Huntsville capital projects $1.5million over budget

The fleet reserve is expected to go into the red

Huntsville staff reported that capital projects are expected to be $1.57 million higher than anticipated, in the April 28, 2025, meeting.

In an update to Council, staff reported that a Fleet Hotbox dump trailer replacement would be required at an increase of $62,000 because “it didn’t last as long as originally estimated.”

The report adds that staff recommended funding for this to come from the Fleet reserve which “is currently forecasted to have a December 31, 2025, negative balance of $1,525,000 (forecast will be updated to negative $1,587,000 with approval of the Hotbox dump trailer replacement).”

They also recommended increasing the cell phone capital replacement expense by $21,000, which is to be funded through the IT reserve.

Staff indicated that the additional cost for the new cell phones is a result of the buyout from the current contract which they anticipate will be paid off in 8.5 months from the monthly savings of the new one.

The report adds, “The existing budgeted amount for cell phone replacement is $3,600, bringing the total cell phone capital replacement to $24,600.” However, the IT reserve will have a negative balance of $287,000 by year end.

The total budget variance for the trailer and cell phone upgrades will create a combined budget variance of $83,000.

The report continues with additional increases. It indicates, “There are projects that are higher than the budgeted amount however are considered a variance as they are less than the threshold for a diversion of $25,000. These variances will be reported on in the Q2 Forecast report expected to be presented to Committee in July 2025.”

It adds, “Overall it is expected by staff that the capital projects will be approximately $1.57 million higher than anticipated due to several projects being carried forward from 2024.”

The additional areas with budget increases reported are the Corporate and Community Strategy, by $7.000, the Library and building $7553, Roads by $45,296, Park and Cemeteries $157,000, Fleet $1,035,000, Fire and Emergency Services $281,461, Recreation, Culture and Heritage $843, Facilities, and Sales and Customer Services $18,306.

The combined 2025 increases are reported to reach a total of $1,573,459 and has been approved by Council.