Savings of about $100,000 in insurance premiums over the past two years could be used by the Waitaki District Council for its own insurance scheme.
A proposal for a self-insurance fund will go to the council's meeting on September 24, after the finance, audit and risk committee recommended yesterday the scheme go ahead.
Councillors at the committee meeting generally felt the idea was a good one, with the potential to further reduce premiums because the fund would cover higher excesses.
However, Cr Hugh Perkins felt councillors had to be better informed about the risk elements before deciding on the fund.
This financial year the total insurance and mutual fund contributions costs for the council would be $407,048, including compulsory government charges (such as Fire Service levies) and brokerage fees, but excluding GST, customer services group manager Richard Mabon said.
In the 2013-14 financial year, these costs were $484,645.
The forecast saving on insurance premiums this financial year is $68,697, along with $31,000 the previous year.
If the council approved the proposal, it would have about $130,000 to invest in a self-insurance fund.
''It makes sense to put some away for a rainy day,'' he said.
Further information arising from the discussion at the committee meeting, also covering risk, will go to the council meeting when it makes a final decision.
Cr Jim Hopkins described the proposal as ''not an insignificant step'', but he liked the idea.
However, he asked for staff to report on what mechanisms or conditions could be put on the fund so it was used for the purpose for which it was set up and ''not raided for other uses in the future'' when it had grown.
''It should be bullet-proof,'' he said.
The council also has a ''disaster fund'', established in the 1990s, so it could start emergency work quickly after a disaster and then reimburse the fund, which has about $3.3 million in it.
