San Luis Obispo County administrators filed an adversary complaint on Oct. 6 in the bankruptcy proceedings of the Los Osos Community Services District.
The motion requests that Santa Barbara public bankruptcy judge Robin Riblet issue court orders to ensure that emergency fire and medical response will not suffer as a result of the post-bankruptcy penny-pinching within the district. According to the document, the proposed orders would ideally bind the CSD's fire protection tax funding to firefighting services.
CSD board president Lisa Schicker said that she anticipated some kind of court maneuver to assuage the fear that essential services might be interrupted by the massive proceedings the largest per-capita public bankruptcy in California history to date. Schicker said that the board has already taken action to guard the district against dangerous budgeting shortfalls.
Additionally, the county wants full assurance that tax assessments levied on property owners will solely go to repay the more than $19 million in outstanding sewer bonds. A former CSD board issued the bonds to purchase a lot of land and begin engineering on the wastewater treatment plan halted by a special recall election last fall.
County staff closed the complaint with requests for a full audit of tax and assessment funds managed by the CSD and filed for court orders requiring the district to comply with state laws governing the management of state property namely, TRI-W.