Amherstburg council asked to approve additional spending due to tariff impact
A report going to Monday's meeting of council includes an administration request for council to approve additional funding from the town's fleet reserves for the purchase of a dump truck.
On Jan. 27, council awarded the purchase of a new dump truck for the roads department to Viking-Cives Ltd. but on April 23, the company informed town administration that purchase cost had increased by $5,596 as a result of the tariffs.
The increase of $5,596.80 net HST will result in the final cost of $377,789.
Councillor Linden Crain said it might be under $6,000, but it's still scary.
'Once we get into budget discussions later this year, if the tariff issues are not resolved, this could be a much greater impact on the taxpayers and our reserves,' he said.
If council decides not to approve the additional spending, the report indicates there is a risk of a cost increase and further delivery delays in restarting the tendering process.
The winning tender is from a U.S.-based company that was selected prior municipal councils discussing exploring Buy Canadian policy options.
Crain said they're in a difficult position.
'We're seeing $5,600 on one item, but this could spiral into other projects we're trying to award,' he said.
The purchase will replace a 2009 GMC C7500 dump truck, which has a life expectancy between 7 to 10 years, but is currently 16 years old.
Administration said parts are becoming difficult to find which will impact the reliability of the unit.
- Written by Rusty Thomson/AM800 News.
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