Stadium: Jeff Dickie on costs

Received from Jeff Dickie
Wednesday, 7 May 2014 11:15 a.m.

Subject: my rejected odt response

DCC’s CEO Sue Bidrose’s response to my stadium costs queries (ODT 15.3.14) are very disturbing. However, I have some sympathy for her as I know from personal experience, former CEO Paul Orders had huge difficulty finding such figures, due to a DCC culture of obfuscation. He did however identify $42M that the audit missed. How much did the audit cost? Why was such a huge amount missed?

Even if we accept Bidrose’s figures of $146M stadium debt, and $9.15M annual cost, which I don’t, the figures don’t add up. Just the interest on $146M, at say 6%, is $8.76M pa. For capital repayment over the 18.5 years the annual figure will be about the same again. Say together $17M pa. Add to this the stadium rates rebate now subsidised by general ratepayers to over $1M pa. That’s $18M. Add to this several more million dollars pa for propping up DVML and you are well over $20M pa!

Remember there was no $45M Private Funding or $10M from Otago University as promised. Apart from the three contributors below, everything is debt funded.

The DCC’s own stadium cost figure is $266M. Deduct $37.5M from ORC, less $7M Otago Community Trust, less $15M from the Government. I make that $206.5M, not Bidrose’s $146M. Funding $206.5M at 6% costs $12.39M pa just for interest, without any capital repayment. Say $25M pa for interest and capital. Add to this the huge annual DVML cost and the scale of the deception becomes apparent.

In summary, my figures point to well over double the official annual cost and around $60M more in stadium debt. In my opinion, neither the mayor, the CEO, or anyone else in the DCC has a clue what the real figures are. Now that’s worrying!

Jeff Dickie
Woodhaugh

[ends]

—

ODT 15.3.14 (page 34) from previous post [click to enlarge]

—

Posted by Elizabeth Kerr

DCC Draft Annual Plan 2014/15 hearings

SUBMISSIONS
“Dunedin Mayor Dave Cull said this was the best opportunity for the council to judge how the community felt on matters.” (ODT)
The DRAFT Annual Plan process is not the best chance to judge the city council – that would take sittings at the High Court.

STADIUM
“Staff are also expected to report next week that they have found another $1 million savings or income, to keep the rates rise at 3% despite expecting Forsyth Barr Stadium to be about $1 million under budget again, also for the third consecutive year. That would bring the total [ratepayers’ contribution] to the venue’s cost annually to more than $10 million.” (ODT)
Everyone knows the cost to ratepayers for the stadium’s capital funding and operationals is +$20 MILLION per year.

—

### ODT Online Wed, 7 May 2014
Council ready to hear funding submissions
By Debbie Porteous
It will be up to the council to juggle tight budgets and the various pleas for extra spending as it begins hearing this morning from some of the 1119 submitters with views on the council’s 2014-15 draft annual plan, which sets out council spending for the coming financial year. It continues a disciplinary stance on new or additional funding, the council having already trimmed more than $3 million from its own budgets as part of its third consecutive year of pushing to cut costs, and keeps the forecast rates increase to 3%.
Read more

—

Posted by Elizabeth Kerr