There’s an unknown tariff impact tied to a contract for new transit buses that’s up for awarding at a special Council meeting on Monday.
A staff report says five buses are approaching their end of life cycle this year, next year and in 2027.
The $6.4 million contract would see the purchase of five hybrid transit buses.
However, that figure doesn’t include the impact from U.S. tariffs.
“Current estimates, based on a range provided by the supplier, show a potential tariff impact to the City of an additional $148,000 to $740,000,” states the report. “There is a risk that the tariffs will be greater than the current estimates and will remain unknown until the buses have been delivered.”
Staff say money for the ‘undetermined’ tariff costs will come from future fleet purchases, so reserve funding remains ‘adequate’.
They also say current factory lead times are delayed so the new buses aren’t expected to be delivered until early 2027.
