A confluence of reasons is driving the near doubling in cost in the expansion of a southeast Calgary composting facility, recently approved in the 2024 budget.

Calgary had initially discussed setting aside $50 million for the expansion of the Calgary Composting Facility nearly two years ago. Another $38.3 million in capital cash got the green light when Calgary’s 2024 budget adjustment was finalized last week.

The City declined any interviews on the topic before the budget adjustments. They did provide high-level information on the expansion. Upon further request for information on what factors warranted a more than 75 per cent increase, the city provided an emailed statement.

“Since the initial approval, the estimated project costs have increased like other City capital projects due to increases in commodity pricing, labour shortage, resource competition, and inflationary pressures,” read the statement.

“Also, costs for this project have changed after completing a detailed design scope.”

A prior statement said the initial cost “was based on a high-level conceptual estimate needed to begin detailed design for the project.”

The City said the location, which is blamed for a frustrating smell in southeast Calgary in some neighbourhoods, is processing more than the 100,000 metric tons of food and yard waste it was initially designed to handle.

“The facility expansion is needed to alleviate current and future capacity challenges as the city grows,” the City of Calgary said.

“It also will provide greater operational flexibility to further optimize conditions at the facility.”

Better estimating required, says area Councillor

Ward 12 Coun. Evan Spencer, who has been dealing with the malodourous issue since being elected, said while the increase is frustrating, the City is already “pot committed.”

He said once complete, the facility should be able to handle more than 50 per more material.

“We’re pushing materials through that facility at an accelerated pace because it’s been operating over capacity for so long,” he said.

“It is exacerbating the odour issues that the adjacent community is dealing with. So, this upgrade isn’t just about expanding the capacity of an already successful facility. It’s about mitigating some of the issues that we’re facing.”

Spencer said he understands there would be frustration that a city project would jump in cost by 75 per cent. The process needs to be better, he said.

“I don’t know how we get off this windmill of low initial estimates that kind of get the political will to move it forward and then coming back with a much bigger ask,” he said.

“That needs to be addressed.”

He recognized there are challenges in pinpointing a figure from the concept stage, but he said the city should be able to do better than this.

Overall, however, he said the case is strong to make the investment. The City said Calgarians have been “very enthusiastic about composting.” They said most households have truly embraced the Green Cart program.

“To continue to operate it at its current levels, it’s probably going to add more risk down the road to us as the city,” Spencer said.

“It’s a much-loved program that the city runs, it hits on so many different things. This is actually allowing us to give back to the community. It does a lot, and it can do more. I just wish it didn’t have to cost too much to do more.”