The City of Ottawa’s in-house waste-collection department has spent $1.7 million more in the first four years of a six-year contract than it originally pledged, according to an external audit to be tabled at the environment committee’s meeting Tuesday.
City staff are blaming the deficit on unexpected additional costs for labour, fuel and fleet repairs.
“You make assumptions when you prepare your bids, and sometimes your assumptions don’t pan out,” said François Leury, an account manager with the city’s financial services department.
Asked if the deficit will grow over the final two years of the contract, Leury said: “It’s possible that it will be larger; it’s possible that it will be smaller. It can go either way.”