Tag Archives: Dunedin City Treasury Ltd

DCC’s debt level — who do you believe?

Updated post 7.7.14

### ODT Sat, 5 July 2014 (page 34)
Opinion: Letters to the editor
Drastic action urged on DCC’s debt level
The recent Ratepayers Report on New Zealand councils’ relative financial performance makes for sobering reading for Dunedin’s 53,266 ratepayers. The Dunedin City Council’s debt per ratepayer of $15,093 is nearly the highest in New Zealand and is exceeded only by Auckland.
The DCC is amongst New Zealand’s worst-performing councils in terms of operating expenditure at $6885 per ratepayer, well ahead of the national average of $3175 per ratepayer. DCC employee expenditure per ratepayer is $1783, which is three times the national average.
It’s hard to believe Dunedin was once famous for thrift and living within its means. Mayor Cull and the new CEO Sue Bidrose must wake up and make some drastic cuts as soon as possible, given the DCC’s shocking performance compared to most other local authorities.
T. Stevens, Dunedin

[Dunedin City Council group chief financial officer Grant McKenzie replies: “The figures quoted by your correspondent are for the group position of councils and highlight the fact the Dunedin City Council has significant other assets (Aurora Energy Limited, Delta Limited, City Forest’s Limited and Taieri Gorge Railway Limited). The actual asset value for the group is in excess of $70,000 per ratepayer.
“For Dunedin, the average rates bill is $1750, which is the 13th-lowest of all the councils and reflects the benefits we receive from the wider DCC group.”]

I note Grant McKenzie leaves off mention of the stadium companies DVML and DVL, which are now part of DCHL, and the effect of their growing debt on the council’s overall position. And what of all misappropriation of funds and serious fraud at DCC, DVML and CST still to be revealed, you have to ask.

█ Ratepayers Report at http://www.ratepayersreport.co.nz/

Larry Mitchell’s opinion of DCC’s reply to T. Stevens would be interesting – further, it’s not like other councils don’t have their own companies or significant and strategic assets.

█ Then to blow everything out of Otago Harbour there’s DCC’s exposure to global markets through borrowing – see new comment by Rob Hamlin.

Related Post and Comments:
12.6.14 Fairfax Media [not ODT] initiative on Local Bodies

Posted by Elizabeth Kerr

21 Comments

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QB 2014 gongs of ill-repute #Hudson COI = MNZM

(via ODT) Mon, 2 Jun 2014
Southern Queen’s Birthday Awards recipients

paul-hudson copyPaul Hudson
Dunedin
Services to business and the community

Paul Hudson (65), of Port Chalmers, said that he was “humbled and honoured” for the recognition of his involved with commerce, local government and the community in Dunedin for 50 years.
He worked for Cadbury Fry Hudson between 1973 and 1996 and, as managing director, led Cadbury’s transition to conducting its worldwide business from centralised locations.
He held elected positions on Port Chalmers and Dunedin City Councils between 1980 and 2013, including deputy mayor on both councils.
He was chairman of Dunedin City Holdings, Citibus-Dunedin Transport Ltd and Citiworks, and a board member of City Forests, Aurora Energy and Delta Utility Services.
He was chairman of Dunedin City Holdings for 18 years, when shareholder funds increased from $100,000 to more than $150 million and distributions to Dunedin City Council totalled more than $280 million.
He was council appointee for the Otago Theatre Trust, Dunedin Public Art Gallery Society and its acquisitions committee and the Dunedin Town Hall Organ Trust.
He was appointed treasurer to the Otago branch of the Save the Children Fund 50 years ago. “This was the beginning of my lifelong interest in serving the community.”
The service to the community included work for Port Chalmers Kindergarten, the Aramoana Trust, Regent Theatre, the Otago Arts Society, the Dunedin Council of Social Services and the Dunedin Community House Trust. “My involvement with the establishment of Community House, my early years in Save the Children Fund and various roles and involvement in local government have been very satisfying,” he said.

[ends]

DECLARATION
“I, Paul Richard Hudson, do solemnly declare I did not squander ratepayers’ money for the chance to receive specific mention in the freshly minted report of the Office of the Auditor-General’s investigation into Delta (2014). Nor at any time did I place or declare my Conflicts of Interest ahead of my ability to be judge and jury at DCHL and other council-owned companies, so to infuriate Warren Larsen (Report, 2012). I did not personally receive ANYTHING by way of payment for termination of lease of restaurant space in the Municipal Chambers. And, I am not at all obsequious, a fence-sitter — or, make that slimy.” … “Honest.”

Related Posts and Comments:
8.11.13 DCHL, long wait for review (Larsen sighs)
23.8.13 New DCHL Chair announced: Graham Crombie
24.7.13 DCC / DCHL shake up !!!
12.7.13 Hudson, DCC (ex DCHL)
7.7.13 DCHL changes lack transparency —where’s the report, Shale?
30.10.12 DCHL ‘run by a bunch of fools’ -agreed
26.10.12 DCHL borrowed $23 million to bail DCC
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
17.10.12 DCC on DCHL, subsidiaries and DCTL
12.10.12 DCHL, subsidiaries and DCTL
30.8.12 Dunedin City Council seen by Fairfax Business Bureau deputy editor Tim Hunter
7.8.12 DCC, DCHL, debt, democracy (and professional rugby)
20.12.11 Delta and the GOBs #DCHL #DCC
28.10.11 DVML, DVL and DCHL annual reports
16.9.11 DCHL and subsidiaries: shuffling, no real clean out?
13.8.11 Ridding DCHL of conflicts of interest, Otago business monopoly ‘by director’, and other ghouls
9.2.11 DCC and DCHL, was there ever any doubt?
7.10.10 The time has come for biffing out
7.7.10 DCC, DCHL, CST, DVML, DVL?
22.10.09 DCHL chief executive replies to critics

Posted by Elizabeth Kerr

33 Comments

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DCC: Another deadweight pro-stadium councillor #Whiley

Cr Andrew Whiley, isn’t feeling well.
“The impact of this stadium is huge and Dunedin residents need to embrace it and treat it as the asset it is.”
He mentions an economic “win”. —Cough, cough. Strangled cry.
Poor man hasn’t done the sums.

Myth or fancy, “Whiley for Mayor (if Daaave is tired)”……

Rest assured, Cr Whiley, in another sense, that thinking indebted city ratepayers and residents KNOW the impact of the stadium is huge. Moreover, there’s absolutely no doubt they embrace it for WHAT it is.

No. The mayoralty is not for you, Cr Whiley.
You have lined up your ducks as a one-term councillor ONLY.

ODT 30.5.14 Letters to the editor MacDonald, Whiley (page 12)ODT 30.5.14 Letters to the editor (page 12) [click to enlarge]

Garrick Tremain 30.5.14 [garricktremain.com] 1Meanwhile, another score against the edifice.
(again!)

Garrick Tremain – 30 May 2014 [view fullsize]

Posted by Elizabeth Kerr

21 Comments

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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)

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

Posted by Elizabeth Kerr

35 Comments

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Decisions . . .

Patriot Hawgrider (@dale42860) tweeted at 9:37 PM on Thu, Apr 24, 2014:
pic.twitter.com/Bs18b7LWHs

Organised crime (via Patriot Hawgrider @dale42860)

Posted by Elizabeth Kerr

2 Comments

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DCC: Hospital area parking changes #cyclelanes

Parked cars 1

Dunedin City Council – Media Release
Parking Changes for Hospital Area

This item was published on 14 Jan 2014.

Some changes to on-street parking outside Dunedin Hospital are coming soon as part of measures to improve cyclist safety. The changes will occur in the block of Cumberland Street between Hanover and Frederick Streets and should be implemented in late January/early February.

Dunedin City Council Senior Traffic Engineer Ron Minnema says, “The objective of the changes is to reduce the risk to cyclists by reducing the number of conflicts between vehicles manoeuvring into car parks and northbound cyclists.”

The changes will also complement the wider cycle lanes. The changes involve increasing the maximum time period on the 13 pay and display parks from four hours to all day, removing the bus stop, installing no stopping lines immediately south of the entrance to the Hospital car park and construction of two extra mobility parks. That will mean there will be four mobility parks (two more than at present) and 2 P5 parks (one less than at present).

The Southern District Health Board, the NZ Transport Agency, the Automobile Association and the Otago Regional Council have been consulted about the parking changes, Mr Minnema says. The changes, which are part of short-term safety measures to improve cyclist safety in the central city, were discussed by the Council in May 2013.

Once the changes have been made, the DCC will monitor the on-street parks outside the Hospital on Great King, Hanover and Frederick Streets. The results will be discussed with the Health Board to determine whether any further changes are required on these streets.

Earlier in 2013, minor changes to parking took place at 17 sites in the central city. All these parking changes are in response to the Council in November 2012 asking the NZ Transport Agency to identify short-term measures to improve cyclist safety, as well as developing a long-term plan with the same vision.

Part of the long-term plan is a separated cycle lane proposal which involves two preferred long-term options for improving the safety of Dunedin’s one-way sections of State Highway 1. Consultation on this proposal closed on 6 December last year.

Contact Senior Traffic Engineer on 03 474 3706.

DCC Link

Related Posts and Comments:
5.1.14 Norman Foster: SkyCycling utopia above London railways #ThinkBig
24.12.13 Daaave’s $47 million Christmas present to Jinty. We’re paying.
4.12.13 Dunedin cycleways: Calvin Oaten greeted by DCC silence
17.11.13 Dunedin cycleways: Calvin Oaten’s alternative route
17.11.13 Cull and MacTavish… “Have you fixed the debt crisis?”
14.11.13 Cycle lane explosions and puncture kits (SPOKES grenades launch)
8.11.13 Dunedin Separated Cycle Lane Proposal [how to make a submission]
5.11.12 DCC, NZTA: Cycle lanes controversy
19.10.13 Cycle lobby games and media tilts
24.9.13 Mediocrity and lack of critical awareness at DCC [council reports]
8.7.13 Bloody $tupid cycleways and Cull’s electioneering . . . [route maps]
28.3.13 DCC DAP 2013/14: Portobello Harington Point Road Improvements
26.2.13 DCC binge spending alert: Proposed South Dunedin cycle network
22.2.13 DCC: Council meeting agenda and reports for 25 February 2013
31.1.13 Who? 2010 electioneering
21.11.12 Safe cycling -Cr Fliss Butcher

Posted by Elizabeth Kerr
 

127 Comments

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Sue Bidrose, DCC chief executive

Sue Bidrose 3 [dunedintv.co.nz] whatifdunedin

Channel 39 imagines that the city council’s finances have been “put in order” – proof the station isn’t investigative or breathing oxygen.

### dunedintv.co.nz December 24, 2013 – 2:05pm
Sue Bidrose
The Dunedin City Council had some turnover at the top late this year, after chief executive Paul Orders announced he was moving back to Wales after a two year stint. Orders’ time at the top was widely acknowledged as a period in which the council’s finances were put in order. The search to replace him resulted in a promotion from within.
Sue Bidrose took on the role in charge of more than 600 staff who run everything from rubbish collection to civil defence to economic development.
She came into the studio for a chat with chief reporter David Loughrey on subjects from motorbikes to stadiums to public service.
Video

Posted by Elizabeth Kerr

*Image: dunedintv.co.nz – Sue Bidrose, screenshot (re-imaged by whatifdunedin)

11 Comments

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Daaave’s $47 million Christmas present to Jinty. We’re paying.

Cycle lane 2 copySOLD OUT: Santa’s in the vocal minority

ODT 14.11.13
OPINION: Cycleways and parking issues
Dunedin City Councillor Jinty MacTavish is happy the cycleway proposal has sparked discussion, but wants to keep the conversation grounded in fact. Cont/

Comment to article:
DCC’s +$47M cycleways project
Submitted by ej kerr on Thu, 14/11/2013 – 11:13pm.
Cr MacTavish has better things to do. She knows it. Her job as a city councillor is to take the air out of her various tyres and acknowledge that her loose-assemblage greenwash ‘political party’ should stop its spendthrift ways. Far better that they bend over backwards on quickly retiring the council’s +$623M consolidated debt. A harder workout than cruising on SH1 with the wind up their tails.

Reply:
Cycleway clarifications
Submitted by Jinty MacTavish on Fri, 15/11/2013 – 11:41am.
It’s an unfortunate urban myth that the DCC intends to spend $47M on cycleways, which seems to have originated from this article which double-counted the cost of a bunch of projects. I’ve asked staff to send through the breakdown and will post again here when I have the full details in front of me. Cont/

Discussion at What if? Dunedin:
JimmyJones
Submitted on 2013/11/17 at 9:25 pm
Sustainable Jinty commented in the ODT article referred to and said It’s an unfortunate urban myth that the DCC intends to spend $47M on cycleways, which seems to have originated from this article which double-counted the cost of a bunch of projects. I’ve asked staff to send through the breakdown and will post again here when I have the full details in front of me.
Here we see her claiming that the $47 million is a myth and that it has been wrongly calculated. She says this while not having the actual figures and not even knowing where it came from.
The figure actually came from the DCC at a forum in May this year involving the DCC and the NZTA ODT: City to lead country in cycle safety. We were told:
Dunedin is set to lead the country in cycle safety.
Projects worth more than $47 million will form a cycle network unlike any other within urban New Zealand, those at a forum in Dunedin heard last night. Mayor Dave Cull welcomed the almost 100 people present and explained why cycle infrastructure deserved significant investment.

It is clear that Jinty lied to us about the double counting. The figures are in the article, and there is no double counting. There is also no double counting in Jinty’s figures, because she doesn’t have any. Her attempt to discredit and minimize this estimated cost of bicycle projects has failed. Note how she re-interprets the claim as being DCC-only spending, whereas the claim has always been DCC + NZTA spending (Straw man). Richard Thomson on Radio Dunedin has been up to the same mischief (12/11/13). I say “mischief” but these statements could be offences against the Financial Reporting Act or other legislation. In any case this is very disappointing because the misinformation seems intentional. Desperation breeds dishonesty.

Reply:
Elizabeth
Submitted on 2013/11/17 at 10:38 pm | In reply to JimmyJones.
JimmyJones, I looked upon Cr MacTavish’s comment on the $47 million (in reply to a comment I made at ODT)… with sheer incredulity. I couldn’t believe what I was reading so didn’t even bother to reply.
However, glad you brought it up. You correctly place the councillor’s comment in context here and of course (!!!) what she says does not shine in a pure angelic or intelligent light. The quality of her ‘homework’ has dropped out the bottom, as ’twere.
Well done, JJ.

Related Post and Comments:
17.11.13 Cull, MacTavish: (to borrow a phrase) “Have you fixed the debt crisis?”

Posted by Elizabeth Kerr

59 Comments

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DCC, Dunedin City Treasury and 3 big banks [Interest Rate Swaps]

WHICH THREE BANKS, DCC ??????

Comments received.

Rob Hamlin
Submitted on 2013/12/17 at 3:02 pm

As some of you may recall I have been very interested in DCTL and its large gains and losses on interest rate swaps. The following article http://nz.finance.yahoo.com/news/comcom-issue-proceedings-against-asb-194400510.html describes today’s announcement by the Commerce Commission to investigate ANZ, ASB and Westpac for mis-selling interest rate swaps to farmers – causing massive losses to these borrowers.

My interest has been further piqued by the arrangement between DCTL and three ‘independent’ banks called a ‘secured multi-option note facility’ within which these swaps are sold to DCTL by said ‘independent’ banks. The ‘secured’ as I have mentioned previously involves an ‘on call’ capital commitment by DCC to DCTL that has been deliberately put in place to circumvent Section 62 of the Local Government Act, which specifically prohibits council guarantees to trading companies. At $850 million of capital (which the DCC does not have), this amounts to some $17,000 for every ratepayer in this city – and you are liable for it.

As I have mentioned before, the very large annual fluctuations in gains and losses reported by the DCC due to interest and currency derivative exposure indicates that the DCC, via its $850 million guarantee to DCTL, is very deep indeed into this particular festering pile of poo.

I have lodged an LGOIMA request with the DCC for the identity of the three banks who are in the ‘secured variable rate note facility’ swap fest with DCTL. However, my unofficial sources indicate that the membership may be between 67% and 100% in common with the three banks mentioned in the ‘Stuff” report on large-scale interest rate swap mis-selling – Time will tell. But might be an idea to find the hammer and your piggy bank.

****

Russell Garbutt
Submitted on 2013/12/17 at 4:13 pm

Rob, I simply cannot understand the role of the OAG in all of this. The OAG provides auditing services to the Dunedin City Council and is supposedly the watchdog that ensures things are all tickety-boo in City Hall. But as we have already seen in the Kaipara case that the OAG now says that it is terrible that all of this borrowing took place, but that THEY ARE NOT ACCOUNTABLE. Surely to goodness that they have seen the actions of the CFO of the DCC to subvent the point and purpose of Section 62 of the LGA. Equally puzzling is how they have not been warning of the ramifications of these infernal legalised Ponzi schemes as they have been described elsewhere.

I distinctly remember the sacked Athol Stephens explaining to me in his office that many of the financial dealings of the DCC were to avoid tax liabilities. Athol was both a Director of a Council Board and an employee of the Council as I recall at the time.

There is enough smell round this issue to warrant a lot of interest by the OAG and the mainstream media, but sadly it is just too plain in the case of the OAG that they really aren’t interested in pursuing anything that would show that they themselves have been slack and incompetent, nor are they interested in pursuing anything that involves them in any serious work.

In the case of the media, it’s all just too hard. TV simply isn’t capable and is more interested in turning news into entertainment, and the financial reporters in the papers can’t seem to get their heads round anything substantial.

A case of the fox inside the henhouse and another one on the outside, looking out for the farmer.

Posted by Elizabeth Kerr

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Highlanders “Buy Us” entertainment: Obnoxious, noxious PROFESSIONAL RUGBY —stay away DCC !!!

One other possible investor could be Dunedin Venues Management Ltd as a shareholding in the Highlanders would keep the side playing at Forsyth Barr Stadium for the foreseeable future. –Steve Hepburn

### ODT Online Wed, 11 Dec 2013
Rugby: ORFU keen to be stakeholder in privatised Highlanders
By Steve Hepburn
The NZRU said yesterday the Highlanders were being considered for privatisation next year. The Otago Rugby Football Union is keen to be a stakeholder in the southern franchise, but whether the union has the financial muscle to get involved is still open to question although any discussion is months away.
Read more

DVML is drowning in debt and is on shaky management ground (there is more to say about that in coming days).

ORFU is the entity DCC has continually ‘helped’ to the tune of hundreds of millions of dollars over a considerable number of years without qualification, openly, illicitly — without the required checks and balances in place to conservatively and prudently manage ratepayer funds — DCC has been the unsanctionable open chequebook of assistance to a fraudulent sporting regime.

No doubt Mr Mayor Rugby-is-Us Cull (with ex Cr Brown and the like pulling strings), the DVML Boys, and the money-laundering GOBs of Dunedin… will want to buy a rugby team. Because the GOBs/ORFU sure as hell did not buy the stadium – they connived and deceived to have it gifted by all ratepayers and residents such that the city council’s consolidated debt is $623 million and rising. They haven’t raised the (conditional) $45 million in private sector funding they promised to the stadium construction project. And now, they want MORE.

Disgusting.

█ ODT 11.12.13 A levelled playing field – the end of Carisbrook

Posted by Elizabeth Kerr

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DCC putting up cover, walls paper thin [risk exposure VERY HIGH]

Don’t believe the garbage. The garbage was built by Dunedin City Council, Dunedin City Treasury Ltd, and Dunedin City Holdings Ltd. The City (again) is slapped by a wet Standard & Poor’s bus ticket.

It is not difficult to fathom that the situation with the City’s finances is far worse than at Kaipara District Council.

The Dunedin City mayor and councillors are mostly TOO STUPID to know any different than to grant applause – the Lunatics have taken over the Asylum, NOT the conservative and prudent management of the City’s finances.

Not one Lunatic City Councillor has any idea of the exact state of the City finances, of the exact type of financial instruments being used to ‘support’ +$623 MILLION of council consolidated debt, or of the exact risk exposure compounding by those instruments. The Lunatics actually believe as gospel truth Standard & Poor’s credit rating report (“stable”). Oh. My. God.

Lunatic Mayor and Councillors’ ability to apply powers of discovery, analysis and interpretation to the City’s financial instruments and the degree of risk exposure — with ultimate effect on Ratepayers and Residents — is a difference not unlike that of a nuclear scientist and a child rolling snow balls. RIP DCC. While the new apprentice CEO smiles.

Here are the white lies in writing:

Dunedin City Council – Media Release

Improved Financial Rating Outlook for DCC
The Dunedin City Council’s consistent efforts to achieve its financial targets have been rewarded

This item was published on 09 Dec 2013.

In a Research Update released today, Standard and Poor’s (S & P) has revised the DCC’s outlook to stable, taking the organisation off a negative outlook. It confirmed an AA long-term and A-1+ short-term issuer credit ratings. Mayor of Dunedin Dave Cull says the announcement is great news.

“This is an acknowledgement of the continued hard work by elected members and staff to reduce operational spending and debt levels.”

In November 2012, S & P confirmed the DCC group credit rating at AA long term and A-1+ in the short term, but put Dunedin on a negative outlook. This was not a downgrade, but the agency made it clear the DCC needed to follow through with its tough financial targets. In its 2013 update, S & P states the outlook revision to stable reflects the DCC’s improved liquidity and budgetary performance.

“We expect these improvements to be sustained, allowing Dunedin to reduce its debt burden.”

The agency also considered the likelihood of significant adverse findings from the Auditor-General’s inquiry into Delta Utility Services Ltd (a DCC company) to be low.

“The ratings reflect our view of New Zealand’s predictable and supportive institutional framework, plus our very positive view of Dunedin’s financial management, and the council’s strong budgetary performance. The outlook revision reflects Dunedin’s improved liquidity and budgetary performance, which we expect to be sustained, allowing Dunedin to reduce its debt burden.”

The revised outlook was announced at today’s full Council meeting, where a vote of thanks to staff was recorded, amid applause. S & P is expected to release its full report in about a week.

Contact Mayor of Dunedin on 477 4000.

DCC Link

Via ODT (and DCC Spooks):

DCC’s credit rating up
Dunedin city councillors burst into applause as it was confirmed yesterday international credit agency Standard and Poor’s had lifted its negative outlook for the Dunedin City Council. The news – delivered part-way through yesterday’s full council meeting – also left Mayor Dave Cull claiming vindication despite his critics.
http://www.odt.co.nz/news/dunedin/284751/dccs-credit-rating

Related Post and (fresh) Comments:
3.12.13 LGNZ: OAG report on Kaipara

Posted by Elizabeth Kerr

11 Comments

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DCC: New chief financial officer

### dunedintv.co.nz October 14, 2013 – 6:36pm
DCC appoints new chief financial officer
The DCC has appointed the University of Otago’s director of financial services, a former Allied Press accountant, as its chief financial officer.
Grant McKenzie [ODT files]Grant McKenzie has been chosen for the newly created role, with responsibility for the management of the council’s group finances.
A graduate of the University of Otago, McKenzie has a Bachelor of Commerce, majoring in accounting, is a chartered accountant, and a member of the Institute of Directors.
His role will include the provision of financial advice and support to the board of Dunedin City Holdings Limited, which looks after the council’s group of companies.
Ch39 Link

Dunedin City Council – Media Release
Group Chief Financial Officer Appointed

This item was published on 14 Oct 2013.

The University of Otago’s Director of Financial Services, Grant McKenzie, has been appointed as the Dunedin City Council’s Group Chief Financial Officer (GCFO).

Announcing the appointment of Mr McKenzie to this newly-created role, DCC Chief Executive Paul Orders says, “Grant will bring a wealth of knowledge and experience to the role and will be instrumental in ensuring the effective and efficient management of DCC group finances.”

Mr McKenzie is a graduate of the University. He has a Bachelor of Commerce, majoring in accounting, and is a Chartered Accountant. He is also a member of the Institute of Directors.

For the past eight and a half years, Mr McKenzie has been the University’s Director of Financial Services. In this role he has been responsible for the overall accounting function for the University and the wider University group.

Mr McKenzie is a director for several subsidiary companies within the University group, including the University of Otago Foundation Studies Limited, Unipol Recreation Limited and University Union Limited. He is also an elected trustee of the New Zealand University Superannuation Scheme.

Before working at the University, Mr McKenzie was the Group Accountant at Allied Press Limited. He has also worked for Dunedin business advisory firm Taylor McLachlan.

Mr McKenzie says, ”I’m very pleased to have been appointed to the role and look forward to the new challenges ahead.”

The new position of Group Chief Financial Officer replaces the DCC’s Chief Financial Officer (currently a vacant post),with the role expanded to include the provision of financial advice and support to the Board of Dunedin City Holdings Limited (DCHL). The role will also create more cohesive financial management between the DCC and Dunedin City Holdings Limited. Twenty eight applications were received for the position, from New Zealand and overseas.

DCHL Chair Graham Crombie says, “I’m really pleased Grant is joining us and look forward to having his experience and ideas around the table.”

The current position of Chief Executive of DCHL will be disestablished when Mr McKenzie takes up his GCFO role in late January. Mr Crombie says the significant contribution of DCHL Chief Executive Bevan Dodds will be recognised and an appropriate handover arranged.

Contact Chief Executive, Dunedin City Council on 477 4000.

DCC Link

Related Posts and Comments:
21.3.13 DCC: Opportunity created by Stephens’ departure
15.3.13 DCC: Stephens gone. It took way too long.

Posted by Elizabeth Kerr

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World economy explained with two cows

[Almost no-one dares mention the name of the former CFO in the definition of Venture Capitalism for reasons that the bovine defendant “has a fiduciary duty to his fellow members of council” and the council has been required all the while to collect higher taxes.]

Received.
Monday, 22 July 2013 9:46 p.m.

Two cows (crop)

SOCIALISM
You have 2 cows.
You give one to your neighbour.

COMMUNISM
You have 2 cows.
The State takes both and gives you some milk.

FASCISM
You have 2 cows.
The State takes both and sells you some milk.

BUREAUCRATISM
You have 2 cows.
The State takes both, shoots one, milks the other and then throws the milk away.

TRADITIONAL CAPITALISM
You have two cows.
You sell one and buy a bull.
Your herd multiplies, and the economy grows.
You sell them and retire on the income.

VENTURE CAPITALISM
You have two cows.
You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows.
The milk rights of the six cows are transferred via an intermediary to a Cayman Island Company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company.
The annual report says the company owns eight cows, with an option on one more.

AN AMERICAN CORPORATION
You have two cows.
You sell one, and force the other to produce the milk of four cows.
Later, you hire a consultant to analyse why the cow has died.

A FRENCH CORPORATION
You have two cows.
You go on strike, organize a riot, and block the roads, because you want three cows.

AN ITALIAN CORPORATION
You have two cows, but you do not know where they are.
You decide to have lunch.

A SWISS CORPORATION
You have 5,000 cows. None of them belong to you.
You charge the owners for storing them.

A CHINESE CORPORATION
You have two cows.
You have 300 people milking them.
You claim that you have full employment and high bovine productivity.
You arrest the newsman who reported the real situation.

AN INDIAN CORPORATION
You have two cows.
You worship them.

A BRITISH CORPORATION
You have two cows.
Both are mad.

AN IRAQI CORPORATION
Everyone thinks you have lots of cows.
You tell them that you have none.
Nobody believes you, so they bomb the crap out of you and invade your country.
You still have no cows but at least you are now a Democracy.

AN AUSTRALIAN CORPORATION
You have two cows.
Business seems pretty good.
You close the office and go for a few beers to celebrate.

A NEW ZEALAND CORPORATION
You have two cows.
The one on the left looks very attractive.

A GREEK CORPORATION
You have two cows borrowed from French and German banks.
You eat both of them.
The banks call to collect their milk, but you cannot deliver so you call the IMF.
The IMF loans you two cows.
You eat both of them.
The banks and the IMF call to collect their cows/milk.
You are out getting a haircut.

AN IRISH CORPORATION
You have two cows
One of them’s a horse!

[ends]

Posted by Elizabeth Kerr

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DCC —It took way too long

Received from Russell Garbutt
Fri, 15 March 2013 at 7:49 AM

Well, it seems to have taken a while to happen, but happen it nevertheless has. Until the full wording of the joint statement issued by Paul Orders and Athol Stephens can be studied a little more closely, one can only assume that Mr Stephens has left the Council’s employ in a manner rather similar to that when Jim Harland suddenly found a desire to cease being the DCC CEO on the election of a new Mayor.

While Mr Stephens is quoted as being proud of what he has achieved and rates his time with others in the DCC as being a time of “great progress in the city, that had left the city with a ‘magnificent collection of modern community assets”, others may care to describe his time over recent years in more critical terms. There is no doubt whatsoever that Mr Stephens has, in his role of Chief Financial Officer, fostered, encouraged, or stood by, when financial prudence simply flew out the window. The current level of debt alone is a measure of the financial performance of the City, and while Councillors have the final say in the governance of the City, Mr Stephens occupied a central, crucial role in setting out strategies that resulted in this astronomical growth in debt levels. I don’t think we have yet seen the full extent of the financial dealings that has been carried out behind the scenes. Money has been spent far faster than it has been earned and that money has had to come from somewhere. Whether it has been by the issuing of guaranteed bonds offered at extraordinary rates to still anonymous investors, or by dabbling in the murky, wide-boy areas of interest rate swap derivatives, all this activity has been overseen by Mr Stephens. He has also had a role in overseeing, by his previous membership of a number of Boards of City owned entities, the troubling and frankly stupid practice of borrowing to pay dividends.

It is also illuminating that once again Cr Syd Brown rises to offer the mandatory words of praise. Cr Brown was a major figure in the governance of the Council overseen by Mayor Chin, that was the body ultimately responsible for the financial stupidity that has resulted in “a magnificent collection of modern community assets”. While many would argue convincingly that most of that last Council – indeed most of the current Council – wouldn’t have a clue what was in the papers and reports that was set before them, a small few knew exactly what was happening. Indeed, as I’ve often said before, it took about 20 people in this City to determine to build the new rugby stadium against every indicator that it would be, and remain, a financial disaster, and against the wishes of the wider community. Mr Stephens was one of those 20, as was Cr Brown.

[ends]

### ODT Online Fri, 15 Mar 2013
Council head in quick exit
By Debbie Porteous
Dunedin City Council senior finance manager Athol Stephens has quit and will clear his desk today after the shock announcement yesterday of his departure.
Read more

Posted by Elizabeth Kerr

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Delta purchases | Vandervis OAG complaint accepted

Read latest comments at this thread

### ODT Online Mon, 12 Nov 2012
Councillor lodges Delta purchase complaint
By Simon Hartley
A complaint has been lodged with the Office of the Auditor-General by Dunedin city councillor Lee Vandervis over Central Otago subdivision purchases which soured and left the council millions of dollars out of pocket.

DCC infrastructure company Delta bought part of a subdivision in Luggate in July 2008, and another at Jacks Point, near Queenstown, in May 2009, but their value has subsequently been written down by millions of dollars.

In mid-October, the DCC announced a $9 million write-down of Delta investments, including the subdivisions, which contributed to the Dunedin City Holdings Ltd (DCHL) group of companies’ booking a $5 million loss for the year to June.
Cr Vandervis claims pre-purchase details of the Jacks Point and Luggate subdivision acquisitions, plus details of City Forests’ mothballed wood-processing plant at Milburn, are being withheld from him.
Cr Vandervis contacted the Otago Daily Times yesterday, saying the Office of the Auditor-General had accepted his complaint and it had been passed on to its investigation unit, but he was yet to hear if the OAG would launch a full investigation.
Read more

A copy of the formal complaint was forwarded to What if? Dunedin on Thursday, 8 November 2012.

Fairfax | DScene publishes Cr Vandervis’ questions (page 3):

Mayor sees red over Vandervis questions (ODT, 30.10.12)

Related Posts:
31.10.12 Dunedin City Council – all reports posted, belatedly!
30.10.12 DCHL ‘run by a bunch of fools’ -agreed
26.10.12 No cloud has lifted off DCC, the sins are too great and numerous
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
26.10.12 DCHL borrowed $23 million to bail DCC
17.10.12 The only thing up…. (for sale)
17.10.12 DCC on DCHL, subsidiaries and DCTL
12.10.12 DCHL, subsidiaries and DCTL
28.9.12 The End of The Golden Weather?
11.9.12 Delta Utility Services Ltd
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
24.8.12 Dunedin’s 3 waters, no CCO
16.8.12 Dunedin water assets
29.3.12 Dunedin City Council company sponsors Highlanders
7.3.12 DScene: Call for full inquiry into stadium project
20.12.11 Delta and the GOBs #DCHL #DCC
18.11.11 Delta rebrand
29.7.11 WE ALL SAID IT #DunedinCityCouncil #SHAME
9.2.11 DCC and DCHL, was there ever any doubt?
26.8.09 DScene: Delta, STS, DCC larks
9.7.09 Delta dawn what’s that flower…

Posted by Elizabeth Kerr

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Afternoons with Jim Mora: The Panel today [DCC interest rate swaps]

### radionz.co.nz Monday 5 November 2012
Afternoons with Jim Mora
http://www.radionz.co.nz/national/programmes/afternoons

The flirtations of our local bodies with money mechanisms on money markets that may be getting ratepayers into schtuck.

16:35 The Panel with Garry Moore and Finlay MacDonald (Part 2)
Topics – Every schoolboy used to know that, at the height of the empire, almost a quarter of the atlas was coloured pink, showing the extent of British rule. An Otago University academic says Dunedin ratepayers should be very concerned about losses on interest and currency swap schemes that appear in the council’s annual report. Millionaire Kim Dotcom would be putting his money where other investors wouldn’t if he goes ahead with plans to relaunch Pacific Fibre, according to Prime Minister John Key. (24′42″)
Audio | Download: Ogg Vorbis MP3 | Embed

16:50 Jim Mora, Dr Robert Hamlin and guests discuss Auckland City Council and Dunedin City Council activities with respect to interest rate swaps (IRS). Together, the councils may have squandered up to $200 million of ratepayer funds. Is a royal commission of inquiry required? In Dunedin City Treasury’s case, interest swap rates and financial derivatives may be being used to ‘assist’ stadium financing, and much more. In the city council annual report the IRS activity goes unexplained, being recorded as (multi-million dollar) losses (see page 146).

****

The (NZ) Banking Ombudsman suggests some customers & their advisers don’t understand the product. [IRS and Derivatives]

http://en.wikipedia.org/wiki/Interest_rate_swap

****

### stuff.co.nz Last updated 05:00 04/11/2012
Business
Banks ‘plundering society’ globally
By Rob Stock
Claims banks missold interest-rate swaps to businesses and local authorities have been making headlines around the world. Interest rate swaps are a derivative financial tool used by sophisticated businesses with skilled treasury functions to limit interest rate risk. But it is becoming clear that in places such as Britain, Italy and America, interest-rate swaps were sold by banks to organisations that did not understand the risks they were taking. In case after case, interest rate swaps often sold in 2007 and 2008 as “protection” against interest rates rising sharply have served mainly to protect bank profits by locking businesses and local bodies into high levels of interest ahead of those rates falling.
Read more

****

This article is from the May/June 2012 issue of Dollars & Sense magazine.

The Swap Crisis
We have your city. Pay up, or else!
Interest rate swap deals have allowed the big banks to hold local governments and agencies hostage for tens of millions of dollars.
By Darwin BondGraham
In 2002 a little-known but powerful state agency in California and Wall Street titans Morgan Stanley, Citigroup, and Ambac consummated one of the biggest deals to date involving a type of financial derivative called an “interest rate swap.” A year later the executive director of the Bay Area’s Metropolitan Transportation Commission, Steve Heminger, proudly described these historic deals to a visiting contingent of Atlanta policymakers as a model to be emulated. Swaps were opening up a brave new world in public finance by extending the MTC’s purchasing power by $200 million, making a previously impossible bridge construction schedule achievable in a shorter timeframe. The deal would also protect the MTC from future volatile swings in variable interest rates. To top it off, the banks would make a neat little profit too. Everybody was winning.
Then in 2008 it all came crashing down. The financial system’s near collapse, the federal government’s unprecedented bailouts, and global economic stagnation mean that the derivative products once touted as prudent hedges against uncertainty have instead become toxic assets, draining billions from the public sector.
Read more

Posted by Elizabeth Kerr

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DCHL ‘run by a bunch of fools’ -agreed

Comment received.

JimmyJones
Submitted on 2012/10/30 at 5:43 pm

DCHL is financially very sick: if it was a horse, you would have to shoot it to put it out of its misery. It is amusing to see how sensitive Dave Cull is to Lee Vandervis stating-the-bloody-obvious, that DCHL doesn’t make enough real money to pay its interest and dividends to the DCC, as well as the subsidies to DVL and DVML.
The DCC are forcing DCHL into more and more debt every year. For the 5 years that I have Annual Reports, DCHL has always paid for its distributions to the DCC by increasing their debt. Not just part of the distributions are borrowed money, but the whole amount each year.
In 2012 they added $50.3 million to their debt (page 37), so you can see that even without being forced to provide distributions of $23.2 million, it already had a severe cash-flow shortage. This negative cash-flow is the result of their own incompetence from spending very large amounts on new investments and expanding their operations. The incompetence comes from the fact that there has been no expansion in profits as a result of this low quality spending. They seem to be followers of the Homer Principle (if something doesn’t work, keep doing it), because not once in the last five years have they earned enough cash to pay for their spending on new stuff. Poor-old Dave and the new-guy, Paul, don’t seem to understand the problem. Let me summarize –

● DCHL is heading towards bankruptcy
● It is going bankrupt because DCC councillors and staff have been using it like a magic money-box where distributions are paid from debt (debt that doesn’t show up on DCC books – because of their choice)
● The LTP shows that they fully intend to continue this foolish practice, despite the DCHL Chairman’s aspirational comments to the contrary and Mayor Cull foaming at the mouth about it
● DCHL has been, and mostly still is, being run by a bunch of fools that need to be kept well away from anything financial or owned by the People Of Dunedin.

### ODT Online Tue, 30 Oct 2012
Mayor sees red over Vandervis questions
By Chris Morris
Sparks flew as Mayor Dave Cull and Cr Lee Vandervis clashed repeatedly over debt and dividends at yesterday’s Dunedin City Council meeting. In what at times resembled a running battle, an angry Mr Cull eventually accused Cr Vandervis of giving in to his “obsession” and threatened to prevent him from speaking. The pair found themselves at loggerheads over reports detailing Dunedin City Holdings Ltd’s latest financial results and the council’s annual report.[…]Cr Vandervis attacked the figures at yesterday’s meeting, claiming the entire $23.2 million – which helped keep council rates increases to a minimum – had been funded from loans.
Read more

Related Posts and Comments:
29.10.12 DCC consolidated debt substantially more than $616m…
26.10.12 DCHL borrowed $23 million to bail DCC
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
25.10.12 Dunedin Venues Limited – 2012 Annual Report now 2 months overdue
17.10.12 The only thing up…. (for sale)
17.10.12 DCC on DCHL, subsidiaries and DCTL
12.10.12 DCHL, subsidiaries and DCTL
28.9.12 The End of The Golden Weather?
25.9.12 Cull’s state of denial…
24.9.12 DCC against imposition of local government reforms
11.9.12 Delta Utility Services Ltd
6.9.12 DCC pays out $millions to cover loss making stadium…
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
7.8.12 DCC, DCHL, debt, democracy (and professional rugby)
26.7.12 Cull’s council thinks $750,000 per annum to DVML…

Posted by Elizabeth Kerr

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DCHL borrowed $23 million to bail DCC

Why are the Otago Daily Times (Allied Press) and DScene (Fairfax) refusing to print the truth about Dunedin City Holdings accounts?

The $23 million that DCHL reportedly PAID as dividend etc to Dunedin City Council, is borrowed.

DCHL borrowed $23 million to bail the spendthrift DCC and make it look like we have a 5% rates increase instead of the real 25% increase without the new borrowing.

You’ll find all the details here:

DCHL Annual Report 2012 (PDF, 2.1 MB)

The ‘debt-deniers’ from DCHL are trying to characterise this year’s disastrous council-owned companies annual accounts as one of ‘ups and downs’.
ODT 18.10.12

The DCHL annual report actually shows:

● Delta business goodwill – Down
● Jacks Point/Luggate property values – Way Down
● City Forests carbon credits, log returns and valuations – All Down
● City Forests Milburn Wood Processing Mill – Down
● DCHL cashflow – Down
● DCHL profit – Down and Out and Negative: minus $5 million
● The only significant ‘Up’ is more DCHL borrowing

Repeat:
What DCHL has delivered is another $23 million of debt which they have had to borrow against company assets because the council has already spent it.

The claim that DCHL’s borrowing to supply dividends will stop from next year is a claim with onerous consequences.

– The council’s gross spending continues unabated.
– Together, DCC and DCHL have racked up all possible debt.

Without serious moves to slash staff and shrink the number of company directors, the only option that remains is Asset Sales.

———————————————

A note on two DCHL subsidiaries

The directors of Delta Utility Services Ltd and Delta Investments Ltd are guilty of having made the decision(s) to speculate on property at Queenstown’s Jacks Point and Luggate, using ratepayer funds. No other conclusion is able to be drawn, they are all responsible. They are all liable.

The value of the properties has been written down by millions of dollars, a loss to the ratepayers who were unaware of the purchases until the deals were concluded.

This is not simply a matter of loss of ‘book value’.

The directors of the two companies had real and perceived conflicts of interest in conducting the property deals. They continue as directors with clear conflicts of interest.

The directors should be SACKED. Meanwhile, we await news of ‘board restructuring’. [see post]

DCHL chairman Denham Shale should be SACKED for misrepresenting the facts and condoning the actions of the two boards.

Who are/were the directors responsible?

Delta Utility Services Limited
[formerly Delta Energy Limited; The Electric Company of Dunedin Limited]
Michael Owen COBURN
Norman Gilbert EVANS
Ross Douglas LIDDELL
Stuart James MCLAUCHLAN
Raymond Stuart POLSON

Delta Investments Limited – property subsidiary
[formerly Newtons Coachways (1993) Limited]
Grady CAMERON [also, Chief Executive of Delta Utility Services]
Michael Owen COBURN
Stuart James MCLAUCHLAN
Raymond Stuart POLSON

Throw out Athol Stephens, DCHL Secretary, for good measure.

Posted by Elizabeth Kerr

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The only thing up…. (for sale)

Email received.

—— Forwarded Message
From: Lee Vandervis
Date: Wed, 17 Oct 2012 19:51:39 +1300
To: Debbie Porteous , Chris Morris
Cc: EditorODT
Conversation: DCHL claim of ups and downs
Subject: DCHL claim of ups and downs

Hi Debbie and Chris,

The debt-deniers from DCHL are trying to characterise this year’s City Companies Annual Reports as one of ups and downs.
Delta business goodwill is down.
Jacks Point/Luggate property values are way down.
[City Forests] carbon credits, log returns and valuations are down.
[City Forests] Wood Processing Mill is down.
DCHL cash flow is down and profit is down and out and negative.

The only thing significantly up is DCC funding requirements for the Stadium, met by significant borrowing again this year, but with a promise that the DCHL borrowing will now stop.
Without the courage to slash and burn staff costs and biff all directors responsible for scandalously speculative Jacks Point/Luggate, Wood Processing Mill etc, the only option that remains is asset sales.
Look out City Properties, Waipori Fund, Forests etc.

Kind regards,
Lee

Posted by Elizabeth Kerr

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DCC on DCHL, subsidiaries and DCTL

UPDATED POST 18.10.12

“It’s probably good to take all your bad news at the same time and look forward to the future.” -Denham Shale, DCHL

PROPERTY SPECULATION BY DELTA DIRECTORS WITH LOCAL COMPANY LINKS, IS THE MISUSE OF PUBLIC FUNDS. STOP.
GLARING CONFLICTS OF INTEREST ARE INVOLVED. STOP.
DCHL CHAIRMAN IS FULLY COMPLICIT, ALONG WITH DCHL BOARD OF DIRECTORS. STOP.
DUNEDIN CITY COUNCILLORS FAIL RATEPAYERS AND RESIDENTS SEVERALLY. STOP.

See link to ODT report added below.

DCHL Annual Report 2012 (PDF, 2.1 MB)
Dunedin City Holdings Ltd Annual Report 2012

Warren Larsen Report (PDF, 3.9 MB)
Governance review of all companies in which Dunedin City Council and/or Dunedin City Holdings Limited has an equity interest of 50% or more.

BUT WHAT’S THE REAL STORY?

Dunedin city Council
Media Release

Dunedin City Holdings Limited Annual Result for the year ended 30 June 2012

This item was published on 17 Oct 2012.

This past year has been a challenging year in which there has been a well publicised change in governance of the parent company. It has been a year that has been affected by a slow economy and poor export log prices and a year in which the subsidiary companies decided to write down the values of assets where impairment occurred.

Revenue has increased for the year by 3.7% to $254.9m, however, the profit has been affected by a series of factors that are fully explained in the Annual Report of the company. These factors are the effect of the Dunedin City Holdings (DCHL) group providing subvention payments directly to Dunedin Venues Limited in lieu of dividends to the Council, the effect of asset impairment provisions made by the Delta group in respect of goodwill on a number of past business acquisitions and land at Luggate and Jacks Point, pressure on margins in a slow economy, and lower carbon credit income in comparison with last year.

Separately from the activities of the subsidiaries the holding company board has been active working on a number of issues arising from the Larsen report. “Last December I stated that we have been charged with restructuring a number of aspects within the group. You have seen the recent appointment of two additional directors to the parent company board. We anticipate further announcements by year end from suggestions to be made to the Council over the next two months.” comments DCHL Chairman, Denham Shale.

“As a matter of principle, the current board has taken the view that borrowing should not be entered into for the payment of dividends. But it is important to note that much of the drop in profit last year was caused by the agreement in respect of Dunedin Venues Limited and accounting provisions rather than cash outflows. Against this, dividends in this current year will be paid from surpluses that we would expect to make over the year to June 2013. Therefore it is not necessarily correct to assume that because last year was poor that there will be no dividend this year. ”

Aurora Energy Limited has traded well although the economy has slowed the growth in the quantity of electricity carried on the network.

The NZ forestry industry has had another difficult year and, as the public is aware, City Forests Limited decided to cease operating its timber processing mill. The Milburn asset has been leased to Craigpine Timber Limited.

The electrical asset planning and maintenance businesses of Delta Utility Services Limited have operated well. But the demand for other infrastructure services weakened and company was forced to conduct a series of adjustments to reposition the company to match reduced demand. The land holdings of the Delta group, which have attracted media attention, are under close management.

The summer tourism season last year was well underpinned by the visits of cruise ships. We expect an improving cruise ship season over this next summer.

Overall passenger numbers into Dunedin International Airport were 9.9% up for the year. The operating surplus after tax achieved by the company for the year was an improvement on both budget and the same period last year. A substantial revaluation of the assets of the company has increased the carrying value of the investment in the books of the DCHL parent company.

Contact Denham Shale, Chairman, DCHL on 021 375 112.

DCC Link

### ODT Online Thu, 18 Oct 2012
$5m loss for DCC group
By Chris Morris
A $9 million write-down in Delta’s investments – including property at Jacks Point and Luggate – is partly to blame for a multimillion-dollar loss booked by the Dunedin City Council’s group of companies.[…]Mr Shale was reluctant to criticise yesterday when asked if the property purchases had proven to be a mistake. “I wouldn’t call it a mistake, no. As we see it today, it could be called an unfortunate decision, but that is very much in hindsight. It’s very easy in hindsight.” He also saw no need for the new DCHL board to investigate the rationale behind the purchases, saying they were “a fact that’s there”. “We can’t do anything to change it.” He blamed the result on the world economy…
Read more

Related Posts:
12.10.12 DCHL, subsidiaries and DCTL
30.8.12 Dunedin City Council seen by Fairfax Business Bureau deputy editor Tim Hunter

Posted by Elizabeth Kerr

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DCHL, subsidiaries and DCTL

UPDATED

Agenda – Council – 15/10/2012 (PDF, 36.1 KB)
Extraordinary Council Meeting

Report – Council – 15/10/2012 (PDF, 32.2 KB)
DCHL Governance Structure

### ODT Online Fri, 12 Oct 2012
Further shake-ups for boards
By Chris Morris
The Dunedin City Council’s stable of companies is set for another injection of fresh blood as part of major restructuring prompted by a dividend shortfall last year and the political storm that followed. The changes will affect the boards of Delta Utility Services and Aurora Energy – governed by the same directors – and City Forests. Two directors from each are to be replaced by two new recruits, with fresh talent and skills. In addition, the board of Dunedin City Treasury Ltd (DCTL) will be completely replaced by the recently appointed directors of the council’s holding company, Dunedin City Holdings Ltd. The changes were outlined in a report by DCHL chairman Denham Shale and will be considered at an extraordinary council meeting on Monday.
Read more

Warren Larsen Report (PDF, 3.9 MB)
Governance review of all companies in which Dunedin City Council and/or Dunedin City Holdings Limited has an equity interest of 50% or more.

Related Posts:
1.11.11 Dunedin City Holdings Limited
28.10.11 DVML, DVL and DCHL annual reports
16.9.11 DCHL and subsidiaries: shuffling, no real clean out?
2.9.11 Dunedin City Council is buggered
13.8.11 Ridding DCHL of conflicts of interest, Otago business monopoly ‘by director’, and other ghouls
11.8.11 CRITICAL Dunedin City Council meeting
9.8.11 CRITICAL Dunedin City Council meeting
3.8.11 D Scene broke the news
29.7.11 WE ALL SAID IT #DunedinCityCouncil #SHAME
9.2.11 DCC and DCHL, was there ever any doubt?

Posted by Elizabeth Kerr

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Facebook. The DCC has lost the plot.

Discussion Board Topic:
The selling of the stadium since 2006
Compiled by Justin Miller. {Page no longer available. – Eds}

Worth a read. Remind yourself of the weird and wonderful claims made by the stadium project makers, when they don’t have a PR company to control runaway tongues or egos.

[The Facebook page might have gone but listen to this: https://soundcloud.com/christopherkeogh/the-dcc-has-lost-the-plot%5D

Posted by Elizabeth Kerr

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Jim Harland: “The council isn’t broke.”

He scotched rumours there would be cuts to core services, and that the council was in financial difficulties […] councillors also needed to be aware of ratepayers on fixed incomes.

### ODT Online Tue, 22 Dec 2009
DCC looks at spending
By David Loughrey
As Dunedin ratepayers face an 8.7% rates increase for the next financial year, and an even steeper increase the following year to pay for a list of multimillion-dollar projects, a four-person team has interviewed every manager at the Dunedin City Council, asking them to justify their spending.
Read more

Posted by Elizabeth Kerr

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