Council Seeking Views on New Funding Agency

3 June 2011

Wellingtonians are being asked for their views on a proposal for Wellington City Council to join a new local authority funding body, which is expected to lower the cost of borrowing.

The Council is proposing to join with other local authorities and the Government to become shareholders in the Local Government Funding Agency (LGFA).

The LGFA would provide the Council with another means of debt funding and lower borrowing costs, Mayor Celia Wade-Brown says.

"One of the lessons of the global financial crisis is the importance of ongoing access to funding, even when money markets are under pressure. The LGFA would increase our options for access to secure long-term funding."

Through an involvement in the LGFA, the Council estimates it would make annual savings rising to between $370,000 and $740,000 by 2019, by which time the Council's investment would have also been recovered in full with the annual savings continuing in to the future.

To become a shareholder, the Council would make an initial capital investment of up to $2.3 million.

"We would receive a return on our investment - it is projected to cover the cost of the Council's capital investment in the LGFA," Mayor Wade-Brown says.

Legislation setting up the LGFA is before Parliament. To become a shareholder, the Council is required to amend the investment and liability management policies set out in its Long-term Council Community Plan 2009/19.

Other councils considering joining the LGFA as shareholders include Whangarei District, Auckland, Hamilton City, Tauranga City, Western Bay Of Plenty District, Greater Wellington Regional, Tasman District and Christchurch City.

While Wellington city has agreed in principle to participate in the LGFA, it is seeking the views of the public by 5.00pm on 22 July before making a final decision. Consultation starts Tuesday 7 June. Details will be posted on this website.

Freepost submission forms and a full statement of proposal, including an analysis of the costs and benefits of participating in the LGFA, are available from:

  • the Council Service Centre, 101 Wakefield Street
  • Wellington City Libraries
  • the Public Input section of this website.

Submissions can also be made online from the Public Input section of this site. 

For more information about the LGFA, people can phone (04) 499 4444 or email lgfa@wcc.govt.nz.

Those wishing to make an oral submission should tick the box on the submission form.