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

 

PARLIAMENT TODAY:

"Gutted" Safety Bill: Time To Listen To Workplace Victims’ Families

Labour has listened to the families of whose loved ones have been killed at work and calls on other political parties to back its proposals to make workplaces safer and prevent unnecessary deaths on the job. More>>

ALSO:

Regulators: Govt To ‘Crowd-Source’ Regulatory Advice

A wide-ranging set of reforms is to be implemented to shake up the way New Zealand government agencies develop, write and implement regulations. More>>

ALSO:

Board Appointments: Some Minister Appoint Less The 3 In 10 Women

“It’s 2015 not 1915: Ministers who appoint less than 3 in 10 women to their boards must do better, they have no excuse but to do better,” said Dr Blue. More>>

Gordon Campbell: On The 1990s Retro Proposals For Our Health System

As we learned yesterday, the reviews propose that the democratically elected representation on DHBs should be reduced, such that community wishes will be able to be over-ridden by political appointees. In today’s revelations, the reviews also propose a return to the destructive competitive health model of the 1990s. More>>

ALSO:

Post-Cab Press Conference: Foreign Buyers Register, TPP And Serco

At a press conference today in Wellington, John Key discussed the foreign buyers register as well as the TPP and Serco. Key was questioned on whether a stamp tax might be used as a tool to deal with foreign buyers. More>>

ALSO:

Lyndon Hood Satire: Serco To Outsource Prison To Public Sector

In response to high-profile failings, multinational omnicorporation Serco will introduce public management in its prison system. Serco's New Zealand manager, speaking on condition of anonymity, has announced plans for managers from the Department of Corrections to run the Mt Eden Correctional Facility. More>>

National Party Conference: Plans To Nudge Immigrants Towards Regions

The Government will introduce a package of immigration measures aimed at improving the spread of workers, skills and investment across New Zealand, Immigration Minister Michael Woodhouse says. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news