Los CSD warns of funding cliff for wastewater project, seeks $1.5M to reach 90% design

Los (Lo) Community Services District representatives told the Santa Barbara LAFCO they face an urgent funding challenge to replace aging on‑site wastewater systems and address groundwater contamination.

Board President Julie Kennedy and General Manager Guy Savage said the district boundary includes about 384 parcels, most of which are small lots where modern septic dispersal is difficult. The board unanimously authorized preparation of a 30 percent design to compare collection alternatives (gravity sewer, STEP systems or on‑lot advanced effluent systems) and to pursue treatment and disposal in coordination with the City of Solvang.

Kennedy said recent groundwater monitoring shows nitrate results above drinking-water maximum contaminant limits in several wells. "We did find that wells two, three and four ... have the higher levels of groundwater or nitrate concentration," she said.

The district reported it needs roughly $1.5 million to complete the planning work needed to reach a 90 percent design and prepare a reliable Prop 218 assessment. Kennedy warned that at current local-assessment revenue levels it would take about a decade to assemble enough money to start construction and that construction costs increase with delay. "The cost we project would go up about 1.8 million every year of delay — that's about ... $4,800 per parcel of delay cost," she said.

Presenters said they are pursuing multiple funding paths (federal grant applications, state budget assistance, local tax options and technical-assistance programs) and are discussing whether local transient occupancy ("TOT") receipts could be redirected to assist the district. County Environmental Health Director Jason Johnson warned that groundwater measures currently do not meet basin-plan objectives and that the status quo risks stronger regional board action, including potential permit requirements or other enforcement measures.

Public speakers urged expedited county assistance rather than continued short extensions; Hillary Howser of Heal the Ocean urged immediate county financial help and called dissolution of the district a last resort that would likely shift responsibility to county government.

What happens next: the district will hold a public workshop (scheduled June 3) to review 30 percent design options, continue grant and funding pursuit, and — if funding for 90 percent design is secured — move toward a Prop 218 assessment vote to finance construction.