Costs to replace water lines, roads and sidewalks are going through the roof in Vernon.
A 2015 construction escalation report shows capital costs jumped about 6.5 per cent over 2014.
“It’s actually scary when you look at where construction costs are going,” said Coun. Catherine Lord.
The largest increases came with roads, concrete curbs, sidewalks and landscaping while there were modest hikes for waterworks.
According to the report, $881,354 was spent on roads in 2015, a 12 per cent increase from $786,895 in 2014.
Landscaping jumped 13.5 per cent from $29,329 to $33,274 while curbs and sidewalks went up 8.7 per cent from $172,116 to $187,039.
However, there was a 11.4 per cent decrease for sanitary sewer ($16,052 to $14,225) and a 2.8 per cent decrease for storm sewer ($177,883 to $172,939).
While overall costs have risen, the city is putting more money aside for infrastructure.
In 2015, the capital works budget grew by 17 per cent because of the 1.9 per cent cumulative infrastructure tax and increases to the Union of B.C. Municipalites’ gas tax fund.
“While the funding increase offsets the construction cost increase, it is important to note that the construction cost increase calculation is based on a particular type of road and utility project,” said Chris Thompson, infrastructure management technician, in the report.
“The calculation may not be relevant to other types of projects due to materials used, scale of the project or outside factors affecting construction materials. For example, road construction costs may see a reduction in 2016 due to global oil prices.”
Staff will monitor construction costs and its potential impact on the city’s asset management program.
