Sooke council is preparing for a major public decision on long-term borrowing for critical road upgrades, setting the stage for a 2026 referendum that could reshape local traffic flow.
The district must fund nearly $50 million in road and connection improvements for the Throup/Phillips Road Connector. It has secured $5 million from other sources, leaving a potential $44.8 million shortfall.
To offset this, the district has applied for a $16.9 million federal grant. If approved, it would lower the borrowing amount to $27.9 million. A small provincial refund could further reduce costs, according to a staff report.
Before borrowing such a large sum, the municipality must first get voter approval through a referendum. Council reviewed three possible timelines for the vote.
One option was spring 2025, coinciding with a byelection. This would lower costs and give the public an early say. However, by then, the district would not know if it had secured federal funding or completed necessary land purchases.
Another option was spring or summer 2026, when more financial details would be available, giving voters a clearer picture. However, this would come with higher costs.
The final option was October 2026, aligning the referendum with the next general local election. This would be the most cost-effective choice and allow time to confirm funding and land acquisition details.
Council supported the third option, directing staff to plan for a referendum during the October 2026 municipal election. Staff recommended this timeline as it ensures the district will have the most accurate financial information before seeking voter approval.
"By waiting until 2026, we can give voters a full picture – including whether we receive the federal grant and the final borrowing amount," the staff report noted.
The cost to taxpayers will depend on interest rates at the time of borrowing and whether the district secures federal funding, said Rose Liu, Sooke's director of financial services.
If the grant is approved and interest rates stay low, the average homeowner could pay about $146 more per year. Without the grant, the increase could be higher. Annual loan payments are estimated between $1.5 million and $2.8 million.
If the district contributes more money upfront, it could borrow less and further reduce the tax impact.
Director of engineering Jeff Carter warned that failing to secure the district’s share of funding could jeopardize the entire project.
"If the district can’t fund its share, grant partners will pull out – jeopardizing the entire project," Carter warned.
Coun. Jeff Bateman noted that the referendum process would involve significant community debate.
"There’s a lot of process ahead of us, particularly as groups organize for both yes, and very likely, no," he said.
Council’s decision sets the stage for the referendum process, said Liu, with further details to be finalized as the 2026 election approaches.
About the Throup/Phillips Connector
The Throup/Phillips Connector is designed to ease congestion on Highway 14 by creating a parallel route between Throup Road and Phillips Road.
In May, the District of Sooke completed a $4-million roundabout at Church and Throup roads, a key component of the project. The roundabout improves traffic flow and accommodates more pedestrians.
The next phase extends Throup Road from the new roundabout to Phillips Road, creating a bypass that allows traffic to leave Highway 14 earlier and move more efficiently through local roads. The extension is still in the design phase, with construction planned for 2026–2027, pending funding approval.
