Mr Orders’ report also noted core council debt – excluding that of its companies and the stadium – stood at $227 million, and was now expected to peak at $272 million before beginning to decline from 2015-16.
### ODT Online Fri, 2 Aug 2013
More cuts needed, council warned
By Chris Morris
The Dunedin City Council is cutting its reliance on dividends from Dunedin City Holdings Ltd, but still fears being left exposed by another sudden drop in cash from its companies, chief executive Paul Orders says. The warning came as Mr Orders released his pre-election report, which also warned belt-tightening would continue as the council searched for extra savings by early next year. The council needed to cut at least another $3 million from annual expenditure to limit any rates increase to no more than 3% in 2014-15, Mr Orders said.
From the Office of the Chief Executive
Pre-election Report 2 August 2013 (PDF, 238KB)
However, the organisation also needed to brace for a dramatic hike in spending on water infrastructure renewals, which would have to rise from $8 million a year to $22 million a year by 2021-22, Mr Orders said. That was expected to come from cash, rather than borrowing, as was 90% of all council capital expenditure – helped by New Zealand Transport Agency subsidies – over the next decade, he said. That would help ease the financial pressure on the council as it worked towards reducing its debt to $200 million by 2021-22, he said. Despite that, the council could not expect to have “modest headroom” for new spending in its budget until then, meaning nearly another decade of frugality, he said.
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PwC had given the council “supplementary information” relating to $3.7 million of unauthorised spending on the stadium’s catering fit-out. However, the council’s legal advisers had concluded “that there was no individual culpability”.
### ODT Online Fri, 2 Aug 2013
Stadium cost may blow out to $260m
By Chris Morris
Heads will not roll over the Forsyth Barr Stadium budget blowout, but the total bill could rise again to more than $260 million, it has been revealed. Dunedin City Council staff have begun collating a “comprehensive” list of stadium-related costs, spanning almost the last decade, to be published later this year. The initiative was confirmed by council chief executive Paul Orders in his pre-election report, released to media yesterday.
The arrangements had made it “impossible” to identify individuals responsible “for anything that went wrong”, Mayor Cull said. “I’m sorry we can’t get the last answers, but we can’t.”
Dunedin Mayor Dave Cull said the list would include the cost of purchasing Carisbrook, bailing out the Otago Rugby Football Union and realigning State Highway 88, among other non-construction costs. It would be up to the public to decide whether the additional bills should be considered part of the cost of the new stadium, which officially stood at $224.4 million, Mr Cull said. He did not know exactly what the extra costs would amount to, but the Otago Daily Times understands if included they would push the stadium bill beyond $260 million.
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Posted by Elizabeth Kerr
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