Logo courtesy of the City of Live Oak

LIVE OAK, CA (MPG) - At the Sept. 2 meeting of the Live Oak City Council, a resident spoke during public comment about the Local Agency Formation Commission’s (LAFCO) Municipal Service Reviews, which include efficiency analyses of local jurisdictions. He said the review of Live Oak showed concerning financial trends, and he questioned why the report hadn’t been presented to the public by the council.

City Manager Ben Moody said the city’s financial issues have been discussed in detail as part of the budget process, and the LAFCO report was mentioned during a prior meeting as part of the City Manager Items.

Mayor Jeramy Chapdelaine said the report’s findings on the city’s finances “aren’t big surprises,” and the council has been working to address those issues.

Finance Director Ethan Gutierrez presented the Annual AB 1600 Fund Report, which details the funding collected by the city through development impact fees. These fees are restricted to special funds to offset the impact of new development on government services, and the money can only be used for specific, designated projects. In fiscal year 2025-26, the city collected $9,084 in development impact fees.

If collected fees are not used within five years, the city has to review and make a determination that the funds are still needed for future projects. Gutierrez said the current fund balances are not enough to move forward with any designated projects, so the funds should be retained but remain uncommitted until enough fees are accumulated to cover project costs.

The fund balances currently include $39,407 for parks and recreation; $237,967 for the community center; $32,050 for public works; $368,463 for general government; $33,131 for roads/signals; and $2,090 for flood control. There is currently no uncommitted funding in the fire and police funds.

Gutierrez reminded the council that these funds are restricted and not available for general use. “We are very low on cash for operations itself.”

The council voted unanimously to approve and accept the Annual AB 1600 Fund Report.

The council also considered acceptance of a $1 million state grant through Proposition 64, which is a tax on the sale of recreational cannabis. The collected funds are used to help local communities complete projects that support public health and safety.

Moody said it was a competitive grant process, but the city managed to secure a successful award. It will be paid through reimbursement, so while the city will have to pay initial project costs, the city will get that funding back to cover expenses. Moody said it’s “a net positive for the city.”

Moody said the pool is in a state of “extreme need,” with resurfacing long overdue. Of the $1 million in funding, the grant allows $600,000 for pool rehabilitation, including full resurfacing, improving the slides and installing a shade structure. The remaining $400,000 is eligible to fund pool programs and associated staffing over the next five years. “It’s a huge win,” Moody said.

Councilmember Nancy Santana said the city’s application mentioned police, and she wanted to know why the grant funding wasn’t going toward police services.

Gutierrez explained that the grant does have a public safety requirement regarding cannabis education and enforcement, and the police will be involved in that capacity. But the grant funding has been approved specifically for the pool and can’t be used to fund police salaries.

Santana continued to express confusion and repeatedly asked why the grant can’t go toward police services.

Moody explained, “Just to be clear, the grant has been applied for … based on a scope for the pool and salary and benefits to implement the programs. … Based on that scope, if we accept the money, that’s what we’re to deliver to get the money back.”

Vice Mayor Aaron Pamma thanked staff for working so hard to get this funding. He said with the city’s financial challenges, it was likely they wouldn’t be able to keep the pool open without this funding. He said, “I’m glad that the money is going toward the youth of this city.”

Santana cut in to ask, “Does the mayor’s wife work for the pool? That’s a question.”

Chapdelaine answered, “She sure does. Along with many members of our community.”

Councilmember Bob Woten said that the lack of funding to maintain the pool “looked like an impossible situation. And I’m so excited that we turned this impossible situation around to something that can still benefit the youth in our community.”

Councilmember Ashley Hernandez said these improvements to the pool have been needed for years, and it will be great for the community to keep the pool open.

Santana asked again why the money can’t fund police services. Moody explained again that the funds have to be used to meet the scope of the grant award. But he said the grant will fund pool programs and staffing, which would usually be paid from the general fund, so those general fund dollars would now be unencumbered and available for other uses.

Chapdelaine said it’s not easy to get these grants, and he thanked staff for making it happen. He said the pool is the main recreational activity and gathering space for the community over the summer months, so losing it would have negatively impacted residents.

During public comment, a resident said he appreciated staff for getting this grant: “This is a big deal for the city.”

The council voted unanimously to accept the $1 million grant award.

The next meeting of the Live Oak City Council is scheduled for Sept. 16.