The cash, borrowed from the city's water fund, will go to the
The decision to make the payment came after a city loss in a state appeals court in late January.
"We are making the payment under protest, with a reservation of all rights to pursue further remedies," City Manager
Palacios said city leaders are discussing a further appeal of the court's decision upholding the state's right to claim the money.
The dispute between the state and the city centered on the timing of a loan repayment between the now defunct
Palacios said the decision to hand over the money allows the city to file paperwork with the state for scheduling future payments on the
The deadline to file the paperwork without having to wait another six months is
Pajaro Valley Unified will get the largest share, though the exact amount wasn't immediately available Tuesday.
Chief Business Officer
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