The Otago Regional Council's first payment towards the Forsyth Barr Stadium, due on August 1, has been delayed while "trustee responsibility" for regional ratepayers funds is "explored and optimised".
Tomorrow, councillors will consider a report which outlines recommendations for how the council's $37.5 million contribution to the stadium could be paid late.
Chief executive Graeme Martin said in the report, the development for the future ownership, management, and construction management of the stadium set a potential for tax risk for regional rate contributions.
"A course of action to secure least tax risk and maximum value for rate funds is recommended by making payments to the Carisbrook Stadium Charitable Trust."
The efficient use of regional council funds had technically been assured by utilising the processes of the Dunedin City Council, Mr Martin said.
However, a tax efficiency that could be achieved was the elimination of the gift duty liability.
An exemption from gift duty exists for funding that was provided in aid of a charitable trust.
Tax consultants had recommended the regional council contributions be made to the trust subject to suitable agreements as to the purpose of each funding contribution.
He recommended the council agree that regional council contributions to the capital cost of the stadium be made to the trust, that it require binding agreements with the trust as to the application and disbursement of each payment before they were made and that the Dunedin City Council confirmed in writing the arrangement met the terms and conditions of the regional council's contribution.
The first payment was scheduled to be made on August 1 but that payment had not been made while trustee responsibility was "explored and optimised", Mr Martin said.
