Tag Archives: Snowballs

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

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Posted by Elizabeth Kerr

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