IID Board Approves 2026 Bond Refunding and Coachella Electric Financing Authority

-Editorial 

The Imperial Irrigation District Board of Directors approved two major measures during its March 17 meeting, authorizing the issuance of 2026 Electric System Refunding Revenue Bonds and establishing a new Joint Powers Authority with the City of Coachella to finance electrical system improvements.

The board approved the issuance of the Electric System Refunding Revenue Bonds, Series 2026, which will refund all or a portion of the district’s outstanding 2015C bonds and cover costs associated with issuing the new bonds. Finance staff, in coordination with Stradling Yocca Carlson & Rauth LLP, PFM Financial Advisors LLC, and Truist Securities, prepared the necessary financing documents. The board adopted the Thirteenth Supplemental Resolution and approved related documents, including the preliminary and final official statements, continuing disclosure certificate, bond purchase contract, and escrow agreement.

The refinancing is projected to generate net present value savings of approximately $20.7 million and average annual cash flow savings of about $1.9 million through 2038. The bonds carry an estimated true interest cost of 2.51 percent. Finance staff noted that the documents were available for public review on the IID website and at the General Manager’s office, with representatives available to answer questions.

In a separate action, the board approved a Joint Exercise of Powers Agreement creating the Coachella Electric Financing Authority. The new authority will allow IID and the City of Coachella to jointly plan, finance, design, construct, operate, and maintain energy system improvements within the city to support ongoing growth and development. The agreement was modeled after a similar arrangement between IID and the City of Indio.

Under the structure, the City of Coachella will levy a surcharge on its residents, which IID will collect through its billing system. The Joint Powers Authority will use these funds to finance infrastructure upgrades, which are projected to total approximately $42 million. The district may contribute up to 20 percent of costs for projects that provide reliability benefits to the IID system. Detailed project costs and schedules will be finalized in separate project development agreements, which must be approved by the IID Board.

Brawley resident Eric Reyes voiced his opposition to the proposal, arguing that it amounts to a test that should not move forward without broader public input. Reyes emphasized that residents of the Coachella Valley deserve the opportunity to vote on the matter before any decision is made.

Board Chair Karin Eugenio responded to Reyes by defending the initiative, noting that it has helped maintain some of the lowest utility rates in California for their constituents. She pointed to the City of Indio’s successful participation in the joint powers authority, which enabled local growth while keeping costs to ratepayers minimal—just a few dollars per household. Eugenio added that the Coachella Valley Power Authority now serves about 60% of the region’s ratepayers and is the result of years of collaboration among local leaders. She said the effort has been well-received, with no complaints and strong community support.

IID General Manager Jaime Asbury emphasized that the authority would enhance system efficiency, reliability, and capacity to meet the city’s expanding energy needs. The board’s approval also authorized the General Manager to execute the agreements in substantially the form presented.