The City of Yorkton is set to borrow $6.2million to pay for work on Dracup Avenue.
“During the 2016 Capital Budget deliberations the project to replace the underground utilities from Broadway Street to York Road, construct a roundabout intersection at Darlington and Dracup and to re-construct the roadway from Broadway Street to York Road was approved by City Council. The total cost of this project was estimated at $11,340,000. Of this $509,580 was being funded through the land fund, $257,500 from reserves and $4,394,925 from the water and sewer utility. The remainder of the project was to be funded through a long term loan of approximately $6,200,000,” explained a report circulated by Shannon Bell, Director of Finance at the regular meeting of Yorkton Council Monday.
“The project will be completed in 2017 and up to this date all invoices have been paid through the City of Yorkton’s bank accounts. We are now in a position where we need to proceed with the request for proposals for the long term loan for the project,” said Bell.
To date approximately $8,705,000 has been spent on this project.
“As of the date of this report this project is within the budget that has been approved by Council. The $6,200,000 loan proceeds will fund the remaining $2,635,000 in costs and replenish the City’s bank account,” said Bell.
Council unanimously authorized Administration to proceed with the request for financing proposals to borrow $6,200,000 over 10 years to fund the re-construction and underground utility replacement on Dracup Avenue from Broadway Street to York Road.
