Tag Archives: DCC Financial CRISIS

DScene: Cull & Co planning asset sales

We’ve heard or read comments about ‘considering’ the possibility of asset sales from Dave Cull, Kate Wilson, and Andrew Noone… anyone else?

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

### D Scene 21-9-11 (page 3)
City Forests faces chop
By Wilma McCorkindale
City Forests may be the next ratepayer asset for the chop to pay for Dunedin City Council debt, sources say. A reliable informant said some councillors on the Dunedin City Council, including Mayor Dave Cull, had a secret agenda of asset sales. The source said the councillors were in favour of the sale of City Forests, a subsidiary of Dunedin City Holdings Ltd (DCHL).

City Forests chairman Ross Liddell said he did not want to see assets sold to pay for debt. “I would much prefer capital expenditure slow down within the council. You can sell assets once and you don’t get any income from them in the future . . . [Asset sales] That’s not something that’s coming to Dunedin City Holdings at the moment.”

{continues} #bookmark

Posted by Elizabeth Kerr

29 Comments

Filed under DCC, DCHL, Economics, People, Politics

Stadium: Private sector funding

UPDATED

The Carisbrook Stadium Charitable Trust (CST) states that sources of project funding for design and construction of Forsyth Barr Stadium include:

Private Sector Funding of $31 million (from a total of $45.5 million).

Last week, Guy Hedderwick, commercial manager at Dunedin Venues Management Ltd (DVML), in reply to a question from Cr Lee Vandervis confirmed that the donations total was still “around $330,000”.

Only $330,000 raised of the tens of millions required.

Meanwhile, Dunedin City Council has been forced to raise debt to meet the massive shortfall and is required to pay interest on this debt.

The Carisbrook Stadium Charitable Trust has serious work to do.

The Trust, at its Funders webpage, states the University of Otago will contribute $10.0 million of project funding for stadium design and construction.

Cr Lee Vandervis says “My clear understanding is that the University of Otago is not allowed to fund such things as the stadium, and that not one single dollar of university funding has built the stadium. They have merely built a university building on adjoining land next door.

“While I was on Council in 2007, Malcolm Farry, chairman of the Carisbrook Stadium Trust, said there would be $10m worth of ‘synergies’ between the University Plaza building and the stadium, but when I questioned harder these synergies turned out to be bull-dust.”

Cr Vandervis might care to check the construction and or architectural synergy between the stadium and the university building, and how the associated costs were met.

Posted by Elizabeth Kerr

9 Comments

Filed under CST, DCC, DVML, Economics, People, Politics, Project management, Stadiums

HELP, if the elected Council was bright

The Dunedin City Council faces a financial meltdown of unprecedented proportion; a squalid bankruptcy of governance the cause. No-one knows the true dollar scale of the problem and many of the accounts are closed to public scrutiny.

In the absence of a fully developed all-encompassing strategy to bring order to the books, the implication is the Council will leave it to generations of ratepayers to foot the bills. The cost will be to every citizen. In effect, that’s what the Forsyth Barr Stadium Debt Servicing Plan report to this week’s Finance Strategy and Development Committee says. The dangers of isolationist hands-off thinking.

Warren Larsen Report
Governance review of all companies in which Dunedin City Council and/or Dunedin City Holdings Limited has an equity interest of 50% or more.

From the time Larsen’s recommendations were adopted (Stuff 12.8.11), how long for the Council to ring changes? 6 months, a year? Longer, after the councillors are voted out or forcibly removed?

The lack of outward communication appears contrary to the imperative of Larsen’s report. By now, surely Council has an indicative critical path for release to the concerned public.

What are some ‘unearthing’ options for information?

Pin Mayor Dave Cull for the timeline to effect Larsen recommendations.
Forensic audit.
Statutory management.
Commissioner / Panel.
Legal action.
Independent senior business commentators to talk through details of logistical steps Council must take (in response to Larsen) to get its books in order – to avoid and retire cumulative debt, at the same time manage/streamline all Council business.

It’s all about a local authority corporate re-structure, involving large sums of borrowed money to clear. It includes identifying elements of usury, mis-spending, laundering, corporate fraud, deceit, ignorance, and incompetence; and, above all, hammering with all firepower what continues as Council’s unethical immoral avoidance of the fiduciary duty of care to Community.

A clear interpretation of what is now, what has been, and what lies ahead will be difficult if not impossible to achieve while obfuscation continues at DCC, DCHL, DVML, DVL, CST, and related entities.

It’s a chill air at Dunedin.

Posted by Elizabeth Kerr

27 Comments

Filed under DCC, DCHL, Economics, People, Politics, Project management

Your City What Future $$$$$$$$$$ ? (broke Council means corporatising OUR water doesn’t it)

Dunedin City Council
Media Release

Your City Our Future – The Community Identifies Priorities For Dunedin’s Future

This item was published on 19 Aug 2011.

As part of the community-wide consultation programme, “Your City Our Future” (YCOF), a questionnaire was sent to every household with ‘City Talk’ in June 2011. The questionnaire asked the community to indicate what spending priority should be given to a number of discretionary activities. 4,340 valid responses were received by the Council.

Overall, the community ranked 46 areas of discretionary expenditure as medium to high spending priorities. The areas which were identified as the highest spending priorities were:

• Advocating for the retention of our hospital and medical research capacity;
• Encouraging employment opportunities for everyone;
• Ensuring Dunedin maintains its reputation as a leading provider of education services; and
• Promoting Dunedin to attract visitors, workers and investors.

The areas which were most commonly identified as ‘top three spending priorities’ in the open data collection were:

• Employment and jobs;
• Reduction of rates and spending;
• Public transport;
• Supporting businesses and industries; and
• Learning and education.

The areas most commonly identified as ‘other factors the Council should consider’ in the open data collection were:

• Improving public transport services (cheaper fares, bus frequency and timetable, bus sizes, bus routes, bus shelters, etc.);
• Improving railway services (trams/cable cars, passenger rail, freight, etc.); and
• Supporting home-owners to make homes warmer, healthier and cheaper to heat.

In order to overcome possible issues of bias associated with surveys where respondents ‘self select’, a telephone survey was also be undertaken in June 2011 of a random sample of 380 households. The Council is satisfied that the results from the telephone survey have validated the results from the questionnaire.

Mayor Dave Cull says, “When we first launched YCOF in 2010 I said this programme takes an holistic view of the city and it is important that the community plays an active part in shaping that view. These results suggest a large number of Dunedin residents took the opportunity to do just that. I’m looking forward to building on the work that has already been done, and helping to shape Dunedin into the city our community wants it to be.”

The YCOF results will guide the Council and DCC staff when considering the priorities for discretionary spending over the next ten years.

Contact Dave Cull, Mayor of Dunedin on 477 4000.

DCC Link

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### ODT Online Sat, 20 Aug 2011
Councils in talks on buses
By Chris Morris
The Dunedin City Council is considering a possible takeover of the Dunedin public transport network from the Otago Regional Council, which could pave the way for an overhaul of the service.

The news was confirmed by Dunedin Mayor Dave Cull yesterday, as results of the council’s Your City, Our Future survey sent to households across the city showed strong public support for such a move. Mr Cull said the survey results and other feedback meant the community had “obviously signalled” its desire for a better service, beginning with a transfer of responsibility for the network, and “we’re considering it”. Preliminary discussions with ORC chairman Stephen Woodhead about a possible takeover had been under way for several months, Mr Cull said.

Read more

Posted by Elizabeth Kerr

93 Comments

Filed under Economics, People, Politics