Vernon’s infrastructure and construction costs declining

Jun 22, 2025 | 6:00 AM

The costs to maintain and upgrade Vernon’s infrastructure has been going down.

A report to City Council said construction costs for road infrastructure in 2025 declined by 3.1 per cent from 2024’s figures.

This was the second consecutive year of cost decreases, following a 0.6 per cent decline between 2023 and 2024.

“[This] is a significant change from the rapid escalation experienced in 2022,” the report stated.

“For reference, construction costs for road infrastructure increased by 6% from 2022 to 2023, and by 41% from 2021 to 2022.”

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Since 2014, overall construction costs for Vernon’s road infrastructure had increased by 118 per cent, which have reduced the city’s capacity to renew infrastructure in a manner consistent with the asset management plans.

To offset these costs, City Council will consider implementing a new 0.96 per cent Infrastructure Levy for the next 10 years. Staff will draft a plan for the levy to be brought forward at a future meeting for consideration in the 2026 Financial Plan.

The report added efforts were also being considered to mitigate construction costs, such as early tendering, offering multi-year contracts, extending completion timelines, combining projects, partnering with other local municipalities on projects, and persuing alternate methods of construction and rehabilitation.

Council will be presented the report for information at the regular meeting Monday, June 23.

by Liam Verster

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