San Simeon Community Services District in dire straits

July 22, 2025

By KAREN VELIE

Amid a financial crisis, the San Simeon Community Services District general manager and one of four remaining board members quit effective immediately during the past two days.

Former Interim General Manager Geoff English submitted a letter of resignation on July 21. In his letter, he apologized for his sudden departure related to issues with his status as a government retiree.

“Given my status of a public retiree, I am unable to serve in the role of Interim General Manager or enter into any contractual arrangement for services,” according to English’s letter of resignation. “I sincerely apologize for the circumstance and will do my best to assist the Board of Directors on your next management transition.”

The next day, on July 22, San Simeon CSD Director Jacqueline Diamond sent an email announcing her resignation.

“I hereby resign my position on the Board of the San Simeon Community Services District, effective immediately, due to ongoing health issues and recent changes to district dynamics,” Diamond wrote in here email. “Thank you for the opportunity to serve.”

Currently spending $25,000 a month from its reserves, the district is in the danger zone. Since 2018, hotel tax revenues are down 47% and the district’s water sales have declined 35%.

The district has considered raising sewer and water rates by 30 to 50%, however, district directors worry a rate increase will harm the disadvantaged community and struggling businesses.

A string of mudslides led to multiple year closures of Highway 1, preventing people from driving from San Luis Obispo County to Monterey on the scenic highway, leading to fewer hotel guests.

During a meeting CalTrans held on July 19, public officials and members of the business community discussed the financial issues caused by the lengthy road closure. One hotelier said his hotel was $250,000 in the red last year.

Multiple hotel owners blamed President Donald Trump for the lack of foreign tourists in 2025.

Plagued by years of mismanagement, the San Simeon Community Services District Board of Directors voted unanimously in March 2024 to dissolve the district and have the county take over all services.

The district then prepared and sent a formal application for dissolution to the San Luis Obispo Local Agency Formation Commission (LAFCO).

Following a 30-day review, LAFCO reported it could not finish processing the application because it was inadequate. The San Luis Obispo County Board of Supervisors then voted to proceed with a study to dissolve the district and either make it a county service area or have it merge with Cambria.

One current proposal is to have Cambria take over wastewater treatment while having the county manage water, lighting and road maintenance.

However, the proposed dissolution could take several years, while the district risks financial insolvency because of a lack of leadership, staff and revenue.

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