The options form part of a rates assistance scheme, which has been agreed on in principle by most of the city’s councillors.
Councillors discussed the proposed scheme at a workshop last month. It comprises three options — allowing residents to postpone their rates payments, developers to defer development levies and residents to loan money for projects that improved their properties.
Councillors last week considered a report by senior policy analyst Hannah Kennedy outlining details of the scheme.
Finance and assurance group manager Patricia Christie said the scheme needed central government support before it could progress, which was why the council could agree in principle to supporting it.
‘‘It doesn’t mean we’re committing to taking an equity share in the entity or that we would actually end up using it.
‘‘The devil will be in the detail if this gets off the ground.’’
Cr Lisa Tau-McNaughton asked what the cost of the council opting in as an equity partner would be.
Ms Christie said that information was not available yet.
Cr Alex Crackett said she knew the scheme would cost between $30 million and $35m to establish.
How much each council contributed would depend on the number of councils which chose to be equity partners.
‘‘What’s also really ... interesting about it in the long run is that if we did buy in with capital there would be potential for us to get a dividend from the scheme in the long term as well, so that could then be used to offset rates.’’
Cr Grant Dermody said he knew the intent of the scheme was to support ratepayers but ‘‘the reality of it is it’s something very different’’.
‘‘I think we need to be very aware of that, particularly as we would be on the hook for a guarantee.
‘‘So if we’re bailing out some other councils who can’t collect developer contributions ... I won’t be supporting it.’’
Ms Christie said the council would be a guarantor to the scheme in a similar way it already was with the Local Government Funding Agency.
When councillors voted whether to agree to the council approving the scheme, Crs Trish Boyle, Ria Bond, Grant Dermody and Ian Pottinger were not in support of the motion.
Local Government New Zealand, the Local Government Funding Agency and Cameron Partners have been the main drivers for the development of the scheme.
Further down the track Invercargill will have the opportunity to become an equity shareholder in the scheme.
