Sutter County supervisors unanimously approved conditional agreements on Sept. 8 to divide prospective revenue from the county's proposed Measure G sales tax among the county, Yuba City, and Live Oak. These agreements are explicitly dependent on county voters approving Measure G, a proposed 1% countywide transactions-and-use tax, on Nov. 3, 2026.
According to the board’s summary of proceedings, the revenue-sharing agreements with both cities, alongside related resolutions, were adopted unanimously by the three supervisors who were present at the meeting; two supervisors were absent. During the public portion of the meeting, members of the community spoke both in favor of and against Measure G.
Should voters approve Measure G and it be enacted, Sutter County would retain an estimated $9.2 million annually. This total is comprised of all estimated tax revenue generated within unincorporated areas of the county, amounting to approximately $5.5 million annually, as well as 22.5% of the estimated revenue generated within Yuba City, which is projected at about $3.7 million. These figures were detailed in the Sept. 8 agenda packet.
Yuba City is projected to receive the largest share of the sales tax generated within its municipal limits, with an estimated annual sum of about $12.55 million. This figure represents 77.5% of the tax revenue generated within the city. This revenue-sharing framework comes with a specific condition: the Yuba City Police Department would be required to assume responsibility for law-enforcement services in the area known as Beat 6 in Yuba City and Beat 7 in the county. This transition, as outlined in the agenda packet, must occur no later than July 1, 2028, and refers to an area previously defined under the 2000 Master Tax Exchange Agreement. The packet further specifies that if Yuba City has not taken over these services by the designated date, the Sutter County Sheriff’s Office would continue providing them and bill the city for the actual costs incurred.
Live Oak, the smallest of the three jurisdictions, would receive all tax revenue generated within its city limits, based on the approved agreements. To ensure financial predictability, the agreement includes a provision for a minimum annual payment of $750,000 to Live Oak, effective from July 1, 2027, through June 30, 2029. An earlier partial-period payment for Live Oak is also set to begin on April 1, 2027. The agreement clarifies that if the actual annual revenue generated within Live Oak exceeds the $750,000 minimum, the city would then receive the full amount generated.
It is crucial to note that these approved agreements do not signify the passage of Measure G. Their implementation is "expressly contingent on voter approval and enactment" on Nov. 3, 2026, and the subsequent enactment of the measure. The county packet indicates that city administrators are tasked with presenting these final agreements to their respective city councils for further consideration.
The documents, as presented, do not provide a broader analysis of the service impacts across the entire county that might result from Measure G’s potential passage and the subsequent revenue distribution. Furthermore, the agreements do not establish specific details regarding how the transition of law enforcement services in Beat 6 and Beat 7 to the Yuba City Police Department would be staffed or funded. These details remain to be addressed as the county and cities move forward with the conditional plans.
