Logo courtesy of the City of Live Oak

LIVE OAK, CA (MPG) - The Live Oak City Council reviewed updates to the city's Housing Element and discussed a proposed budget that includes significant reductions to public safety contracts during its June 3 meeting.

The Housing Element, a state-mandated planning document covering 2021 through 2029, evaluates existing and future housing needs and the city's ability to accommodate growth through land use planning.

Under the Regional Housing Needs Allocation process, Live Oak is responsible for approximately 412 future housing units, representing 9.3% of Sutter County's projected housing needs.

Community and Economic Development Director Jaspreet Kaur said the city has an estimated housing capacity of 588 units through a combination of approved projects, building permits and vacant land inventory

"We have a little bit of a surplus," Kaur said, noting that housing developments do not always build the number of units initially proposed.

Councilmember Nancy Santana questioned whether additional housing could increase demands on police and fire services and asked whether housing growth is associated with higher crime rates.

Kaur clarified that the Housing Element does not approve new development projects but serves as a planning document that tracks housing capacity and availability.

The council approved the Housing Element update on a 3-1 vote, with Santana dissenting. Councilmember Ashley Hernandez was absent.

The council also reviewed the proposed fiscal year 2026-27 budget presented by Finance Director Ethan Gutierrez.

Facing ongoing structural deficits, the city is proposing staffing reductions and cuts to service contracts in an effort to reduce expenses.

According to city officials, most General Fund revenue comes from property and sales taxes, but those revenues have declined while personnel, contractual and operational costs have continued to rise.

The city's Water Fund also continues to face financial challenges. Although the city recently adopted phased water rate increases following a rate study, officials said it will take time for the additional revenue to offset deficits and cover operating costs.

Among the most significant proposed reductions are contracts for fire and police services provided through Sutter County. Fire service costs are budgeted at $1.3 million in fiscal year 2025-26 but would be reduced to $750,000 under the proposed budget. Police services would decrease from $2.8 million to $1.75 million.

The General Fund is projected to end the current fiscal year with a balance of approximately $1.2 million. For 2026-27, revenues are estimated at $4.38 million while expenditures are projected at $5.17 million, leaving an anticipated ending balance of $447,282.

The Water Fund is projected to finish the current year with a deficit of $729,365. Revenues of $1.86 million next year are expected to be outpaced by expenditures of $2.13 million, resulting in a projected deficit of about $1 million.

The Sewer Fund is expected to end the current fiscal year with a balance of $2.42 million. Revenues of $2.6 million and expenditures of $2.78 million next year would leave an estimated balance of $2.24 million.

Across all city funds, officials estimate an ending balance of $7.7 million this fiscal year. For 2026-27, total revenues are projected at $11.7 million and expenditures at $12.6 million, resulting in an estimated ending balance of $6.8 million.

Santana questioned how reduced public safety funding could affect emergency response times.

"This is not desirable for anyone," City Manager Ben Moody said.

Moody said the city must keep the General Fund solvent and is working with Sutter County to determine how service reductions would be implemented. He acknowledged that residents could experience longer response times.

"There will be a direct impact to service times," Moody said.

Several residents voiced concerns during public comment, arguing that slower emergency response times could put lives at risk.

Vice Mayor Aaron Pamma said the council shares those concerns

"It's not the citizens versus the council members," Pamma said. "We're all residents here. Please keep that in mind. It affects everyone."

Moody said the city is working with Sutter County on a potential ballot measure to fund public safety services. If the county does not pursue the measure, the city could place its own proposal before voters. Any measure would likely appear on the November ballot.

Mayor Jeramy Chapdelaine said city leaders are trying to address financial problems that have existed for years.

"These aren't things we take lightly," Chapdelaine said. "This can has been kicked year after year, council after council."

Moody added that maintaining current fire service funding would require eliminating parks and recreation services entirely while still leaving the city in a deficit-spending position.

The budget discussion was informational only, and no action was taken.