Lake County Special Districts faces a financial crisis and public backlash, with depleted reserves and following a 2.9 million-gallon raw sewage spill on January 11th. The district is seeking $1.75 million in emergency funds, owes the City of Clearlake over $882,000 (jeopardizing a $60 million housing project), and is proposing contested five-year sewer rate increases despite securing a $2.1 million state grant.