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.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Labour: Parata Puts Brakes On Charter School Appraisal

“When the Ministry of Education recommended they compare the achievements of children at charter schools to those of their counterparts at state schools, the documents show Hekia Parata specifically prohibited them from doing so." More>>


Bad Day For Universities: Gun, Bomb Threats On Three Campuses

Dunedin Police are continuing their investigation into the threat made against the University of Otago. Staff are following a number of lines of inquiry, and police are working to verify the authenticity and source of the post. More>>


Gordon Campbell: On The TPP Deal Reached In Atlanta

Yes, the TPP has helped to knock a few points off the tariffs facing our exporters. Yet some of those alleged dollar gains may well have been made regardless over time – and without the negative baggage of the concessions in the non-trade areas (intellectual property, copyright extensions, investor-state dispute mechanisms etc) that the TPP deal also brings in its wake. More>> (Cartoon by Dave Wolland)

Public Summaries:


Wellington.Scoop: Serco – First The Prisons, And Now It Wants To Run The Trains

As the government continues its inquiry into Serco’s discredited administration of Mt Eden prison in Auckland, here in Wellington there’s further scrutiny of the British outsourcing company – because it’s competing to take over the running of our commuter trains. More>>


Pre-Signing: Gordon Campbell On The TPP Countdown

To date, the Key government has been unwilling to share any information about this TPP deal until it is too late for outraged public opinion to affect the outcome... the disclosure process is likely to consist of a similarly skewed and careful exercise in spin. More>>


Australia Deportations: English Relaxed On Immigration Centre Conditions

Labour's Annette King: “There have been numerous reports from inside these detention centres on just how bad conditions are... If they were being held in any other foreign jail, I imagine Mr English would be somewhat concerned. More>>


Schools: Achievement-Based Funding Would Be A Disaster

The Education Minister’s speech to the PPTA Conference raising the spectre of achievement data driving a new funding system would be disastrous, says NZEI Te Riu Roa. More>>

  • Video Out-Link - PPTA Annual Conference 2015 on Livestream (Q+A dicussion suggests funding would be directed to less successful schools.)

  • ALSO:

    ECE Report:

    Get More From Scoop



    Search Scoop  
    Powered by Vodafone
    NZ independent news