Coastal erosion, Taieri Mouth : ‘DCC shouldn’t rush into potentially costly repair job’

Hands Off | Let’s Write Another Report | Let’s Take Another Year….

[The same appears to apply to repair and upgrade of the Aurora Energy power network (except, minus the DCC reports!) and Delta’s Yaldhurst subdivision (let’s spend UNTOLD MILLIONS with no due diligence by DCC itself!). And what was that about another subdivision hitherto unmentioned, patience Whatiffers…..]

Instead, DCC rushes to spend Public Funds by building cycleways on SH1 before external subsidies dry up.

The core infrastructure DEBACLE continues.
Thanks DCC, you’re a star.

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Taieri Mouth by Alastair Smith [flickr.com]

### ODT Online Sat, 28 Jan 2017
Board wants urgent action on erosion
By Chris Morris
The Saddle Hill Community Board is calling for “urgent” action to address worsening coastal erosion threatening part of Taieri Mouth Rd. A group including board chairman Scott Weatherall and Dunedin City Council staff visited the area, about 100m north of Dicksons Rd, again this week to inspect the damage. The area had been slowly slipping away for years, monitored by the council, but Mr Weatherall said  action was now needed.
It was reported last year erosion had stripped about 10m of the bank, exposing fence railings and a telecommunications cable, and Mr Weatherall said this week it was continuing to creep closer to Taieri Mouth Rd. “It’s absolutely getting worse,” he said. The problem was at its most “significant” at that location, but also a problem in other areas along the coastal route, he said.
The council, after monitoring the situation for years, had responded more recently with a traffic management plan, including cones and new fences, he said. However, the advice from council staff to the board had been that money to fix the problem was not available until the next financial year.
Read more

[click to enlarge]
Google Maps – Taieri Rd and (flagged) Dicksons Rd, Otago

Google Earth – Taieri Rd and (flagged) Dicksons Rd, Otago

DCC Webmap – Taieri Mouth Rd and Dicksons Rd coastal area JanFeb2013

****

Comment received:

Donald
2017/02/08 at 2:03 pm
I see Cr Wilson’s at it again with her expert knowledge on road issues. First it was the cycle ways and the shambles she headed. Now she is giving her knowledgeable opinion about the erosion hazard on a section of Taieri Mouth Road. Even though the Chair of the Saddle Hill community board called for urgent action. Cr Wilson calls it concerning, but council should not rush a solution. Could the gestation period for this fix be another 20 reports and $200,000 later it is decided that ‘Oh we did have a problem, but not any more, we don’t have a road’. Clean out the swamp.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

DCC DRAFT Annual Plan 2016/17 —Harden up, Council

Dunedin City Council (creak, groan), still holds to notions of silly spend-ups —on Minor yet Very Costly items of…. faint if any benefit to the widest scope of Dunedin ratepayers and residents. It’s ELECTION YEAR. Overtly muddled thinking given to ‘pet projects’ and ‘bribes’ (vote chasing) is sorry Self-aggrandising Rubbish on the part of the local body politicians we’re stuck with until this October.

Some people can make a success of themselves living in Dunedin, some in the innovation sector are uniquely placed with developing capacity to export out; but these shining lights and bushells are frequently seen against a Dumb, overly Bureaucratic, In-fighting city council located within a generally stale and stalled non-productive urban economy. Dunedin is achieving only about half the growth of the rest of New Zealand.

This week, Councillors are deliberating to ‘stiff’ ratepayers and residents with the promoted…. steeply unattractive rates increase (supposedly) capped at 3%.

But shifting sands again at Council (what it’s only good for, in a bad way!) —the most inexperienced/unproductive/unbusinesslike gormless Councillors of green persuasion, together with the mayoral candidates and their aspiring pearl- or scarf-wearing deputies are in the Ugly mood to consider yet more unprincipled spending to take us beyond the 3% cap, if MSM news reporting of tendency is acurate (I’m sure it is).

Council staff are not emerging cleanly from this leaky-budget process either —since elected representatives tend to piggyback if they can, staff-driven shiny pet projects even when within very close sniffing distance of the highly questionable event of systemic DCC failure with core infrastructure services, monstrously demonstrated in June 2015.

The lack of brain power to analyse and offer principled leadership of the City of Dunedin is daily astounding. Not something practically-minded, fiscally prudent citizens should tolerate or support any longer.

If Shadbolt wants to come here as Mayor, by all means Jump In.

—

2.9% rates increase council consulted on now pushing to 3.5% – breaching council’s self-imposed limit of 3% – unless cuts made.

MacTavish sees rates increase at slightly higher than 3%, as squeezing staff resources becomes “detrimental” to the community.

### ODT Online Wed, 11 May 2016
Rates limit agreed – for now
By Vaughan Elder and Timothy Brown
A rates increase of more than 3% remains a possibility, despite Dunedin City councillors agreeing to stick within the council’s self-imposed limit. Councillors were faced with difficult decisions at yesterday’s annual plan deliberations after agreeing to pay for almost $700,000 worth of extra costs in the 2016-17 annual plan.
Read more

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Spending $10million on stormwater infrastructure in the next year would not be possible.

“If you were talking about $10million phased in over the next five years, then that’s a much more reasonable proposition.” –WWS group manager

### ODT Online Wed, 11 May 2016
Upgrades would have to be phased in
By Vaughan Elder
Spending millions upgrading Dunedin’s stormwater infrastructure to better withstand floods would not be possible in the next year and increases would have to be ramped up over time, councillors were told. Council water and waste group manager Laura McElhone made the comment when asked by Cr Kate Wilson whether it would be possible, as an example, for her staff to manage spending an extra $10million in the next year.
Read more

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Other ODT stories:

User-pays scheme for carbon
Increased landfill costs arising from the Emissions Trading Scheme will be passed on to users contributing to carbon emissions.

Asbestos likely to be cost in future
Asbestos may impact the financial health of the Dunedin City Council’s coffers in years to come but the extent of the cost remains unknown, councillors heard at yesterday’s annual plan deliberations.

Link to harbour supported
Installing a ground-level crossing linking Dunedin’s central city with the harbourside is to be investigated by the Dunedin City Council.

Octagon solution allows relief for other areas
A succesful solution to toilet woes in Dunedin’s Octagon has freed up funds for toilets elsewhere in the city.

George St work delayed
Dunedin City councillors agreed to delay a multimillion-dollar central city improvement programme by a year, giving staff more time to get it right.

Councillors support gas works site plan
The Dunedin City Council is investigating buying three sites in South Dunedin to allow for the future expansion of the Dunedin Gasworks Museum and the possible development of a community hub.

█ Lastly. The item somewhere off the public radar this budget round:
Will Council stop the MULTIMILLION-DOLLAR SUBSIDY to Dunedin Venues ?

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Related Posts and Comments:
9.5.16 South Dunedin: Fixing Council attitudes and badly maintained…
6.5.16 South Dunedin Action Group: Notes of meeting with DCC (3 May 2016)
30.3.16 DCC: Snow White cause of substantial loss + DRAFT Annual Plan
23.2.16 Hold on! DCC Annual Plan 2016/17 #CommunityEngagement
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses

█ For more enter the term *flood* in the search box at right.

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Posted by Elizabeth Kerr

DCC Draft Long Term Plan: more inanity from Cull’s crew pending

DANGER | WARNING SIGNS | DESPAIR
CORRUPTION PET PROJECTS MORE DEBT HIGHER RATES SAME AGAIN

yay

### dunedintv.co.nz January 14, 2015 – 5:41pm
DCC prepares to launch into draft long term plan
The Dunedin City Council is preparing to launch into its draft 2015/2016 long term plan. Councillors will begin formal discussion of the document next week.

The long term plan outlines the council’s financial strategy for the next ten years. It takes into consideration major changes and development, in respect of infrastructure, assets, services and economic development.

The plan also highlights how the council intends to fund work, with information about budgets, financial sources and changes to rates. A final version will be prepared after public consultation, which will begin in mid-March.
Ch39 Link [no video available]

f***

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Posted by Elizabeth Kerr

Stadium costs $23.4144 million per annum

Received from Bev Butler
Thu, 26 Jun 2014 21:43:05 +1200

Cover note:
According to the latest DVL/DVML six monthly reports the debt is growing not reducing – that is a concern. The $146.6 million debt was passed over to DVL, many millions were poured into servicing the interest and capital repayments for this debt but even with that happening the combined short term/long term debt of DVML/DVL now stands at $157.6 million – $11 million more! The long term debt of $146.6 million has been reduced to $138.8 million but short term debt stands at $18.8 million. It is a major concern that the combined debt is growing not reducing – and this is during the stadium’s honeymoon period.

———

From: Bev Butler
To: Sue Bidrose; Sandy Graham; Kate Wilson; Richard Thomsom; Chris Staynes; John Bezett; Lee Vandervis; Hilary Calvert; Doug Hall; Andrew Whiley; Mike Lord; David Benson-Pope; Neville Peat; Andrew Noone; Jinty MacTavish; Dave Cull; Aaron Hawkins
CC: Calvin Oaten; Grant McKenzie
Subject: Stadium $23.4144 million per annum
Date: Thu, 26 Jun 2014 21:43:05 +1200

Dear Mayor Cull and Councillors

As a result of further discussions and more information obtained through further searching Council documents Calvin Oaten and I have updated the annual stadium costs which now stand at $23.4144 million. (See attached word document). No changes have been made to the spreadsheet I sent earlier which I prepared.
There are some costs which have not been included due to the difficulty in quantifying them to the accuracy of which I would be comfortable.

This $23.4144 million figure does not include any payments which may have not been fully transparent through the Council books.
By this I mean that I understand there were approaches by Darren Burden, former CEO of DVML, to obtain payments for bills which DVML were unable to pay but which another Council Department had shown some willingness to transfer their surplus unspent funds from that Department to DVML. In that particular case, I understand the transfer did not happen. However, I have no access to information as to whether this had occurred on previous occasions through other departments.

█ Also attached are Terry Wilson’s calculations coming from a different angle but which come to $23.1 million per annum. (See attached spreadsheet prepared by Terry Wilson).

Yours sincerely
Bev Butler

Downloads:
● FB Stadium=Annual Ratepayer Costs=V2 (PDF, 9.47 KB)
● Stadium Costs $23.4144 million per annum (DOC, 30.5 KB)

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Related Posts and Comments:
2.6.14 Stadium costs ballpark at $21.337 million pa, Butler & Oaten
23.5.14 Stadium | DCC DAP 2014/15 ● Benson-Pope asserts himself
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler

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Posted by Elizabeth Kerr

Stadium costs ballpark at $21.337 million pa, Butler & Oaten

Received from Bev Butler
Monday, 2 June 2014 4:10 p.m.

Message: During the presentation of my submission on the draft annual plan I was asked by Council to produce the figures to back up my claim that the stadium was costing approximately $20 million per annum. David Benson-Pope made a general statement questioning whether the claims in my submission were correct – though he didn’t elaborate when I asked him. I have followed up the Council’s request and the final figure is $21.337 million.

Please note there is a huge disparity between what the DCC has published in the Draft Annual Plan 2014/15 and what can be shown by the DCC’s own figures that are very difficult to find and interpret. The ratepayers should not continue to be kept in the dark – the real costs are more than double what is being published.

This has now been sent to the Mayor and Councillors.

Regards
Bev

————————————

From: Bev Butler
To: Sue Bidrose; Sandy Graham; Kate Wilson; Richard Thomson; Chris Staynes; John Bezett; Lee Vandervis; Hilary Calvert; Doug Hall; Andrew Whiley; Mike Lord; David Benson-Pope; Neville Peat; Andrew Noone; Jinty MacTavish; Dave Cull; Aaron Hawkins
Cc: Calvin Oaten
Subject: Stadium Cost $21.337 million per annum
Date: Fri, 30 May 2014 22:49:43 +1200

Friday 30 May 2014

Dear Mayor Cull and Councillors

Attached is a Word document prepared by Calvin Oaten outlining the annual stadium costs. The final figure of $21.337 million is based on figures sourced from and cross-referenced with DCC/DVML/DVL/DCHL documents.
Also attached is a spreadsheet, containing four spreadsheets, prepared by Bev Butler, showing the treatment of the $146.6 million portion of the stadium debt.

Yours sincerely
Bev Butler

Explanatory Note for Calvin Oaten’s Word document:
I have expressly not mentioned nor quantified costs of what I would term ‘collateral’ effects of the Stadium Project. These of course are very real additional financial burdens to the citizens. These are: the realignment of SH88, the forgiving of considerable debt owed the city by the Otago Rugby Football Union, the costs of the purchase and sale of Carisbrook including the holding of same in the interim period. And of course, the ongoing operational losses of DVML’s operations. These particularly are proving to be a continual drag on the financial conscience of the ratepayer. It seems that if council cannot, or will not bite the bullet and raise the “pay to use” level to at least a break even figure then professional rugby is destined to have the last laugh at our expense. It is simply not fair.
I remain, without prejudice
Calvin Oaten

Explanatory Notes for Bev Butler’s spreadsheets:
1. Sheets 1 & 2 titled “$117.541m” and “$29.059m” respectively outline the calculations for the two tranches of stadium debt outlined in the DVL six-monthly report, dated 31 December 2013. This report states that the $146.6m stadium debt has been divided into two tranches of $117.541m and $29.059m. The $117.541m is for a term of 17 years and the $29.059m is for a term of ten years with a weighted average of 6.05%pa. In the calculations I have assumed monthly compounding periods and assumed the first payment(s) were made between 30 June 2013 and 31 December 2013. If the compounding period is shorter then there would be a small reduction in the payments.
Note that in the DVL six-monthly report it states that a mortgage has been issued to pay for the two tranches. This is the first time this has been mentioned in the DVL reports so it is assumed that the mortgage was issued sometime between the last DVL Annual Report (YE 30 June 2013) and the DVL six-monthly report (31 December 2013). There is also mention of a GSA having been signed. I assume this is a General Security Agreement to secure the payment of the debt in the event of the stadium folding or the rental payments not being met. I acknowledge that I am unsure about this as I have no further information. Perhaps the Council staff could clarify this aspect.

2. Sheets 3 & 4 titled “$146.6m monthly” and “$146.6m weekly” respectively outline the calculations for the stadium debt had [regular repayments been made] from the time the stadium opened. It appears from the calculations and the DVL Annual Reports that this was not happening. If it was then the debt would have reduced to approximately $134 million. The DVL long term debt as of 31 December 2013 stands at $141.090m. So up until the mortgage was secured, it appears the debt repayments were for interest only on the bonds (and an average annual capital injection of $2m) which were issued to pay for the stadium land and other stadium debt.

[ends]

Downloads:
● Stadium Costs $21.337 million per annum (DOC, 30.2 KB)
● Stadium debt calculations FINAL (XLS, 59.3 KB)

—

Related Posts and Comments:
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
23.5.14 Stadium | DCC DAP 2014/15 ● Benson-Pope asserts himself

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Posted by Elizabeth Kerr

Stadium: DCC proposes extra funds for stadium debt repayment

Comment received from Mike
Submitted on 2014/05/11 at 12:42 pm

Now is a great time to remind people of section 63 the Local Government Act which reads:

Restriction on lending to council-controlled trading organisation
A local authority must not lend money, or provide any other financial accommodation, to a council-controlled trading organisation on terms and conditions that are more favourable to the council-controlled trading organisation than those that would apply if the local authority were (without charging any rate or rate revenue as security) borrowing the money or obtaining the financial accommodation.

http://www.legislation.govt.nz/act/public/2002/0084/latest/DLM171886.html

Which as I read it means that the council can’t fund DVML in a more advantageous way than it would receive itself from its own bankers – my reading of this is that just bailing DVML because it’s losing money would be illegal, they have to loan them money at a comparative rate to what they would get from the bank.

It’s an obvious target for a ratepayer’s injunction …..

The reason for this law is pretty obvious, the government wanted CCOs to compete with private enterprise on a level playing field – if DVML wants to rent out space it shouldn’t be able to undercut a competing landlord who can’t tap the ratepayers’ pockets to charge a rent below cost.

[ends]

****

Dunedin City Council – Media Release 9 May 2014
Extra Funds Proposed for Stadium Debt Repayment
The Dunedin City Council will consider using savings to repay more debt associated with the Forsyth Barr Stadium. The Council will next week consider approving a one-off payment of $2.271 million to help balance the Forsyth Barr Stadium accounts. Of that, $1.77 million would be used to repay DVML debt, with the balance to fund a cash shortfall. The payment would be funded from DCC savings made in the current financial year. DCC Group Chief Financial Officer Grant McKenzie says, “A one-off payment to reduce debt further would be good for all parties and would clearly respond to community demand for the DCC to reduce its overall debt level.” Read more

█ Download the Forsyth Barr Stadium 2014/15 Budget Report (PDF, 200KB)

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Media Stories:
9.5.14 ODT Stadium debt reduction to be considered
9.5.14 Stuff (Fairfax News) Stadium could cost Dunedin ratepayers millions
10.5.14 ODT Stadium payment may rise

Related Post and Comments:
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
10.5.15 (via comment) ODT In Brief: Stadium review sought

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Posted by Elizabeth Kerr

Portobello Road Consultation —Public Meeting | Monday 13 May

Here is the latest web update for the Portobello Community.

This week we look at the road widening project and the proposed changes that the City Council has made to the initial plan. The City Council will be giving the community another opportunity to have your say on the proposal and the changes they have made to the plan since the consultation period in March 2013. This is an important issue for our township and community and the meeting is to be held at 7:00 pm on Monday, 13 May 2013 at the Coronation Hall. Pass this message onto your friends, neighbours, colleagues and whanau.

Regards
Paul Pope – Chairman, Portobello Incorporated

● The meeting will be attended by council staff, Cr Jinty MacTavish, and Otago Peninsula Community Board members.

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Related Post and Comments:
28.3.13 | Updated 29.3.13
DCC Draft Annual Plan 2013/14: Portobello Harington Point Road Improvements Project

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Posted by Elizabeth Kerr

DCC Draft Annual Plan 2013/14: Portobello Harington Point Road Improvements Project

Updated Post 29.3.13

Received yesterday by email.

Something that seems to have slipped the radar in Dunedin news of late is the WIDENING of Portobello Harington Point Road on the Otago Peninsula.

Looking at the Draft Annual Plan, the City Council intends to spend the following on what amounts to an environmental and heritage damaging folly. That’s only 33-34 % of the budget, given NZTA will subsidise the remaining 66-67% of the project.

[click on image to enlarge]

See page 24, Section 1 Group of Activities (PDF, 1.5 MB)
and page 142, Section 2 Financial Statements (PDF, 1.2 MB)

The road widening (including the Vauxhall and Macandrew Bay areas already completed) will reclaim nearly 11 hectares of the Otago Harbour — a conservative measurement given plans show significantly more reclamation if the topography requires it.

Consultation on the current design closed yesterday, Thursday 28 March, indicating approval of the plan is a given despite the consultation process for the Annual Plan this year and in years to come.

[29.3.13 – The plans are not available for viewing online, why not?]

There will be irrevocable damage to the Peninsula and Harbour landscape, heritage features and the ecology if this misguided piece of engineering continues.

It is feared the Council has the bit between its teeth on this project — described as being about “liveability”, according to Mayor Cull at the Portobello Annual Plan ‘roadshow’.

It might be worth pointing out to your readers that they look closely at the Draft Annual Plan in regards to this area of Council expenditure.

Searching Council for cost benefit and recreational analyses fails to show much other than what is in the June 2008 Cycle Strategy (PDF, 787 KB).

[See also: Dunedin’s Proposed Cycle Network, adopted August 2011]

Few will have problems with the desirability of access, but the lack of design sensitivity and impact on the values of the area seem inconsistent with the value of the Peninsula and Harbour to the community and our economy.

This is certainly an issue worth looking at more deeply.

[ends]

—

Posted by Elizabeth Kerr

DCC Draft Annual Plan 2013/14 for consultation #RIOTmaterial

Email received from Lee Vandervis this evening.

My overview regarding the Annual Plan that has gone out for consultation today is that little has changed.

Rates rises continue to be disguised, first by getting DCHL to borrow up to $23 million on our account, continuing to take more than policy allows from the Waipori Fund [proposed relaxing Waipori rules to justify], continued significant underspending on drains, and now buying $3 million in paid-up share capital of DVML – yet another multi-million dollar gift to bail out overspent Stadium operations.

The official result – the long heralded 4% rates rise.

I believe the real rates rise to be somewhere between 25% and 30%, as the DCC continues to amass all kinds of liabilities and debt that will have to be paid for in the future. CEO Paul Orders has made real gains finding significant DCC staff efficiencies, but most are simply going to bail out Stadium operational inefficiencies.

Stadium annual drains on the ratepayer now include:
● $1,666,000 rates subsidy via a ‘Stadium Differential’ [LTP 2013/14 – 2021/22 p8]
● $750,000 annual ‘Stadium Community Access’ fund
● $725,000 ‘Stadium Capital Repayment’ fund for each of the next 4 years
● Annual $400,000 ‘Stadium Event Attraction’ fund.

The Dunedin City Council is now going to buy the events that the Stadium was supposed to attract by itself. These further Stadium subsidies will only prolong the currently unaffordable wasteful Stadium operations, and entrench the directorships, fat contracts, and rugby cronyism that plague current Stadium costs.

If anyone can think of any other type of ‘fund’ that might possibly go to the Stadium please don’t tell the DCC or we will shortly be paying that annually too.

From an email I sent to senior staff and the Mayor last Monday:
“I have been uncomfortable with the timing and presentation advantages enjoyed by DVML in being perfectly positioned to come into our workshop and present and pluck us for millions yet again, but I accept that their issues needed to be addressed.”

Many Annual Plan issues have not been addressed but they have been bought into.

The predetermined Plan has just happened again.

—

Posted by Elizabeth Kerr

Editorial spin, disagrees?!

The Editor’s reply (ODT 23.1.13):
Russell Garbutt: Thanks for your comments but we don’t agree with them.

[Email]

From: Russell and Bev Garbutt
Sent: Tuesday, 22 January 2013 10:46 a.m.
To: ‘editor@odt.co.nz’
Subject: Letter for publication

[Contact details deleted. -Eds]

The Editor
Otago Daily Times
Dunedin

Dear Sir

Your editorial on the urgent need for an austerity budget for Dunedin is too little too late.

For years now at Council Plan consultation meetings also attended by your reporters, the financial stupidity of the Council’s decisions have been graphically pointed out by a long line of submitters. The practice of Council owned companies being forced to borrow to pay dividends which you now describe as being “worse than poor” was emphasised by a large number of submitters, but largely ignored by the ODT for many years.

While ultimately all of the spending decisions made by the Council are those of the Councillors – many clearly out of their depth – the weight of public opinion assisted by informed and investigative stories by the City’s only daily paper, has no small part to play in what has happened in this town over recent years. It is hard to see why the ODT has failed to meet its obligations or role in this regard. Many believe that it is because the ODT is a strong supporter of the stadium which has caused a major part of this debt, and of its proponents and major user.

While the ODT has adopted a position of supporting the new rugby stadium, even now that the full costs of the stadium are more or less known, your position is that you appear to be supporting the establishment of a significant fund to subsidise the use of the stadium – despite your reluctant acknowledgement that while the fund will cost the ratepayers dearly, there is no believable data that shows any tangible benefit.

I look forward to the ODT being part of the process in holding those that have made the decisions that have put Dunedin into these astronomical levels of debt responsible and accountable – but I’m not holding my breath.

Russell Garbutt

Read Russell’s comments in reply here.

—

Related Post and Comments:
22.1.13 ‘Liability Cull’ and council chasten for election year

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Posted by Elizabeth Kerr

DCC Draft Annual Plan 2013/14 – ‘Liability Cull’ and council chasten for election year

“Levels of debt are still high … you cannot say we are in a comfortable position – far from it.” -Orders

### ODT Online Tue, 22 Jan 2013
Tight years ahead for Dunedin
By Chris Morris
A decade of discipline is needed to protect the Dunedin City Council’s fragile finances until debt repayments ease the fiscal squeeze, council chief executive Paul Orders says. The warning came as Mr Orders confirmed the council was set to remain beyond a self-imposed debt ratio limit for at least the next three-year council term. The council’s 2013-14 pre-draft budget – to be considered by councillors later this week – showed the council would begin repaying more debt than it was borrowing for the first time in 10 years.

Mr Orders said the council would still have “little or no” headroom for new spending until 2022.

However, the size of the council’s debt meant it would still be operating beyond its self-imposed limit, which sought to restrict interest as a percentage of total revenue to no more than 8%, until 2016-17, Mr Orders confirmed.
Read more

****

### ODT Online Tue, 22 Jan 2013
Mayor’s rates warning
By Chris Morris
Dunedin city councillors will have to choose between a 2.8% rates rise and extra spending on key priorities – including debt repayment – that will drive up the bill for ratepayers. The choice was presented in the 2013-14 pre-draft annual plan, to be considered by councillors in public for the first time this week. [Chief executive] Paul Orders said the cost-cutting had been achieved in part by reduced staff costs, including not filling all vacancies, absorbing inflation and strictly controlling the council’s capital spending programme.

Overall operational costs had increased by just $500,000 as costs were cut in other areas, while capital spending had been cut in half, from $105 million in 2012-13 to less than $50 million in each of the next three years, Mr Orders said.

Key reports were yet to be made public, including one discussing the financial future of DVML, the stadium and the need for a new events fund. Others would consider options for the Waipori Fund, car park operations in Dunedin and the city’s aquatic facilities, as well as the future of the council’s investment property portfolio.
Read more

****

[On council companies…] The practice of businesses having to borrow to pay dividends is worse than poor.

### ODT Online Tue, 22 Jan 2013
Editorial: Dunedin’s austerity budget
The local government annual plan season is beginning, with councils facing austerity budgets. Some, as in Dunedin or Queenstown Lakes, have gorged on debt, and must face the slow process of digesting it. Others will be aware that communities have had enough of rates increases continually topping annual inflation. The Dunedin City Council, easily Otago’s largest council, has feasted on new projects and on high general costs, and its consolidated debt is peaking beyond the extraordinary figure of $600 million. Although it includes council company debts, it is still an astronomical figure. As projects small and large – like the Toitu Otago Settlers Museum, the Town Hall, the water and sewerage system upgrade and the stadium – came up for discussion, the annual interest costs were often the financial focus.

[ODT blondness…] To make the stadium a success and to compete with other centres, the council might have to seriously consider an events fund. This will again cost ratepayers, but could benefit the city overall.

The long-term accumulation of debt and cumulative interest totals could be sidelined behind an unrealistic optimism, leaving a legacy of commitments to years of whopping rates increases. Fortunately, the folly of this course has been recognised, and vigorous efforts are being made to turn to a sustainable direction.
Read more

—

Related Post:
16.1.13 DCC Draft Annual Plan 2013/14 – Aaron Hawkins on the money

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Posted by Elizabeth Kerr

DCC Draft Annual Plan 2013/14 – Aaron Hawkins on the money

“[Last year] What we didn’t see coming during the annual plan process was the DCC’S move to streamline its marketing budgets across all departments. Instead of the DPAG, for example, having a budget allocated to them for marketing their services, they would have to bid for access to that on a case-by-case basis.”

### DScene 16 Jan 2013
Opinion – Aaron Hawkins
Council’s budget tactics queried (page 13)

New process restricts community’s chance to comment on marketing spend

Next week, the great bunfight that is the Dunedin City Council annual plan process begins. Given the DCC’s self-imposed limits on rates increases, as per the Long Term Plan adopted last year, there are always going to be hard decisions to be made. Financial resources are scarce and community demand tends only to increase. Last year in these pages I wrote that I was disappointed that the DCC had chosen to prioritise investment in sports infrastructure (Logan Park) over arts infrastructure (the Dunedin Public Art Gallery’s – DPAG – acquisitions budget). Given that the city’s finances are strained by building a sports stadium, I argued, this wasn’t a particularly good look. It seemed that plenty of people agreed with me and, largely due to the mobilisation of the arts community, the funding cuts to the DPAG were reversed and the Logan Park development was deferred. Glasses were charged and backs were patted but perhaps a little prematurely. What we didn’t see coming during the annual plan process was the DCC’s move to streamline its marketing budgets across all departments. Instead of the DPAG, for example, having a budget allocated to them for marketing their services, they would have to bid for access to that on a case-by-case basis.
{continues} #bookmark

● Aaron Hawkins is the breakfast host-music director at Radio One.

Register to read DScene online at
http://fairfaxmedia.newspaperdirect.com/

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Posted by Elizabeth Kerr

Wednesday: Meetings of Council and FSD Committee, read DEBT

UPDATED 16.3.12

The week when everything blows. Tens and tens of millions of dollars lost like so many fluttering autumn leaves. Councillors, the worst of times. You are liable for wrath and accountable for so much more.

—

Comment received.

BlueBottle
Submitted on 2012/03/14 at 12:19 am

Tomorrow (Wednesday) there are meetings of Council and the FSD. The Council meeting is the one that was postponed from Friday because the draft long term plan failed its audit. It is still not good enough and should not be approved.

The meeting starts off with a secret session to decide how generous the ratepayers will be towards the ORFU. The terms “bail-out” and “blood-sucking leeches” definitely won’t be mentioned in the press release.

The new draft long term plan tells us that there is a report to be presented to a committee about the governance arrangements of DVL and DVML (see LTP page 5).

It turns out that negotiations to sign the stadium “venue hire agreements with major event owners” have failed, but we are told the LTP is written as if the agreements are signed.

The Private Sector Funding is now called (p5) Private Sector Debt. It isn’t “private” but it is “debt”, so that’s an improvement. Thanks to Audit NZ for that.

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How they voted
After eight hours of deliberation and with no changes to the ORFU bail-out package put before them, Dunedin City councillors voted in this way:

Aye: Cull, Bezett, Collins, Hudson, Staynes, Thomson, Brown, Noone (8)

No: Butcher, MacTavish, Stevenson, Vandervis, Wilson (5)

Apologies: Acklin, Weatherall (both say they would have supported the package)

(via ODT Online 16.3.12)

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Posted by Elizabeth Kerr

City wildlife… DCC abandons duty of care

“The Dunedin City Council has nothing in its budget with which to tackle the potential feral cat population problem in North Dunedin. […] Council environmental health and animal control team leader Ros MacGill said her staff responded to complaints as they arose, but that there was no funding for an active control programme. […] Ms MacGill said there had been no recent complaints about feral cats in the student area.” -ODT

http://www.odt.co.nz/news/dunedin/197310/feral-cat-fears-north-dunedin

Heaven forbid DCC staff would look for work within their jurisdiction rather than wait for “complaints”. Talk of sick dog mentality.

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In the central city DCC is putting little energy or resource into culling pigeon populations that nest in neglected buildings; creating havoc for responsible neighbouring property owners.

The councillors are OBLIVIOUS, despite a worthy submission to last year’s draft annual plan by local businessman William Cockerill.

We get the message. DCC would rather spend ratepayer funds on “hazardous projects” such as its in-house marketing team, low-quality event management (including RUGBY), horrendously-priced IT pirates (again, in-house), doing up South Dunedin’s main street atrociously and, oh yeah, STADIUMS (plural)… not all of which expenditure appears ‘whole’ to the public view via Annual Plans, Long Term Council Community Plans (LTCCP) and audited financial reports. Why.

Pest control should happen as if by magic.
A bit like DCC’s approach to debt management.

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SPCA bears the brunt
http://www.odt.co.nz/news/dunedin/197243/spca-grant-be-part-annual-plan

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Posted by Elizabeth Kerr

Stadium debt goes to 40-year term

Dunedin Mayor Dave Cull said he was “vehemently opposed” to repaying the debt over 40 years, because of the interest it would add to the bill, but would support it in the meantime to keep rates down. “But I see it as a short-term fix.”

### ODT Online Thu, 26 Jan 2012
Councillors spar over stadium debt
By Chris Morris
There were emotive arguments as Dunedin city councillors split into camps over the restructuring of Forsyth Barr Stadium debt repayments to a 40-year term yesterday. The move was approved by Dunedin city councillors for inclusion in the 2012-13 pre-draft annual and long-term plan yesterday, alongside a push to restructure repayments in later years to more quickly reduce the debt.
Read more

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It meant the council would be receiving the same rates as it would have from properties previously occupying the stadium site.

### ODT Online Thu, 26 Jan 2012
Backing for lowering stadium rates
By Chris Morris
Dunedin city councillors have given initial backing to a proposal to slash the Forsyth Barr Stadium’s $2 million annual rates bill. Councillors at yesterday’s pre-draft budget meetings voted in favour of resolutions that would cut the rates bill for Dunedin Venues Management Ltd – the company running the stadium – from $2 million a year to a more manageable $134,000 a year. That amounted to a 93% discount on the venue’s city council rates.
Read more

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### ODT Online Thu, 26 Jan 2012
Artificial turf stays in plan by one vote
By David Loughrey
An artificial turf, seen by Dunedin City Council staff as the future of sports fields in Dunedin, stayed in the city’s annual plan by a single vote yesterday.
Read more

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Posted by Elizabeth Kerr

DCC budget savings

Let’s start a list.

1. Get out of Jacks Point.

2. Remove all directors fees from Dunedin City Holdings Ltd.

A debt of gratitude is owed for 1. and 2.
Others?

The trick is to never mention the stadium in cost cutting rounds since it is a premium asset capable of many returns, we’re told.

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Posted by Elizabeth Kerr

Redesign for Botanic Garden, without Lovelock Ave realignment

### ODT Online Tue, 16 Nov 2010
Realignment rejected after long debate
By David Loughrey
The Dunedin City Council has realigned its policy on Lovelock Ave, reversing its decision on a project that has been years in development… In the end, the project’s backers were told to go away and redesign the project, and come back to the council with a plan that did not involve realigning the road.

After about three hours’ debate, Crs Cull, Vandervis, Thomson, Teresa Stevenson, Chris Staynes, Kate Wilson, Neil Collins and Jinty MacTavish voted not to go ahead with the realignment. Crs Bezett, Syd Brown, Bill Acklin, Paul Hudson and Andrew Noone voted for the project.

Read more

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Related Posts and Comments:
13.11.10 Mayor Dave Cull shows prudence
16.10.10 Lovelock Avenue Realignment

Post by Elizabeth Kerr

DCC concerned by Hide’s call for transparency if it means producing more reports

From the can you believe it file…

### ODT Online Fri, 16 Apr 2010
Hide’s call for transparency baffles council
By Chris Morris
A plan by Minister for Local Government Rodney Hide to force councils across New Zealand to open their books in new ways has been questioned by Dunedin Mayor Peter Chin. Mr Hide used part of his address to yesterday’s Sister Cities New Zealand Conference in Dunedin to outline plans for a new financial reporting system for local authorities. Under the new regime, council staff would be required to prepare pre-election financial reports every three years, providing ratepayers with simplified explanations of expenditure over the previous term and plans for the next term.

The move aimed to encourage greater understanding of council finances by ratepayers, who would then be in a better position to “put hard questions” to their elected representatives, Mr Hide said.

Read more

Related ODT story:
Sister cities’ link lauded

Post by Elizabeth Kerr

D Scene – “Stadium debate has fresh legs”

### D Scene 10-2-10
It’s being built – will they come? (front page)
A confidential report warns crowds will have to flock to the Forsyth Barr Stadium at University Plaza for it to succeed financially. See page 3.

Editorial: Stadium debate has fresh legs (page 2)
Reports that Auckland City ratepayers may need to pay out millions to underwrite the redevelopment of Eden Park for the Rugby World Cup have no doubt been noted by opponents of the stadium fast emerging on Dunedin’s waterfront . . . Debate over the merits of the Forsyth Barr Stadium at University Plaza will no doubt be stoked by PriceWaterhouseCoopers report into the Otago Rugby Union, details of which are revealed today in D Scene.
{continues}

Report sounds warning (page 3)
By Michelle Sutton
A confidential report warns Dunedin City Council the financial success of the city’s new stadium relies on rugby fans pushing it over the financial try line – at a time when crowds for the national game are waning. D Scene can today reveal the contents of a DCC-commissioned PriceWaterhouseCoopers review of the Otago Rugby Football Union . . . the PWC report, specifically, cites the embattled Highlander’s franchise as affecting the financial success of the stadium to a “huge extent”.
{continues}

Register to read D Scene online at http://fairfaxmedia.newspaperdirect.com/

Pre-draft plan approved (page 6)
Dunedin city councillors have approved their 2010-2011 pre-draft annual plan and are about to consult on the document. D Scene’s Wilma McCorkindale asked how satisfied they are with the finished document and what they most like about it.
{continues}

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Talk: Dunedin on Dunedin
Your say: Letters to the editor (page 11)
Spending on the stadium by Dr Graham Bishop, Roslyn. The spending on the stadium is spiralling out of control. The council must rein it in and start some serious saving.
{continues}

Council meeting by Bev Butler [Dunedin]. Whilst present at the DCC meeting (2/2/10), I noted that Cr Stevenson reported a breach of the Local Government Act to the chair, Mayor Chin.
{continues}

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Details: The finer points
Forging ahead (pages 12-13)
Little is settling at Otago Settlers Museum, least of all the dust. Multi-millions are being spent moving the facility into the future, and more than a century down the track the pioneering spirit it was founded on remains. Wilma McCorkindale reports.
{continues}

Academic predicts struggle for stadium (page 14)
By Michelle Sutton
An Otago University senior academic is critical of Dunedin City Council relying on rugby fans to financially score at the city’s new stadium. Steve Jackson, a professor in the socio-cultural analysis of sport, predicted Dunedin and other New Zealand centres would struggle to fill stadiums for the upcoming Rugby World Cup. He was critical of DCC’s decision to fund the new stadium, and its reliance on rugby crowds to protect ratepayer money.
{continues}

Post by Elizabeth Kerr

D Scene – “hoping the stadium roof provides good shelter for the city”

### D Scene 27-1-10 (page 2)
Looking into stadiums – for research
By Mike Houlahan, editor
As you read this, I will be in Melbourne checking out roofed stadiums.
{continues}

Ratepayers may bear cost (page 4)
By Michelle Sutton
Dunedin’s ratepayers in future years have been eyed up to shoulder a larger chunk of city costs. At last Thursday’s Dunedin City Council meeting, depreciation costs for water and waste was suggested to be deferred in order to reduce rates in 2010-11. Cr Noone was wary of the impact deferring 100 per cent depreciation would have on future years, and young ratepayers.
{continues}

Rates plan under fire (page 4)
By Wilma McCorkindale
Head of one of Dunedin’s foremost charitable organisations, Gillian Bremner, believes Dunedin City Council should have considered the impact of the recession sooner. D Scene asked Bremner, chief executive of Presbyterian Support Otago, for her views on the affordability of a rates rise for Dunedinites.
{continues}

Register to read D Scene online at http://fairfaxmedia.newspaperdirect.com/

Support there Brown says (page 5)
By Wilma McCorkindale
A Dunedin City councillor who this week called for a report into deferring three large developments says supporters are stopping him in the street. Syd Brown called for the report from council managers into the implications of deferring developments at the Dunedin Town Hall, the Otago Settlers Museum, and the Regent Theatre to reduce this year’s rate hike.
{continues}

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Talk: Dunedin on Dunedin (page 11)
Your say: Letters to the editor

Stadium veil of secrecy
By Peter Attwooll, Dunedin
CST / DVML Chief Executive, David Davies, refuses to show D Scene stadium construction drawings with stand dimensions and rows. (D Scene 20.1.10) Yet they hotly dispute Dr Rob Hamlin’s figures showing a scaled-down stadium, given his sighting of the latest plans, at the Stadium Open Day a number of weeks ago.
{continues}

Annual Plan
By KJ Hale, St Kilda
In regards to the financial problems that our mayor and his councillors are presently trying hard to address. It is becoming quite obvious that what the majority of ratepayers including business people and academics predicted is now a reality.
{continues}

Lovelock Avenue
By Calvin Oaten, Pine Hill
Cr Michael Guest, at the council budget forum made the surprising comment that there were “still at least 600 residents in the Opoho area strongly opposed to the plan to remove Lovelock Avenue from the Gardens precinct”.
{continues}

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Details: The finer points (pages 12-13)
Sports academy sets bar high
In a quiet corner of Logan Park, some of New Zealand’s top athletes and coaches are honing their skills. Mike Houlahan tours the South Island Academy of Sport.
{continues}

Game: Beyond the scoreboard (page 20)
Hoping for a good 2010 team
By Mike Houlahan
The Highlanders have to learn from their mistakes if they are to be a force in this year’s Super 14, flanker Alando Soakai says.
{continues}

Post by Elizabeth Kerr

DCC Annual Plan: classic comment at ODT Online

Libraries, or rugby and a stadium – the sweetest of damned comparisons.

### ODT Online Sun, 24/01/2010 – 12:01pm.
Comment by kkeogh on DCC priorities
The Highlanders and Otago rugby teams show alarming reductions in home attendances, which I estimate would be down to around 50,000 total at Carisbrook for a season. For their efforts they get a quarter billion stadium built for them. Cont…
Read full comment

Post by Elizabeth Kerr

DCC Annual Plan, arise the told-you-so’s

Blame attaches to the decision to fund the Stadium for creating the pressure on council finances.

### ODT Online Sat, 23 Jan 2010
Deferrals could have high cost
By Chris Morris
The Dunedin City Council faces a double whammy of lost revenue and community anger – at least from some sectors – if it defers some or all of a list of major capital projects in an effort to save money. The proposal to consider staging or deferring work on planned upgrades of the Regent Theatre, Otago Settlers Museum and the Town Hall/Dunedin Centre was raised by deputy mayor Syd Brown during Thursday’s council pre-draft annual plan meeting.
Read more

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### ODT Online Sat, 23 Jan 2010
Deferring depreciation saving for council
By David Loughrey and Chris Morris
The Dunedin City Council has managed to wring some money from its budgets using a method it has been using for some time – deferring its spending on depreciation. Since 1992, councils have been required by Audit New Zealand to list all assets on their books and set aside depreciation; an amount to maintain them and pay for their eventual replacement.
Read more

Other stories:
Cuts likely to hit libraries
Road decision long way off
On the trail of Lovelock
Last chance for Lovelock Ave opponents

Post by Elizabeth Kerr

ODT sounds the warning!

Ah, prudence…

### ODT Online Wed, 20 Jan 2010
Editorial: Annual plan sham
After 50 hours of annual plan meetings last year, the Dunedin City Council managed to achieve a reduced rate increase for the following financial year of a mere .9% down from an anticipated 7.8%. Ratepayers, anxiously observing this week’s commencement of the annual plan process, ought not on this record to expect a great deal from a council which has been as profligate as any in the city’s history.

The draft at the moment proposes an increase in rates for the next financial year of 7.3% – considerably more than the annual rate of inflation.

Read more

Post by Elizabeth Kerr

D Scene – Election year annual planning

### D Scene 13-1-10
Action plan? (front cover)
The city’s annual plan is about to be drafted. What should Dunedin’s priorities be for the financial year ahead? See page 6.

New slogan (page 3)
By Mike Houlahan, editor
It turns out that Dunedin needs a new slogan. Certainly if an office straw poll is anything to go by the old one wasn’t working, with only two people aware there was a city slogan and just one of those knowing what it was. What this highly unscientific exercise did prove was that 100 per cent of respondents thought promotional slogans were stupid, and ripe for disparagement.
{continues}

Register to read D Scene online at http://fairfaxmedia.newspaperdirect.com/

Visions for council (page 6)
Next week Dunedin City councillors begin considering the early draft of the city’s annual plan. The plan – the spending blueprint for the year ahead – is often a contentious document, with a range of worthy projects battling it out for funding. All the while, councillors have to be mindful of balancing the city’s books – especially in an election year, when a big rates rise could cost votes.
D Scene asked three leading figures in the city for their views on what DCC’s priorities should be in the year ahead.

The council’s proposed harbourside plan change and revamp was top of the Chamber’s hit list…the Chamber believed the plan was not only “bad for Dunedin” but yet another expenditure item.

Council will approve the draft annual plan in March, and then issue it for a month of public consultation.
{continues}

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What if? wonders if D Scene is “Number One for Circulation* in Dunedin” as claimed in the advertisement on page 17. Deliveries in the inner city have been hit and miss for months…
*48,479 per issue. ABC Audit Jan – Dec 2008. http://www.abc.org.nz

Post by Elizabeth Kerr

What DCC said to "Stadium – Opposed" submitters last year

Looked up my files and found these on DCC Draft Annual Plan 2008/09 submissions.

A snippet from council’s letter (dated 10 July 2008) addressed to Elizabeth Kerr – presumably, the same was received by other submitters opposing the stadium.

Stadium – Opposed

That no change occur to the draft plan.

Following consideration of the submissions the Council determined that it would continue with the approach previously resolved at its meeting on 17 March 2008.

The effect of this resolution taken as a whole is to permit the project to continue and, by placing milestones along the way, still provide the possibility that if some or all of the risks that have been identified come to pass in a substantial manner, the Council can still exit the project.

In terms of the component of the funding for the stadium that will come from rates, some submitters requested an investigation into the use of a fixed targeted rate, in part or in whole, instead of a capital value based general rate. The Council agreed to ask the Rates and Funding Working Party to investigate this funding option.

Also, ‘The Stadium Stance’ (pages 3-5) from the 5-page document ‘Changes made to the 2008/2009 Draft Annual Plan following consultation’ sent to all submitters.

DCC – The Stadium Stance July 2008

How things change in the space of one year.