Works under the auspices of Stage II of the complex reconstruction of roads in the City of Smiltene were commenced on 11 July 2011 and completed by 31 October 2012 on the following transit roads and stages of streets in the city:

• on Rigas Street from Kaikas Street to Gaujas Street;
• on Gaujas Street from Rigas Street up to the crossing of Audēju Street and Krāsotāju Street;
• at the crossing of Daugavas Street, Audēju Street and Valkas Street;
• on Dzirnavu Street, Stacijas Street and Vaļņu Street up to the crossing of Valkas Street.

During the course of reconstruction works, a water main was installed on the aforementioned street stages with house connection points (up to the red line), installing underground fittings. In addition, household sewerage and rainwater sewerage systems were built, existing household sewerage wells were redesigned, new street lighting was installed and low-voltage networks were rebuilt.

An asphalt surface was laid down on the aforementioned streets, improving their connection to less important streets and other infrastructure facility site territorial connections. Furthermore, combined pedestrian-cycling paths were built, public transport stops were built, and a traffic organisation system was established including road signs, road and pedestrian metal safety barriers, horizontal designations, and lighting that was installed next to pedestrian crossings.