Live Oak City Council members voted Wednesday to approve a revenue sharing agreement with Sutter County for Measure G, a proposed 1% sales tax initiative, while simultaneously addressing pressing concerns about the city's budget deficits. Residents confronted the council regarding what they described as the city's precarious financial state, pointing to a significant reduction in cash and investments.
Rick Dais, a Live Oak resident, questioned the council's transparency, highlighting that the city's balance in cash and investments currently stands at $3.6 million. Dais noted this represents a $10 million decrease from the $13.6 million held as of June 2023. Projecting current expenditure rates, Dais estimated the city is spending approximately $300,000 per month, suggesting the remaining $3.6 million could be depleted within a year, leading to potential bankruptcy. Former council member J.R. Thiara echoed these sentiments, asserting the city is "going broke" and in a "state of emergency." Thiara also raised concerns about the absence of accounts payable information in recent city council agenda packets, contrasting it with practices during his tenure on the council beginning in June 2019. He observed this information has been missing "since Mr. Moody has joined us."
Live Oak Mayor Jeramy Chapdelaine countered the residents' claims, stating that "inaccurate information" had been presented. The mayor emphasized that the council has openly focused on rectifying the city's financial shortfall for years. Chapdelaine noted that budget workshops had previously projected an even swifter depletion of funds, but efforts by new staff have "shaved some of that down to make it last longer." He also pointed out that the city's spending had decreased from a budget of $4.2 million two years prior. Addressing Dais's figures, Chapdelaine clarified that the earlier $14 million balance cited included "other assets that aren’t cash," suggesting an inaccurate co-mingling of accounts. Council member Pamma added that the council has been contending with financial challenges for "at least 10 years." City Manager Ben Moody affirmed ongoing efforts to "flatten out that curve and make some progress."
The council's vote on Wednesday concerned the distribution of funds if Measure G passes in the November election. Mayor Chapdelaine, Council member Pamma, and Council member Bob Woten approved the revenue sharing agreement with Sutter County. Council members Nancy Santana and Ashley Hernandez were absent during the vote. This agreement stipulates specific payments from Sutter County to Live Oak. From April 1, 2027, through June 30, 2027, Live Oak will receive either all revenue generated from the Measure G tax or $187,500, whichever amount is greater. For the period of July 1, 2027, through June 30, 2028, and again for July 1, 2028, through June 30, 2029, the county will pay Live Oak either all the city revenue generated from Measure G or $750,000 annually, whichever is greater. The agreement also includes additional stipulations and requirements. Measure G is a collaborative initiative between Sutter County and the cities of Live Oak and Yuba City, designed to alleviate budget constraints related to first responders, roads, and water services across the municipalities. The proposed "Safety/Water Protection Measure" is projected to generate approximately $22.5 million annually for distribution among the participating jurisdictions.
The meeting commenced with Mayor Chapdelaine issuing a proclamation that honored the Live Oak Little League Lions, recognizing them as the 2026 Northern California 10-12 Softball State Champions for their historic season and inspiration to the community. Former council member J.R. Thiara, who raised financial transparency issues, was censured by the council in 2020 for disruptive conduct during meetings and was the subject of a recall attempt in 2021 that failed to gather sufficient signatures.
