As Live Oak prepares to start expanding its borders next year, the city has struck a deal with Sutter County to share tax revenues in the expanded city.

Two resolutions approved this week outline the sharing of property and sales taxes between the county and Live Oak, which is slated to begin absorbing surrounding unincorporated land next year.

The Board of Supervisors accepted the tax-sharing pact on Tuesday, and the City Council followed Wednesday.

In county areas merged into Live Oak, the city will collect 55 percent of the property tax revenue, with its share dropping to 45 percent after 2023. In exchange, 10 percent of sales tax funds from the annexed lands will go to the county.

Sutter County also pledged to keep up current staffing levels in the city for fire and law enforcement coverage for five years, and to negotiate a new funding deal for public safety to take effect when the current one ends in mid-2013.

The city-county pact prepares the way for a series of annexations Live Oak plans under its new general plan, which the City Council is set to vote on by March.

Absorption of county lands north and southwest of the 6,200-person farming town could quadruple its area to as many as 4,000 acres over the next 20 years, according to Satwant Takhar, the city's finance director.