Tag Archives: Debt CRISIS

DCC debt

### stuff.co.nz Last updated 05:00 11/03/2012
Politics
Councils borrowing billions
By Lois Cairns
Local councils have clocked up $1606 in debt for every man, woman and child in New Zealand at a time when the amount they expect people to pay in property taxes is rising steeply. Government figures released to the Sunday Star-Times show local councils are charging, per capita, an average of $951 in rates and that nationally, rates have risen an average of 7 per cent a year for the past decade. Over the same period council debt has ballooned from $1.8b to $7b.

Local Government Minister Nick Smith is worried councils are stretching themselves too far and has signalled changes to the sector. He is set to deliver policies in the next two months so local government can control costs and keep rate rises in line with the Consumer Price Index (CPI), which has risen by around 2.2 per cent per annum over the past decade.

Read more

****

The SST cites Council debt per capita eg Kaipara District $4142; Dunedin City $1920 (Source: Statistics New Zealand)… making DCC almost look good by comparison.

The problem with this is it’s not showing up Dunedin’s average debt per ratepayer at a massive $11,056 to 30 June 2011, compared to Kaipara at $4,395 – also derived from councils’ audited annual reports. See Russell Garbutt’s comment https://dunedinstadium.wordpress.com/2012/02/21/kaipara-this-time/#comment-22152

Lois Cairns for SST has gone off message for Dunedin’s debt crisis by using the alternative set of stats.

Dunedin City’s average debt per ratepayer currently sits at est. $16,000. Note the escalation from 30 June.

Related Posts:
9.3.12 DCC considers writing off ORFU’s $400,000 debt
4.3.12 The Press: fresh doubt on economic viability of stadium
27.2.12 DCC Statement of Public Debt Summary as at 31 December 2011
21.2.12 Kaipara this time
26.1.12 Stadium debt goes to 40-year term
17.1.12 DCC living beyond its means [all spending and debt not declared]

Posted by Elizabeth Kerr

10 Comments

Filed under Business, CST, DCC, DCHL, DVL, DVML, Economics, Media, ORFU, Politics, Project management, Sport, Stadiums

The Press: fresh doubt on economic viability of stadium

The city’s flash stadium and soaring debt highlight growing unease at local authority borrowing.

### stuff.co.nz Last updated 10:14 04/03/2012
A new house of pain for Dunedin
City’s spending in the spotlight
By Lois Cairns – The Press
Dunedin city’s finances are in the spotlight as the collapse of the Otago rugby union throws fresh doubt on the economic viability of its swanky stadium – which ratepayers will spend the next 40 years paying for. Dunedin’s overall debt has increased 1700 per cent to $586 million since 2000 and frustrated ratepayers say the debt carried by the council is too high for a city of Dunedin’s size and that unchecked spending, in particular on the controversial stadium, has saddled them with an unfair financial burden. The Dunedin City Council has ordered an independent review of the final cost of the Forsyth Barr Stadium in response to a report which raised serious questions over the amount it spent on the venue. Forensic accountants from PricewaterhouseCoopers are now combing through all the contracts and bills for the stadium to determine exactly how much money has been spent above the $198m budget. Russell Garbutt, the former chairman of Sport Otago, has been an outspoken critic of the council’s decision to fund the stadium, and said it was clear from day one the venture would be a financial disaster.
Read more

Posted by Elizabeth Kerr

10 Comments

Filed under Business, Construction, CST, DCC, DCHL, DVL, DVML, Economics, People, Politics, Project management, Property, Site, Sport, Stadiums

Out now! Dunedin Maritime News

One man goes home happy, Calvin Oaten reports.

“Never mind sport and FIFA, it is the summer cruise season and I have just received in my letter box a brochure from the Dunedin Adventure Cruise Line. On the cover is a “Happy Holidays” etched in the sand. It is of course only as good as the next tide.”

A comforting read…

Posted by Elizabeth Kerr

3 Comments

Filed under DCC, DCHL, DVL, DVML, Economics, Geography, Hot air, People, Politics, Project management

Something hyped in the news

It might’ve been the stadium and a very small sample of businesses that got any financial benefit.

Not worth writing about.

The stadium hasn’t been paid for. Cr Staynes is a chump.



Posted by Elizabeth Kerr

28 Comments

Filed under CST, DCC, DCHL, Economics, Geography, Hot air, People, Politics, Project management, Site, Sport, Stadiums