LIVE OAK, CA (MPG) - At the June 18 Live Oak City Council meeting, the consent calendar (which included the June 4 meeting minutes, a financial status report and a resolution for road maintenance projects) was approved 3-1, with Councilmember Nancy Santana dissenting and Councilmember Ashley Hernandez absent. 

The council also heard the third and final presentation of the Fiscal Year 2025-2026 budget, which was now ready for adoption after prior council input. 

“As the City Council is aware, the city’s got several challenges with its budget, including low sales-tax revenue and years of accumulated debt in the Water Fund,” said Finance Director James Ramsey.

Another significant challenge is high public-safety costs. Ramsey said that police services are 46% of General Fund expenditures and fire services are 23%. 

Councilmember Santana asked what happened to the leftover funds that were allocated to the dog park project. 

Ramsey said that the project was “considered complete” as of Fiscal Year 2025.

“Once the project is complete, the unspent funds get unencumbered and they go back into restricted fund balance for future projects,” said Ramsey.

Santana asked who made that decision but Ramsey clarified “that’s just a function of the budget.” 

Santana said that she wants to see funding set aside for a School Resource Officer (SRO), adding that the school district offered to pay half the cost. 

While the council does support a School Resource Officer, Mayor Jeramy Chapdelaine said, half the cost ended up being more than expected.

“We definitely continue to explore all the options. It is a high priority but there are challenges in even meeting that 50% right now,” said Chapdelaine.

Said City Manager Ben Moody, “I want to make sure the council understands how dire this budget is. I want to really emphasize that to the community. Structurally, you’re spending $15 million and you’re only bringing in $10 million across your funding sources.”

Even with the increased water rates, Moody said, the city won’t be able to catch up for a few years and the city is spending around $5.6 million but only bringing in $4.2 million in the General Fund.

“You have a structural deficit of approximately $1.6 million,” said Moody.

In the coming months, Moody said, he will suggest possible options for increasing revenues, such as fee adjustments, sales tax measures and the sale of some city properties. Moody said they also need to evaluate the cost of fire and police services to consider if the scope of service can be adjusted. 

The council voted 4-0 to approve the 2025-2026 budget.

The next Live Oak City Council meeting is scheduled for July 2.