Giants Head Road in Summerland will undergo some road upgrades. At the July 11 Summerland council meeting, council approved the borrowing of up to $6,464,500 for the project. (File photo)

Giants Head Road in Summerland will undergo some road upgrades. At the July 11 Summerland council meeting, council approved the borrowing of up to $6,464,500 for the project. (File photo)

Summerland approves borrowing for road upgrade

More than $6.4 million in borrowing approved by council for Giants Head Road improvements

Summerland council has authorized the borrowing of up to $6,464,500 for a road upgrade project.

A bylaw at the July 11 council meeting authorized the borrowing from the Municipal Finance Authority. The money is for road work on Giants Head Road.

READ ALSO: Summerland looks to borrow more than $6M for Giants Head Road upgrades

READ ALSO: Loan authorization approved for rough Summerland road

The roadway construction, pathway, shoulder, bike lanes and drainage improvements are expected to cost $3,181,860. The watermain replacement and water system separation are expected to cost $3,282,640.

The costs of the road upgrade project are to be recovered from users of the system over a 25-year period. Financial projections were calculated based on an estimated interest rate of 3.0 per cent.

The debt payments will be recovered through a 4.77 per cent water rate increase and a 2.05 property tax increase. Both these increases will go into effect in 2023.

The project is expected to cost property owners and ratepayers $73.15 a year.

In spring, the loan authorization received approval through the alternative approval process and in late April, council passed a resolution that the loan authorization bylaw be adopted.

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