Essex County shells out $420k more for paving due to inflation

AM800-News-Road-Work

Essex County Council will be pouring more funding into making sure regional roads are in good shape.

Council has voted to approve a report from administration that would see up to $420,016 of extra funding be allocated from the County’s Rate Stabilization Reserve to the Rehabilitation Budget to make up for rising inflation.  

The report from administration also recommended removing two projects worth $300,000 from the original Rehabilitation Budget, however Kingsville Mayor Nelson Santos received support to keep those projects in the plan.

The the time the tenders closed, the asphalt cost $915.50/tonne, but it's expected the price at the time of paving will be approximately $1,300/tonne. Using estimated tonnages from the three contracts, the impact due to inflation will be approximately $680,000.

Asphalt, being a petroleum product, is also affected by the price of oil.