The Regional District has transferred $3.5M in federal Gas Tax funding to the District of West Kelowna.
The funds are earmarked for upcoming improvements to the municipality's transit system.
This funding had previously been approved with the Regional District prior to West Kelowna incorporation in 2007.
Money will be transferred from the City of Kelowna to West Kelowna for construction of a new transit exchange on Westgate Road near Mount Boucherie as part of Phase 2 of the Rapid Bus program.
The regional District of Central Okanagan will also work with the Union of BC Municipalities and West Kelowna to work out a new funding arrangement with the municipality.
The UBCM administers the federal Gas Tax funding agreement.
Design of two new transit exchanges at Westgate Road and Westbank Centre is underway with construstion expected to start in the summer.