DCC putting up cover, walls paper thin [risk exposure VERY HIGH]

Don’t believe the garbage. The garbage was built by Dunedin City Council, Dunedin City Treasury Ltd, and Dunedin City Holdings Ltd. The City (again) is slapped by a wet Standard & Poor’s bus ticket.

It is not difficult to fathom that the situation with the City’s finances is far worse than at Kaipara District Council.

The Dunedin City mayor and councillors are mostly TOO STUPID to know any different than to grant applause – the Lunatics have taken over the Asylum, NOT the conservative and prudent management of the City’s finances.

Not one Lunatic City Councillor has any idea of the exact state of the City finances, of the exact type of financial instruments being used to ‘support’ +$623 MILLION of council consolidated debt, or of the exact risk exposure compounding by those instruments. The Lunatics actually believe as gospel truth Standard & Poor’s credit rating report (“stable”). Oh. My. God.

Lunatic Mayor and Councillors’ ability to apply powers of discovery, analysis and interpretation to the City’s financial instruments and the degree of risk exposure — with ultimate effect on Ratepayers and Residents — is a difference not unlike that of a nuclear scientist and a child rolling snow balls. RIP DCC. While the new apprentice CEO smiles.

Here are the white lies in writing:

Dunedin City Council – Media Release

Improved Financial Rating Outlook for DCC
The Dunedin City Council’s consistent efforts to achieve its financial targets have been rewarded

This item was published on 09 Dec 2013.

In a Research Update released today, Standard and Poor’s (S & P) has revised the DCC’s outlook to stable, taking the organisation off a negative outlook. It confirmed an AA long-term and A-1+ short-term issuer credit ratings. Mayor of Dunedin Dave Cull says the announcement is great news.

“This is an acknowledgement of the continued hard work by elected members and staff to reduce operational spending and debt levels.”

In November 2012, S & P confirmed the DCC group credit rating at AA long term and A-1+ in the short term, but put Dunedin on a negative outlook. This was not a downgrade, but the agency made it clear the DCC needed to follow through with its tough financial targets. In its 2013 update, S & P states the outlook revision to stable reflects the DCC’s improved liquidity and budgetary performance.

“We expect these improvements to be sustained, allowing Dunedin to reduce its debt burden.”

The agency also considered the likelihood of significant adverse findings from the Auditor-General’s inquiry into Delta Utility Services Ltd (a DCC company) to be low.

“The ratings reflect our view of New Zealand’s predictable and supportive institutional framework, plus our very positive view of Dunedin’s financial management, and the council’s strong budgetary performance. The outlook revision reflects Dunedin’s improved liquidity and budgetary performance, which we expect to be sustained, allowing Dunedin to reduce its debt burden.”

The revised outlook was announced at today’s full Council meeting, where a vote of thanks to staff was recorded, amid applause. S & P is expected to release its full report in about a week.

Contact Mayor of Dunedin on 477 4000.

DCC Link

Via ODT (and DCC Spooks):

DCC’s credit rating up
Dunedin city councillors burst into applause as it was confirmed yesterday international credit agency Standard and Poor’s had lifted its negative outlook for the Dunedin City Council. The news – delivered part-way through yesterday’s full council meeting – also left Mayor Dave Cull claiming vindication despite his critics.
http://www.odt.co.nz/news/dunedin/284751/dccs-credit-rating

Related Post and (fresh) Comments:
3.12.13 LGNZ: OAG report on Kaipara

Posted by Elizabeth Kerr

11 Comments

Filed under Business, DCC, DCHL, DCTL, Delta, Democracy, Economics, Hot air, Media, Name, New Zealand, People, Politics, Project management, Stadiums, What stadium

11 responses to “DCC putting up cover, walls paper thin [risk exposure VERY HIGH]

  1. As others have commented offline, the Office of the Auditor-general (OAG) appears to be on typical course to absolve the Delta board of directors of any white collar crime. S&P seem to know stuff we don’t. Collusion. Cover-up. Corruption. All, applauded.

    “The work had resulted in ”substantial turnaround” for the council this year, and the likelihood of ”significant adverse findings” from the Auditor-general’s inquiry into land purchases by Delta was also considered low, S&P said.”
    ODT 10.12.13

  2. With regards to the post at the top of this thread, once again – like the stadium project ‘unfurling’, still in play – assertions as to DCC/DCHL/DCTL financial health will take a while to OUT. Readers can expect a gradual unteasing here – it will take time.

  3. Colin James today (appears page 7 in ODT – ‘Contradictions in the messages’)
    http://www.colinjames.co.nz/ODT/ODT_2013/ODT_13Dec10.htm

    Yes well, conflation/parallel… Dunedin City Housewife (Finance) not immune to mutation of the “2008 GFC virus”.

  4. “Aaand heeere’s Daaaaaave…….”

    ### dunedintv.co.nz December 10, 2013 – 7:09pm
    Nightly interview: Dave Cull
    The Dunedin City Council had its final full meeting of the year yesterday, a meeting interrupted with some good news. International credit agency Standard and Poors lifted its rating for the city. Dunedin Mayor Dave Cull is here to tell us what all that means, and look back on a year rapidly coming to a close.
    Video

  5. brownestudy

    It’s dispiriting Elizabeth, that’s true. I understand your allegory about Moon worshippers taking over, but actually, Lunatics don’t take over Asylums. What happens is quite lucid inpatients are invited to work in hospitals, because they can’t afford to pay staff. However, people making such a hash of things as you describe could well ‘seek’ Asylum; sanctuary, refuge. In A Brown Study.

    • brownestudy – you mean the song is wrong

      • brownestudy

        The song is Wrong, the gear is still Epilogue, the playlist is Naff. Toss it out! Get a new one.

        • Not playing anything other than the words.

          A Wednesday aside, were it not Dunedin…

          [Fun Boy Three – The Lunatics Have Taken Over the Asylum (Lyrics)

          I see a clinic full of cynics
          Who want to twist the peoples’ wrist
          They’re watching every move we make
          We’re all included on the list

          The lunatics have taken over the asylum
          The lunatics have taken over the asylum

          No nuclear the cowboy told us
          And who am I to disagree
          ’cause when the madman flips the switch
          The nuclear will go for me

          The lunatics have taken over the asylum
          The lunatics have taken over the asylum

          I’ve seen the faces of starvation
          But I just can not see the points
          ’cause there’s so much food here today
          That no one wants to take away

          The lunatics have taken over the asylum
          The lunatics have taken over the asylum
          The lunatics have taken over the asylum, take away my right to choose
          The lunatics have taken over the asylum, take away my point of view
          The lunatics have taken over the asylum
          The lunatics have taken over the asylum, take away my dignity,
          Take these things away from me
          The lunatics have taken over the asylum
          The lunatics have taken over the asylum, take away my family,
          Take away the right to speak
          The lunatics have taken over the asylum take away my point of view,
          Take away my right to choose

          (Wikipedia) Fun Boy Three were a short-lived but successful English New Wave pop band, active from 1981 to 1983 and was formed by singers Terry Hall, Neville Staple and Lynval Golding after they left The Specials. The Fun Boy Three dispensed with the ska, pop and lounge sounds that they and Jerry Dammers had crafted with great success with The Specials and went into a more eclectic phase, still retaining elements of ska and pop. The band enjoyed six UK Top 20 hits, including “The Lunatics (Have Taken Over the Asylum)” and “Tunnel of Love” and created two albums of which the eponymous Fun Boy Three was the most successful. Cont.]

  6. As we were saying (about Lunatics taking over . . .), Daaave was asked about the council’s S&P credit rating —so we gave him a cycle tan, more grey hair and ramped up his stripes, he did the rest.

    Dave merge Ch39 10.12.13 (3)[Ch39 screenshots re-imaged and merged by Whatifdunedin]

  7. If one really wanted to understand the state of the city from Dave’s interview it’s all in the ‘hairdo’.

  8. Useful but soft from the ODT. Dare we say, our mayor (choke), Liability “Rugby-is-Us” Cull is still on -ve credit watch !!

    ### ODT Online Fri, 13 Dec 2013
    Editorial: Outlook improving
    The announcement the Dunedin City Council’s credit rating outlook has been raised is welcome, but the reality is there is still much work to be done before its actual credit rating improves and benefits are passed on to ratepayers.
    [The opinion ends] But there are still many critics, the global financial environment is still difficult and there is much debt yet to pay. Only more hard work over time will tell whether there is real – and lasting – cause for celebration.
    Read more

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