The first step in borrowing $9 million to complete the south arterial road construction for the new Bow River bridge was taken at last night’s council meeting.

The town wants to borrow the funds over a 20-year term at an estimated interest rate of four per cent, bringing to the estimated cost to $12,323,250. Interest is expected to cost $660,000 annually.

Now that council has provided first reading it will be publicized. With 15 days of the final public notice, electors have a right to petition council for a vote on the borrowing bylaw. Should the petition be deemed valid council has the option of abandoning the project or holding a public vote. The town doesn’t anticipate receiving a petition opposing the borrowing.

Funds for the project are not derived from property taxes. Sixty-eight per cent of the funds come from off-site levies and 32 per cent from the town. The town’s portion is funded by various government grants, including Municipal Sustainability Initiative funding, municipal transportation grants and federal gas tax allocations.

After the borrowing, the town’s total debt will be $32.4 million which is 54 per cent of the council approved debt limit.

Third reading of the bylaw is anticipated to occur on Mar. 11.