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Blythe council approves $330,000 emergency loan to Palo Verde Healthcare District to avert closure
Summary
The Blythe City Council on Jan. 9 approved a $330,000 budget amendment and short‑term loan to the Palo Verde Healthcare District after the State denied an expected IGT payment, with the loan carrying a proposed six‑month grace period and conditions tying County management to the funds.
The Blythe City Council voted unanimously Jan. 9 to adopt Resolution No. 2026‑001, approving a $330,000 budget amendment and a $330,000 loan to the Palo Verde Healthcare District after staff warned the District faced imminent closure if it could not cover one week of operations.
Interim City Manager Mallory Crecelius told the Council that the District had expected an Intergovernmental Transfer (IGT) reimbursement of roughly $9 million in January but that "since the Agenda was posted we have learned that the State has denied their loan payment" and that the City recommended a bridge loan based on the County's estimated weekly burn rate of about $330,000. Crecelius said the proposed agreement includes a six‑month grace period and a 3% interest rate as drafted, with a final payment date of June 10, 2028.
Council members said the loan carries substantial fiscal risk for the City. Crecelius noted the adopted fiscal‑year budget included "just under $500,000 in surplus funds" and that allocating $330,000 would leave limited reserves. Vice Mayor Rodriguez moved to approve staff’s recommendation; Council Member Burton seconded, and the motion passed on a unanimous aye vote.
The resolution authorizes the Interim City Manager to execute a loan agreement in a form approved by the City Attorney and instructs staff to return with finalized terms. The Council recorded no dissenting votes during the motion and approval.
