An unsuccessful grant application means the city will be borrowing more to fund the proposed Ross Street underpass.
Last Monday, Salmon Arm council received and supported a debt strategy and capital plan update to be incorporated into the city’s financial plan.
The major change to the capital plan revolves around an unsuccessful grant application relating to the proposed underpass, requiring an increase in long-term borrowing from $4.53 million to $5.185 million.
In a report to council, city chief financial officer Monica Dalziel says the project can still be easily achieved without a tax increase.
“We’re going to be presenting over the next three months and want to make sure the financial plan being presented for the underpass is actually one council has reviewed and is familiar with the unsuccessful grant claim,” Dalziel told council.
The underpass is expected to cost $10.5 million in total, with the remainder covered by grants, including a $1 million contribution by CP Rail, reserves and development cost charges.
The city will be hosting information open houses on the Ross Street underpass on May 3, June 28 and Aug. 30, from 7 to 9 p.m. at the Prestige Harbourfront Resort. City staff will be available to answer any questions.
A referendum on the underpass will be held in conjunction with the municipal election in October. Should it pass, the tender and award process is expected to take place between October and July 2019, with construction to be completed in the summer of 2020.