Booze, favours and lawyers: Chestermere sues fired mayor, councillors alleging $650K in 'improper' spending

The City of Chestermere is suing its fired mayor and councillors for more than $650,000, alleging "improper" spending by the four men on parties, alcohol, a private investigator, a personal piano move and surveillance equipment to spy on a co-worker. 

Former Mayor Jeff Colvin and councillors Mel Foat, Blaine Funk and Stephen Hanley are also accused of spending $415,000 in city funds, paid to law firms in the fight to keep their jobs. 

The men were removed from council by Municipal Affairs Minister Ric McIver in December 2023 following an investigation and inspection, which concluded the city was being mismanaged.

The investigation results prompted the appointment of a special administrator to oversee every move that council made and every decision it approved. 

Chestermere is a city of about 20,000 located approximately 10 kilometres east of Calgary.

The lawsuit alleges the ousted council members "made numerous expenditures for improper purposes that were not properly authorized by the city" between Oct. 18, 2021, and Dec. 4, 2023.

The discovery of the alleged improprieties came following an inspection of council expenses and a report, issued last month by Deloitte.

The inspection was ordered by McIver in January following the determination that the elected officials refused to adhere to the minister's directives, issued in March 2023 and, in fact, "continued to manage the city in an irregular, improper and improvident manner."

Jeff Moroz, a lawyer for the four men, said he was still reviewing the lawsuit and would provide comment when he had finished.

The men paid their lawyers with taxpayer money "in order to advance their personal interests in remaining on council," according to the statement of claim. 

The City of Chestermere is attempting to recover what it alleges is $430,638 in unauthorized expenditures by the four men plus an additional $223,860 by Colvin alone. 

The statement of claim was filed Monday in the Court of King's Bench in Calgary.

None of the allegations contained in the lawsuit have been proven in court and statements of defence have not yet been filed. 

The lawsuit also alleges the four men authorized spending city funds on internal investigations and measures to "covertly surveil" city staff, buying mini cameras and "a hidden device detector" as part of that effort.