Replacing traffic lights with a roundabout and possibly an overpass on the Northern Distributor Road will be investigated.
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Orange City Council has supported a call by Cr Glenn Taylor to investigate changing the traffic management at Telopea Way.
Council's meeting on Tuesday night was told the Northern Distributor Road was becoming congested.
Council also agreed to investigate methods of funding a $5 million shortfall for the construction of a Conservatorium of Music and Planetarium at Northcourt.
Those methods include using financial reserves and borrowing the money to complete the $20 million needed for the project to go ahead.
Council also agreed not to approve a request for $50,000 for a retail marketing campaign.
It said the request, by Hearts for Orange, lacked sufficient information.
However, council did agree to consider the request if a more detailed submission was made.
And council was told the combined water storage level of Orange dams had now reached 61.9 per cent.
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