Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Financial Discipline at the Forefront

Financial Discipline at the Forefront


Dunedin (Thursday, 22 November 2012) – The Dunedin City Council is up to the challenge of continued financial belt-tightening, Dunedin Mayor Dave Cull says.

This week Standard and Poor’s (S & P) confirmed the DCC group credit rating at AA long term and A-1+ in the short term and has put Dunedin on negative credit watch.

This is not a downgrade, but the agency has made it clear the DCC needs to follow through with its tough financial targets.

“This decision has not come as a surprise, given Council debt levels, but it ensures we are even more firmly focused on achieving or improving the forecasts in our Long term Plan (LTP),” Mr Cull says.

In budget terms, the DCC has limited room to manoeuvre and this is reinforced in the LTP, which includes clear limits on borrowing.

The agency acknowledges the DCC’s LTP provides a framework to return the DCC to a more comfortable financial position. However, the agency wants further evidence the DCC is committed to working within the framework.

The challenge of servicing debt and maintaining services within rate rise limits of 4% in the coming year and 3% the year after is already recognised. Through cost-cutting measures and reduced capital spending the DCC is already addressing the issues identified by S & P.

The revised outlook is not expected to increase the Council’s borrowing costs.

Chief Executive Paul Orders says “I am confident staff will bring forward a draft budget for 2013-14 within the limits contained within the Long Term Plan. This will be based on the delivery of significant savings and operational efficiencies.

“Council will need to work within the parameters of a constrained financial strategy during the forthcoming annual plan deliberations.”

In its review, the agency cites the Council’s high debt burden and the challenge of guaranteeing sufficient funding (from all sources) to service that debt and at the same time provide sufficient operating cashflow. It also mentions the volatility of Council Controlled Organisations’ (CCOs) income from dividends.

Mr Cull says he is confident the DCC can meet its LTP targets. Recent governance changes mean CCOs are now more accountable.


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Auckland Relocation Grants: 12 Grants Paid So Far

Since the policy took effect one month ago, 12 applicants have received the non-recoverable grant, supporting 32 people. $54,508 has been paid out, covering things like moving costs, bond, rent in advance and letting fees. More>>

ALSO:

Vaccine Funding Change: HPV Vaccines For All Children

PHARMAC has today announced changes to funded vaccines, which will benefit an extra 100,000 people... The human papillomavirus (HPV) vaccine will be available for all children and adults up to the age of 26 years, and boys will now be included in the HPV school vaccination programme. More>>

ALSO:

Gordon Campbell: On Why The Opinion Polls For Key And Trump Defy Gravity

What is going on? Donald Trump got confirmed as the Republican presidential candidate at a bizarrely chaotic political convention… and promptly received an upwards bump in the polls to where he’s now rating ahead of Hillary Clinton, for only the second time this year. More>>

Sugar: Auckland Leisure Centres Axe Unhealthy Drinks

Auckland Council is to stop selling drinks that are sweetened by sugar from vending machines at its leisure centres in a bid to try to reduce obesity and type 2 diabetes... More>>

ALSO:

Gordon Campbell: On Todd McClay’s Faulty Memory

Time and again, whenever an issue arises the initial response by government is to deny or diminish the problem – nothing to worry about here, everything’s OK, move on. Then, hang on. In line with the usual pattern, as embarrassing details emerged into daylight, the story changed. More>>

ALSO:

Labour's 'Future Of Work': Major Reform Of Careers And Apprenticeships

The next Labour Government will transform careers advice in high schools to ensure every student has a personalised career plan, Leader of the Opposition Andrew Little says. More>>

ALSO:

State Investments Management: Treasury Likes IRD, Not Education Or Corrections

The Inland Revenue Department has scored an 'A' in the first tranche of the Treasury's investor confidence rating for state agencies that manage significant Crown investments and assets, gaining greater autonomy as a result, while the Corrections and Education ministries gained a 'C' rating. More>>

ALSO:

Govt Goal: NZ To Be "Predator Free" By 2050

Prime Minister John Key has today announced the Government has adopted the goal of New Zealand becoming Predator Free by 2050... “That’s why we have adopted this goal. Our ambition is that by 2050 every single part of New Zealand will be completely free of rats, stoats and possums." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news