The Sutter County Board of Supervisors has officially approved a structured revenue-sharing agreement outlining how funds from Measure G would be distributed among local jurisdictions if the ballot initiative passes. The proposed measure, which seeks to implement a 1% sales tax increase across the county, establishes formal financial allocations for Sutter County, Yuba City, and Live Oak.
The decision came following a unanimous vote by the supervisors present at the board meeting. Board Chair Mike Ziegenmeyer, Vice-Chair Karm Bains, and Supervisor Dan Flores voted in favor of the formal distribution plan. Supervisors Jeffrey Boone and Jeff Stephens did not attend the session.
Following the county’s approval, the inter-agency agreement is scheduled to move before the respective city councils of Live Oak and Yuba City for formal consideration and ratification. County official Smith indicated that municipal leaders are anticipated to review the terms during their upcoming council meetings next week to finalize the joint pact.
Under the financial projections tied to the initiative, Measure G is expected to generate approximately $22.5 million in total annual revenue. The newly established agreement delineates that Yuba City will receive $12.55 million, Sutter County will secure $9.2 million, and the city of Live Oak will be allocated $750,000 on an annual basis.
The fiscal architecture outlines specific mechanisms for how the county’s $9.2 million portion is compiled. Sutter County will retain all sales tax generated within its unincorporated boundaries, which is estimated to bring in roughly $5.5 million. Furthermore, Yuba City will transfer 22.5% of its locally generated sales tax revenue—equivalent to roughly $3.7 million—back to the county government to help offset the costs of county-administered services provided within city limits.
For the city of Live Oak, the terms establish a baseline revenue guarantee of $750,000 per year spanning from July 1, 2027, through June 30, 2029. Under the arrangement, Live Oak is entitled to retain all sales tax generated within its municipal borders and will not have its proceeds capped at the baseline figure should receipts exceed $750,000.
Beyond funding distributions, the negotiated framework introduces key adjustments to local law enforcement operations. By no later than July 1, 2028, the Yuba City Police Department is scheduled to take over primary patrol duties for areas recognized as Beat 6 and Beat 7 under the existing 2000 Master Tax Exchange Agreement. Those sectors are currently under the jurisdiction of the Sutter County Sheriff’s Office.
The pact includes a clear contingency mechanism in the event that the municipal police force cannot meet the 2028 operational handover deadline. Under those circumstances, the Sutter County Sheriff’s Office will maintain law enforcement coverage in Beats 6 and 7 while billing Yuba City on a quarterly schedule for the true costs incurred in delivering those services.
Measure G was drafted in response to mounting operational pressures and funding deficits facing essential municipal services. The measure was shaped by input gathered from community surveys completed by roughly 2,000 local residents earlier this year, who identified road infrastructure, water resources, and emergency first responders as top regional priorities.
First responders across the region have characterized existing staffing constraints and escalating call volumes as a growing public safety crisis, prompting the drive for dedicated tax support. If approved by voters, the initiative would raise the overall sales tax rate throughout Sutter County from its current rate of 7.25% to 8.25%.
To address oversight concerns, proponents highlighted that the measure incorporates structural accountability measures, including mandatory independent audits and the creation of a citizen advisory committee. Additionally, the ordinance is structured so that local voters retain the authority to repeal the sales tax in future elections.
Despite the structural assurances, the board meeting featured contentious public testimony from residents voicing divergent views on the proposed tax hike. Several speakers strongly criticized local leadership and questioned whether elected officials possessed the financial discipline necessary to manage additional taxpayer revenue.
Resident Richard Dickson addressed the supervisors directly, voicing skepticism about administrative expenditures and referencing executive compensation. During his public comments, Dickson cited what he described as bloated six-figure salaries among leadership and raised unconfirmed accusations regarding the individual financial management practices of the supervisors.
Another speaker, Liz Cervantes, challenged the county’s track record on transparency, asserting that local leaders have failed to demonstrate adequate stewardship of existing public funds. Cervantes argued that taxpayers have a fundamental right to demand complete accountability before being asked to approve higher tax rates, emphasizing that trust must be built through openness and measurable outcomes.
Public comment also included remarks from resident Debra Desrosiers concerning the professional background of Sutter County Fire Chief Kyle Long. In response to the wave of critical testimony, Chair Ziegenmeyer offered to hold a direct follow-up meeting with Dickson, Cervantes, and Desrosiers to discuss their concerns, reiterating that the board’s foremost duty remains safeguarding public safety and road maintenance.
City officials also weighed in on the measure following the heated deliberations. Live Oak City Manager Ben Moody defended the funding agreement as an equitable and vital solution for local government operations, characterizing public and social media pushback as noise that should not obscure critical needs regarding emergency response times and local infrastructure. Yuba City Mayor Marc Boomgaarden similarly praised the rare multi-jurisdictional collaboration required to bring the revenue pact together.
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