Logo courtesy of Sutter County

YUBA CITY, CA (MPG) – Sutter County has approved revenue-sharing agreements outlining how millions of dollars generated by a proposed 1% countywide sales tax could be divided with the cities of Yuba City and Live Oak if voters approve Measure G in November.

Under the agreements approved by the Sutter County Board of Supervisors on Sept. 8, the county would receive an estimated $9.2 million annually, while Yuba City would receive about $12.5 million. Live Oak would keep all Measure G revenue generated within its city limits, with a guaranteed minimum of $750,000 a year during the first two years, officials said.

The arrangement reflects negotiations begun after supervisors placed Measure G on the Nov. 3 ballot earlier this summer. County officials said the framework recognizes that much of the taxable retail activity occurs inside the cities while Sutter County continues to provide services throughout the area.

County Administrative Officer Steve Smith said Sutter County would keep all revenue generated in unincorporated communities along with 22.5% of collections generated inside Yuba City.

Yuba City would retain the remaining 77.5% generated within the city, officials said.

The Yuba City agreement is also tied to a significant change in law enforcement responsibilities.

No later than July 1, 2028, the Yuba City Police Department would assume responsibility for law enforcement in the South Walton area now served by the Sutter County Sheriff's Office under a tax-sharing arrangement dating to 2000, officials said. When that transfer occurs, an existing sales tax payment from Yuba City to Sutter County associated with those services would end.

Officials said if Yuba City is not prepared to take over the area by the deadline, the Sheriff's Office would continue providing law enforcement and bill the city quarterly for the actual cost until the transition is completed.

Yuba City Mayor Marc Boomgaarden pointed to the cooperation among Sutter County and its two cities in developing the plan.

"We have walked hand in hand trying to structure an agreement that's good for everyone and the 99-plus thousand people in Sutter County," Boomgaarden said. "I think this measure is fair."

Boomgaarden said local governments are struggling to keep pace with rising costs.

"We're trying to provide a level of service that the public demands with diminishing resources," Boomgaarden said. "And so we're at that point where we need to ask the public again."

From July 1, 2027, through June 30, 2029, Live Oak would would receive the guaranteed minimum. If sales tax collections from Measure G exceed $750,000, the city would receive the larger total, officials said.

Live Oak City Manager Ben Moody said the additional revenue is important for a city currently operating with an approximately $800,000 structural deficit.

"This is critical public safety, roads, response times," Moody said.

Sutter County Supervisor Dan Flores said Measure G goes beyond a tax-sharing formula.

"It's about public safety, it's about the roads. It's about all the issues that are facing the citizens right now," Flores said.

But the proposal has also drawn opposition from residents who question whether the county should seek additional tax revenue before addressing concerns about spending and financial accountability.

During public comment earlier in the meeting, Sutter County resident Ramona Maloney urged greater scrutiny of county finances before voters are asked to approve another tax.

"I think we need to audit Sutter County before the taxpayers have to pay any more taxes because it seems to me my taxes aren't going for the things that I need," Maloney said.

Other speakers questioned county spending and whether the additional general fund revenue would be directed toward the priorities county officials have emphasized while promoting Measure G.

"While you pay out a huge number of bloated six-figure salaries, you now want to burden the regular taxpayer with higher costs who make substantially less and are struggling to pay for groceries, gas and housing," resident Richard Dixon said. "This is the epitome of the county wanting to have its cake and eat it too entirely on the backs of the taxpayers."

Liz Cervantes agreed that residents deserve greater accountability from county leaders.

"Sutter County residents work hard for their money," Cervantes said. "They deserve to know that every dollar taken from them is necessary, justified, and spent wisely. They deserve safe communities. They deserve essential services. They deserve open government. And most importantly, they deserve elected officials who remember that government works for the people, not the other way around."

The Board of Supervisors approved the tax share agreements following the presentation and public comment. Yuba City and Live Oak considered the agreements separately.