City auditors have been asked to examine $20 million worth of projected cost increases to the Waverley West arterial roads project.
The city is in the midst of extending Kenaston Boulevard from Bishop Grandin Boulevard to the Perimeter Highway through Waverley West and also building other road improvements in the new Winnipeg residential area.
The project was announced in 2009 with a $55-million budget, which the city, province and Ottawa were supposed to share.
Earlier this fall, Mayor Sam Katz, St. Norbert Coun. Justin Swandel and other councillors were told the work is overbudget by as much as $20 million.
The extra costs are due to a federal environmental-assement delay, a provincial desire to change the alignment of the intersection of Kenaston Boulevard with the Perimeter Highway and underestimated costs for a partial grade separation at Bishop Grandin and Kenaston, according to a public works department report.
The city may be responsible to pay all the additional costs, thanks to the nature of the funding agreement with the two other levels of government, public works official and Katz have said.
As a result, council finance chairman Russ Wyatt (Transcona) has requested a city audit into the project, with an eye to avoiding future similar situations.
Wyatt and Couns. Paula Havixbeck (Charleswood-Tuxedo) and Grant Nordman approved an audit motion unanimously on Monday morning.
"Up to $15 million worth of the extra cash for the Waverley Roads project will come from future capital budgets," said Wyatt, who insisted the province should cover the $5-million cost of changing the intersection at the Perimeter Highway. The Perimeter has always been a provincial responsibility, he said.