Frustration bubbled up at West 琉璃神社 council on May 20, as residents called for greater transparency and accountability in the city鈥檚 handling of the Rose Valley Water Treatment Plant (RVWTP) finances.

Scott Beaton appeared before council on behalf of users of the plant.

鈥淚鈥檝e been raising these financial issues to city staff and council for more than six months. Things haven鈥檛 changed,鈥� Beaton told council. 鈥淚f 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.鈥�

He alleges that the city鈥檚 financial reporting shows that in both 2023 and 2024, $20 million more was spent than what was budgeted.

鈥淏oth times staff said comparisons can鈥檛 be made because the budgets don鈥檛 contain amortization. But flip the page and look at the financial statements the budgets do contain amortization.鈥�

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鈥檛 been budgeted in any of the next five years. 

鈥淪ince these amounts haven鈥檛 been approved in the annual financial plan, they would be unauthorized expenditures. The city can鈥檛 move forward with the debt until council has properly authorized that spending.鈥�

Beaton called for an independent audit of the city鈥檚 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鈥檚 performance, and the city鈥檚 decision to continue working with the same engineering firm that designed the plant. 

鈥淚t didn鈥檛 meet the Canadian Drinking Water Guidelines,鈥� he said. 鈥淭he upgrade projects to meet those specifications are still going today.鈥� 

Following Beaton鈥檚 presentation, council members responded during a staff report on efforts to improve water quality at the Rose Valley Reservoir.

鈥淲e might as well address that there are some major allegations here that I鈥檓 not comfortable walking away from,鈥� Councillor Stephen Johnston said. 鈥淲e鈥檝e 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.鈥�

He noted that the city鈥檚 financial statements were recently audited.

鈥淭his council has asked hard questions of our auditors and the report comes back clean. I鈥檓 left here sitting鈥攚hat the heck is going on?鈥�

City CAO Ron Bowles responded to the concerns.

鈥淭here is truth in fact,鈥� he said. 鈥淚 haven鈥檛 seen any submission of any truth or fact in the allegations. Allegations are a different thing and we must rise above them.鈥�

Johnston also acknowledged public communication issues around the water levy.

鈥淭here鈥檚 no excuse for that. There should have been more time given for the payout,鈥� he said, asking staff whether an extension could be considered.

Councillor Garrett Millsap also acknowledged Beaton's claims and concerns about the plant鈥檚 design.

鈥淭here鈥檚 been some serious allegations put forward tonight against council and staff. From what I鈥檝e seen from the experts and auditors, everything is in line, so let鈥檚 have people see that. I鈥檇 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鈥� concerns about water quality, the water levy, and communication. 

鈥淭he water levy was communicated in 2020, and it changed a little bit,鈥� he said. 鈥淎nd we came out of the gate and we messed it up.鈥�

Friesen stated that financial negligence allegations, and concerns about water quality are separate issues.

鈥淲e can鈥檛 be using one to fire up another,鈥� he said. 鈥淭hat doesn鈥檛 help anybody in the community.鈥�

Mayor Milsom echoed council鈥檚 concerns. 鈥淲e want to make the situation better,鈥� he said. 鈥淭he key thing is that we continue to talk in a good and respectful way.鈥�

As council moved to the next agenda item, some residents expressed frustration about not feeling heard on the matter. 

鈥淲e鈥檙e going to carry on,鈥� Milsom said. 鈥淲e listen, we read, we gather as much information鈥攚e hear you.鈥�