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(FOX40.COM) — The Live Oak City Council voted four to one to submit a one-year notice to end its contract with the Sutter County Sheriff’s Office and Fire Department.
The decision to cancel the contract comes amid stagnant revenues and rising costs for the city. At a city council meeting on October 1, City Manager Ben Moody shared the urgent need to end the contract due to Live Oak’s financial woes.
“The city has a severe structural deficit,” Moody said. “We’re bringing in 10 million, we’re spending 15. That just doesn’t work.”
Moody told FOX40 that the structural deficit in the City’s general fund is about $1.9 million a year. In recent years, Live Oak has offset its structural deficit with American Rescue Plan Act funds and cash reserves, but Moody said it’s no longer sustainable.
“I hate to use the word crisis, but we can’t kick the can down the road anymore,” he said.
However, Moody reassures residents that even though the City’s budget situation forces them to end the contract, that doesn’t mean Live Oak will be left without police or fire services.
“That’s priority number one, is having fire and law enforcement,” said Moody. “We need to work through the contract terms in order to negotiate that, but it’s not ending public safety to the city of Live Oak.”
Although Sutter County Fire Chief Rich Epperson mentioned to FOX40 that the City doesn’t have much of an option to reduce fire services, he said his team in Live Oak is already running bare bones with just two full-time staff members. Regardless, city leaders are now desperately looking at ways to boost revenue to keep these essential services running.
“We’re looking at economic development growth. We’re trying to spur impact fees… maybe move the needle on some developers that are on the edge of coming in,” Moody said. “We’re delaying some capital improvement projects. You know, there was a desire for the pool to be resurfaced, pushing that off.”
Attendees of last week’s meeting also discussed a citizens’ initiative proposing a parcel tax dedicated solely to fire protection in Live Oak, as well as ad hoc city council committees to look into the City’s public safety options.
As it stands, the contract between the City of Live Oak and Sutter County is set to expire in November of 2026.
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Noah Anderson
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