Exchange rate raises cost of city bus order

City council must decide at an upcoming meeting whether to spend $215,000 in 2019 to help pay for buses that have already been ordered.

The Environment, Transportation and Public Safety Standing Committee voted Wednesday to send a recommendation to council.

A staff report states the money could be used to address a purchase shortfall of buses already ordered after fluctuations in the U.S. exchange rate increased the cost.

The city is planning to buy 24 new buses following a one-time funding boost from the federal government.

Windsor received approval for $10.2 million under Canada’s Public Transit Infrastructure Fund for various projects including the purchase of new buses.

The projects have different deadlines as far ahead as March 31, 2019. The funding is contingent on a matching contribution from the city.

The two dozen “clean diesel” buses will cost about $12.5 million. They will replace older buses that need to be taken out of service.

But there were strict deadlines to take advantage of the funding. The order had to be placed by March 31 to secure delivery of the buses within the allowed time frame.

By the time the grant funding was confirmed, the U.S. exchange rate had changed, making the buses more expensive, according to a report from city staff. The total overage was $207,889.

The report states that the city’s 2017 five-year capital budget project has funding approved in principle in 2019 to cover the costs.