Imperial County, CA - Imperial County and Imperial Valley College (IVC) are working collaboratively to provide the public with clear and accurate information regarding the significant increase in the property tax rate associated with IVC’s general obligation bonds for the 2026–27 fiscal year.
The Imperial County Auditor-Controller's Office is solely responsible for calculating the annual bond tax rate. Preparation and completion of the secured property tax billing process involves coordination between the County Auditor-Controller and Treasurer-Tax Collector offices. IVC is not involved in the calculation or preparation of the annual bond tax rate.
Why the 2026–27 Rate Increased
During the 2025-26 fiscal year, County staff overstated the amount of funds available for repayment of IVC’s bonds. Although these funds had not actually been collected, the over-allocation caused the bond fund to appear higher than it was.
Once the corrected balance was established, it was necessary to restore the bond fund in order to meet the current year's principal and interest obligations.
County staff and its financial consultants evaluated several options for addressing the deficiency. The County chose to correct the shortfall within the current fiscal year.
IVC was neither consulted on this decision nor notified of it before tax bills were prepared and mailed. In previous years, the County had communicated with IVC representatives regarding adjustments to bond rates.
For the current tax year, this is expected to result in a larger one-time increase for property owners. The County believes spreading the correction over several years could have left the fund without enough money to make required bond payments, resulting in additional borrowing and interest costs for taxpayers.
The County has informed the college district that the adjustment will restore the fund to the level needed to meet its bond obligations and avoid the added costs of carrying a negative balance.
The County and IVC recognize that an unexpected increase places a real burden on property owners. The County believes this was the most prudent course of action to protect taxpayers from additional borrowing and interest costs over time.
Because the shortfall is being corrected in full this year, the bond tax rate is expected to return to prior year rates for the 2027–28 fiscal year. Final calculations are in process by the County.
Strengthening the Process Going Forward
As part of the review, County staff have identified several procedural improvements intended to strengthen oversight, accuracy and communication in future bond tax calculations.
Proposed improvements include:
- A formal review process for annual bond tax rate calculations;
- Providing affected agencies with proposed calculations and supporting documentation before rates are finalized;
- A detailed reconciliation of beginning fund balances, prior-year collections, debt-service requirements and levy requirements;
- Additional internal verification of calculations; and
- Earlier communication between the County and affected agencies when significant changes to an annual levy are identified.
The County will continue working to review the underlying calculations and ensure that information provided to taxpayers and partner agencies is complete, consistent, and understandable.
Both the County and Imperial Valley College are committed to transparency and to implementing safeguards that reduce the likelihood of a similar situation occurring in the future.