Who defines Cambria’s future? and What is Fiscal Responsibility?

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Cambrian residents must have their voice heard and actively included in the decision making of the CCSD as they plan our future. Decisions affecting residents should be deliberated in open forums or town hall meetings. Although Cambria’s future is affected by the actions of the State of California and all its agencies and San Luis Obispo County, Cambria’s residents through the CCSD should define the course of our future.

How do Cambrians take control of our future?

First, every responsible Cambrian must stay informed or, even better, get involved in the monthly public meetings, ad-hoc committees and, especially the CCSD elections. CCSD board of directors needs to listen to Cambrians’ views on the status of the village and what CCSD should focus on. CCSD Board of Directors needs to listen to the community’s concerns about balancing their budget through efficient and effective planning and a tight rein on operating staff and expenses. The recent historic Prop 218 rate increase rejection is a profound example of how out of step the board is with the majority of Cambrians’ opinions.

Second, every responsible Cambrian should know some basic facts about our community. The following information is provided to give each Cambrian a basis of making the important, fiscally responsible decisions about how we can address all we want for this community. Among the information we should all know: the social makeup of the community and the present planning by the CCSD Board of Directors and its fiscal impact on Cambria. Each resident can then decide on their ability, or willingness, to pay for the plans of the CCSD Board of Directors.

What is Cambria?

Cambria is a wonderful residential, seaside community set within a Monterrey Pine forest. Residents and visitors alike recognize this village as a unique jewel in the string of towns along the California coast. Approximately 6,515 full time resident Cambrians enjoy living in a small village supported by a variety of shops, restaurants, service stations and commercial businesses which meet their day to day needs. Because of its setting on the southerly tip of Big Sur – Little Sur coastline, Cambria has become a travel destination for people from all over the U.S. and abroad. The tourist influx has given rise to the construction of numerous motels, bed and breakfast inns and vacation rental houses.

Who lives in Cambria?

The 6,515 residents (US Demographics 2000) include approximately:

• 1,708 persons (26.2%) 65 years and older – more than twice the National average;
• 3,724 persons (57.2%) 18 to 64 years old – close to the National average;
• 935 persons (12.8%) 5 years to 17 years old – two thirds the National average; and
• 248 persons (3.8%) under 5 years old – half the National average.
• Interestingly 1,262 persons (19.7%) 5 years and older are designated having disability status.

The U.S. statistics are:

• 12.4% – 65 years and older:
• 61.9% – 18 to 64 years old;
• 18.9% – 5 years to 17 years old; and
• 6.8% – under 5 years old.
• 19.3% – 5 years and older having disability status.

These numbers show a considerable skew to a more senior population. Many senior citizens rely on personal, corporate, union and federal retirement benefits which are usually fixed or very minimally indexed to an almost fictitious inflation number published by the Federal Government.

Cambria housing statistics are:

Bed and Breakfast Inns number approximately 50 and commercial businesses number approximately 175. The future of Cambria, a tourist destination, is also affected by the state of the California economy now facing recession and consumer fears. Exorbitant rate increases will adversely affect every business – restaurants, coffee shops, galleries, antique stores, laundromats, motels and inns.

Maintaining the village atmosphere and rural quality of life are hallmarks of our community heart. The sense of community that Cambria generates is evident by the number of non-profit organizations and volunteer outreach programs for seniors and children. Many of these programs survive with personal contributions and matching grants. Excessive rate increases with a punitive rate structure can chill the will to give.

What is Fiscal Responsibility?

Fiscal responsibility the obligation of the CCSD Board of Directors to undertake an ongoing, public process where they continually work to:

• Define the needs and wants of its constituency,
• Plan projects, analyze and determine the costs of each of the projects,
• Review the total aggregate costs of the projects, and most importantly
• Assess the ability of the community to pay for required or desired projects and the related ongoing operations and maintenance of the facilities.

Fiscal discipline requires decision making to include a three (3) point review – so as to be able to equate the revenues with expenditures over expected business cycles. In other words, a municipal budget is balanced if its income is equal to its expenditures. The budget must recognize and allow for a deficit in periods of low economic prospects. However, budget deficit periods need to be matched by a surplus in periods of high economic activity.

Performance budgeting, where operating efficiencies can improve aggregate fiscal discipline, should be implemented in periods of increasing expenditures.

There will always be a limitation to the level of public resources ($) available. The community should focus on projects and services to areas of greatest infrastructure needs and social benefit. Priorities should be set for all expenditures. Public awareness and endorsement of the expenditures should be the goal of every public agency. Most pointedly, in a close knit community of 6,500 like Cambria, a public open forum should not be seen as an extraordinary request of the CCSD Board of Directors. Openness in planning and decision making is being practiced throughout California.

After the misguided and exorbitant rate increase in water and sewer rates proposed last year, was overturned by the successful Proposition 218 vote – a frank and open discussion of CCSD Board of Directors’ plans for our community’s future, in a series of public town meetings, is necessary. It is evident that the definition of the needs and wants of the community of the CCSD Board of Directors may have missed the mark and its assessment of the community’s ability or willingness to pay for their plans definitely missed the mark.

To prepare for those public town meetings, the CFRC would like to provide some information about the CCSD’s plans for our future. This information is all from CCSD documents and other official records of the district’s activity.

What expenditures are presently planned by CCSD?

The current Draft Master Plan describes these upcoming expenditures:

Future Projects in planning and permitting stages:

Desalination Project – Design, permitting, construction and start-up costs $15,000,000

Build Out Reduction Plan* $38,450,000 Purchase of building lots
Fiscalini Community Park Not available Concept design complete

Total Proposed Projects $53,450,000+

*Build out Reduction Plan Operating and Maintenance costs for over 850 lots would be $370,000 annually.

The total expenditures as now proposed are over $65,000,000 and growing.

At the end of the January 22nd CCSD meeting, staff discussed new sanitary sewer management plan (SSMP) regulations which could lead to millions in dollars of expenditures to rehabilitate the existing 79 mile sanitary sewer system. All these projects could lead to an average commitment of over $15,000 per household for capital expenditures and hundreds of thousands of dollars in increased annual operating costs.

Cambrians need to consider who will bear the cost of the huge expenditures presently considered necessary by the CCSD Board of Directors – None of which has been mandated by any state or county agency, or formally voted on by the residents.

These decisions have developed after many separate recommendations, discussions and decisions were made without informing the community of the entirety and scope of the total costs of these decisions when taken together. What every responsible Cambrian should be asking is whether these were properly researched, fiscally responsible and reflects the needs and wants of the community.

What else should Cambrians be asking?

Do we want the CCSD to be the largest landowner in the community, owning over 850 lots, knowing the huge capital financing and continuing annual upkeep costs?

Has CCSD explained what our rates would be when the desalination plant is included in our rate structure?

How much of this project has really been explained to the community?

Have alternate water supply opportunities been missed?

Who will benefit from this project?

Who expects the federal government to ignore the billions of dollars of annual deficits; the trillions of dollars of national debt, and recession give Cambria a grant of 75% of the cost of the plant?

How will Cambria with approximately 4,650 households (6,500 to 8,000 people) at build-out and 250 businesses afford known capital commitments of over $65,000,000 and hundreds of thousands of dollars more in annual operating and maintenance expenses?

Frank J. DeMicco

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