Andrew Simms said the issue of homeless people must be addressed, and the council should have a target of zero people living unsheltered in Dunedin.
"The need for a homeless outreach service in Dunedin has been recognised and spoken about for some time."
Mr Simms said the service would be tailored to the needs of people experiencing homelessness in the city and the surrounding Otago region.
The mayoral car allowance would be used to fund the provision and running costs of the homeless outreach service vehicle for at least the next three years.
Mr Simms, who owns car dealerships, said he did not need another car.
Part of the mayoral honoraria (salary) would be applied to fully fund the provision of an outreach social worker for 30 hours per week and to support this role.
"It is time for people who have done well out of Dunedin to step up and solve our own problems. No more excuses."
Fellow mayoral candidate Mickey Treadwell said Mr Simms’ idea had some merit, but in order to address the homeless problem, the council needed to use "all the tools in its toolbox".
"In addition to increasing our housing stock, we also need to be looking at improving it. The city has some of the oldest housing stock in the city, and by some metrics, the worst. We are a cold city, and we need to accept that."
Mayoral and council candidate Mandy Mayhem said there were several initiatives already happening across the city.
"We have our employee on council, Gill Brown, who oversees a connected approach to housing and homeless in Otepoti and nationally."
"There were also many organisations working together on the issue."
Mayoral candidate Sophie Barker agreed there was much to do.
"It would be great to be in a position to fund the homelessness roles out of the mayoral honorarium. Personally, however, I believe the longer-term sustainable solution is to look at how council itself funds homeless, housing and community work.
"Mayors change, so it's important to have a sustainable long-term plan and funding that survives mayoral changes."
Cr Marie Laufiso said people "must hold fast to the ideal of housing as a public good, as a human right — not a commodity".
"If we are serious, then we need to ensure that staff are adequately resourced to do this work."
Cr Carmen Houlahan said the council was already doing a lot of work.
"We have opened council facilities for toilets and showers for homeless and we have a staff member, Gill Brown, who came from Kāinga Ora and she has been doing a lot of work co-ordinating with social services to help homeless people.
"We also have one of the largest social housing portfolios in the country at more than 940."
Cr Lee Vandervis said the council did not have mental health or drug addiction expertise or resources to help the homeless at the Oval or increasingly on the streets, but the council should make housing more affordable for thousands of Dunedin citizens by relaxing tight zoning rules that pushed up the price of land for building homes.
"Running of Wakari Psychiatric Hospital and drug addiction programmes are big expensive central government operations which Mr Simms’ proposal to fund an extra outreach service from on just a mayoral salary, assuming the mayor does not need this salary to live, is unrealistic," he said.
Dunedin Mayor Jules Radich, who is also running for re-election, said there were already social agencies providing outreach services such as The Salvation Army and Presbyterian Support Otago.
"They have the people, experience and expertise but are always short of funds to meet the problems presented to them.
"They are also well co-ordinated with the government housing providers such as the Ministry of Social Development, Ministry of Housing and Urban Development and Kāinga Ora.
"The need for places in Dunedin is in the order of 400 which is well beyond the resources of additional ratepayer funding."
