The city is set to pay its $3.5-million share for the construction of the Hamilton Boulevard extension.

At a meeting between Yukon government and city officials on Friday, Dennis Shewfelt, the city manager, said Whitehorse has its share of the funds for the project but the money will have to be approved in a city budget process.

'The funds exist in the capital reserve fund. The funds exist; they're just not in the budget,' he said.

Shewfelt said the money for the project is in the city's capital reserve funds and will be paid to the YTG between 2007 and 2010.

The payments, according to the city, include $875,000 in 2007/08, $875,000 in 2008/09 and $1,750,000 in 2009/10.

The overall project has a budget cap of $15 million.

Updating council on the project, Pat Molloy, the director of the government's community infrastructure branch, said he hopes the Hamilton Boulevard extension will be ready for driving in the fall of 2008 and ready for paving in 2009.

The extension, he said, will make more development in the area of Copper Ridge possible.

'It really does set things up for future development up there,' he said.

Molloy said the new route for the project will require fewer explosives than a previous route identified through Kwanlin Dun First Nation settlement land and will make the road less steep and easier to drive.

Rick Savage, with Quest Engineering, said the project will include two lanes from Copper Ridge to a proposed roundabout below Lobird and three lanes from the roundabout to the Alaska Highway.

Savage said the roundabout itself will be larger than the roundabout in front of Elijah Smith Elementary School 45 metres in diameter at 60 metres in diameter, and will enable motorists to travel 40 kilometres an hour.

'The roundabout allows straight-through movement,' he said.

Savage said a parking lot for the Rock Gardens will be constructed near the roundabout and will provide spots for 12 cars and a few buses.

Residents and business owners in the area of the extension recently said they were in full support of the project.