At a meeting of the council's finance and corporate committee yesterday, nine councillors agreed to put out to public consultation a proposal to fund the stadium by up to $37.5 million.
Council chairman Stephen Cairns said after the meeting the decision was not a commitment to fund the stadium, but just the first step in the process.
The proposal, an amendment to the council's Long-Term Community Plan, had first to go before the full council for adoption next Wednesday.
If adopted, it would go out for public submissions alongside the annual plan on May 9 and hearings would be held later that month, before the hearings panel made a recommendation to the finance and corporate committee on June 11.
It would then be considered by the full council on June 25.
Committee chairman Cr Duncan Butcher said the annual plan consultation process was not a referendum or ballot but a chance for the public to voice its view on whether the council should become a funder of the project.
‘‘Ultimately, it's up to the full council to decide on this. However, it's a significant project and the community's views . . . will be taken into account.''
It was not the decision to consult that resulted in a ‘‘difference of opinion'' among councillors, but ‘‘where and who payment would come from'', if it went ahead with the project, Mr Cairns said.
Councillors considered three funding options to be included in the amendment, opting for one giving a ‘‘distance discount'' to ratepayers. Cr Sam Neill, who called for the 5-4 vote to be recorded, said he believed the option added to the rates burden Dunedin City residents already faced.
Mr Cairns advised councillors to separate their decision making from the city council's.
‘‘How they impose their rates is their business. How we impose our rates is our business. We are acting regionally to try to ensure the distance benefits or negatives are taken into account in the impact of the proposed stadium.''
Cr Butcher said it had been identified that there would be less benefit to those living further away from the proposed stadium.
Cr Gerry Eckhoff said a flat rate across the region had merit, but Cr Stephen Woodhead did not agree for a ‘‘split second'' that putting a $55-$60 charge on every household was of any benefit and would not support that suggestion.
Cr Doug Brown supported a uniform rate, combined with capital value. Corporate services director Wayne Scott warned that option would mean lower-value properties would face significantly higher charges.
When it came to how the council could pay back the $37.5 million stadium loan, Mr Cairns suggested the repayment period could be extended from 10 years to 15 years to ease the rates burden, but other councillors thought the extra $6 million in interest payments the longer term would bring would be better spent on other projects, so the 10-year plan was adopted.
Councillors were reassured plans to repay $15 million of the loan from special dividends from council-owned Port Otago would not affect its operations or future dividends.
The committee also recommended the full council adopt the annual plan to go out for consultation with a 3.86% decrease in general rates compared with last year.
Absent from yesterday's meeting were Crs Michael Deaker and Gretchen Robertson.
