Frustration bubbled up at West Kelowna council on May 20, as residents called for greater transparency and accountability in the cityѻýs handling of the Rose Valley Water Treatment Plant (RVWTP) finances.
Scott Beaton appeared before council on behalf of users of the plant.
ѻýIѻýve been raising these financial issues to city staff and council for more than six months. Things havenѻýt changed,ѻý Beaton told council. ѻýIf they continue to be mishandled, each member of council risks exposing themselves to personal liability for misuse of funds and could be disqualified from holding office.ѻý
He alleges that the cityѻýs financial reporting shows that in both 2023 and 2024, $20 million more was spent than what was budgeted.
ѻýBoth times staff said comparisons canѻýt be made because the budgets donѻýt contain amortization. But flip the page and look at the financial statements the budgets do contain amortization.ѻý
The final budget for the Rose Valley Water Treatment Plant totalled $75 million, funded through $41 million in government grants, $10.5 million from city reserves, and $23.5 million in borrowing.
Beaton also claimed that the levy on residents to repay debt for the Rose Valley water project hasnѻýt been budgeted in any of the next five years.
ѻýSince these amounts havenѻýt been approved in the annual financial plan, they would be unauthorized expenditures. The city canѻýt move forward with the debt until council has properly authorized that spending.ѻý
Beaton called for an independent audit of the cityѻýs expenditures on the RVWTP, and the report to be released to the public and that council defer both the levy and the conversion of short-term borrowing to long-term debt until a clearer financial plan is in place.
He also raised concerns about the plantѻýs performance, and the cityѻýs decision to continue working with the same engineering firm that designed the plant.
ѻýIt didnѻýt meet the Canadian Drinking Water Guidelines,ѻý he said. ѻýThe upgrade projects to meet those specifications are still going today.ѻý
Following Beatonѻýs presentation, council members responded during a staff report on efforts to improve water quality at the Rose Valley Reservoir.
ѻýWe might as well address that there are some major allegations here that Iѻým not comfortable walking away from,ѻý Councillor Stephen Johnston said. ѻýWeѻýve asked these questions of staff and there seem to be some conflicting responses or understanding of the information coming back between us and the community.ѻý
He noted that the cityѻýs financial statements were recently audited.
ѻýThis council has asked hard questions of our auditors and the report comes back clean. Iѻým left here sittingѻýwhat the heck is going on?ѻý
City CAO Ron Bowles responded to the concerns.
ѻýThere is truth in fact,ѻý he said. ѻýI havenѻýt seen any submission of any truth or fact in the allegations. Allegations are a different thing and we must rise above them.ѻý
Johnston also acknowledged public communication issues around the water levy.
ѻýThereѻýs no excuse for that. There should have been more time given for the payout,ѻý he said, asking staff whether an extension could be considered.
Councillor Garrett Millsap also acknowledged Beaton's claims and concerns about the plantѻýs design.
ѻýThereѻýs been some serious allegations put forward tonight against council and staff. From what Iѻýve seen from the experts and auditors, everything is in line, so letѻýs have people see that. Iѻýd like to hear from AECOM on the design of the plant and if it met specifications."
He noted that while the plant is operating properly, the quality of the source water from the Rose Valley Reservoir has changed.
Councillor Jason Friesen, who lives on the Rose Valley water system, addressed residentsѻý concerns about water quality, the water levy, and communication.
ѻýThe water levy was communicated in 2020, and it changed a little bit,ѻý he said. ѻýAnd we came out of the gate and we messed it up.ѻý
Friesen stated that financial negligence allegations, and concerns about water quality are separate issues.
ѻýWe canѻýt be using one to fire up another,ѻý he said. ѻýThat doesnѻýt help anybody in the community.ѻý
Mayor Milsom echoed councilѻýs concerns. ѻýWe want to make the situation better,ѻý he said. ѻýThe key thing is that we continue to talk in a good and respectful way.ѻý
As council moved to the next agenda item, some residents expressed frustration about not feeling heard on the matter.
ѻýWeѻýre going to carry on,ѻý Milsom said. ѻýWe listen, we read, we gather as much informationѻýwe hear you.ѻý