Millions of dollars of planned capital spending, and assets worth many millions more will come under close scrutiny as the Dunedin City Council seeks new ways to save money.
Mayor Dave Cull said cuts to capital spending and the sale of any underperforming assets - including council companies - were among options that would be examined in the search for new savings.
Both options, together with operational savings, would need to be considered to bridge the projected $8 million annual shortfall in dividends to come from Dunedin City Holdings Ltd (DCHL) beginning in the 2012-13 financial year, he said.
The comments came after Cr Richard Thomson last week warned the dividend shortfall would lead to council services being cut to reduce operating costs, and that job losses would "inevitably" follow.
Mr Cull yesterday said deferring or cancelling capital projects should be part of the mix of savings considered, even though savings would amount to just 10% of what would have been spent, he said.
That process had already begun and would continue over the next few months.
"We'll be undoubtedly going through all of council's projected capital expenditure ...and questioning it and saying do we really need to be doing this?"
Attention would also turn to DCHL and the other council-controlled organisations (CCOs) under it, particularly after the boards were restructured in the next few months, he said.
The council had sold the under-performing Citibus earlier this year, and Mr Cull said he would support the sale of other companies "only if it stacked up in terms of giving you a better result than keeping it".
"I think every now and then you should look at all your assets and say, 'Is this still doing what we bought it to do or set it up to do?' It might be from time to time conditions have changed ... so let's consider what we do with it.
"I would look at all of them."
Mr Cull said the CCOs together still provided a "substantial" flow of money to the council despite the dividend difficulties. And even those not providing dividend, like the Taieri Gorge Railway, still provided other community and tourism benefits, he said.
Asked if he would support the sale of more of the council's companies, DCHL chairman Paul Hudson said: "Everything's an option."
Citibus had been sold after underperforming, but the sale of larger companies would require public consultation, he believed.
"They are the assets of the ratepayers. The council just holds them and the companies' boards just administer them."
Selling companies could help raise money for the council, but would see the loss of "heritage assets".
"They really are the heritage that's been invested in the city by the people that have gone before us."
