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State denial of IGT payment complicates Palo Verde’s finances, city staff say
Summary
City staff told the Blythe City Council that the District’s expected IGT reimbursement was denied by the State, removing a projected $9 million infusion and prompting the emergency loan request; public commenters and correspondence referenced Department of Healthcare Services notices corroborating denial.
Interim City Manager Mallory Crecelius told the Council that the District had expected a large IGT reimbursement in January tied to an earlier payment but that the State has now denied that payment, making the District’s immediate cash position far worse.
Crecelius said the IGT payment was central to earlier plans: "By doing so, around January of this year, they would receive a return of almost $9 million in critical funding needed to continue operations." She added that staff had been notified the State denied the payment after the agenda posted and that staff and elected leaders were pursuing County and state contacts and lobbying partners. Public commenter Leslie Jessop Watkins said she had written correspondence from the Department of Healthcare Services indicating the District’s IGT participation was declined and that returned funds would likely be delayed or withheld.
