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

 

Plain Packs Plan: Gordon Campbell On Tobacco Politicking (And The TPP Death Watch)

Has Act leader David Seymour got the easiest job in the world, or what? Roll out of bed, turn on the radio and hmm…there do seem to be a lot of problems out there in the world. Must think of something. And so it came to pass that this morning, David Seymour took up his sword and shield to fight for a world that’s about to be denied the rich and vibrant beauty of tobacco advertising. More>>

ALSO:

.


RECENT TPP MEETING:

Professor Ian Shirley: The Budget That Failed Auckland

The 2016 budget offered Auckland nothing in the way of vision or hope and it continued the National Government’s threats against the Auckland Council. Threatening the Council with over-riding its democratic processes if it fails to release land for housing is a bullying tactic aimed at diverting attention away from the fundamental problems with housing in the region. More>>

ALSO:

PM's Post Cab Presser: Budgets, Trusts And Pacific Diplomacy

Today Prime Minister John Key summarised last week’s budget and provided further detail about his upcoming trip to Fiji. He said that there has been “plenty going on” in the last couple of weeks and emphasised the need for Auckland council to facilitate more housing supply. More>>

ALSO:

Max Rashbrooke: A Failure Of Measurement: Inside The Budget Lock-Up

Shortly after the embargo lifted at 2pm news organisations started filing reports claiming that health, and to a lesser extent housing and education, were the ‘big winners’ out of the Budget. It failed to take into account the fact that in most cases the apparent increases were in fact cuts. Because of the twin effects of inflation and population. More>>

ALSO:

DOCtored Figures: Minister Clarifies DOC Budget

“Commentators have overlooked the fact $20.7m of that perceived shortfall is new funding for Battle for our Birds 2016, provided for in last week’s Budget...” DOC also has approval in principle to carry over a further $20m to 16/17 due to unexpected delays in a number of projects. More>>

ALSO:

For The Birds: Gordon Campbell On The Budget

Budgies, so their Wikipedia page says, are popular pets around the world due to their small size, low cost, and ability to mimic human speech. Which is a reasonably good description of Finance Minister Bill English eighth Budget. . More>>

Max Rashbrooke On The 2016 Budget

The best label for this year’s announcement by Bill English might be the ‘Bare Minimum Budget’. It does the bare minimum to defuse potential political damage in a range of areas – homelessness and health are prime among them – but almost nothing to address the country’s most deep-rooted, systemic social problems. Indeed the Budget hints that these problems may get worse. More>>

ALSO:

Gordon Campbell: On Bank Scandals (And Air Crashes)

Last month, the Australian Securities and Investment Commission (ASIC) filed proceedings against Westpac over activities that have some distinct echoes of the Libor scandal. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news