Logo courtesy of the City of Live Oak

LIVE OAK, CA (MPG) - At the Sept. 16 meeting of the Live Oak City Council, two residents spoke during public comment to express concerns about the city’s financial troubles, worrying that they could lead to future bankruptcy and requesting more transparency.

Mayor Jeramy Chapdelaine said the city’s financial projections have shown the dire funding situation for many years.

“It’s been no secret,” Chapdelaine said.

He said the council and staff have been doing everything they can to “right the ship.”

City Manager Ben Moody added that there have been many budget meetings to go over the finances. The structural deficit has been ongoing for years, but the current council and staff are working to cut costs and increase revenues wherever possible.

The council considered an amendment to the master fee schedule to update and consolidate code enforcement fees. Under the proposed update, all code enforcement violations would be subject to the same fee schedule: $100 for the first violation, $200 for the second, $500 for the third and any subsequent violations and $300 for the initial appeal fee.

The council voted 3-0 to approve the amendment, with Councilmembers Ashley Hernandez and Nancy Santana absent.

Staff recommended establishing an operator-in-training position within the Public Works Department, along with a corresponding update to the water and wastewater operator salary schedule. Moody explained that setting up the position gives the city an entry-level path to hire and train future certified operators while keeping pay levels aligned.

An employee in that department recently vacated a position at a higher pay level, so setting up the trainee position allows the city to hire a new employee at a lower salary, saving up to $40,000 annually.

The council voted 3-0 to approve the new position classification.

The council also considered establishing an Accountant I/II classification series within the Finance Department, along with a budget adjustment of $8,500 within salaries and benefits to cover the more advanced classification.

This would not add an additional position. Instead, it is a title change to allow for internal promotion of qualified candidates. Moody explained that establishing the position will allow the city to shift to in-house accounting services rather than paying higher costs for outside consultants to handle that work.

While the position itself will increase salary costs by $8,500 per year, the city will save more than $20,000 per year on consultant costs.

The council voted 3-0 to approve the updated classification.

The council also reviewed a revenue-sharing agreement with Sutter County for the 1% Measure G transactions and use tax that will be on the November ballot.

Under the agreement, if the tax is approved by voters, the City of Live Oak will retain 100% of the new sales tax generated within the city. Additionally, the city will receive a guaranteed base sales tax amount of $750,000 per year from July 1, 2027, through June 30, 2029.

Moody said Measure G will provide critical funding for public safety, roads and water infrastructure.

“It’s critical to the city; it’s critical to the county. … I feel this is a good foundation for the city. It really sets our destiny … as we develop and we control that growth, and those funds come back at 100% level to the city,” Moody said.

Vice Mayor Aaron Pamma asked how residents can be sure the money will go toward public safety costs. Moody said the new revenue would go into the general fund, which is how the city pays for public safety services.

Moody added that if the measure does not pass, there will not be enough revenue to maintain even the reduced public safety contracts with Sutter County, and the city would likely have to reduce park operations to shift that money to critical public safety services.

During public comment, one resident said she was concerned the revenue would go into the general fund instead of a dedicated public safety fund. She said she opposed the tax measure.

The council voted to approve the cost-sharing agreement with the county if voters approve the measure.

The next meeting of the Live Oak City Council is scheduled for Oct. 7.