The Sutter County Board of Supervisors has officially approved a revenue-sharing agreement outlining how proceeds from a proposed one percent sales tax increase would be divided among county government and municipal partners if voters pass Measure G. Under the framework, funding will be distributed directly between Sutter County and the incorporated cities of Live Oak and Yuba City.
The formal agreement passed with unanimous backing from the supervisors present at the session. Board Chair Mike Ziegenmeyer, Vice-Chair Karm Bains, and Supervisor Dan Flores voted in favor of the measure’s financial allocation plan. Supervisors Jeffrey Boone and Jeff Stephens were absent from the meeting.
If authorized by local voters, Measure G would elevate the overall sales tax rate in Sutter County from 7.25 percent to 8.25 percent. The proposed tax hike is projected to generate roughly $22.5 million in annual revenue. Under the agreed distribution structure, Yuba City is slated to receive $12.55 million, Sutter County will secure $9.2 million, and the city of Live Oak is allocated $750,000 per year.
The funding model establishes specific formulas for how tax dollars will be retained and exchanged. Sutter County is set to keep 100 percent of the estimated $5.5 million generated in its unincorporated communities. Furthermore, Yuba City will transfer 22.5 percent of the sales tax collected within its city limits—totaling approximately $3.7 million annually—to the county government in compensation for county-provided services.
For Live Oak, the agreement guarantees a baseline allocation of $750,000 annually covering the period from July 1, 2027, through June 30, 2029. Local officials noted that Live Oak’s funding is not capped at that figure, meaning the municipality is entitled to retain any additional tax revenue collected locally that exceeds the guaranteed baseline threshold.
Beyond financial disbursements, the compact establishes structural changes in regional emergency response jurisdictions. No later than July 1, 2028, the Yuba City Police Department will take over direct law enforcement operations in patrol zones designated as Beat 6 and Beat 7 under the 2000 Master Tax Exchange Agreement. The Sutter County Sheriff’s Office currently patrols these designated areas.
The agreement includes contingency measures in the event the city cannot meet the operational transfer deadline. Should Yuba City be unable to assume policing duties in Beats 6 and 7 by July 2028, the Sutter County Sheriff’s Office will maintain ongoing patrol coverage and bill the municipality on a quarterly basis for the actual costs incurred.
Following the county board's action, municipal leaders in both neighboring cities are scheduled to take up the matter. Smith indicated that both the Live Oak and Yuba City city councils are expected to review and formally ratify the revenue-sharing agreement during their upcoming public meetings.
Measure G was drafted following extensive public outreach, including feedback from approximately 2,000 residents who participated in community surveys earlier this year. Survey respondents identified road improvements, water infrastructure, and first responder capabilities as the highest spending priorities for the region.
Local emergency personnel have characterized the current situation as a public safety crisis, pointing to an increase in overall call volumes alongside departmental service reductions. To provide taxpayer protections, Measure G features mandatory independent financial audits, oversight from a dedicated citizen’s advisory committee, and a provision that allows voters to repeal the tax measure in future elections.
The board’s formal adoption of the agreement followed contentious public testimony, during which several community members voiced strong skepticism regarding local governance and government spending.
During the public comment segment, resident Richard Dickson criticized the board members, pointing to six-figure administrative salaries and questioning how individual supervisors manage their personal finances. Dickson stated that county leaders were unlikely to welcome his scrutiny regarding their financial stewardship.
Another local resident, Liz Cervantes, challenged the county’s transparency record and demanded proof that existing funds are being managed prudently before local government requests additional tax revenue. Cervantes emphasized that public trust must be earned through verified accountability, transparency, and tangible results rather than premature policy decisions.
Additional public testimony included remarks from Debra Desrosiers, who raised questions concerning the background and employment history of Sutter County Fire Chief Kyle Long.
In response to the sharp public criticism, Chair Ziegenmeyer invited Dickson, Cervantes, and Desrosiers to participate in a private follow-up meeting the following morning. Ziegenmeyer defended the board's core mission, maintaining that maintaining infrastructure and funding emergency services remain the primary responsibilities of county leadership.
City officials also spoke in defense of the sales tax measure and the necessity of regional collaboration. Live Oak City Manager Ben Moody praised the agreement as a fair and critical mechanism to sustain emergency response times and road repairs, describing vocal opposition as peripheral noise. Yuba City Mayor Marc Boomgaarden similarly commended the multi-agency pact, highlighting that such cooperative intergovernmental agreements are rare throughout California.
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