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Supervisors advance $181,467 in property taxes to Palo Verde Healthcare District to ease cash flow
Summary
The Board of Supervisors approved a one‑time property tax revenue advance for Palo Verde Healthcare District to provide temporary operating cash while the district pursues longer‑term funding and bankruptcy reorganization. The board noted the county has used similar advances for other special districts.
The Riverside County Board of Supervisors approved a property tax revenue advance of $181,467 to the Palo Verde Healthcare District, voting 5‑0 on item 3.7.
The request was presented by Michael Rose, interim chief financial officer of the Palo Verde Healthcare District in Blythe, who said the hospital declared a fiscal emergency after a May early set‑off of a $3 million line of credit and a series of operational setbacks. "As of yesterday, the district had 7.4 days of available cash reserves, which is approximately $530,000," Rose told the board. He described the advance as a short‑term cash‑flow measure and said it would provide roughly 2½ additional days of operating funds but would not resolve the district's broader need for $3 million to $4 million in longer‑term assistance.
Jeff Van Wagner of the county Executive Office confirmed the county uses this mechanism to advance property tax revenues that are otherwise distributed later in the year and said the county has done similar advances for other special districts; he told the board this was the first time it had been used for Palo Verde. Supervisors expressed sympathy about the hospital's situation and said they would work with state, local and nonprofit partners to seek longer‑term solutions.
The motion to approve as recommended carried 5‑0. The board did not attach additional conditions to the advance but heard staff describe it as a routine cash‑flow tool for special districts.
Clarifying details: county staff and the speaker characterized the advance as an acceleration of tax revenues due to fall distribution timing; the district reported 7.4 days of cash on hand (≈$530,000) and said the property tax advance requested was $181,467. Rose said the district has requested $3–4 million in longer‑term funding and is preparing a plan of adjustment for U.S. Bankruptcy Court.
Ending: The advance provides immediate, short‑term liquidity while the district pursues systemic remedies; county staff said the county has used this approach for other districts in past years and will continue to coordinate with local and state partners.
