If funding is not obtained, the possible ramification for ratepayers could be a $1.4 million a year impost over 20 years, equal to a 1.5% annual addition to rates.
The 7-5 vote to go ahead with the project in the face of that risk gave some indication of councillors' position on the stadium, one week out from the final decision on whether the project should continue.
Three councillors did not attend yesterday's meeting, but those councillors appear from recent debates to be backers of the stadium.
The vote for the stadium at an extraordinary meeting next Monday could be as high as 10-5 - if a vote to go ahead with the road points to support for the stadium - though councillors will consider a final report on the issue before making their decision.
The council reconvened its budget discussion to consider two reports, the first to confirm funding to realign State Highway 88 north of Frederick St.
A change to the road was signalled in 2006 in the council's transport strategy, but when the stadium was proposed, it was decided it needed to be shifted further towards the harbour.
Last September, council transportation planning manager Don Hill told the Otago Daily Times the Regional Land Transport committee had agreed to fund $17 million for the part of the project from St Andrew St to SH88, subject to confirmation in December.
Mr Hill said yesterday a new funding regime was put in place late last year, and the situation now with the subsidy was one of "severe funding pressure".
"My perception is there is now a greater risk than there's ever been before for capital funding, particularly for projects like this."
"At this stage, it is anticipated this expenditure will attract 65% financial assistance from the regional fund," his report said.
"However, work currently under way on development of the first regional land transport programme has shown there will be considerable pressure on funding due to rapid cost increases, and the need to address backlogs of maintenance in some areas of Otago, and the funding demands for passenger transport."
The situation would not be clear until August, when the programme was adopted.
Council strategy and development general manager Kate Styles told the meeting the inclusion of council funds for the road meant decisions had to be made whether other parts of the harbour arterial route from Caversham to Logan Park should go ahead.
Asked by Mayor Peter Chin what would happen if the funding was not provided, Mr Hill said the council would have to fund the full project.
Crs Syd Brown, Michael Guest, Paul Hudson, Andrew Noone, Richard Walls, Colin Weatherall and Mayor Peter Chin voted to confirm the funding, which is already in the council's budget, while Crs Fliss Butcher, Dave Cull, Chris Staynes, Teresa Stevenson and Kate Wilson voted against.
Crs John Bezett, Bill Acklin and Neil Collins were not at the meeting.
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