A financial boon for Yuba County

Yuba Water Agency approves transferring $500,000 property tax revenue for 10 years

In the aftermath of the deadliest fire in California history last fall, it was difficult for anyone in the mountain town of Paradise to find hope in the ashes. With at least 85 people dead and more than 80 percent of the homes in Paradise destroyed, the area resembled a war zone ...

The Yuba Water Agency approved a plan to transfer its property tax revenues to Yuba County to help bolster services for residents, a decision that will see approximately $500,000 diverted annually for the next 10 years.

“The property tax revenue transferred from the Yuba County Water Agency will be used to bolster services to county residents, and I would expect that to be done in proportions similar to what we have been doing all along,” said Russ Brown, public information officer for the county. “That would mean more than 70 percent of those funds will likely be applied to public safety efforts that support such work as sheriff patrols and fire protection.”

Property tax revenues used to be an important income generator for the water agency up until it took over power sales along the Yuba River in 2016. Before then, the Pacific Gas & Electric Company had the rights to all power generated along the river, but when that power purchase agreement expired, the water agency stepped in to take it over and realize profits from energy sales.

Today, property tax funding makes up only about 1 percent of the agency’s annual revenue.

The transferred funds will be added to the county’s general fund, and supervisors will have discretion over how the funds are spent. The county administrator’s office will present a proposal for the use of the funds at a future board meeting.

“Because the county has an array of services it provides, that tax revenue can be put to use in a way that will more directly impact the lives of Yuba County residents through services and programs the water agency is not legally able to pay for,” said Supervisor Randy Fletcher in a press release.

Water agency officials approved the transfer during a Jan. 25 meeting. The property tax revenue will be in addition to an earlier commitment by the water agency to pay half of county supervisors’ salaries – or about $135,000 a year – to help free up dollars in the county’s general fund for other priorities.