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Penticton  

District of Summerland seeking electoral approval for estimated $6M borrow for road work projects

Should district borrow $6M?

Residents of Summerland have until the end of February to submit whether or not they want the district to borrow $6 million for upcoming road work projects.

The district is seeking electoral approval, through the Alternative Approval Process (AAP), for long-term borrowing for the Victoria Road South upgrade and the Wharton Street upgrade.

"Provincial legislation requires local governments to undergo an elector assent process to obtain elector approval for long-term borrowing," the district said in an announcement.

If a resident supports the long-term borrowing for these projects, then no action is required.

If a resident opposes the long-term borrowing for either project, they can submit an elector response form, which is available for pick up at Municipal Hall or online:

Through the AAP, if 10 per cent or more of the total number of eligible electors sign and submit response forms, then the district cannot proceed with the proposed matter without first holding an assent vote, such as a referendum that was done in 2023 for the aquatics and fitness centre.

The deadline to submit a form is Tuesday, Feb. 25, 2025. The results will be presented at the March 4 council meeting.

Victoria Road South Upgrades

The Victoria South projects entails road reconstruction of approximately 600 metres of road between Dunham Crescent and Prairie Valley Road along Victoria Road South and 150 metres of road between Victoria Road and Walton Street along Dale Meadows Road.

According to the district, the construction will include two full travel lanes and a three-metre wide separated multi-use pathway along Victoria Road.

There will also be underground infrastructure upgrades during this project, which include the installation of a watermain and associated service upgrades along Dale Meadows Road, as well as water service upgrades along Victoria Road.

The estimated overall cost of road reconstruction, drainage infrastructure and a multi-use pathway portion of the project is $3,850,000.

According to the budget breakdown, the watermain replacement has been budgeted at $1,850,00 with the remaining costs being sourced from general fund accounts. A grant will assist with funding $500,000 of the multi-use pathway.

In total, the district said $2,693,274 needs to be funded through debt borrowing in order to complete the project, which is the portion of the project that's subject to residents' response.

"Until the Municipal Finance Authority (MFA) goes to market, the actual interest rate can only be estimated. As such, the interest rate used in estimating annual loan repayments was 4.35 per cent (based on MFA’s 20-year indicative rate as of Oct.2, 2024)," the district added.

Using that rate, the estimated cost to users will be approximately $25.20 per year.

Wharton Street Upgrades

The Wharton Street project includes road reconstruction of approximately 200 metres of road between Kelly Avenue and Victoria Road along Wharton Street.

"The work will build two full travel lanes, sidewalk installation, stormwater upgrades and park enhancements along Wharton Street. Park enhancements include relocating the cenotaph, landscaping improvements and creation of a public gathering area along Henry Avenue between Main Street and Wharton Street," the district's report reads.

"The project will also include pedestrian safety improvements at the intersection of Main Street and Victoria Road."

In total, the project will be set to borrow up to $3,365,080 over a period of 25 years.

The financial impact to the average household would be $40.26 annually and would be recovered through property tax increase of 2.26 per cent starting in 2026, according to the district.

Overall, this means the tax increase is estimated at $65.46 annually for the average household

For more information regarding the costs to property owners, the proposed project(s), alternative approval process, and elector qualifications, head to the district website here.



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