Escalating costs of two capital projects in Queensborough have required the city to amend its five-year financial plan.
New Westminster has amended its 2018 to 2022 financial plan because of escalating costs related to the electrical substation and animal shelter/tow yard projects in Queensborough.
* The 2019 and 2020 capital program has been increased by a total of $10 million to address escalating costs to build an electrical substation in Queensborough. This project will be funded through debt.
* The 2019 capital program has increased by $1.7 million to address escalating costs to construction the animal shelter and tow yard. This project will be funded through city reserves.
Colleen Ponzini, the city’s acting chief financial officer, said the total construction cost for the Queensborough substation is budgeted at $30 million, which is based on a recent review of cost for a BC Hydro substation.
“Included in the estimate are contingencies to deal with escalating construction costs that we have been experiencing. The latter is also the reason for the increase for the animal shelter/tow yard,” she said in an email to the Record. “The animal shelter tender has been awarded and work has started. The projects are expected to be completed by 2020.”
Because the Community Charter states that municipalities can’t make any expenditures other than those included for that year in its financial plan, staff brought forward an amendment to the five-year financial plan that reflect changes made since the plan was adopted in March. Council gave three readings to the bylaw on Sept. 17.
