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Arcadia Unified to assign delinquent tax receivables to statewide finance authority for 2026–2028
Summary
The board authorized a three-year agreement assigning delinquent property tax receivables to the California statewide delinquent tax finance authority; district staff said the arrangement yields prepaid delinquent taxes plus a premium (historically $50,000–$60,000) and that there is no downside risk to the district.
The Arcadia Unified School District board voted May 12 to approve Resolution 25-26-26, authorizing assignment of delinquent tax receivables for fiscal years ending June 30, 2026–2028, to the California statewide delinquent tax finance authority, a joint-powers arrangement managed by School Services of California.
District counsel and finance staff described the arrangement as longstanding and explained the mechanics: the JPA purchases the rights to delinquent receivables, resells them to underwriters and prepaid amounts are remitted to the district along with a small premium. Finance staff said recent premiums have been in the range of $50,000 to $60,000 annually.
A board member asked whether the purchaser makes more than the face amount; staff described the premium as an incentive for participation but said the program has been run for years and presents no downside risk to the district. The board adopted the three-year agreement on a voice vote after brief questioning.
Staff said the prepaid revenue and premium flow into the district's general fund as unrestricted revenue when the transaction closes. The item was presented as a continuation of a practice the district has used in prior comparable agreements.
