DCC saves millions on Dunedin Centre

Robert Clark
Robert Clark
Some successful investment, and a decision to cut back on "high-level specification" for the Dunedin Centre redevelopment has benefited the city by about $10 million, just two weeks before the city council sits to consider its budget for the next year.

While the effect of the news on ratepayers will be limited, it will at least mean the council will have to borrow less than it had budgetedMore savings could also be on the cards.

An inauspicious 13-page report to a finance, strategy and development committee on Monday contains the sort of information that should warm the hearts of councillors as they weigh up the budget in the face of a proposed 7.5% rates rise.

A report from city property manager Robert Clark on the progress of the redevelopment said the project originally proposed a rebuild with high-level specification.

The report says the saving was made by not using planned "touch of a button" seating in the Glenroy auditorium. It is understood to be a system that electronically changes the direction of the seating.

Dunedin Venues Management Ltd, which operates the venue, had investigated the matter with users and decided the seating was "an over-specification".

As long as base equipment was provided, there was no need for "touch of a button" technology.

The project control group for the Dunedin Centre and town hall redevelopment was undertaking a similar review for the town hall, and there was a possibility it would find more savings.

The report said progress on the Municipal Chambers had been good, though the project had been held up by "unplanned but necessary" work in the council chambers, and difficulties obtaining some materials after the Christchurch earthquake.

The Municipal Chambers was due to be finished by June 30.

Mayor Dave Cull said yesterday the saving for the council would be the potential interest it would have paid if it had borrowed the money.

Despite that, he said the saving was "not to be sniffed at".

A report for the third-quarter performance of the council's Waipori fund said it recorded an "excellent result", with a net surplus of $2.2 million and a year to date surplus of $6.9 million.

The principal, which was $56.7 million when the fund was set up in 1999, stood at $73.5 million on March 31.

Cash flow from the fund remained stable.

The fund was established using proceeds from the sale of the Waipori electricity generation scheme and has been a valuable contributor to the council's finances.

Fund chairman Ross Liddell reminded the council in his report a similar result last year had been "decimated" in the final three months, due to negative movements in the equity markets and negative foreign exchange markets. But he said equity markets should remain positive for the balance of the financial year.

Council financial planner Carolyn Howard said the council budgeted for a dividend of about $4 million a year from the fund. The surplus was added to the fund's principal.

- david.loughrey@odt.co.nz

 

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