DCC: DCHL half year result to 31 December 2015

Council Chamber, Municipal Chambers, Dunedin [architecturenow.co.nz] 1Council Chamber, Municipal Chambers [via architecturenow.co.nz]

Dunedin City Council – Media Release
Dunedin City Holdings Limited Half Year Result to 31 December 2015

This item was published on 22 Feb 2016

Dunedin City Holdings Limited has reported a surplus of $8.7 million for the six months to December 2015.

The financial result was the first with the inclusion of both Dunedin Venues Limited (DVL – the company that owns the Forsyth Barr Stadium and is the landlord) and Dunedin Venues Management Limited (DVML – the event management company, which currently operates out of the Stadium and the Dunedin Centre) are now included in the Dunedin City Holdings Limited group of companies.

The net surplus for the group has decreased from the $10.1 million reported in the six months to 31 December 2014. Including the impact of DVL and DVML though, ie a like for like comparison, reveals a $2.7 million increase in surplus for the six months.

The continuing recent trend of debt reduction has also been a highlight of the financial period. Total debt has decreased from $593 million at the end of June 2015 to $588 million at the end of December, a $5 million decrease.

Dunedin City Holdings Limited Chairman Graham Crombie says, “It is pleasing to once again be able to show an improved financial result for the group. The like for like increase in surplus for the group, along with the reduction in debt levels, continues to reflect the improvement in the overall financial performance of the individual companies within the group.”

Aurora Energy Limited’s profit is down slightly on the previous year, but revenue has continued to grow. The company is continuing its major asset improvement and renewal programme, which is forecast to involve $372 million of expenditure over a 10 year period.

Improvements in both international and domestic demand, and a fall in the New Zealand dollar, were key factors for City Forests Limited. Along with reduced costs because of lower fuel prices and international shipping rates, this has led to healthy increase in surplus. The company’s net surplus has increased from $3.7 million in 2014 to $5 million in 2015.

Delta Utility Services Limited has also experienced a slight decrease in surplus for the six months, but continues to be in line with budget expectations. The company continues to develop its asset management, energy and environmental divisions.

Taieri Gorge Railway Limited has experienced an increase in revenue for the six months, reflecting a 10.2% increase in passenger numbers. Cost pressures over the reporting period have resulted in the surplus for the period being down compared with the same period last year.

The impact of increased event income, along with the implementation of the recommendations of the Dunedin City Dunedin Council’s Stadium review, has seen a significant increase in DVML’s financial result. The company has moved from a $1 million loss in 2014 to a reported six month surplus of $300,000. Mr Crombie says this is a significant turnaround for the company.

DVL has reported a net loss of $4 million compared to a loss of $4.4 million for the corresponding six month period last year. This is largely due to the impact of the Stadium review.

A rise in operating revenue, along with a decrease in interest costs, has resulted in an increase in the financial performance of Dunedin International Airport.

Contact Graham Crombie, Chairman Dunedin City Holdings Limited on 477 4000.

DCC Link

The Delta Affair by Douglas Field 23.2.16The Delta Affair [Douglas Field 23.2.16]

Corresponding DCC/DCHL reports below this group of news stories.

Councillors celebrate, criticise
By Chris Morris on Tue, 23 Feb 2016
A surplus of $8.7million delivered by the Dunedin City Council’s group of companies was cause for celebration and angst yesterday. The divergent views came as councillors discussed the results from Dunedin City Holdings Ltd and its subsidiaries for the six months to December 31 last year at yesterday’s full council meeting.

Delta loss could top $20 million
By Chris Morris on Tue, 23 Feb 2016
Delta’s potential loss from a stalled Christchurch subdivision could top $20 million, and was still growing as the company pumped more money in to secure its position, it has been confirmed. But the Dunedin City Council-owned company has all but given up already on recovering at least part of what it is owed, which is included as a “doubtful debt” on the company’s books.

DCC stating expectations
By Chris Morris on Tue, 23 Feb 2016
The Dunedin City Council is moving to spell out the expectations it has from its companies for the first time. But the move has already been dismissed as window-dressing by Cr Lee Vandervis, prompting a debate at yesterday’s full council meeting.

Conflict policy code reworking requested
By Vaughan Elder on Tue, 23 Feb 2016
Fears of unintended consequences caused Dunedin city councillors to request more work be done on a code of conflict policy. The policy, which consolidates the management of staff conflicts of interest in one document, was considered for adoption at yesterday’s meeting, but was sent back to chief executive Sue Bidrose.

Councillors back rounding of pool charges
Tue, 23 Feb 2016
Dunedin City councillors have supported rounding pool charges to the closest 50c. Council staff said rounding pool charges would simplify the cash handling process for customer service staff and result in quicker transactions for people paying with cash.

Dunedin stadium in the black
By Chris Morris on Mon, 22 Feb 2016
The company running Dunedin’s Forsyth Barr Stadium has turned a $1 million loss into a six-figure profit, and is forecasting greater returns in future.
The result came as the Dunedin City Council’s group of companies released their latest six-month reports and statements of intent, which will be discussed at today’s full

Conflicts of interest policy
By Chris Morris on Mon, 22 Feb 2016
Dunedin city council staff could be forced to resign under a new conflicts of interest policy to be considered by councillors today. The new policy would cover all council staff and contractors, but not councillors, who would be the subject of a separate report still being prepared.

A full council meeting was held on Monday, 22 Feb 2016, starting at 1:00 pm.

Agenda – Council – 22/02/2016 (PDF, 53.7 KB)

Report – Council – 22/02/2016 (PDF, 63.8 KB)
Dunedin City Holdings Ltd Financials for the Six Months Ended 31 December 2016

Report – Council – 22/02/2016 (PDF, 542.4 KB)
Dunedin City Holdings Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 66.1 KB)
Dunedin City Holdings Ltd Group of Companies Financials for the Six Months Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 2.0 MB)
Aurora Energy Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 206.1 KB)
City Forests Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 2.5 MB)
Delta Utility Services Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 191.6 KB)
Dunedin City Treasury Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 1.1 MB)
Dunedin International Airport Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 493.6 KB)
Dunedin Venues Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 314.9 KB)
Dunedin Venues Management Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 583.3 KB)
Taieri Gorge Railway Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 174.4 KB)
Dunedin City Council’s Letter of Expectations for 2016/17

Report – Council – 22/02/2016 (PDF, 68.3 KB)
Draft Statement of Intent – Dunedin City Holdings Ltd

Report – Council – 22/02/2016 (PDF, 192.0 KB)
Dunedin City Holdings Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 828.7 KB)
Aurora Energy Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 192.7 KB)
City Forests Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 111.3 KB)
Delta Utility Services Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 92.5 KB)
Dunedin City Treasury Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 1.6 MB)
Dunedin International Airport Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 50.3 KB)
Dunedin Venues Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 119.1 KB)
Dunedin Venues Management Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 70.4 KB)
Taieri Gorge Railway Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 130.6 KB)
Conflicts of Interest Policy (Council Officers)

Report – Council – 22/02/2016 (PDF, 1.7 MB)
Wastewater Connection to 38 Church Hill Road

Report – Council – 22/02/2016 (PDF, 84.1 KB)
Community Engagement Plan for 2016/17 Annual Plan

Report – Council – 22/02/2016 (PDF, 295.4 KB)
2016/17 Aquatics Fees – Options for Annual Plan Consultation

█ Source: DCC webpage

Posted by Elizabeth Kerr


Filed under Business, DCC, DCHL, DCTL, Delta, Democracy, Dunedin, DVL, DVML, Economics, Infrastructure, Media, Name, New Zealand, People, Politics, Project management, Property, Resource management, Site, Stadiums, Tourism, Town planning, Transportation

36 responses to “DCC: DCHL half year result to 31 December 2015

  1. Elizabeth

    Yawn. We misfired and ended up with bugalugs Jinty.
    Lesson learned to deter wet behind the ears people from having anything to do with DCC and its finances.

    24.2.16 ODT: Plea to do more to engage youth in council

  2. Elizabeth

    Away with the Fairies [Douglas Field 24.2.16]Away with the Fairies [Douglas Field 24.2.16]

  3. Elizabeth

    John Bezett by face but not by suit, re-imaged for the times.

  4. Peter

    I find Jinty’s comment somewhat patronising of young people. That they are not considered open to an intelligent approach to reading documents, that the council has to kind of dumb things down to get them more interested is quite an alarming thought.

    This follows directly on from Kate Wilson’s comment on community engagement/consultation when she says that they are not interested in hearing from people THEY considered ill informed and uneducated over infrastructure matters to do with the South Dunedin flood.

    These kind of arrogant and patronising comments are a sign of a silo mentality developing. Not surprising given the inept performance of the council where they are now locked into a mutual protection situation as evidenced by the Delta debacle with Dave Cull giving the permission of McKenzie and Crombie to stay mum over answering questions.

    Where is Sue Bidrose? We hardly hear from her these days over issues of great importance to the city. What has she got to say?

  5. Hype O'Thermia

    It’ll be a sad day for our cartoonist if next election, by a miracle, fails to deliver a cast of barking buffoons for him to dramatise for our delight.

  6. Elizabeth

    ODT editor Barry Stewart on 39 News tonight says the Labour Party will stand a blok of candidates in the Dunedin City Council elections this year. See tomorrow’s newspaper!

  7. Elizabeth

    I hope David Benson-Pope is well outside that fold given his unfortunate and very controversial personal and political history. Could Labour be so stupid to add his name. If so, I won’t be voting for any of the blok, that’s for sure.

  8. Gurglars

    The DCC badly needs Labour to get itself over the 10,000 new jobs at $10,000 more per person on current income.

    That scenario will of course add approximately $10,000 by 1500 jobs at the DCC and Delta another $15,000,000 plus perks, paper, pens,cars, holiday pay etc etc.

    So vote for Labour that should add about another $200 million worth of debt to the DCC and your liability as a ratepayer above $20,000 each.

    Headline in the ODT

    Dunedin wins debt per capita race exceeds Auckland by $5000 per person.
    Dancing in the streets, Ticker tape parade, mayor claims victory.

  9. Elizabeth

    Final decision expected in a month or two….

    ### ODT Online Thu, 25 Feb 2016
    Labour ticket for council?
    By Chris Morris
    The Labour Party is considering standing a block of candidates in this year’s Dunedin City Council election. Dunedin North MP David Clark confirmed yesterday the party was discussing a ticket to promote candidates for council seats, and possibly the mayoralty, under a “Local Labour” banner.
    Read more

  10. Elizabeth

    Otago Settlers Museum, so the name shortening didn’t really $work….

    ### ODT Online Thu, 25 Feb 2016
    Board unconcerned at $578,000 Toitu loss
    By John Lewis
    Toitu Otago Settlers Museum has made a $578,000 loss in the past year. The museum’s year-to-date statement of financial performance was presented at the museum board meeting yesterday, and showed the facility had gone from a net surplus of $373,000 in January 2015, to a net deficit of $205,000 in January 2016.
    Read more

  11. Anonymous

    I suppose the board would take the position of being “unconcerned” about a half million dollar loss if it were to compare itself to public funded companies like DVL/DVML and Delta. What would they see? Money wasted on glory projects and millions gambled away on non-core services. With little accountability and no responsibility.

    • Calvin Oaten

      I would have been surprised, nay astounded, if the result was any different. When you have a complex which is carrying somewhere around $25 – $30m of ratepayer debt, with substantial staff levels and free entry, where can any meaningful revenue come from? It didn’t say, but I doubt very much if that published loss includes any debt servicing costs. Interesting as it might be, it is another drain alongside the Town Hall Redevelopment Project and the Stadium.

  12. Hype O'Thermia

    What is it about changing names to something that MAY mean something to a few people, but does nothing to identify the organisation to non-insider people interested in … well, in this case, museum about the early days of settlement?
    Acronyms like WINZ, well it’s pretty well known now but the old Department of _____ and ________ Association that said what they were for, were so much easier to find when required.
    How about we never accept “Leafy Petalworld” being foisted onto us for Dunedin Botanic Garden, nor even a Maori word loosely associated with vegetation, or soil, or growth?

    • Diane Yeldon

      Hype: “Leafy Petalworld” sounds so good you should quickly copyright the name before someone grabs it and creates one. There is a certain kind of tourist who would visit “Leafy Petalworld” in droves, slack-jawed in amazement and photographing whatever it contained. (Triffids?) But I agree: leave Dunedin’s sensibly named Botanic Gardens and other long-term city features alone and out of reach of ‘Mad Men” inspired marketers.

  13. JimmyJones

    Hype O’Thermia: There is no name change, only an assertion by the DCC that they have changed the name. The citizens might have accepted the DCC suggestion if it was sensible, but it isn’t. Any name change is disrespectful to the valuable efforts of the members of the Otago Early Settlers Association (est. 1989) who established and maintained the Otago Early Settlers Museum for many years.
    The name continues to be “The Otago Early Settlers Museum” (or shortened to “Early Settlers Museum”). One day the consensus of opinion might favor a different name, but the views of a bunch of two-bit, politically correct, temporary politicians should be ignored. We decide, because this is our history, our heritage, our city.

    • Hype O'Thermia

      JimmyJones, there is in effect a name change, see p2 ODT Friday Feb 22, big headline across top of page :
      Time to consider Toitu door charge?

      See also listings in entertainment, in ODT and in the supplement “The weekend mix” in which today’s has the usual heading to the advt,
      toitu (large lower case) with the words
      sit alongside, the 3 lines being equal in height to the work toitu.
      At the bottom of the advt is the web site URL:

      While you’re technically correct, JimmyJones, it is clear that every effort is being made to push the “gifted” word Toitu to displace “Otago Settlers Museum”. In my opinion this is disrespectful, agenda-driven, and dishonest.

  14. Perfectly happy to call it Toitū. Is it publicised anywhere using *only* that word? that might make it more difficult for visitors.

  15. According to Wikipedia when the museum was reopened in 2012, it was renamed Toitū Otago Settlers Museum after a competition had been put to the community to submit possible complementary names for the new building. The name Toitu was suggested and submitted by the Holmes family.

    It says the name Toitu represent the area of water, land, and sky of this particular area, its meaning is to remain unchanged forever.

    Whatever the accuracy of this statement might be I am aware the stream that carried the name Toitu entered the harbour near the museum (actually about where Cargill’s monument now stands.)

    The stream whose upper reaches arise from below Highgate near Ross Street passing through the Town Belt and down along Serpentine Avenue is virtually lost to us as most of it is piped to the harbour.
    My understanding is that the name was ‘gifted’ by the local Iwi. I think if that is the case it is most appropriate that it now carries this name as well as its official descriptive title.

    At the very least it can remind us of the lost stream that ‘watered’ the early settlers at Kettle’s landing place at its mouth.

    • Hype O'Thermia

      “My understanding is that the name was ‘gifted’ by the local Iwi. I think if that is the case it is most appropriate that it now carries this name as well as its official descriptive title.” Blowed if I can follow your reasoning, Douglas. A word that is of such tenuous relevance becomes appropriate to jam onto the Otago Settlers Museum because of who came up with it?

      If anyone is so keen to keep alive that wee creek that was piped away apparently unmourned so long ago, why not stick the name on a relevant department, one to do with water and pipes and drains?

      As for watering Kettle’s early settlers, one thing we notice about early settlers is that they rapidly go to the nearest water source. Leith Stream, and Lindsays Creek would have been more reliable. That other creek must have been a puny timid thing to have been piped so long ago without subsequent flooding dramas, or is the ORC keeping something from us?

      • @Hype O’Thermia
        February 27, 2016 at 2:20 pm
        So what if the settlers did move to Lindsay’s Creek for water supply. You would expect that. However, they arrived a few years after Kettle surveyed the area. The point is that the mouth of Toitu was the traditional landing place for the local Maori and Kettle used it. There was an extensive Kaik that extended along the shoreline to about where Maitland Street is now. Food and water would be needed for those early surveyors and Toitu was a water supply for that vicinity.
        As it happened there was flooding ‘drama’ as you put it from Toitu in the early days of settlement. But none of that is material to the point. The stream was named Toitu. It is well connected to our earliest history. It has been accepted as a name to attach to the museum. What’s the snivel for?

  16. JimmyJones

    Douglas: I don’t see the justification for the name change. Just because the Museum’s Ngai Tahu Advisory Group gifted that name to us doesn’t mean that the name should be changed, or even that it has been changed. We should give the name back to the the Ngai Tahu Advisory Group. My earlier point was that the choice of name is determined by common usage and not the manipulative efforts of the DCC. The naming competition was a failed attempt to demonstrate community buy-in.

    When the Nazis occupied Paris a while back, they gave the Eiffel Tower a new German name (perhaps they gifted the new name to the people), but the German name didn’t seem to catch on with most of the locals. Similarly, politicians come and go, as do various fads and ideologies. Sometimes the politicians do something useful, other-times they leave a big mess for others to clean up. The Otago Early Settlers Museum has been here since 1908 and the Association had been building a collection even before then. I think we should try to protect the names of our important institutions from the spasmodic and stupid ideas of all the temporary politicians that come and go.

    The name of the OESM will only change if enough citizens believe that it has changed. Dave Cull and his cling-ons have no power to compel us to change common usage, so the name that we use is the name that it is. There has been a change over time: “Early Settlers Museum” is still heard, but Otago Settlers Museum seems more common. The DCC’s financial report mostly refers to it as “Otago Settlers Museum” or “Settlers Museum” without the “Toitu”. I don’t see a reason to change from “Otago Early Settlers Museum”.

    • @JimmyJones
      February 26, 2016 at 7:58 pm
      You say: Douglas: I don’t see the justification for the name change. Just because the Museum’s Ngai Tahu Advisory Group gifted that name to us doesn’t mean that the name should be changed, or even that it has been changed.

      I really don’t see any reason why you should be so upset over the inclusion (addition) of the name Toito to the name of the Early Settler’s Museum.

      It seems well enough explained in Elizabeth’s reference (Toitū – what’s in a name?

      and as set out below here.It seems to me that there is an opportunity for enrichment of its purpose and significance by taking this action and as I point out, the stream was of some great importance at the time of Kettle’s survey of Dunedin – a significant elemment connected to the settlement of Dunedin. I think sometimes that some people protest too much. Besides Toitu has a nice ring to it! Might even get some people to think a little more broadly.

      27 Jun 2012

      The name, Toitū Otago Settlers Museum was endorsed by the Dunedin City Council on 25 June 2012.

      The existing name ‘Otago Settlers Museum’ was chosen following the overwhelming public support for it, and the Committee felt the inclusion of the gifted name ‘Toitū’ was appropriate.

      The ‘Name the Museum’ competition was opened to the public for its input and the resulting overwhelming support for the retention of the current name ‘Otago Settlers Museum’ was presented to the OSM Board for its consideration.

      Te Pae o Mahutonga, the Museum’s Ngai Tahu Advisory Group met on 23 May 2012. At this meeting, Te Pae o Mahutonga offered to the Otago Settlers’ Museum Board a mana whenua name, ‘Toitū’.

      The OSM Board made its recommendation to the Community Development Committee on Monday 11 June, that the name ‘Otago Settlers Museum’ be retained. The Board also presented the gifted name ‘Toitū’ for the Committee’s consideration.

      The Committee approved its inclusion and recommended to the Council that the name ‘Toitū: Otago Settlers Museum’ be adopted at its meeting on Monday 25 June.

      • JimmyJones

        Well, Douglas, we disagree. I think it was a mistake to form the Ngai Tahu Advisory Group and a mistake for both the OSM Board and the DCC to change the name. You say It seems to me that there is an opportunity for enrichment of its purpose and significance. It is a museum – so as long as they realize that, then they don’t need any enrichment of its purpose. And having a Maori name probably detracts from its significance if you are a Chinese tourist.
        I see from their Board Report that they have a music session on Saturdays and a variety of other activities for everyone. I guess that’s one advantage of being overstaffed and over-funded.

        • Diane Yeldon

          Re musuems and ‘cultural collections’ owned and managed by cities, financial pressures are resulting in re-evaluation of the public benefits of this kind of activity all round the world. What is the purpose of city government owning such things? Educational? Enrichment of the quality of life? Preservation of local history? Or promoting public engagement with art in the widest sense of the term? No doubt these are all worthwhile goals but it has to be kept in mind that they are all bottomless pits in financial terns. Decision-making about expenditure on these items is often exclusively guided by ‘expert opinion’ coming from those with a vested and even personal interest in maximising arts and culture budgets. As a result, cities see ’empire building.’ Just as work expands to fill the time available and junk expands to fit the space available, so can arts and culture projects to improve the quality of life (and perhaps the ‘vibrancy’) of a city swallow a whole municipal budget. But city basic infrastructure has to come first. Museum etc projects IMO must have definite limits right from the start and be continually carefully scrutinized for signs of ‘boundary creep’.

        • @JimmyJones
          February 27, 2016 at 12:33 am
          I see from their Board Report that they have a music session on Saturdays and a variety of other activities for everyone. I guess that’s one advantage of being overstaffed and over-funded.

          We don’t disagree about much!

  17. russandbev

    While this name “Toitu” may be significant to a very small minority, it is not what this museum is about.

    Until museums start to acknowledge and record all of the activities of the Maori settlers then I, along with a lot of others I suspect, will treat this nomenclature with the sort of respect it deserves.

    Early Polynesian settlers were NOT at any stage this eco-friendly lot that they are now portrayed as. They destroyed over 75% of the native flora and fauna and decimated species like the Moa – in fact, if I remember correctly 33 species of birds alone were wiped out before the first white man arrived. I went to a “cultural experience” near Rotorua where overseas visitors were told that Maori had been in NZ for over 2000 years. I have visited Somes Island in Wellington harbour where DoC information boards say that these were areas inhabited by Maori for the same amount of time.


    The earliest provable visitations by Maori in NZ were round 1254.

    Yes, Maori visited and transversed large areas of NZ in their quest for food, but let us get rid of this notion that they were the forbears of the Green Party. Record their names by all means but let us put it into perspective.

    • @russandbev
      February 26, 2016 at 8:35 pm
      You say: – While this name “Toitu” may be significant to a very small minority, it is not what this museum is about.

      This is true – the museum was is primarily about the early European settlers. But is moving to a much broader base. I think that the pre European settlers’ history should be included – might take a bit of time to do it properly.
      Agree about the Bullshit bit. We don’t need this kind of “green” advocacy. We need factual stuff. But I think that they are getting there.

      • Hype O'Thermia

        Otago Museum does Maori history and prehistory very well already. Maori identify as tangata whenua, people of the land, with special claims to the land and waters. It is a term that is not regarded as appropriate for non-Maori no matter how many of their forebears were born here since the first settlers arrived. Nor can use of any part of NZ be the basis of a claim by non-Maori against compulsory acquisition or rezoning, even when such land has been constantly occupied for generations. There is are differences between tangata whenua and settlers, the Early Settlers Museum was established to be about settlers, including their interactions with Maori and the ways Maori and settlers in ways different and similar combined to make Otago what it is – not Maori, not Scottish, not Chinese, not a mini-England. Emphasis as pre-settler Maori and as Maori existence separate from settlers is as unnecessary add-on, mission creep, empire enlargement, of which Toitu is a symptom – or a cultural grovel – that the Early Settlers Museum does not need.

  18. JimmyJones

    Calvin: The ODT tell us that the Otago Settlers Museum has made a $578,000 loss in the past year and the DCC tell us that the museum has lost $205,000 over the latest seven month period. I noticed your skeptical attitude above and decided to check.

    Just using the seven month report (FIN Committee 24/2/16) we see on the first page that it spent $4.054 million, earned $0.311 million in external revenue and had a GIGANTIC RATEPAYER SUBSIDY of $3.537 million. That means that for the Museum and the Chinese Garden, for the seven months to 31/1/16, the renters and ratepayers were liable for a total of $3.742 million (subsidy + Loss = $3.537m + $0.205). If we extrapolate this for the whole year we can expect to be drained of $6.4 million. That’s for this year and every year.

    The important thing is that our DCC councilors have been severely misled by this report. In my view these and all of the last year’s OESM financial reports have their figures deliberately arranged to give grossly misleading figures. So where is the ARS (Audit and Risk Subcommittee) when you need one. Audit NZ has some explaining to do also.

  19. Gurglars

    Jimmy, and the directors are not concerned about the loss (and probably love) the subsidy.

    Which as Diane says is probably a very good reason to find new directors that will be concerned about over $4 million of ratepayers’ money.

    Current or former directors of Delta, DMVL or any other entity with D in its handle need not apply.

  20. Elizabeth

    Dunedin City Council – Media Release
    Dunedin City Treasury refinances maturing bond

    This item was published on 19 Apr 2016

    The Dunedin City Council’s treasury company has successfully negotiated two new bonds, or medium term notes, totalling $95 million.
    Dunedin City Treasury Limited Manager Richard Davey says the issues do not increase debt for the DCC group. The bonds replace a floating rate note of $90 million that matured on Friday, 15 April. The additional $5 million will be used to repay short term promissory notes that will fall due in early May.
    One of the new bonds is for $65 million for a term of 10 years, with the other for $30 million for five years. The new bonds were arranged by ANZ and Westpac.
    Mr Davey says, “There was strong interest in the Dunedin City Treasury’s bonds and we received bids 1.6 times greater than the volume of bonds that were issued.”

    “This illustrates the investment community’s confidence in Dunedin City Treasury and the DCC group, especially given our AA rating from Standard & Poor’s.”

    The issues also help the DCC group as they lengthen the average term of debt from 2.4 years to 3.7 years. “This reduces future refinancing risk and better matches the term of Dunedin City Treasury’s debt with the intergenerational assets of the group.”
    Mr Davey says, “The refinancing of the maturity and the maturity of the related interest rate hedging will see the cost of funds for the DCC group reduce from 6.23% to around 5.90%.
    The maturing floating rate note and hedging, coupled with the refinancing, means the group will save an estimated $1.9 million in interest a year.”

    █ Dunedin City Treasury Ltd is owned by Dunedin City Holdings Ltd (DCHL) and manages debt for the DCC and its companies. DCHL is in turn owned by the DCC.

    Contact Richard Davey, Dunedin City Treasury Limited Manager on 03 477 4000.

    DCC Link


    Wed, 20 Apr 2016
    ODT: DCC set to save $1.9m a year
    The Dunedin City Council group is set to save $1.9 million a year in interest after Dunedin City Treasury Ltd successfully negotiating two new bonds worth $95 million. […] Council chief executive Sue Bidrose said the default position was for the savings to go towards paying off debt, but councillors could vote to spend the savings, such as allocating them to infrastructure renewals.

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