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Council warns loan will strain Blythe’s reserves but says it’s necessary to keep hospital doors open
Summary
Council members said using roughly two-thirds of the City's available surplus to loan $330,000 to the Palo Verde Healthcare District leaves the City with minimal reserves; members accepted the risk to avoid immediate loss of local emergency services.
Council members described the proposed $330,000 loan as a high‑risk, high‑stakes choice for the City. Interim City Manager Mallory Crecelius warned that allocating the surplus would "leave minimal reserves for anything that comes up" before the end of the fiscal year and framed the loan as a good‑faith, short‑term effort to preserve emergency care.
Council Member Halby, who said he has been on the Council nearly nine years, said the decision risks the City’s financial progress but may be necessary for community safety: "We are hanging our necks out here." Council Member Burton said he supported whatever it takes to maintain services and stressed the life‑and‑death stakes of keeping the emergency room open. The Council directed staff to draft the loan documents and finalize legal review before execution.
