The Dunedin City Council yesterday voted to approve using the capital value of Dunedin city as security for $92.5 million of loans, effectively meaning banks could place a claim on rates income if the city was unable to meet its repayments.
The loans - approved in this year's council annual plan - are required for the stadium, the Otago Settlers Museum redevelopment, the Dunedin Centre upgrade, and water, waste water and roading work.
Yesterday's vote was a technical requirement to authorise security for the loans, which were being raised in two lots: $45.8 million to be repaid over 20 years at 7.5%, and, for the stadium, $46.7 million at 9%.
"This is not about setting a rate to raise money for servicing the debt," finance and corporate support general manager Athol Stephens said.
"It will only ever become a rate if the city goes broke," Mr Stephens said.
