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MIKE DEAL \/ FREE PRESS FILES<\/p>\n
The massive $3.1-billion North End sewage treatment plant upgrade is just one City of Winnipeg project at risk of costing more due to the effects of tariffs and counter-tariffs.<\/p>\n
However, Beckta said those financial concerns will become a reality only if the city keeps the same suppliers and current tariff levels remain in place.<\/p>\n
Tracy Graham, the city\u2019s chief financial officer, said officials are working to avoid as much of the extra costs as they can.<\/p>\n
\u201cThat (figure is) a maximum exposure but we\u2019re going to still try and not spend that,\u201d said Graham.<\/p>\n
For example, Winnipeg procurement documents require contractors to look at alternative sources of supplies if their current supplier is a U.S.-based company that would result in a higher price, she said.<\/p>\n
\u201cWe\u2019re requiring them to look at that as part of the overall cost of their contract so that they can keep it in line with (the) budget,\u201d said Graham.<\/p>\n
New measures within Buy Manitoba\/ Buy Canada policies are also expected from the province soon. Graham said that could allow the city to award points specifically to local companies in its tendering practices \u2014 to make them more likely to win contracts \u2014 without violating trade rules.<\/p>\n
Meanwhile, fuel prices soared notably higher in recent months as a result of the war in Iran and other international pressures, raising city costs.<\/p>\n
Winnipeg Transit now expects to face approximately $4.8 million of added 2026 expenses.<\/p>\n
\u201cThe average price that we paid at the end of June was $1.36 (per litre of diesel fuel). The average price we paid for July was $1.45. In August, $1.76 and last week we paid $1.88\u2026. So, due to the uncertainty with respect to recent global events, fuel prices have been, and continue to be, very volatile and are difficult to forecast,\u201d said Laurie Fisher, Transit\u2019s finance manager.<\/p>\n
While bulk-buying contracts allow Transit to pay lower prices than what the average driver is charged at the pump, its rates remain well above prices used to estimate the 2026 budget, she said.<\/p>\n
The bus service expects to cover the initial round of added costs through salary and benefit savings, along with retained earnings, according to a finance report.<\/p>\n
However, additional spending may be needed if prices don\u2019t ease up over the next few months.<\/p>\n
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\u201cIf rates stay at these extremely high levels for the remainder the year, we\u2019ll likely\u2026 need to come back with an additional over-expenditure report in December,\u201d said Fisher.<\/p>\n
Coun. Jeff Browaty, chairman of finance, said Transit cautiously budgets for fuel but any reasonable cost buffer wouldn\u2019t cover such steep price increases.<\/p>\n
\u201cThis year, diesel prices are blowing through that. So, it\u2019s certainly a risk\u2026. It\u2019s just been going up consistently,\u201d said Browaty (North Kildonan).<\/p>\n
joyanne.pursaga@freepress.mb.ca<\/p>\n
X: @joyanne_pursaga<\/p>\n
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Joyanne Pursaga Joyanne is city hall reporter for the Winnipeg Free Press. A reporter since 2004, she began covering politics exclusively in 2012, writing on city hall and the Manitoba Legislature for the Winnipeg Sun before joining the Free Press in early 2020. Read more about Joyanne<\/a>.<\/p>\n Every piece of reporting Joyanne produces is reviewed by an editing team before it is posted online or published in print \u2014 part of the Free Press\u2018s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press\u2019s history and mandate<\/a>, and learn how our newsroom operates<\/a>.<\/p>\n
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