Riverside LAFCO adopts fiscal-year action plan; launches municipal-service review of Palo Verde Healthcare District

At its July 24 meeting the Riverside Local Agency Formation Commission received an update and approved the annual action plan for fiscal year 2025–26. Executive officer Gary Thompson summarized completed items from the prior year and highlighted priorities for the coming year, including continued outreach to reduce existing boundary islands and work on the LAFCO unfunded pension and OPEB liability program. Thompson reported the commission’s set-aside for pension/OPEB now totals about $900,000 after recent budgeted payments.

Staff also announced two new proposals: a municipal-service review (MSR) of local resource conservation districts and a focused MSR of the Palo Verde Healthcare District. Thompson said the Palo Verde review is time‑sensitive because of the district’s financial distress; LAFCO staff have received extensive responses from the healthcare district to a written questionnaire — reportedly roughly 250 pages — and plan to bring a draft MSR to the commission in September. Thompson said he has been in contact with Blythe and county officials and will continue outreach as part of the MSR process.

Commissioners discussed the value of convening a multi-party meeting (city, county, LAFCO, healthcare district and other stakeholders) to consider options and next steps; several commissioners said a two-by-two or ad hoc convening would be useful once the draft MSR is available. Thompson said the MSR will include options and recommendations and that staff will accelerate work so the report can inform decision-making during the fall.

The commission also authorized staff to pursue conference attendance and nominations for CALAFCO leadership, and asked staff to finalize budget parameters for commissioner attendance and stipends for CALAFCO events.