Our small, disadvantaged community’s reorganization is plodding along through the LAFCO-required, elaborate studies and reviews. Time and money are running out while the community is being kept in the dark.
San Simeon CSD was on the verge of collapse in 2025. Thankfully, SLO County stepped in with a CalWARN emergency agreement and provided a part-time county manager to oversee the district’s services and manage the reorganization process.
The district continues to operate without a general manager, interim or otherwise. The remaining three-member board is “acting” as the general manager.
The district’s cash reserves are critically low and will stay that way even after the recent 32 percent rate increase goes into effect. That increase should cover most of this year’s operations and the costs for the reorganization study without further draining the reserves. However, an unexpected emergency repair could tank the district. The district already appears to be deciding which bills get paid when.
At least one of our three board members has repeatedly stated that they will not serve beyond their term, which ends in December 2026. We may not have an operational board by the end of the year. There are also the unknowns in the county Board of Supervisors makeup after the election—another wild card.
It is believed that the initial major study costing a quarter of a million dollars has fallen behind schedule.
Too much information is being kept secret. Not a single update has been provided by the consulting company to the CSD board or community. Yes, the consultant reports to the county, but ultimately, the district is paying for it.
One CSD director has been demanding an agenda item for an update on the study, which was a condition for the community’s reimbursement of the county for this expensive study. It hasn’t appeared on any agenda for months, and the director was told that it will not be on the February agenda.
The secrecy needs to end.
The LAFCO dissolution and reorganization process is overwhelming for a small community.
A week ago, I sent a letter to the CSD board, county management, and the LAFCO executive director seeking a more efficient way to move the reorganization forward. The letter noted that, at the current pace, it could take another two years to complete the complex LAFCO process.
I haven’t heard back from anyone; however, at the Jan. 15 LAFCO board meeting, the chair mentioned my letter. The LAFCO executive told the commission that, earlier that day, he had called for a regional meeting to discuss San Simeon’s reorganization. Later in the meeting, Supervisor Bruce Gibson also made a brief statement.
A government study like this, which takes three to four years to complete, is likely to fail given the upcoming management changes in the district, county, and LAFCO.
Soon, the county will have been managing our district for a year. They even handled the recent Proposition 218 rate increase, yet LAFCO’s detailed studies, reviews, and approvals are still needed to determine whether the county can do the job.
A better way forward is needed from the county and LAFCO. I am still hopeful. Let’s not ride this horse into the glue factory. ∆
Hank Krzciuk writes to New Times from San Simeon. Send a response for publication to letters@newtimesslo.com.
This article appears in Jan 22-29, 2026.
