Cochrane town council has given the first reading of a bylaw to borrow $8.24 million for Hwy. 1A and Centre Ave. improvements that are currently underway.

The entire project is expected to cost $10.3 million, with a contribution of $2.06 million from a Canada Community-Building Fund Grant, formerly known as the gas tax fund.

The money will be borrowed over 20 years and will be funded from off-site levies. A maximum interest rate of seven per cent has been set. At that rate, the town would repay $771,714 per year starting in 2023.

The interest rate will likely be lower. The current rate charged by the province is 3.48 per cent but is subject to change. The funds are expected to be drawn in the fall.

Canada's annual inflation rate hit a 30-year high of 5.1 per cent in January, according to numbers released today by Statistics Canada. It's increasing pressure to raise interest rates, and the Bank of Canada has indicated it will be raising short-term interest rates.

It will leave the town at approximately 49 per cent of its government-mandated debt limit as of Dec. 31, 2022.

Residents are being notified of the proposed borrowing and have a 15-day window from the appearance of the last public notice to petition town council for a vote on the borrowing bylaw.

The second and third readings of the bylaw are anticipated for Mar. 14.

The first phase of the major road improvement project was completed in November, and the entire project is expected to be completed by this fall.

Phase 2 includes widening to four lanes of Centre Ave. from William to Powell, completing Highway 1A from west of Centre Ave. to west of 5th Avenue, including the connections to downtown, and construction along 4th Ave., including the retaining wall.