Chestermere Pursues Reimbursement for Unauthorized Spending by Former Mayor and Councillors

The City of Chestermere is taking decisive action to recover funds misused by its ousted mayor and councillors as it prepares for a pivotal by election on June 24. Residents will have the opportunity to elect a new mayor and new council members. Councilor Ritesh Narayan Ph.D is the lone councillor seeking re-election. Three of the remaining previous councillors were removed from office by Municipal Affairs minister Ric McIver, and two resigned.
Cheers filled the Chestermere council chambers on Monday morning as the city announced its plan to reclaim an unspecified amount of taxpayer dollars improperly spent during the leadership of recently removed Mayor Jeff Colvin. This decision follows a province-ordered financial probe conducted by Deloitte over 15 weeks, which revealed numerous financial irregularities and significant gaps in the city’s financial controls and management.
This financial inspection is the second government-ordered probe since 2022. The first investigation uncovered widespread mismanagement, leading Municipal Affairs Minister Ric McIver to dismiss Colvin, three councillors, and three city officials in December.
Among the Deloitte report’s most alarming findings was the excessive spending on Colvin’s city-issued credit card, totalling $53,000 over two years, with substantial amounts spent on food and at least $4,000 on alcohol. This spending far exceeded that of mayors in similar municipalities. Additionally, the city made multiple unauthorized transactions, including a $120,000 purchase of American trolley buses that never arrived, legal fees related to the city’s disputes with the province, and other unapproved expenditures.
The city plans to explore legal and legislative avenues to recover the misused funds from all parties involved. Officials cited a section of the Municipal Government Act that holds council members accountable for unauthorized spending, though the exact amount to be sought is still under review.
“Our Chief Administrative Officer is in the process of determining the scale and scope of this motion to determine our next steps, including the specific amounts which could be pursued,” the city stated. “This includes whether it will be for just expenses or include the mis-allocated unauthorized funds.”
In the coming weeks, Chestermere households will receive a brochure detailing the findings of the Deloitte report.
Doug Lagore, the official administrator appointed by the province to oversee the council until the by elction, remarked that this move closes another chapter in what he termed the “embarrassment to the City of Chestermere.”
“Despite what you might read online, the Deloitte report speaks for itself,” Lagore said, praising the staff for their resilience during the tumultuous period under the previous council. He acknowledged that many staff members were aware of the misconduct but feared speaking out would cost them their jobs. The report noted a high turnover rate, with 110 staff departures and more than 150 new hires during the last council’s term.
Lagore emphasized the importance of developing a staff culture that promotes accountability and transparency. “We will continue to move in this direction, and I want to assure all staff that they will be safe in ensuring the accountability of elected officials through the CAO office,” he stated, eiving another round of applause from the council chambers.