Frustration bubbled up at West Kelowna council on May 20, as residents called for greater transparency and accountability in the city’s handling of the Rose Valley Water Treatment Plant (RVWTP) finances.
Scott Beaton appeared before council on behalf of users of the plant.
“I’ve been raising these financial issues to city staff and council for more than six months. Things haven’t changed,” Beaton told council. “If 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.”
He alleges that the city’s financial reporting shows that in both 2023 and 2024, $20 million more was spent than what was budgeted.
“Both times staff said comparisons can’t be made because the budgets don’t contain amortization. But flip the page and look at the financial statements the budgets do contain amortization.”
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 hasn’t been budgeted in any of the next five years.
“Since these amounts haven’t been approved in the annual financial plan, they would be unauthorized expenditures. The city can’t move forward with the debt until council has properly authorized that spending.”
Beaton called for an independent audit of the city’s 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 plant’s performance, and the city’s decision to continue working with the same engineering firm that designed the plant.
“It didn’t meet the Canadian Drinking Water Guidelines,” he said. “The upgrade projects to meet those specifications are still going today.”
Following Beaton’s presentation, council members responded during a staff report on efforts to improve water quality at the Rose Valley Reservoir.
“We might as well address that there are some major allegations here that I’m not comfortable walking away from,” Councillor Stephen Johnston said. “We’ve 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.”
He noted that the city’s financial statements were recently audited.
“This council has asked hard questions of our auditors and the report comes back clean. I’m left here sitting—what the heck is going on?”
City CAO Ron Bowles responded to the concerns.
“There is truth in fact,” he said. “I haven’t seen any submission of any truth or fact in the allegations. Allegations are a different thing and we must rise above them.”
Johnston also acknowledged public communication issues around the water levy.
“There’s no excuse for that. There should have been more time given for the payout,” he said, asking staff whether an extension could be considered.
Councillor Garrett Millsap also acknowledged Beaton's claims and concerns about the plant’s design.
“There’s been some serious allegations put forward tonight against council and staff. From what I’ve seen from the experts and auditors, everything is in line, so let’s have people see that. I’d 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 residents’ concerns about water quality, the water levy, and communication.
“The water levy was communicated in 2020, and it changed a little bit,” he said. “And we came out of the gate and we messed it up.”
Friesen stated that financial negligence allegations, and concerns about water quality are separate issues.
“We can’t be using one to fire up another,” he said. “That doesn’t help anybody in the community.”
Mayor Milsom echoed council’s concerns. “We want to make the situation better,” he said. “The key thing is that we continue to talk in a good and respectful way.”
As council moved to the next agenda item, some residents expressed frustration about not feeling heard on the matter.
“We’re going to carry on,” Milsom said. “We listen, we read, we gather as much information—we hear you.”
