San Simeon saga continues, the end is coming

January 20, 2026

Henry Krzciuk

OPINION By HANK KRZCIUK

Our small, disadvantaged community’s reorganization is plodding along through the required, elaborate studies and reviews.  Time and money are running out while the San Simeon community is being kept in the dark.

San Simeon Community Services District 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% water rate increase. 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 Dec. 2026. We may not have an operational board by the end of the year.

There are also the unknowns in the San Luis Obispo County Board of Supervisors makeup after the election – another wildcard.

It is believed that the initial major study costing a quarter of a million dollars needed for the dissolution of the district has fallen behind schedule.

Too much information is being kept secret. Not a single update has been provided by the consulting company to the San Simeon district board or community. Yes, the consultant reports to the county, but ultimately, the district is paying for it.

One San Simeon district 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 San Simeon district 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 one and a half to 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, SLO County Supervisor Bruce Gibson also made a brief statement.

A government study like this that takes three to four years to complete is likely to fail given the management changes in the district, county, and LAFCO that are coming.

Soon, the county will have been managing our district for a year. They even did the recent Prop 218 rate increase, yet LAFCO’s detailed studies, reviews, and approvals are still needed to determine whether the county can do it.

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.