LGFA consultation

​​​​​Waitaki District Council is considering participating in the New Zealand Local Government Funding Agency (LGFA) scheme. The scheme is designed to allow local authorities to borrow funds at more favourable interest rates than the banking sector.

Given the impact of COVID-19 and Council’s desire to support the community through a zero average rates increase and other initiatives, and to stimulate the economy, it is no longer financially prudent or desirable to meet our funding needs from existing banking facilities at their higher interest levels. The need for the Council to respond to the impact of COVID-19 has increased the urgency of securing additional funding at the lowest possible cost. Council is proposing to participate in the LGFA scheme because it provides an opportunity to borrow at lower interest rates and provides greater certainty and duration of funding. Put simply, it just makes a lot of sense. ​

We are proposing that our participation is as a non-guaranteeing borrower whereby we would be limited to borrowing $20 million from the LGFA. Joining the LGFA as a member council does not mean the Council has any legal obligation to use LGFA for its borrowings. The Council is free to borrow from whatever borrowing source is the cheapest at the time of borrowing.

Please read the full consultation document, which includes a printable submission form, and a copy of the current Liability Management and Investment Policy with the proposed changes below.

​​or you can inspect a copy at the Council’s office, at 20 Thames Street, Ōamaru, or at District Council service centres and libraries. 

Summary of the Proposal

The Council is proposing to participate in the LGFA scheme because it provides an opportunity to borrow at lower interest rates and provides greater certainty and duration of funding. ​

Reason for the Proposal

The Council believes that participating in the LGFA scheme provides an opportunity to borrow funds at more favourable interest rates than the banking sector and that this benefit outweighs any costs and risks associated with the LGFA scheme. The Council is proposing it will participate in the LGFA as a non-guaranteeing local authority. 

Tell us what you think

We want to know which of our options you prefer:

  • Not pursue LGFA membership
  • Seek to join the LGFA as a non-guaranteeing member 
  • Seek to join the LGFA as a guaranteeing member ​

Making a submission 

  • Online sub​mission form
  • Email: consult@waitaki.govt.nz  (‘LGFA submission’ in subject field) 
  • Post: LGFA Submission, Attention Policy TeamWaitaki District Council, Private Bag 50058, Ōamaru 9444
  • Or deliver your clearly-labelled submission by hand to the reception desk at 20 Thames St Oamaru.

If you would like to speak to your submission at the Council deliberations on 14 July 2020, please let us know and include your contact details so you can be contacted to arrange a time to speak.

What happens next?

All submissions will be carefully considered before final decisions are made. ​​​

Submissions open17 June 2020
Submissions close8 July 2020
Submissions heard and deliberated upon14 July 2020
Council decision regarding application to join the LGFA 28 July 2020


Page reviewed: 16 Jun 2020 4:53pm