on the

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Series 2023 Bonds. The Authority’s ability to meet its Rate Covenant is dependent upon its capacity to increase the Surcharge without driving down demand to a level insufficient to pay debt service on the Series 2023 Bonds.

Although the Authority has covenanted in the Indenture to fix and prescribe the Surcharge as more particularly described herein, and expects that sufficient revenues will be generated through the imposition and collection of the Surcharge, there is no assurance that such imposition of the Surcharge will result in the generation of Pledged Revenues in the amounts required by the Indenture. The Authority’s Rate Covenant does not constitute a guarantee that sufficient Pledged Revenues will be available to make debt service payments on the Series 2023 Bonds.

Furthermore, as described under the captions “THE INDIO ELECTRIC FINANCING AUTHORITY—Certain Provisions of the JPA Agreement” and “THE SURCHARGE—General,” the JPA Agreement limits the ability of the Authority to increase the Surcharge by an amount in excess of 10% of the then-existing System Average Rate (defined as the total revenues generated by IID from the sale of electricity to all rate classes divided by the total kilowatt hours of electricity sold by IID to all rate classes) without approval from IID and Indio. There is no assurance that, in the event the Authority is required to increase the Surcharge above the System Average Rate in order to comply with the Authority’s Rate Covenant, IID and Indio will approve such an increase. The System Average Rate for calendar year 2022 was $0.1628 per kilowatt hour of electricity. Based on the System Average rate for calendar year 2022, the Authority, under the JPA Agreement, could raise the Surcharge by an additional $0.01078 per kilowatt hour of electricity without the consent of IID and Indio.

Limited Service Area; Concentration of Customers
The Surcharge may only be charged to electric sales within the territorial boundaries of Indio.

Customer concentration presents a risk in that if one or more of the largest electric customers were to default on their payments for retail energy sales, or were to relocate their operations outside of Indio or otherwise cease their operations in Indio, such failure to pay, relocation of operations or ceasing of operations could have a material adverse impact on the Pledged Revenues. No assurances can be given by the Authority that any such failure to pay, relocation or cessation of operations will not occur during the term of the Series 2023 Bonds.

For a list of the top ten electric customers within Indio in calendar year 2022, see the caption “THE SURCHARGE—Historical Information Regarding Electric Sales Within Indio.” COVID-19 Pandemic; Infectious Disease Outbreak
The COVID-19 pandemic negatively affected economic activity throughout the world, including the United States and the State. The initial impacts of stay-at home orders globally were unprecedented, with commerce, travel, asset values and financial markets experiencing disruptions worldwide. The negative effects of the COVID–19 pandemic and its aftermath on global, national and local economies may continue at least for some period of time. Future pandemics and other widespread public health emergencies may arise from time-to-time and can impact broader economic conditions in the affected region. Given the uncertainties surrounding the COVID-19 pandemic, its aftermath and the outbreak of infectious disease in general, there can be no assurances that COVID-19, the outbreak of another infectious disease or governmental actions in response thereto will not materially adversely impact the Pledged Revenue or the financial condition of the Authority in the future. To date, the Authority does not believe that the impacts of COVID-19 or governmental actions in response thereto and its aftermath will have a material adverse effect on its ability to pay debt service on the Series 2023 Bonds.

Uncertainties of Projections, Forecasts and Assumptions Certain information contained in this Official Statement, including the projections contained under “THE SURCHARGE – Projected Surcharge Revenues and Debt Service Coverage” is based upon assumptions and projections. Projections and assumptions are inherently subject to significant uncertainties. Inevitably,

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some assumptions will not be realized and unanticipated events and circumstances may occur and actual results are likely to differ, perhaps materially, from those projected. Accordingly, such projections are not necessarily indicative of future performance, and the Authority does not assume any responsibility for the failure to meet such projections. In particular, the projected debt service coverage set forth under the caption “THE SURCHARGE – Projected Surcharge Revenues and Debt Service Coverage” is based on actual calendar year 2022 billings by IID for IID electrical customers in Indio. There can be no assurance that billable kilowatt hours of electricity within the territorial boundaries of Indio will not fall below actual calendar year 2022 levels.

In addition, certain assumptions with respect to future business and financing decisions of the Authority are subject to change. No representation is made or intended, nor should any representation be inferred, with respect to the likely existence of any particular future set of facts or circumstances, and prospective purchasers of the Series 2023 Bonds are cautioned not to place undue reliance upon any projections or requirements for projections. See also “CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS” after the inside front cover of this Official Statement. If actual results are less favorable than the results projected, or if the assumptions used in preparing such projections prove to be incorrect, then the amount of Pledged Revenues may be materially less than expected.

Consequently, the ability of the Authority to make timely payments of the principal of and interest on the Series 2023 Bonds may be materially adversely affected.

Seismic and Other Natural Disasters
Indio, and Imperial County generally (where IID’s electric transmission facilities are located), like much of California, is located in a seismically active area. In addition, active and potentially active seismic faults cross the regional transmission facilities over which IID obtains power and energy deliveries needed to service its electric customers within Indio. If there were to be an occurrence of severe seismic activity in the area of Indio, or affecting such regional transmission facilities, there could be an interruption in the ability of IID to deliver power to customers within Indio and, therefore, a temporary reduction in the amount of Pledged Revenues available to pay interest on and principal and premium, if any, of the Series 2023 Bonds when due.

Neither the Authority nor IID is required to maintain earthquake insurance on their respective facilities under the Indenture. No assurance can be given that a future seismic event will not materially adversely affect the operation of IID’s electric system within Indio, or IID’s regional transmission or generation facilities.

Other natural or man-made disasters, including without limitation, wildfires, droughts, floods, landslides, high winds and other disasters or accidents could cause failure of electric system infrastructure or infrastructure upon which IID’s electric system is dependent or otherwise interrupt operation of IID’s electric system and thereby impair the ability of the Authority to generate sufficient Pledged Revenues and may require the Authority to increase the Surcharge. The severity and/or frequency of natural disaster occurrences may be exacerbated by the impacts of climate change.

Wildfire Risks
A number of wildfires occurred in California in 2017, 2018, 2019 and 2020. Under the doctrine of inverse condemnation (a legal concept that entitles property owners to just compensation if their property is damaged by a public use), California courts have imposed liability on utilities in legal actions brought by property holders for damages caused by the utility’s infrastructure. Thus, if the facilities of a utility, such as its electric distribution and transmission lines, are determined to be the substantial cause of a fire, and the doctrine of inverse condemnation applies, the utility could be liable for damages without having been found negligent.

In early 2019, PG&E Corporation and Pacific Gas and Electric Company (together, “PG&E”) commenced bankruptcy proceedings. In its bankruptcy filings, PG&E indicated that such proceedings were initiated to address extraordinary financial challenges that were largely attributed to potential liabilities associated with wildfires.

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Although Indio and the larger IID electric service area are not in a geographical area considered to be an area of elevated or extreme risk from utility-associated wildfires, wildfire risks are a focus of concern in the broader electric utility industry. Recent State legislation relating to wildfire risks and mitigation efforts in California, including SB 1028, SB 901 and AB 1054, do not address the existing legal doctrine relating to utilities’ liability for wildfires. How any future legislation addresses California’s inverse condemnation and “strict liability” issues for utilities in the context of wildfires in particular could be significant for the electric utility industry.

Climate Change
There is scientific consensus that increasing concentrations of greenhouse gases have caused and will continue to cause a rise in temperatures around the world. The change in the earth’s average atmospheric temperature, generally referred to as “climate change,” is, among other things, expected to result in a wide range of changes in climate patterns, including increases in the frequency and severity of extreme weather events and more frequent incidences of wildfires and substantial flooding. The Authority cannot predict the timing, extent, or severity of climate change or its effect on the operations and finances of either the Authority or IID (including IID’s electric system) or economies, and there can be no assurances such effects will not be material and adverse.

Many areas in the western United States have been experiencing severe to extreme drought conditions for the last several years. Among other things, these conditions have impacted hydroelectric power generation and have been a cause or contributing factors in large and devastating wildfires in the region. Seasonal temperature changes could affect the electric loads on IID’s electric system within Indio, and extreme weather events could result in damage to or destruction of IID’s electric system.

Cybersecurity
IID and the Authority rely on computers and technology to conduct their operations. IID and the Authority may face cyber threats from time to time, including but not limited to hacking, viruses, malware, and other attacks on computers and other sensitive digital networks and systems.

Although IID and the Authority have a variety of security measures and safeguards in place, no assurances can be given that any existing or additional safety and security measures will prove adequate in the event that cyberattacks or military conflicts or terrorist activities, including cyber terrorism, are directed against IID’s or the Authority’s systems technology or the assets of IID’s electric system. Cyberattacks are becoming more sophisticated and certain cyber incidents, such as surveillance, may remain undetected for an extended period. United States government agencies have in the past issued warnings indicating that critical infrastructure sectors such as the electric grid may be specific targets of cybersecurity threats. Attacks directed at critical electric sector operations could damage generation, transmission or distribution assets that are essential to IID’s ability to serve its electric customers, cause operational malfunctions and outages affecting IID’s electric system, and result in costly recovery and remediation efforts. The costs of security measures or of remedying damage from security breaches could be greater than presently anticipated.

Changing Law and Requirements Generally
Electric utilities are subject to continuing environmental regulation. Federal, State and local standards and procedures which regulate the environmental impact of electric utilities are subject to change. These changes may arise from continuing legislative, regulatory and judicial action regarding such standards and procedures. Although the Authority currently does not own or operate any generation or transmission facilities, the Authority may seek, with IID consent, to acquire and/or construct generation and/or transmission assets in the future. There is no assurance that any facilities or projects of the Authority will remain subject to the laws and regulations currently in effect, will always be in compliance with future laws and regulations or will always be able to obtain all required operating permits. An inability to comply with environmental standards could result in, for example, additional capital expenditures, reduced operating levels or the shutdown of

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individual units not in compliance. In addition, increased environmental laws and regulations may create certain barriers to new facility development, may require modification of existing facilities and may result in additional costs for affected resources.

In addition, on both the federal and State levels, legislation is introduced frequently addressing domestic energy policies and various environmental matters and impacts relating to energy, including the generation of energy using conventional and unconventional technologies. Issues raised in legislative proposals in recent years have included implementation of energy efficiency and renewable energy standards, addressing transmission planning, siting and cost allocation to support the construction of renewable energy facilities, cybersecurity legislation that would allow FERC to issue interim measures to protect critical electric infrastructure, a federal cap-and-trade program to reduce GHG emissions, and renewable energy incentives that could provide grants and credits to municipal utilities to invest in renewable energy infrastructure.

Congress has also considered other bills relating to energy supplies and development. The Authority is unable to predict at this time whether any of these or other legislative proposals will be enacted into law or what the impact of any such proposals that may ultimately be enacted will be.

See also “OTHER FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY.” Effect of Authority Bankruptcy
The Authority is authorized to file a bankruptcy proceeding under Chapter 9 of the U.S. Bankruptcy Code in certain circumstances. Should the Authority file for such bankruptcy relief, there could be adverse effects on the Holders or Beneficial Owners of the Series 2023 Bonds.

If the Pledged Revenues are “special revenues” under the Bankruptcy Code, then Pledged Revenues collected after the date of the bankruptcy filing should be subject to the lien of the Indenture. “Special revenues” are defined to include receipts derived from the ownership or operation of projects or systems that are primarily used to provide utility services. Although the Pledged Revenues appear to satisfy this definition and thus be “special revenues,” no assurance can be given that a court would hold that the Pledged Revenues are special revenues or are otherwise subject to the lien of the Indenture post-bankruptcy. In addition, the determination of whether or not particular revenues are “special revenues,” and (if they are special revenues) the parallel determination of whether the Bankruptcy Code mandates that such revenues continue to be used to pay obligations to Holders or Beneficial Owners post-bankruptcy, are subject to broad judicial discretion, and may evolve over time as decisions are rendered in various Chapter 9 bankruptcy cases throughout the United States. If the Pledged Revenues are determined not to be “special revenues,” then Pledged Revenues collected after the commencement of the bankruptcy case will likely not be subject to the lien of the Indenture. The Holders or Beneficial Owners of the Series 2023 Bonds may not be able to assert a claim against any property of the Authority other than the Pledged Revenues, and if these amounts are no longer subject to the lien of the Indenture, then there may be no amounts from which the Holders or Beneficial Owners of the Series 2023 Bonds are entitled to be paid.

The Bankruptcy Code provides that special revenues can be applied to necessary operating expenses of the project or system, before they are applied to other obligations. This rule applies regardless of the provisions of the transaction documents. Thus, the Authority may be able to use Pledged Revenues to pay necessary operating expenses of the Electric System. It is not clear precisely which expenses would constitute necessary operating expenses.

If the Authority is in bankruptcy, the Authority’s creditors (including the holders of the Series 2023 Bonds) may be prohibited from taking any action to collect any amount from the Authority (including but not limited to the Pledged Revenues constituting “special revenues”) or to enforce any obligation of the Authority, unless the permission of the bankruptcy court is obtained. These restrictions may also prevent the Trustee from making payments to the holders of the Series 2023 Bonds from funds in the Trustee’s possession. The Rate Covenant (see “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2023 BONDS – Rate Covenant”) may not be enforceable in bankruptcy by the Trustee or the holders of the Series 2023 Bonds.

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The provisions of the Indenture that provide that the commencement of a bankruptcy case by the Authority is an Event of Default, and that certain other insolvency-related events with respect to the Authority are also Events of Default, may be unenforceable. This may limit the ability of the Trustee to require the Authority to turn over to the Trustee Pledged Revenues and may allow the Authority to continue to spend Pledged Revenues for any lawful purpose as provided in the Indenture free and clear of the lien of the Indenture, notwithstanding that the Authority is in bankruptcy.

With respect to Pledged Revenues collected after the bankruptcy filing, if the Authority does not voluntarily turn over such Pledged Revenues to the Trustee, it is not entirely clear what procedures the Trustee and the holders of the Series 2023 Bonds would have to follow to attempt to obtain possession of such Pledged Revenues, how much time it would take for such procedures to be completed, or whether such procedures would ultimately be successful. Under such circumstances, there may be delays or reductions in payments on the Series 2023 Bonds.

The Authority may be able to borrow additional money that is secured by a lien on any of its property (including the Pledged Revenues), which lien could have priority over the lien of the Indenture, as long as the bankruptcy court determines that the rights of the Trustee and the holders of the Series 2023 Bonds will be adequately protected. The Authority may also be able to cause some of the Pledged Revenues to be released to it, free and clear of lien of the Indenture, as long as the bankruptcy court determines that the rights of the Trustee and the holders of the Series 2023 Bonds will be adequately protected.

The Authority may be able, without the consent and over the objection of the Trustee and the holders of the Series 2023 Bonds, to alter the priority, interest rate, principal amount, payment terms, collateral, maturity dates, payment sources, covenants (including tax-related covenants), and other terms or provisions of the Indenture and the Series 2023 Bonds, as long as the bankruptcy court determines that the alterations are fair and equitable.

There may be delays in payments on the Series 2023 Bonds while the court considers any of these issues. There may be other possible effects of a bankruptcy of the Authority that could result in delays or reductions in payments on the Series 2023 Bonds, or result in losses to the holders of the Series 2023 Bonds.

Regardless of any specific adverse determinations in a Authority bankruptcy proceeding, the fact of a Authority bankruptcy proceeding could have an adverse effect on the liquidity and value of the Series 2023 Bonds.

Initiative and Referendum
Under the State Constitution, the voters of the State have the ability to initiate legislation and require a public vote on legislation passed by the State Legislature through the powers of initiative and referendum, respectively. In past years, several initiative measures have been proposed or adopted which affect the ability of local governments to increase taxes and rates. The Authority is unable to predict whether any such initiatives might be submitted to or approved by the voters, the nature of such initiatives, or their potential impact on the Authority or the Surcharge. There is no assurance that the electorate or the State Legislature will not at some future time approve additional limitations that could affect the ability of the Authority to charge the Surcharge, which could reduce Pledged Revenues and adversely affect the security for the Series 2023 Bonds. See also “CONSTITUTIONAL LIMITATIONS ON TAXES AND FEES IN CALIFORNIA.” Limitation on Remedies
If an Event of Default should occur, the Trustee and the holders of the Series 2023 Bonds have no ability to accelerate the maturity of the Series 2023 Bonds. This means that even after an Event of Default occurs, the Series 2023 Bonds may be paid according to the regularly scheduled due dates. This may result in delays or reductions in payments on the Series 2023 Bonds compared to what would happen if the Trustee could accelerate the maturity of the Series 2023 Bonds, and could cause the market value of the Series 2023 Bonds to decline after the occurrence of an Event of Default.

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Risks Associated with Bond Insurance
In the event that the Authority defaults in the payment of principal of or interest on the Series 2023 Bonds when due, the Owners of the Series 2023 Bonds will have a claim under the Insurance Policy for such payments. See the caption “BOND INSURANCE.” In the event that the Insurer becomes obligated to make payments with respect to the Series 2023 Bonds, no assurance can be given that such event will not adversely affect the market for the Series 2023 Bonds. In the event that the Insurer is unable to make payment of principal of and interest on the Series 2023 Bonds when due under the Insurance Policy, the Series 2023 Bonds will be payable solely from the Trust Estate, as described under the caption “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2023 BONDS.”
The long-term rating on the Series 2023 Bonds is entirely dependent on the financial strength of the Insurer and its claims-paying ability. The Insurer’s financial strength and claims-paying ability are predicated upon a number of factors which could change over time. If the long-term ratings of the Insurer are lowered, such event could adversely affect the market for the Series 2023 Bonds. See the caption “RATING.” Neither the Authority nor the Underwriter have made an independent investigation of the claims-paying ability of the Insurer and no assurance or representation regarding the financial strength or projected financial strength of the Insurer is being made by the Authority or the Underwriter in this Official Statement. Therefore, when making an investment decision with respect to the Series 2023 Bonds, potential investors should carefully consider the ability of the Authority to pay debt service on the Series 2023 Bonds assuming that the Insurance Policy is not available for that purpose, and the claims-paying ability of the Insurer through final maturity of the Series 2023 Bonds.

So long as the Insurance Policy remains in effect and the Insurer is not in default of its obligations thereunder, the Insurer has certain notice, consent and other rights under the Indenture and will have the right to control all remedies for default under the Indenture. The Insurer is not required to obtain the consent of the Owners with respect to the exercise of remedies.

OTHER FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY
The following general discussion of other factors affecting the electric utility industry, including certain legislative and regulatory matters, should be considered when evaluating the Authority, the Surcharge and considering an investment in the Series 2023 Bonds. This discussion does not purport to be comprehensive or definitive, and these matters are subject to change subsequent to the date hereof. The electric industry has historically been subject to continuing legislative and administrative reform. The Authority cannot predict at this time whether any future legislation or rules will be enacted which will affect the finances or operations of the Authority, including but not limited to the charge and collection of the Surcharge, but the impacts of future such actions could be significant. Extensive information on the electric utility industry is available from the legislative and regulatory bodies and other sources in the public domain, and potential purchasers of the Series 2023 Bonds should obtain and review such information. Such information is not incorporated herein by reference.

The electric utility industry in general has been, or in the future may be, affected by a number of other factors which could impact the financial condition and competitiveness of many electric utilities and the level of utilization and costs of generating and transmission resources. In addition to the factors discussed above, such factors include, among others, (a) effects of compliance with rapidly changing environmental, safety, licensing, regulatory and legislative requirements other than those described herein (including potential new energy storage requirements), (b) changes resulting from conservation and demand-side management programs on the timing and use of electric energy, (c) effects on the integration and reliability of power supply from the increased usage of renewables, (d) changes resulting from a national energy policy, (e) effects of competition from other electric utilities (including increased competition resulting from a movement to allow direct access or expanded community choice aggregation or from mergers, acquisitions, and “strategic alliances” of competing electric and natural gas utilities and from competitors transmitting less expensive electricity from

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much greater distances over an interconnected system) and new methods of, and new facilities for, producing low-cost electricity, (f) the repeal of certain federal statutes that would have the effect of increasing the competitiveness of many investor-owned utilities, (g) increased competition from independent power producers and marketers, brokers and federal power marketing agencies, (h) ”self-generation” or “distributed generation” (such as microturbines, fuel cells and solar installations) by electric customers and others, (i) issues relating to the ability to issue tax-exempt obligations, including severe restrictions on the ability to sell to nongovernmental entities electricity from generation projects and transmission service from transmission line projects financed with outstanding tax-exempt obligations, (j) effects of inflation on the operating and maintenance costs of an electric utility and its facilities, (k) changes from projected future load requirements, (l) increases in costs and uncertain availability of capital, (m) shifts in the availability and relative costs of different fuels (including the cost of natural gas and nuclear fuel), (n) sudden and dramatic increases in the price of energy purchased on the open market that may occur in times of high peak demand in an area of the country experiencing such high peak demand, such as has occurred in the past in California, (o) issues relating to risk management procedures and practices with respect to, among other things, the purchase and sale of natural gas, energy and transmission capacity, (p) other legislative changes, voter initiatives, referenda and statewide propositions, (q) effects of the changes in the economy, population and demand of customers within a utility’s service area; (r) effects of possible manipulation of the electric markets, (s) acts of terrorism or cyber-terrorism impacting a utility and/or significant load customers, (t) changes to the climate; (u) natural disasters or other physical calamities, including, but not limited to, earthquakes, droughts, severe weather, floods and wildfires, and potential liabilities of electric utilities in connection therewith, and (v) adverse impacts to the market for insurance relating to recent wildfires and other calamities, leading to higher costs or prohibitively expensive coverage, or limited or unavailability of coverage for certain types of risk. Any of these factors (as well as other factors) could have an adverse effect on the financial condition of any given electric utility, including IID, and likely will affect individual utilities in different ways.

CONSTITUTIONAL LIMITATIONS ON TAXES AND FEES IN CALIFORNIA Article XIIIA of the State Constitution
On June 6, 1978, State voters approved an amendment (commonly known as both Proposition 13 and the Jarvis-Gann Initiative) to the State Constitution. The amendment, which added Article XIIIA to the State Constitution, among other things affects the valuation of real property for the purpose of taxation in that it defines the full cash property value to mean “the county assessor’s valuation of real property as shown on the 1975/76 tax bill under ‘full cash value’, or thereafter, the appraised value of real property newly constructed, or when a change in ownership has occurred after the 1975 assessment.” The full cash value may be adjusted annually to reflect inflation at a rate not to exceed 2% per year, or a reduction in the consumer price index or comparable local data at a rate not to exceed 2% per year, or reduced in the event of declining property value caused by damage, destruction or other factors including a general economic downturn. The amendment further limits the amount of any ad valorem tax on real property to 1% of the full cash value, except that additional taxes may be levied to pay debt service on indebtedness approved by the voters prior to December 1, 1978, and bonded indebtedness for the acquisition or improvement of real property approved on or after December 1, 1978 by two-thirds of the votes cast by the voters voting on the proposition (55% in the case of certain school facilities).

Legislation enacted by the State Legislature to implement Article XIIIA provides that all taxable property is shown at full assessed value as described above. Tax rates for voter approved bonded indebtedness are also applied to 100% of assessed value.

Future assessed valuation growth allowed under Article XIIIA (for new construction, change of ownership or 2% annual value growth) is allocated on the basis of “situs” among the jurisdictions that serve the tax rate area within which the growth occurs. Local agencies and school districts share the growth of “base” revenue from the tax rate area. Each year’s growth allocation becomes part of each agency’s allocation the following year. Article XIIIA effectively prohibits the levying of any other ad valorem property tax above the 1% limit except for taxes to support indebtedness approved by the voters as described above.

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Article XIIIA has subsequently been amended to permit reduction of the “full cash value” base in the event of declining property values caused by damage, destruction or other factors, and to provide that there would be no increase in the “full cash value” base in the event of reconstruction of property damaged or destroyed in a disaster and in certain other limited circumstances.

Constitutional Limitations on Governmental Spending
At the Statewide special election on November 6, 1979, the voters approved an initiative entitled “Limitation on Government Appropriations,” which added Article XIIIB to the State Constitution. Under Article XIIIB of the State Constitution, state and local government entities have an annual “appropriations limit” which limits their ability to spend certain moneys called “appropriations subject to limitation,” which consist of tax revenues, certain state subventions and certain other moneys, including user charges to the extent they exceed the costs reasonably borne by the entity in providing the service for which it is levying the charge.

The Authority is of the opinion that the electric service and use charges imposed by the Authority do not exceed the costs the Authority reasonably bears in providing the electric service. In general terms, the “appropriations limit” is to be based on certain 1978-79 expenditures, and is to be adjusted annually to reflect changes in the consumer price index, population, and services provided by these entities. Among other provisions of Article XIIIB, if any entity’s revenues in any year exceed the amount permitted to be spent, the excess would have to be returned by revising tax rates or fee schedules over the subsequent two years.

To the best of the Authority’s knowledge, the Authority’s appropriations have never exceeded the limitation on appropriations under Article XIIIB of the State Constitution.

Propositions 218 and 26
Proposition 218, a State ballot initiative known as the “Right to Vote on Taxes Act,” was approved by the voters of the State of California on November 5, 1996. Proposition 218 added Articles XIIIC and XIIID to the State Constitution. Article XIIIC imposes a majority voter approval requirement on local governments (including the Authority) with respect to taxes for general purposes, and a two-thirds voter approval requirement with respect to taxes for special purposes. Article XIIID creates additional requirements for the imposition by most local governments of general taxes, special taxes, assessments and “property-related” fees and charges. Article XIIID explicitly exempts fees for the provision of electric service from the provisions of such article.

Article XIIIC expressly extends the people’s initiative power to the reduction or repeal of local taxes, assessments, and fees and charges imposed prior to its effective date (November 1996). The California Supreme Court held in Bighorn-Desert View Water Agency v. Verjil, 39 Cal.4th 205 (2006) that, under Article XIIIC, local voters by initiative may reduce a public agency’s water rates and delivery charges, as those are property-related fees or charges within the meaning of Article XIIID, and noted that the initiative power described in Article XIIIC may extend to a broader category of fees and charges than the property-related fees and charges governed by Article XIIID. Moreover, in the case of Bock v. City Council of Lompoc, 109 Cal.App.3d 52 (1980), the Court of Appeal determined that an electric rate ordinance was not subject to the same constitutional restrictions that are applied to the use of the initiative process for tax measures so as to render it an improper subject of the initiative process. Thus, electric service charges such as the Surcharge (which are expressly exempted from the provisions of Article XIIID) may be subject to the initiative provisions of Article XIIIC, thereby subjecting such fees and charges to reduction by the electorate. The Authority believes that even if the Surcharge is subject to the initiative power, under Article XIIIC or otherwise, Article XIIIC does not grant to the electorate within Indio the power to repeal or reduce the Surcharge in a manner that would impair the payment of the contractual obligations of the Authority (including those under the Indenture).

The California electorate approved Proposition 26 at the November 2, 2010 election, amending Article XIIIC of the California Constitution. Proposition 26 was designed to supplement tax limitations California voters adopted when they approved Proposition 13 in 1978, and Proposition 218 in 1996. Proposition 26

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applies by its terms to any levy, charge or exaction imposed, increased or extended by a local government on or after November 3, 2010. Proposition 26 deems any such levy, charge or fee to be a “tax”, requiring voter approval under Article XIIIC unless it comes within one of the listed exceptions. Proposition 26 expressly excludes from its definition of a “tax,” among other things, a “charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” Proposition 26 is applicable to the electric rates of governmental entities such as the Authority; therefore, newly adopted rates must conform to its requirements.

Proposition 26 is subject to interpretation by California courts, including the extent to which it is applicable to pre-existing electric rates and general fund transfers. A number of lawsuits have been filed against public agencies in California under Proposition 26, including particularly with respect to electric utility fund transfers. The Authority is unable to predict at this time how Proposition 26 will ultimately be interpreted.

Other Initiatives
General. Articles XIIIB, and Articles XIIIC and XIIID and the amendments effected thereto by Proposition 26, were each adopted as measures that qualified for the ballot pursuant to California’s initiative process. From time to time, other initiatives have been, and could be, proposed, and if qualified for the ballot, could be enacted which place limitations on the ability of the Authority to raise rates or otherwise affect the Authority’s revenues or operations. The Authority is unable to predict either the likelihood of qualification for ballot or passage of these measures or the nature and impact of these measures on the Surcharge.

Initiative 1935. A voter initiative, designated as Initiative 1935 and entitled “The “Taxpayer Protection and Government Accountability Act” (“Initiative 1935”) has been determined to be eligible for the State’s November 5, 2024 statewide general election, and, unless withdrawn by its proponent prior to June 27, 2024, will be certified as qualified for the ballot in such election. If it were to be approved by a majority of voters in the election, Initiative 1935 would amend Article XIIIC of the State Constitution to, among other things, provide that charges (or increases in charges) imposed by a local government after January 1, 2022 for services or products provided directly to the payor (including, potentially, fees and charges for electricity) are “taxes” subject to voter approval unless the local government can prove by clear and convincing evidence that the charge is reasonable and does not exceed the “actual cost” of providing the service or product to the payor. “Actual cost” is defined in Initiative 1935 to mean “(i) the minimum amount necessary to reimburse the government for the cost of providing the service or product to the payor and (ii) where the amount charged is not used by the government for any purpose other than reimbursing that cost.” Initiative 1935 further states that “[i]n computing “actual cost” the maximum amount that may be imposed is the actual cost less all other sources of revenue including, but not limited to taxes, other exempt charges, grants, and state or federal funds received to provide such service or product.” If submitted to, and approved by the voters, Initiative 1935 would be subject to judicial interpretation. The Authority is unable to predict whether and how Initiative 1935, if approved, would be interpreted or applied. The Authority is additionally unable to predict whether the approval of Initiative 1935 would further limit future fees and charges or future increases in fees and charges for electrical service, such as the Surcharge, require stricter standards for the allocation of costs among customer classes and/or otherwise adversely impact Pledged Revenues.

LITIGATION
There is no controversy or litigation of any nature now pending or threatened restraining or enjoining the issuance of the Series 2023 Bonds or in any way contesting or affecting the validity of the Series 2023 Bonds or any proceedings of the Authority taken with respect to the execution, delivery or sale thereof.

At any given time, including the present, there are certain other claims and disputes, including those currently in litigation, that arise in the normal course of the Authority’s activities. There is no litigation known to be pending or threatened against the Authority which, in the opinion of the Authority’s General Counsel,

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would materially adversely affect sources of payment for the Series 2023 Bonds, including but not limited to the Authority’s ability to levy and collect the Surcharge.

CONTINUING DISCLOSURE
Pursuant to a Continuing Disclosure Agreement to be dated the date of delivery of the Series 2023 Bonds (the “Continuing Disclosure Agreement”), the Authority will covenant for the benefit of owners of the Series 2023 Bonds to provide certain financial information and operating data relating to the Authority and the Surcharge by not later than nine months following the end of the Authority’s fiscal year (which presently ends on June 30), commencing with the Annual Report for the fiscal year ending [June 30, 2023 due March 31, 2023], and to provide notices of the occurrence of certain enumerated events. Such Annual Reports and notices are required to be filed with the MSRB through EMMA. The Authority has appointed Willdan Financial Services as the initial Dissemination Agent of the Authority with respect to the Series 2023 Bonds under the Continuing Disclosure Agreement. The specific nature of the information to be contained in the Annual Report and the notices of enumerated events is described in APPENDIX D – “FORM OF CONTINUING DISCLOSURE AGREEMENT.” These covenants have been made in order to assist the Underwriter of the Series 2023 Bonds in complying with the Rule.

The Authority has never previously entered into a continuing disclosure undertaking pursuant to the Rule.

TAX MATTERS
In the opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Sacramento, California, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, interest on the Series 2023 Bonds is excluded from gross income for federal income tax purposes, and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals. However, it should be noted that for tax years beginning after December 31, 2022, with respect to applicable corporations as defined in Section 59(k) of the Internal Revenue Code of 1986, as amended (the “Code”), generally certain corporations with more than $1,000,000,000 of average annual adjusted financial statement income, interest (and original issue discount) with respect to the Series 2023 Bonds might be taken into account in determining adjusted financial statement income for purposes of computing the alternative minimum tax imposed by Section 55 of the Code on such corporations. In the further opinion of Bond Counsel, interest (and original issue discount) on the Series 2023 Bonds is exempt from State of California personal income tax.

The difference between the issue price of a Series 2023 Bond (the first price at which a substantial amount of the Series 2023 Bonds of a maturity is to be sold to the public) and the stated redemption price at maturity with respect to the Series 2023 Bond (to the extent the redemption price at maturity is greater than the issue price) constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to an Owner before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by an Owner will increase the Owner’s basis in the applicable Series 2023 Bond. In the opinion of Bond Counsel, the amount of original issue discount that accrues to the Owner of the Series 2023 Bond is excluded from gross income of such Owner for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals. In the opinion of Bond Counsel, the amount of original issue discount that accrues to the Owner of the Series 2023 Bonds is exempt from State of California personal income tax.

Bond Counsel’s opinion as to the exclusion from gross income for federal income tax purposes of interest (and original issue discount) on the Series 2023 Bonds is based upon certain representations of fact and certifications made by the Authority and others and is subject to the condition that the Authority complies with all requirements of the Code, that must be satisfied subsequent to the issuance of the Series 2023 Bonds to assure that interest (and original issue discount) on the Series 2023 Bonds will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause the interest (and original issue discount) on the Series 2023 Bonds to be included in gross income for federal

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income tax purposes retroactive to the date of issuance of the Series 2023 Bonds. The Authority will covenant to comply with all such requirements.

The amount by which an Owner’s original basis for determining loss on sale or exchange in the applicable Series 2023 Bond (generally, the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable bond premium, which must be amortized under Section 171 of the Code; such amortizable bond premium reduces the Owner’s basis in the applicable Series 2023 Bond (and the amount of tax-exempt interest received), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of bond premium may result in an Owner realizing a taxable gain when a Series 2023 Bond is sold by the Owner for an amount equal to or less (under certain circumstances) than the original cost of the Series 2023 Bond to the Owner. Purchasers of the Series 2023 Bonds should consult their own tax advisors as to the treatment, computation and collateral consequences of amortizable bond premium.

Bond Counsel’s opinions may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. Bond Counsel has not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. The Indenture and the Tax Certificate relating to the Series 2023 Bonds permit certain actions to be taken or to be omitted if a favorable opinion of a bond counsel is provided with respect thereto. Bond Counsel expresses no opinion as to the effect on the exclusion from gross income for federal income tax purposes of interest (or original issue discount) on any Series 2023 Bond if any such action is taken or omitted based upon the advice of counsel other than Bond Counsel.

Although Bond Counsel will render an opinion that interest (and original issue discount) on the Series 2023 Bonds is excluded from gross income for federal income tax purposes provided that the Authority continues to comply with certain requirements of the Code, the ownership of the Series 2023 Bonds and the accrual or receipt of interest (and original issue discount) with respect to the Series 2023 Bonds may otherwise affect the tax liability of certain persons. Bond Counsel expresses no opinion regarding any such tax consequences. Accordingly, before purchasing any of the Series 2023 Bonds, all potential purchasers should consult their tax advisors with respect to collateral tax consequences relating to the Series 2023 Bonds.

The Internal Revenue Service (the “IRS”) has initiated an expanded program for the auditing of tax- exempt bond issues, including both random and targeted audits. It is possible that the Series 2023 Bonds will be selected for audit by the IRS. It is also possible that the market value of the Series 2023 Bonds might be affected as a result of such an audit of the Series 2023 Bonds (or by an audit of similar bonds). No assurance can be given that in the course of an audit, as a result of an audit, or otherwise, Congress or the IRS might not change the Code (or interpretation thereof) subsequent to the issuance of the Series 2023 Bonds to the extent that it adversely affects the exclusion from gross income of interest (and original issue discount) on the Series 2023 Bonds or their market value.

FOLLOWING THE ISSUANCE OF THE SERIES 2023 BONDS THERE MIGHT BE FEDERAL,

STATE, OR LOCAL STATUTORY CHANGES (OR JUDICIAL OR REGULATORY CHANGES TO OR

INTERPRETATIONS OF FEDERAL, STATE, OR LOCAL LAW) THAT AFFECT THE FEDERAL, STATE, OR LOCAL TAX TREATMENT OF THE SERIES 2023 BONDS OR THE MARKET VALUE OF THE SERIES 2023 BONDS. THESE CHANGES COULD ADVERSELY AFFECT THE MARKET VALUE OR LIQUIDITY OF THE SERIES 2023 BONDS. IT IS POSSIBLE THAT LEGISLATIVE CHANGES

WILL BE INTRODUCED WHICH, IF ENACTED, WOULD RESULT IN ADDITIONAL FEDERAL

INCOME OR STATE TAX BEING IMPOSED ON OWNERS OF TAX-EXEMPT STATE OR LOCAL OBLIGATIONS, SUCH AS THE SERIES 2023 BONDS. NO ASSURANCE CAN BE GIVEN THAT FOLLOWING THE ISSUANCE OF THE SERIES 2023 BONDS, STATUTORY CHANGES WILL NOT BE INTRODUCED OR ENACTED OR INTERPRETATIONS WILL NOT OCCUR. BEFORE PURCHASING ANY OF THE SERIES 2023 BONDS, ALL POTENTIAL PURCHASERS SHOULD CONSULT THEIR

TAX ADVISORS REGARDING POSSIBLE STATUTORY CHANGES OR JUDICIAL OR REGULATORY

CHANGES OR INTERPRETATIONS, AND THEIR COLLATERAL TAX CONSEQUENCES RELATING TO THE SERIES 2023 BONDS.

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A complete copy of the proposed opinion of Bond Counsel is set forth in APPENDIX C – “PROPOSED FORM OF BOND COUNSEL OPINION.”

APPROVAL OF LEGALITY
The validity of the Series 2023 Bonds and certain other legal matters are subject to the approving opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Bond Counsel to the Authority. A complete copy of the proposed form of Bond Counsel Opinion is contained in APPENDIX C hereto. Bond Counsel undertakes no responsibility for the accuracy, completeness or fairness of this Official Statement.

Certain legal matters will be passed upon for the Underwriter by Best Best & Krieger LLP, and for the Authority by its General Counsel and its Disclosure Counsel for the Series 2023 Bonds, Stradling Yocca Carlson & Rauth, a Professional Corporation. A portion of the fees paid to Stradling Yocca Carlson & Rauth, a Professional Corporation, as Bond Counsel to the Authority, are contingent upon the issuance of the Series 2023 Bonds. Fees paid to Stradling Yocca Carlson & Rauth, a Professional Corporation as Disclosure Counsel to the Authority and to Best Best & Krieger LLP as Counsel to the Underwriter are contingent upon the issuance of the Bonds.

RATINGS
Moody’s Investors Service (“Moody’s”) is expected to assign the Series 2023 Bonds the long-term rating of “_____” based upon the issuance by the Insurer of the Insurance Policy. Moody’s is also expected to assign the Series 2023 Bonds the underlying long-term rating of “A1.” The ratings reflect only the view of the rating agency, and any explanation of the significance of such ratings may be obtained only from such rating agency. There is no assurance that the ratings will remain in effect for any given period of time or will not be revised downward or withdrawn entirely by such rating agency, if, in its judgment, circumstances so warrant.

Any downward revision or withdrawal of any rating may have an adverse effect on the market price of the Series 2022 Bonds.

The Authority has covenanted in the Continuing Disclosure Agreement to file notices of any rating changes on the Series 2023 Bonds with EMMA. See “CONTINUING DISCLOSURE” and APPENDIX D – ”FORM OF CONTINUING DISCLOSURE AGREEMENT.” Notwithstanding such covenant, information relating to rating changes on the Series 2023 Bonds may be publicly available from the rating agency prior to such information being provided to the Authority and prior to the date the Authority is obligated to file a notice of rating change with EMMA. Purchasers of the Series 2023 Bonds are directed to the ratings agency and its website and official media outlets for the most current ratings changes with respect to the Series 2023 Bonds after the initial issuance of the Series 2023 Bonds.

Generally, rating agencies base their ratings on information and materials furnished to them and on investigations, studies and assumptions by the rating agencies. In providing its rating on the Series 2023 Bonds, the rating agency may have performed independent calculations of coverage ratios using its own internal formulas and methodology, which may not reflect the provisions of the Indenture. The Authority makes no representations as to any such calculations, and such calculations should not be construed as a representation by the Authority as to past or future compliance with any financial covenants, the availability of particular revenues for the payment of debt service or for any other purpose.

UNDERWRITING
Piper Sandler & Co. (the “Underwriter”) has agreed, subject to certain conditions, to purchase the Series 2023 Bonds at a purchase price of $__________ (representing the $__________ aggregate principal amount of the Series 2023 Bonds, [plus/less] $__________ of [net] original issue [premium/discount], and less a $__________ Underwriter’s discount). The Bond Purchase Agreement relating to the Series 2023 Bonds provides that the Underwriter will purchase all of the Series 2023 Bonds if any are purchased.

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The Series 2023 Bonds are being offered for sale to the public at the respective prices shown on the inside cover page hereof. The Underwriter reserves the right to lower such initial offering prices as it deems necessary in connection with the marketing of the Series 2023 Bonds. The Underwriter may offer and sell the Series 2023 Bonds to certain dealers (including dealers depositing the Series 2023 Bonds into investment trusts) and others at prices lower than the initial public offering price or prices set forth in the Official Statement. The Underwriter reserves the right to join with dealers and other underwriters in offering the Series 2023 Bonds to the public. The obligation of the Underwriter to accept delivery of the Series 2023 Bonds is subject to the terms and conditions set forth in the Bond Purchase Agreement, the approval of legal matters by counsel and other conditions. The Underwriter may over-allot or effect transactions which stabilize or maintain the market price of the Series 2023 Bonds at levels above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time.

MUNICIPAL ADVISOR
The Authority has retained Fieldman, Rolapp & Associates, Inc. (the “Municipal Advisor”), as municipal advisor in connection with the issuance and sale of the Series 2023 Bonds. Although the Municipal Advisor has participated in the preparation of the Official Statement, the Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume responsibility for the accuracy, completeness or fairness of the information contained in the Official Statement or any of the other legal documents, and further the Municipal Advisor does not assume any responsibility for the possible impact of any current, pending or future actions taken by any legislative or judicial bodies or rating agencies.

MISCELLANEOUS
Included herein are brief summaries of certain documents and reports, which summaries do not purport to be complete or definitive, and reference is made to such documents and reports for full and complete statements of the contents thereof. Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the Authority and the purchasers or owners of any of the Series 2023 Bonds.

The execution and delivery of this Official Statement has been duly authorized by the Authority.

INDIO ELECTRIC FINANCING AUTHORITY
By:

Executive Director

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APPENDIX A

GENERAL INFORMATION CONCERNING THE CITY OF INDIO
General
Indio was incorporated in 1930 and encompasses approximately 33 square miles. Indio is the geographic mid-point of Riverside County. It is located about 125 miles east of the center of the Los Angeles region, 75 miles north of the California-Baja California Mexican border and 30 miles southeast of Palm Springs and its neighboring communities (including Indian Wells, La Quinta and Palm Desert to the west and Coachella and Mecca to the east).

Indio is the largest city, by population, in the Coachella Valley, a sub-region located in eastern Riverside County. Indio is a center for business, government and entertainment within the region. Other cities in the Coachella Valley include Palm Springs, Palm Desert, Rancho Mirage, Indian Wells, La Quinta, Cathedral City, Desert Hot Springs and Coachella. The Coachella Valley is a premium golf region with many well-known golf courses (including PGA West, Indian Wells Country Club, the Quarry at La Quinta and many others), as well as hotels and resorts, and gated retirement communities. Significant industries in the Coachella Valley include leisure, tourism, agriculture, wind farming, construction, Indian gaming, mining and entertainment.

City Government
Indio is a general law city. Indio has a Council-City Manager form of municipal government. The City Council appoints the City Manager who is responsible for the day-to-day administration of City business and the coordination of all departments of Indio. The City Council is composed of five members elected bi- annually by district to four-year alternating terms. Each year, the City Council selects the mayor on a rotational basis. As of June 30, 2023 Indio employed a staff of approximately _____ full-time and _____ part- time employees.

The current City Council members and their respective term expiration dates are as follows:

Name and Office District Term Expires
Oscar Ortiz, Mayor 4 November 2026
Lupe Ramos Amith, Mayor Pro Tem 5 November 2024
Glenn Miller, Council Member 1 November 2024
Elaine Holmes, Council Member 3 November 2026
Waymond Fermon, Council Member 2 November 2026
Bryan Montgomery is the City Manager of Indio and the Executive Director of the Authority.

Mr. Montgomery is responsible for the efficient administration of all municipal affairs including implementation of City Council policy, state laws, and city ordinances, and he has over 30 years of local government experience. Mr. Montgomery has been the City Manager of Indio since May of 2021. Prior to his service in Indio, Mr. Montgomery served as the City of Manager of Oakley, California where he served for nearly 16 years. Prior to his time in Oakley, he served as City Manager of Mesquite, Nevada and Rupert, Idaho. He also served as the Assistant City Manager in Alamogordo, New Mexico and as a Management Aide in Provo, Utah. Mr. Montgomery has a Bachelor’s degree in International Government Relations and a

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Master’s degree in Public Administration, both from Brigham Young University. In addition to his local government service, Mr. Montgomery was an Adjunct Professor at San Francisco State University and Los Medanos College, speaks Spanish and periodically lectures in Latin America for the ICMA, the leading organization of local government professionals. In 2015, he was honored with the Volunteer of the Year Award by the Volunteers for Economic Growth Alliance for his decades of pro-bono assistance to ICMA’s Mexico office. In Mexico he conducted field visits to provide technical assistance to multiple cities and participated in workshops and other events to promote professional local government management.

Rob Rockwell is the Assistant City Manager and Finance Director of Indio and the Treasurer of the Authority. The posts of Assistant City Manager and Finance Director are appointed by the City Manager.

Mr. Rockwell has been the Finance Director of Indio since September 2010 and assumed Assistant City Manager responsibilities in August 2014. Mr. Rockwell has 24 years of experience in municipal government, holding various positions in finance and municipal administration. Prior to his employment with Indio, Mr. Rockwell served as Budget Director at the County of Riverside. He holds a bachelor’s degree in Business Administration from California State University, San Bernardino, California.

Scott Trujillo is the Deputy City Manager. Mr. Trujillo has been the Deputy City Manager since February 2019. Mr. Trujillo has over 16 years of municipal government experience, holding various positions in finance and municipal administration, including as an assistant City Manager, Human Services Supervisor, Communications and Outreach Coordinator and Management Analyst. Mr. Trujillo also has ten years of experience in the private sector. Mr. Trujillo holds a bachelor’s degree in Psychology from Colorado State University and a Master’s Degree in Public Administration from Grand Canyon University.

Population
The following table shows the population growth for Indio and Riverside County for the years shown:

TABLE A-1
City of Indio
City and County Population(1)
Calendar Years 2019-2023
Calendar Year City County
2023 90,837 2,439,234
2022 89,789 2,430,976
2021 91,621 2,454,453
2020 90,804 2,440,719
2019 90,112 2,419,057
(1) As of January 1 of each year.

Source: State of California, Department of Finance, E-4 Population Estimates for Cities, Counties, and the State, 2021-2023, with 2020 Census Benchmark. Sacramento, California, May 2023.

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Employment and Industry
The following table shows certain employment statistics for Indio, the County and the State for calendar years 2018 through 2022.

TABLE A-2
City of Indio
City, County and State Average Annual Employment Statistics(1) Calendar Years 2018 through 2022
City County State
Year Labor Force Employed
Unemployment
Rate
Unemployment
Rate
Unemployment
Rate
2022 42,000 40,400 4.7% 4.2% 4.2%
2021 47,700 38,300 8.2 7.3 7.3
2020 41,800 36,700 12.2 10.2 10.2
2019 41,200 39,000 5.3 4.3 4.1
2018 40,700 38,400 5.6 4.5 4.3
(1) Not seasonally adjusted. Figures represent the 12-month average for each such year.

Source: California Employment Development Department, Labor Market Information Division.

The following table shows the distribution of the labor force in the County from 2018 through 2022.

TABLE A-3
County of Riverside
Annual Average Employment by Industry
Calendar Years 2018-2022
2018 2019 2020 2021 2022
Total Farm 12,300 12,900 12,000 11,400 11,500
Mining and Logging 400 500 400 400 500
Construction 67,400 68,100 66,600 70,900 74,300
Manufacturing 44,500 45,200 42,400 43,700 45,000
Trade, Transportation and Utilities 163,600 169,600 172,600 188,100 197,700 Information 6,200 6,500 5,300 5,300 5,200
Financial Activities 22,100 21,600 20,800 21,400 22,500 Professional and Business Services 70,500 73,700 70,500 77,200 79,800 Educational and Health Services 114,900 115,300 112,300 124,600 130,800 Leisure and Hospitality 93,700 97,800 76,300 88,600 100,300 Other Services 22,800 23,300 19,600 21,800 23,800
Government 130,100 132,100 124,400 127,200 128,700
Total All Industries 748,500 766,500 723,100 780,600 820,000 Total Civilian Labor Force 1,090,000 1,107,700 1,117,300 1,133,000 1,152,100 Source: California Employment Development Department, Labor Market Information Division.

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Largest Employers
The following table lists the major area employers in Indio.

TABLE A-4
City of Indio
Major Area Employers
as of June 30, 2022
Employer
Number of
Employees
Desert Sands Unified School District 2,765
County of Riverside 1,211
Fantasy Springs Resort Casino 1,148
John F. Kennedy Memorial Hospital 728
Walmart Supercenter 404
City of Indio 245
Riverside Superior Court 156
Ralphs 146
Indio Nursing and Rehabilitation Center 146
Fiesta Ford Lincoln 140
Winco Foods 146
Total Employment Listed 7,216
Source: City of Indio, as shown in the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2022.

Per Capital Personal Income
Indio is part of the Riverside-San Bernardino-Ontario Metropolitan Statistical Area, as determined by the United States Office of Management and Budget. The following table shows the annual per capita personal income for the Riverside-San Bernardino-Ontario Metropolitan Statistical Area, the State and the United States from 2017 through 2021:

TABLE A-5
Riverside-San Bernardino-Ontario Metropolitan Statistical Area, State of California and the United States
Per Capita Personal Income(1)(2)
Calendar Years 2017 through 2021
Year MSA State United States
2021 50,384 76,800 64,117
2020 46,658 70,643 59,763
2019 42,326 64,919 56,250
2018 39,869 61,508 53,786
2017 38,467 58,804 51,550
(1) Dollar estimates in current dollars (not adjusted for inflation). (2) Computed using U.S. Bureau of the Census midyear population estimates. Estimates for 2017-2021 reflect county population estimates available as of March 2021 based on the 2020 census.

Source: U.S. Department of Commerce, Bureau of Economic Analysis.

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Taxable Transactions
A summary of taxable sales within Indio, by type of business, during the past five years for which data is available is shown in the following table.

TABLE A-6
City of Indio
Taxable Transaction Valuation(1)
Calendar Years 2018-22
Business 2018 2019 2020 2021 2022
Motor Vehicle and Parts Dealers $278,913 $270,802 $277,840 $359,756 $369,465 Home Furnishings and Appliance Stores 44,082 46,504 42,657 56,077 53,477 Building Material, Garden Equip & Supplies 88,013 86,112 101,743 134,751 176,668 Food and Beverage Stores 52,902 54,511 62,164 66,894 74,272 Gasoline Stations 107,763 114,738 84,946 126,552 179,414 Clothing and Clothing Accessories Stores 30,090 38,354 34,395 52,024 49,130 General Merchandise Stores 56,269 64,376 66,342 70,483 78,553 Food Services and Drinking Places 137,108 143,489 104,165 140,424 178,766 Other Retail Group 49,133 49,398 56,353 65,274 73,491 Total Retail and Food Services $844,275 $868,288 $830,609 $1,072,241 $1,233,240 All Other Outlets 197,067 217,856 200,715 219,422 271,616 Total All Outlets $1,041,343 $1,086,145 $1,031,325 $1,291,663 $1,504,856 (1) In thousands of dollars (‘000s)
Source: California Department of Tax and Fee Administration.

The number of sales permits and the valuation of taxable transaction in Indio subject to sales tax are presented in the following table.

TABLE A-7
City of Indio
Permit Numbers and Taxable Transaction Valuation
Calendar Years 2018-22
Year
No. of
Retail and Food
Services Permits
Retail and Food
Services Stores(1)
No. of
Total Permits Total All Outlets(1)
2022 2,036 $1,233,240 2,929 $1,504,856
2021 1,977 1,072,241 2,824 1,291,663
2020 2,137 830,609 2,987 1,031,325
2019 2,162 868,288 2,974 1,086,145
2018 2,159 844,275 2,935 1,041,343
(1) In thousands of dollars (‘000s)
Source: California Department of Tax and Fee Administration.

Government Services and Community Facilities
General. Indio provides a broad range of services to its citizens, including police and fire protection, water service, trash collection, street construction and maintenance, parks and recreation, planning and zoning, housing and community development, building inspection and general and administrative support services. It cooperates with Riverside County in the provision of flood control. Indio maintains over 16 parks. The Coachella Valley Recreation District operates a 39,000 square foot comprehensive recreational facility in Indio. Indio is the alternate county seat for the County of Riverside and contains a large County administration

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and services complex and an alternate emergency operations center for the County (the primary emergency operations center being located in the City of Riverside).

Police Department. The Indio Police Department is a full-service law enforcement agency, nationally recognized for its progressive and innovative community-oriented practices. The department is part of a select group of 15 jurisdictions from across the country selected to participate in The President’s Task Force on 21 st Century Policing, created to strengthen community policing and trust among law enforcement officers and the communities they serve. The department is comprised of 85 sworn and 46 professional staff, and more than 30 police volunteers. The Chief of Police is responsible for directing, coordinating, and participating in the operations of the three police department divisions, namely, Field Services, Investigative Services, and Support Services, which operates a 9-1-1 Communications Center. The Indio Police Department’s 2021 Uniform Crime Reporting crime statistics for Indio show the lowest total crime rate in a decade.

Fire Department. Indio contracts with the Riverside County Fire Department for fire protection and emergency medical services within Indio. The Riverside County Fire Department is administered under contract with the California Department of Forestry and Fire Protection (CAL FIRE). The average fire department response time throughout Indio is five minutes or less, 90 percent of the time. There are presently four functional fire stations located in Indio.

Indio’s minimum daily staffing for emergency incident response is 24 persons, including one Division Chief and one Battalion Chief. Ambulance service is provided on a fee for service basis operating three full time paramedic ambulances. The ambulance service is staffed with personnel trained as certified firefighters and advanced life support paramedics. Because Indio contracts with the Riverside County Fire Department, it participates in a Regional Integrated and Cooperative Fire Protection System. In time of need, this makes immediately available to the Incident Commander and Indio, a much deeper pool of regional resources to draw from.

Indio also staffs a Fire Prevention Bureau. Staffing for the Bureau includes a Fire Marshal, Assistant Fire Marshal, two Fire Safety Specialists, a Fire Systems Inspector, and an Office Assistant. The primary function of the Fire Prevention Bureau is to provide services aimed at reducing the risk of fire and injuries to the public. This is accomplished through the adoption and enforcement of codes and ordinances relative to fire and life safety issues and public education programs via schools, community groups, special meetings printed material and the internet.

Health. Indio is served by the JFK Memorial Hospital, a 158-bed acute care hospital founded in 1966 and fully accredited by the Joint Commission on Accreditation of Health Care Organizations. The JFK Memorial Hospital is a part of Tenet Healthcare Corporation, California, and offers 24-hour emergency care, orthopedic and joint replacement services using emerging technology, a sports medicine program, cardiovascular services, maternity care and pediatric services, an ambulatory surgery center, imaging services, and an outpatient rehabilitation center. Health services also available in Indio are a Renal Advantage Inc. dialysis center, Novak Urgent Care, a Riverside County Department of Mental Health Clinic, and a Riverside County Family Care Center, which provides services including cancer screening, child health services, family planning and exams, HIV/AIDS, immunizations, nutrition, primary care, pregnancy, prescriptions, referrals to specialists, STD testing, tuberculosis skin testing, and senior services.

Cultural and Recreational Resources. In recognition of the numerous festivals and special events held annually in Indio, Indio is known as “The City of Festivals.” The Riverside County Fairgrounds are located at Highway 111 in the heart of Indio. Two major annual festivals held in Indio are the Riverside County Fair and National Date Festival, held each February at the Riverside County Fairgrounds, and the Indio International Tamale Festival, held each December in the streets of Old Town Indio. Year round, the Riverside County Fairgrounds Grandstand Arena Stadium also is the site for live music concerts, 4x4 monster truck rallies, and rodeo or horse riding events. Starting in 1999, the Coachella Valley Music and Arts Festival has taken place annually at the Empire Polo Club and the adjoining Eldorado Polo Club Grounds within Indio.

Commencing in 2007, the Stagecoach Country Music Festival has also been held annually at the polo club grounds. Other annual festivals held within Indio include the Southwest Arts Festival, the Cabazon Indian

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National Pow Wow, the Palm Springs Kennel Club’s Annual Dog Show at the Empire Polo Club, and the Family Motor Coach Association’s Annual Western Region RV Rally at the Riverside County Fairgrounds.

Education. Indio is served by two public school districts: Desert Sands Unified School District (headquartered in the City of La Quinta) and on the southern part of the City, Coachella Valley Unified School District. Within the Desert Sands Unified School District, eleven public elementary schools (grades K-5), four public middle schools (grades 6-8), and three public high schools (grades 9-12) are located within Indio.

Within the Coachella Valley Unified School District, one public elementary (grades K-6) is located within Indio.

Indio is also served by College of the Desert (COD), a community college serving about 12,500 students. As a two-year college, COD offers transfer students an affordable option for starting college and transferring to a four-year institution. COD is the number one source of transfer students to California State University at San Bernardino and offers a number of popular vocational and technical programs. The Indio campus opened in 2014 and construction on an expansion is underway. The expansion entails a new 18,000 sq. ft Child Development Center that includes 7,000 sq. ft of play yards, classrooms, childcare facilities, and observation spaces; and an additional 67,000 sq. ft campus building for a new student center, public safety facilities, student health offices, new classrooms, science laboratories, a Maker Space, and more. The Indio campus is expected to be fully operational in Spring 2024 and accommodate about 8,000 students.

Indio is also home to the California Desert Trial Academy (CDTA) College of Law, which was founded by John Patrick Dolan and Irene Garcia Dolan. CDTA is the only law school in the country dedicated to trial advocacy and the only law school in the Coachella Valley.

Transportation
Interstate 10 connects Indio with Los Angeles, California, and Phoenix, Arizona. State Highways 86 and 111 provide access to neighboring communities and the City of Palm Springs.

Commercial rail service to Indio is provided by Southern Pacific Railroad.

Air cargo and passenger flight services are provided at the Palm Springs Airport and at nearby Bermuda Dunes and Thermal Airports.

Climate
The climate of the Coachella Valley is influenced by the surrounding geography. High mountain ranges on three sides contribute to its unique and year-round warm climate, with some of the warmest winters west of the Rocky Mountains. Indio has a warm winter/hot summer climate. According to data from the National Oceanic and Atmospheric Administration for 1981-2010, Indio’s average annual high temperature is

89.5 degrees Fahrenheit and average annual low is 62.1 degrees. Summer highs above 108 degrees are common and sometimes exceed 120 degrees, while summer night lows often stay above 82 degrees. Winters are warm with daytime highs, often between 68-86 degrees. Under four inches of annual precipitation are average, with typically over 348 days of sunshine per year. The mean annual temperature is 75.8 degrees.

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Building Activity
The following tables provide summaries of the building permit valuations and the number of new dwelling units authorized in Indio and the County from 2018 through 2022.

TABLE A-8

BUILDING PERMITS AND VALUATIONS
City of Indio
2018-2022
(Dollars in Thousands)
2018 2019 2020 2021 2022
Valuation ($000):

Residential $ 51,733 $ 41,514 $ 74,837 $ 113,495 $ 137,778 Non-residential 17,281 12,534 21,682 27,494 60,975
Total* $ 69,014 $ 54,048 $ 96,519 $ 140,989 $ 198,753
Residential Units:

Single family 344 265 415 533 588
Multiple family 0 0 100 184 222
Total 344 265 515 717 810
* Totals may not add to sums because of rounding.

Source: Construction Industry Research Board.

TABLE A-9

BUILDING PERMITS AND VALUATIONS
Riverside County
2018-2022
(Dollars in Thousands)
2018 2019 2020 2021 2022
Valuation ($000):

Residential $2,558,081 $2,275,405 $2,519,303 $2,262,642 $2,921,113 Non-residential 1,959,680 1,285,856 1,153,778 1,543,998 1,701,618 Total* $4,517,761 $3,561,261 $3,673,081 $3,806,640 $4,622,731 Residential Units:

Single family 7,540 6,563 8,443 7,360 8,863
Multiple family 1,628 1,778 723 1,126 2,861
Total 9,168 8,341 9,166 8,486 11,724
* Totals may not add to sums because of rounding.

Source: Construction Industry Research Board.

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APPENDIX B

SUMMARY OF THE INDENTURE

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APPENDIX C

PROPOSED FORM OF BOND COUNSEL OPINION
Upon issuance of the Series 2023 Bonds, Stradling Yocca Carlson & Rauth, a Professional Corporation, Bond Counsel, proposes to render its final approving opinion in substantially the following form:
_____, 2023
Indio Electric Financing Authority
Indio, California
Re:$__________ Indio Electric Financing Authority Electric Revenue Bonds, Series 2023A Ladies and Gentlemen:

We have acted as bond counsel to the Indio Electric Financing Authority (the “Authority”) in connection with the issuance by the Authority of $__________ Indio Electric Financing Authority Electric Revenue Bonds, Series 2023A (the “Series 2023 Bonds”), pursuant to the provisions of Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the California Government Code (the “Bond Law”), and pursuant to an Indenture, dated as of December 1, 2023, as supplemented by the First Supplemental Indenture, dated as of December 1, 2023 (the “Indenture”), each by and between the Authority and U.S. Bank Trust Company, National Association, as Trustee. We have examined the law and such certified proceedings and other documents, agreements, opinions and matters as we deem necessary to render this opinion. This opinion is based on current statutory and constitutional law and published court decisions as of the date hereof.

Capitalized terms used herein and not otherwise defined shall have the meaning ascribed thereto in the Indenture.

As to questions of fact material to our opinion, we have relied upon representations of the Authority contained in the Indenture and in the certified proceedings and certifications of public officials and others furnished to us, without undertaking to verify the same by independent investigation.

We have assumed the genuineness of all documents and signatures presented to us, the authenticity of documents submitted as originals and the conformity to originals of documents submitted as copies. We have not undertaken to verify independently, and have assumed, the accuracy of the factual matters represented, warranted or certified in the documents, and of the legal conclusions contained in the opinions referred to in the preceding paragraphs of this opinion. Furthermore, we have assumed compliance with all covenants and agreements contained in the Indenture and the Tax Certificate with respect to the Series 2023 Bonds (the “Tax Certificate”).

Based upon the foregoing we are of the opinion, under existing law, as follows:

1. The Authority is a joint exercise of powers authority duly organized and validly existing under the laws of the State of California with the full power to enter into the Indenture, to perform the agreements on its part contained therein and to issue the Series 2023 Bonds.

2. The Indenture has been duly authorized, executed and delivered by the Authority and the Indenture constitutes the valid and binding obligation of the Authority enforceable against the Authority in accordance with its terms. The Indenture creates a valid pledge of the Trust Estate and the other moneys pledged under the Indenture, subject to the provisions of the Indenture.

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3. The Series 2023 Bonds have been duly and validly authorized by the Authority and are legal, valid and binding limited obligations of the Authority, enforceable in accordance with their terms and the terms of the Indenture. The Series 2023 Bonds are limited obligations of the Authority payable solely from the Trust Estate and other moneys pledged under the Indenture as provided in the Indenture. The Authority has no taxing power.

4. Under existing statutes, regulations, rulings and judicial decisions, interest (and original issue discount) on the Series 2023 Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals; however, it should be noted that for tax years beginning after December 31, 2022, with respect to applicable corporations as defined in Section 59(k) of the Internal Revenue Code of 1986, as amended, interest on the Series 2023 Bonds might be taken into account in determining adjusted financial statement income for purposes of computing the alternative minimum tax imposed on such corporations.

5. Interest (and original issue discount) on the Series 2023 Bonds is exempt from personal income taxes imposed in the State of California.

6. The difference between the issue price of a Series 2023 Bond (the first price at which a substantial amount of the Series 2023 Bonds of a maturity is to be sold to the public) and the stated redemption price at maturity with respect to such Series 2023 Bond constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to a Series 2023 Bond Owner before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by a Series 2023 Bond Owner will increase the Series 2023 Bond Owner’s basis in the applicable Series 2023 Bond. Original issue discount that accrues to the Series 2023 Bond Owner is excluded from the gross income of such owner for federal income tax purposes, is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals (as described in paragraph 4 above) and is exempt from State of California personal income tax.

7. The amount by which a Series 2023 Bond Owner’s original basis for determining loss on sale or exchange in the applicable Series 2023 Bond (generally the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable Series 2023 Bond premium which must be amortized under Section 171 of the Code; such amortizable Series 2023 Bond premium reduces the Series 2023 Bond Owner’s basis in the applicable Series 2023 Bond (and the amount of tax-exempt interest received), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of Series 2023 Bond premium may result in a Series 2023 Bond Owner realizing a taxable gain when a Series 2023 Bond is sold by the Owner for an amount equal to or less (under certain circumstances) than the original cost of the Series 2023 Bond to the Owner.

The opinions expressed in paragraphs (4) and (6) above as to the exclusion from gross income for federal income tax purposes of interest (and original issue discount) on the Series 2023 Bonds are subject to the condition that the Authority and the City comply with all requirements of the Code, that must be satisfied subsequent to the issuance of the Series 2023 Bonds to assure that such interest (and original issue discount) will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause interest (and original issue discount) on the Series 2023 Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Series 2023 Bonds. The Authority has covenanted to comply with all such requirements. Except as set forth in paragraphs (4), (5), (6) and (7) above, we express no opinion as to any tax consequences related to the Series 2023 Bonds.

Our opinion is limited to matters governed by the laws of the State of California and federal law. We assume no responsibility with respect to the applicability or the effect of the laws of any other jurisdiction.

The opinions that are expressed herein as to the exclusion from gross income of interest (and original issue discount) on the Series 2023 Bonds are based upon certain representations of fact and certifications made

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Indio City CouncilNovember 15, 2023

Indio City Council
November 15, 2023