The Dunedin City Council is to consider using savings to
repay more debt associated with the Forsyth Barr Stadium.
The council will next week consider approving a one-off
payment of $2.271 million to help balance the Forsyth Barr
Stadium accounts. Of that, $1.77 million would be used to
repay DVML debt, and the balance would fund a cash shortfall.
The payment would be funded from DCC savings made in the
current financial year.
DCC Group Chief Financial Officer Grant McKenzie said: "A
one-off payment to reduce debt further would be good for all
parties, and would clearly respond to community demand for
the DCC to reduce its overall debt level."
In a report to be discussed as part of the Council's Annual
Plan deliberations next week, staff say the payment would
enable Dunedin Venues Management Limited (DVML), which
operates the Stadium, to balance its budget for 2014/15 while
a comprehensive review of Stadium management and operations
The Stadium has been operating for more than two years and
has been unable to meet its budget. The draft DVML budgets
for the 2014/15 year and onwards forecast annual losses.
The report also recommends increasing the annual ratepayer
contribution to the Stadium by $715,000 annually from
2014/15, but this is an interim solution.
That funding would come from rates.
In January 2014, the Council endorsed Chief Executive Officer
Dr Sue Bidrose's proposal to carry out a comprehensive review
of the Stadium's management and operating model.
The review is being carried out in conjunction with parent
company Dunedin City Holdings Limited and the DVML Board. It
will be completed after the 2014/15 Annual Plan budget
decisions have been made.
"An interim funding decision is required by the Council to
allow the Stadium to meet its financial obligations in the
coming financial year," Mr McKenzie says.
"The ongoing budget for DVML will depend on the outcome of