DCC public finance forum 12.8.14 (ten slides)

The ten powerslides presented by DCC group chief financial officer Grant McKenzie, as discussed at the public finance forum held earlier this month are available for download (see PDF below).

Finance - top secret (yahoofinance at facebook) 1Figures might be, but the forum was advertised….

Public notices advertising the forum and the warm invitation extended by Cr Richard Thomson, chair of the Finance Committee, were unfortunately met with low attendance on the night. Few of the well-known vocal commentators on DCC’s financial position, or indeed, leaders of the Otago Chamber of Commerce, bothered to show. Those individuals lose a measure of credibility. Where were all the beleaguered ratepayers and residents? The local ‘interested’ accountants, economists, board directors, investors, and successful business people? Their apologies? Has everybody drowned with rising sea levels or been knocked from their bikes on the one-way? Blame Dave Cull.

Rob Hamlin and ‘JimmyJones’ did make the effort to be there, solidly plying their observations and questions in debate. Other members of the public also engaged. We didn’t hear the names of people who forwarded questions prior to the meeting, or what their questions were. Notwithstanding, the slides are the Council’s attempt to respond to issues commonly raised, in summary.

Finance your next car (goodcars.co.nz)The first public finance forum was held on 27 November 2013. The second on 12 August was an opportunity to hear Grant McKenzie who arrived at the Council in January. He proves to be approachable, mild-humoured and self-effacing. Grant explores the expanded GCFO role ably supported by senior finance staff; his already onerous duties include the overlay of current fraud investigations, new systems for accountability and risk management, as well as the stadium review (due in September).

[click slides to enlarge – scanned from forum handout]

1. DCC Public Finance Forum 12.8.14 (powerslides) 1_001
DCC Public Finance Forum 12.8.14 (powerslides) 1_002
DCC Public Finance Forum 12.8.14 (powerslides) 1_003
DCC Public Finance Forum 12.8.14 (powerslides) 1_004
DCC Public Finance Forum 12.8.14 (powerslides) 1_005
DCC Public Finance Forum 12.8.14 (powerslides) 1_006
DCC Public Finance Forum 12.8.14 (powerslides) 1_007
DCC Public Finance Forum 12.8.14 (powerslides) 1_008
DCC Public Finance Forum 12.8.14 (powerslides) 1_009
DCC Public Finance Forum 12.8.14 (powerslides) 1_010

DCC Finance Forum (powerslides 1-10) (PDF, 18.6 MB)

For more information on DCC, enter the terms *finance*, *dcc*, *dchl*, *delta*, *cst* *dvml* or *stadium* in the search box at right.


Other Reading – link supplied by Calvin Oaten
Sat, 23 Aug 2014 at 12:08 p.m.

Finance (nzvf.co.nz)

An interconnected world was meant to reduce inequality – but that doesn’t seem to be happening.

### blogs.telegraph.co.uk August 22, 2014 13:18
Nobel gurus fear globalisation is going horribly wrong (technical)
By Ambrose Evans-Pritchard
David Ricardo’s Theory of Comparative Advantage has broken down after 200 years, or so I learned at the Lindau forum of Nobel laureates in Bavaria. The theory published in 1817 has been a guiding principle of free trade, taken as a given by every student of economics in the modern era. It has served us well, but just as Newton’s theories ran into limits and were overtaken by Einstein’s relativity, comparative advantage no longer explains the world. Under Ricardo’s model, inequality was supposed to narrow within countries as globalisation accelerated exponentially in the Nineties. Instead it is getting wider. The Gini coefficient measuring the spread between rich and poor is narrowing between countries, but is widening almost everywhere within countries, leading to a corrosive concentration….
Read more

● Ambrose Evans-Pritchard has covered world politics and economics for 30 years, based in Europe, the US, and Latin America. He joined the Telegraph in 1991, serving as Washington correspondent and later Europe correspondent in Brussels. He is now International Business Editor in London.

Posted by Elizabeth Kerr

*Images: (from the top) Facebook – yahoofinance (advert); goodcars.co.nz – Finance your next car (advert); nzvf.co.nz – New Zealand Vehicle Finance (advert)


Filed under Business, Citifleet, DCC, DCHL, DCTL, Democracy, DVL, DVML, Economics, Events, Highlanders, Name, New Zealand, NZRU, ORFU, People, Politics, Project management, Property, Sport, Stadiums, What stadium

8 responses to “DCC public finance forum 12.8.14 (ten slides)

  1. Elizabeth

    Business: Wealth split worse than most realise
    It may be time to remix Fred Dagg’s We Don’t Know How Lucky We Are, to We don’t know how unequal we are.

  2. Although I was not at the meeting where Finance Committee chair Richard Thomson and GCFO Grant McKenzie presented a résumé of the City’s position, I have, thanks to Elizabeth’s posting, caught the thrust of the message.

    The most telling part to me is the debt graph showing the position of the DCC alongside that of DCHL, and latterly, DVL (stadium). As Rob has already posted, the trend is alarming.

    Starting in 1990/91 DCC was $35m and DCHL’s $40m. Total $75m. 1993/94 DCC $30m DCHL uptick to $60m. Total $90m. 1998/99 DCC $30m DCHL big uptick $160m. Total $190m.

    We then entered the “new Harland era” which got off to a relatively slow start. 2002/03 DCC $$30m DCHL $140m. Total $170m. It started to get up steam in 2006/07. DCC $90m DCHL $160m. Total $250m. Boiler relief valve squirting steam now bigtime. 2010/11 DCC $320m DCHL $250m. Total $570m. Then came the big, “three peas under the thimble trick”. The stadium debt of $146m was ‘hived off’ to a new body Dunedin Venues Ltd (DVL). 2011/12 DCC $220m DCHL $260m DVL $146m. Total $623m.

    And that dear folks is the truth (more or less due to rounding). Blinding stuff. From $75m to $623m in twenty one years! It is looking like a permanent thing as well, as the forward projections show the debt still at $605m in 2016/17. I would even venture to predict that, judging by DVL and DVML’s continuing racking up of deficits, plus the present Mayor and Council showing no inclination to slow spending, with street re-arranging and cycleways expenditure bound to create more debt.

    Then there is the St Clair sea wall debacle plus the next ‘biggie’, the ‘sea rise’ implications.

    So, on balance, I am not unhappy to have missed Richard’s ‘tour de force’, as it would have upset my metabolism.

  3. Rob Hamlin

    I knew you would have loved it Calvin. Just you wait for the Mosgiel pool proposal.

    • Hype O'Thermia

      It’ll be interesting seeing Mosgiel pool – Mosgiel already having several pools though not designed for elite (professional?) sports-personages. What I am looking forward to is the reasons for paying for that are MUCH more pressing than buddying up with the Physio Pool trust to guarantee ongoing provision of a much needed facility for which there is no substitute in the DCC’s rating square-kms.

      If “healthy homes” (insulation) is a legitimate part of the council’s obligations how is it going to be argued that partnering another organisation to provide opportunities for recovery from injury, healthy exercise for those who have few other exercise choices because of the condition of their bodies, and preventive maintenance for those who hope to stay strong and independent as long as possible. This last group are not only looking after themselves, they are also looking after the public purse by avoiding the need for services provided at some expense by others.

  4. Cars

    My question is “how can DVL debt reduce over the next two years when the outfit is losing $20 million annually?”

    On this circus they are supposed to reduce by $11 million and yet costs are admitted at $13.5 million plus subvention payments of $5 million or $7 million.

    Is there a thimble? A pea or a money tree. The DMVL DVL chart is that a retreat or an advance?

  5. Elizabeth

    There’s a weird (scrunch your eyes down) Harland-look-alike effect with Mr Brown. [aside, North Shore City were pleased DCC took PJH away from them]

    ### 3news.co.nz Monday 25 Aug 2014 9:15 a.m.
    Brown: Auckland’s debt ‘quite conservative’
    By Dan Satherley – Online Reporter
    Auckland Mayor Len Brown is defending his council’s handling of the city’s finances, saying they’re in “excellent shape”. He’s also promising no libraries, pools and other council-funded services will be closing. “We’ve been balancing the budget for the last four years, and we will continue to do so – no deficits, small surpluses,” Mr Brown said on Firstline this morning. We’ll be keeping average rates increases very low – 2.5 percent this year, and I think you’re going to look to see that trend continue, doing so against a backdrop of very, very strong, continuing strong investment in the city, dealing with underinvestment over many, many years.”
    According to The New Zealand Herald, the city’s debt has ballooned from $3.9 billion to $7.3 billion in the past four years, with interest payments costing ratepayers $1 million every day. But when council-controlled organisations are taken out of the picture, the council on Friday reported an operating surplus for the year ending June of $97 million, a vast improvement on the budgeted $40 million loss. Mr Brown says the city’s debt is being kept within “quite strict limits”.
    Read more

    ● The city’s council-controlled organisations will report their financial situations on Friday.

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