RVWTP as shown in the Audited Financial Statements - Budgeted vs. Actual

city of west kelowna CITY OF

2023 and 2024 Budget versus Actual as shown in the Audited Financial Statements ROSE VALLEY WATER TREATMENT PLANT

ABOUT THIS DOCUMENT

The Rose Valley Water Treatment Plant represents the City of West Kelowna’s single largest capital investment to date. This essential project provides clean, safe, and reliable drinking water to our community.

As this significant undertaking reaches its financial and operational milestones, our residents have rightly called for transparency around the project’s costs, including a detailed breakdown of budgets versus actuals, amortization, and reserves.

We recognize the complexity of this information and the importance of making it accessible and accountable.

In response, and following the recent publication of the City’s 2024 Annual Report and audited financial statements, on June 10 Council received comprehensive reporting on the plant funding and Rose Valley Water Account reconciliation. This document is intended to help provide supplemental information for clarity.

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City of West Kelowna | Audited Financial Statements

ROSE VALLEY WATER TREATMENT PLANT CAPITAL PROJECT FUND

Combined budgets City of West Kelowna | Audited Financial Statements

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USER FEE DETAILS

Please note: The arrows are to show where the numbers from above are included.

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City of West Kelowna | Audited Financial Statements

WATER OPERATING EXPENSES 2024 Budget

City of West Kelowna | Audited Financial Statements

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2024 Budget

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City of West Kelowna | Audited Financial Statements

2024 Budget

City of West Kelowna | Audited Financial Statements

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2024 Budget

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City of West Kelowna | Audited Financial Statements

2024 Budget

City of West Kelowna | Audited Financial Statements

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2024 Budget

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City of West Kelowna | Audited Financial Statements

Water fund expenditures exceeded budget by $6.2 million in 2024.

That drops by $2.8 million when accounting for non-cash entries for amortization. Additionally, $1.1 million is for interest on temporary borrowing for the Rose Valley Water Treatment Plant and $700,000 went towards water meter replacements.

With pricing changes in the year, the water fund saw $688,000 in unexpected increases in chemical costs and $440,000 in increased contract expenses. As surpluses are regularly transferred to reserve in both the water and sewer funds, deficits ultimately reduce any additional amount that may have been transferred to the reserve.

AMORTIZATION DETAILS

Please note: Amortization was included in the Actual but not in the Budgeted.

City of West Kelowna | Audited Financial Statements

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DEVELOPMENT COST CHARGES

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City of West Kelowna | Audited Financial Statements

ROSE VALLEY RESERVES

Although we still have $10 million in reserves, we anticipate spending most of it in 2026.

City of West Kelowna | Audited Financial Statements

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