Water ratepayers in San Juan Capistrano are in for a rude awakening. A new audit of the water system's financial mismanagement predates the 2003 merger of the Capistrano Valley Water District and the City of San Juan Capistrano by six years.
You read that correctly. For six straight years the Capistrano Valley Water District was consistently underfunded because of the rate structure.
The dirty laundry is being aired on the pages of the OC Register and after several massive rate hikes (22% in February and 18% more in July) which the audit says aren't sufficient to cover the deficit.