Salmon Arm council is moving ahead with the process of borrowing $5.3 million for the construction of a Ross Street underpass.
Last week, the city’s mayor and council voted in favour of borrowing the funding over a 30-year-term through the Municipal Finance Authority with the adoption of the City of Salmon Arm Ross Street Underpass Loan Authorization Bylaw No. 4500.
In addition, council gave three readings to the City of Salmon Arm Ross Street Underpass Temporary Borrowing Bylaw No. 4290, which authorizes the temporary borrowing pending the sale of debentures. The city anticipates retiring its debenture debt related to the Shaw Centre, with an associated annual debt servicing cost of $462,581, in July 2019.
Adoption of the authorization bylaw follows the provision of official assent through the recent referendum process in which voters were asked, “Are you in favour of council for the City of Salmon Arm adopting Loan Authorization Bylaw No. 4500, which would authorize the City of Salmon Arm to borrow $5.3 million for the purpose of constructing the Ross Street Underpass and related works.”
Related: The Ross Street underpass: Arguments for a ‘no’ vote
The city’s declaration of official assent voting results show 3,486 Salmon Arm residents voted yes, while 2,069 voted no.
The project is estimated to cost $12.5 million. Of that, $3.4 million will come from gas tax funding and $1 million from a CP Rail contribution.
Another $424,000 is anticipated through the Rail Safety Improvement Program. More than $2 million will come from municipal reserves and $252,000 through a water and sewer contribution.
The remaining $5.3 million will be acquired through long-term borrowing.
The city notes there will be no tax increase required to pay this debt due to the retirement of the debenture debt for the Shaw Centre.
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