Really, we haven’t heard much lately from the DCHL chairman about the dwindling source of funds to the city council…. counting down to June 30 perhaps, with lawn mowing to look forward to in Spring. But what of an associate commissioner’s five-year term at the Commerce Commission.
A few things are not being said in ‘above Board’ fashion.
Around a billion dollars to retrieve Aurora, is it worth it and how?
beg, borrow and ‘TAX’ ratepayers method ?? When Otago power consumers have already paid their line charges to cover network upgrades and renewals that never happened. Look at this winding garden path, so much leafy cover and fat plums for the picking, but —WHERE did the money go and WHICH ENTITIES AND WHICH INDIVIDUALS are responsible for wrongful application of lines monies to other unrelated activities.
Thankfully, in this situation, a raft of New Zealand legislation (laws) and statutory regulation applies.
DCC’s budget resilience, helped by accelerated debt repayments and reduced debt-servicing costs, meant the council had “some room to move”….“we are already in a constrained situation and we’ve got some buffer in the system”.
Friday, 2 June 2017
DCHL dividends to council in doubt
By Chris Morris
The Dunedin City Council expects dividends from its companies to “flatline” as Aurora grapples with the $720million cost of rebuilding its electricity network. But Dunedin Mayor Dave Cull says improvements in the health of the rest of the council’s books means it is up for the financial challenge. His comments came after council chief executive Dr Sue Bidrose, speaking at this week’s council meeting, said the council faced fresh uncertainty over future dividends. […] The money helped ease the pressure for rates rises […] The change reflected the need to get DCHL’s books in order — after years of borrowing to pay dividends — and reinvest in Aurora’s network […] speaking this week, Dr Bidrose said the projected dividends were at risk because of Aurora’s investment plan. “We will be reviewing that, in light of the high level of asset maintenance required by Aurora. It seems it would be a fair assumption it will be at least longer before that dividend payment recommences,” Dr Bidrose said.
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Posted by Elizabeth Kerr
This post is offered in the public interest.