Is Oceano Community Services District acting recklessly?

August 22, 2025

By JULIE TACKER

Oceano is designated as a disadvantaged community. And while the Oceano Community Services District recently increases its sewer rates by 274% and its water rates by 50% over the next five years to tackle millions of dollars in deferred maintenance, it is failing to act financially responsibly.

The district needs every penny it can get. As a disadvantaged community, Oceano has consistently tapped into millions of dollars in grant assistance both by the county, and the district, to upgrade and repair its infrastructure.

This backdrop includes a $600,000 Proposition 1 grant awarded to Oceano for waterline replacements, construction crews and equipment at work in neighborhoods today.

Last week, the Oceano CSD Board of Directors granted a private property owner’s request to waive approximately $35,000 of $95,000 in water and sewer connection fees.  If an owner wishes to develop a property that is already served by streets and services, which this property is, the district uses connection fees to reimburse itself for the costs of infrastructure previously constructed and maintenance in the future.

The development in question is for a 9,500 square foot vehicle storage building, to be used as private storage for restored classic Mercedes Benz and presumably other classic cars. The project proponent called it his “showroom.” One of the cars the project proponent is selling out of his private garage, is listed on his website at $385,000; yet he needs a gift of ratepayer funds?

The 1.5-acre parcel of land is at the southern end of Front Street, across from Deltina’s Coffee shop, backing up to the railroad tracks. In my opinion, this project doesn’t benefit Oceano at all, as few, if any residents will ever visit the private garage and likely no one, will afford a car that may be for sale or auctioned out of the “showroom.”

Concurrently, with the water and sewer rate increases and giveaways, the district manager, who was hired just last year at $196,867 annually, has received a 3% cost-of-living increase (to $202,773) on July 1st and now is seeking a merit raise.

This manager downplayed the significant water and sewer rate increases when interviewed by the local television station in July as “8% or 9% over the next five-year period.”

What he neglected to present to the community is that each year, over the next five years, those 8% or 9% increases to both the water and the sewer rates are compounded. He completely failed to mention the sewer rate increase, which goes from $19.49 to $72.83, is a 273.68% increase.

It’s mind boggling how the district can cry poor (seeking millions of dollars in grants) yet be so reckless and stupid (waive eligible fees) with ratepayer funds and negotiating a raise for its general manager.

They say, “You can’t fix stupid.”