The Dunedin City Council discussed its road-naming policy last week, prompting Cr Benedict Ong to ask about private capital.
Investors could potentially be granted naming rights for roads or "across parts of our city", he suggested.
Cr Ong was told naming roads was not like a sponsorship arrangement.
"I sense your question is more about raising capital from naming rights, but it’s not like that," city services general manager Scott MacLean said.
Cr Ong picked up the subject again this week in social media and with the council via email.
The policy criteria included people who had contributed to the city, he pointed out.
Council chief executive Sandy Graham responded: "Roads can be named after notable citizens of the city — I do not dispute that."
The council’s road-naming register included such names.
"I understood you were asking questions about sponsorship opportunities when it came to naming public roads," she said.
Ms Graham highlighted the Local Government Act 1974 gave councils the authority to name public roads.
"We are able to charge for the administrative costs associated with a road-naming application. The Act does not allow for sponsorship for names on public roads."
The Otago Daily Times asked if Cr Ong agreed the council could not look to profit from the naming of public roads.
"This is not commercial profit — it is innovation for our community benefit and public’s benefit," he said.
"This is a natural continuation of longtime public-private partnership in our city and long-standing Dunedin businesses’ support for our community’s benefit and community solutions."
Recognition for philanthropists or investors could be one way to avoid rates rises "and is a natural evolution of past sponsorship of our council business assets such as our stadium", Cr Ong said.
At last week’s council meeting, Cr Ong suggested admission charges for the planned Tunnels Trail cycleway and walkway.
