The Live Oak City Council approved a conditional agreement on Sept. 16 to share potential tax revenue with Sutter County. This agreement is tied directly to Measure G, a proposed 1% transactions-and-use tax that county voters will consider on Nov. 3. Should Measure G pass, the agreement would return to the city 100% of the tax revenue generated within Live Oak.
Under the terms presented to the council, Live Oak is set to receive a minimum prorated share of $750,000 annually. This minimum payment would continue through the end of fiscal year 2028. Beginning in fiscal year 2029, the city would then receive the full amount of revenue generated within Live Oak. City staff projections indicate this full amount would be approximately $800,000 or more each year.
The council’s action involved approving a resolution that authorizes the exchange of tax revenues with Sutter County, specifically if Measure G is approved by voters. The Sept. 16 City Council meeting record shows this decision was made after the city manager presented information regarding the measure’s potential impact.
During the council’s discussion, the city manager described Measure G as a potential source of crucial funding for public safety and other essential city services. He detailed that Live Oak is currently facing an estimated $800,000 structural deficit within its general fund. The city manager emphasized that the passage of Measure G could significantly help stabilize the city’s financial situation and prevent further reductions to services, including those vital to public safety. These estimates concerning the deficit and potential service impacts were presented by city staff and were not independently established within the meeting record.
This conditional revenue-sharing agreement is part of a broader arrangement that involves Sutter County and its various cities. Staff noted that the Sutter County Board of Supervisors initiated Measure G by placing it on the ballot and subsequently directed the county administrator to negotiate these revenue-sharing agreements with participating local agencies. It is important to note that the Live Oak City Council’s approval does not make the tax effective; its implementation remains dependent on approval by county voters.
For future review, the city has identified several key documents: the executed agreement itself, the relevant county resolution, and a fiscal analysis. This analysis compares the projected revenue that Live Oak stands to gain from Measure G with the city’s current structural deficit, offering further insight into the potential financial implications for the city.
