A report tabled at yesterday's Dunedin City Council meeting has revealed the extent of the city's assets for the first time.
The report, which revealed the $417.9million value of council-owned companies, raised some questions during the meeting about the possibility of asset sales.
Group chief financial officer Grant McKenzie said while the analysis, completed by Christchurch-based investment bank Murray & Co, provided a market valuation of the assets, additional work would need to take place for some of the assets to be sold.
It also only provided an estimate of the assets if sold.
‘‘Like any valuation, it comes down to a willing buyer and a willing seller,'' he told councillors.
Cr Mike Lord raised concerns with the valuations offered for some of the council-controlled companies and questioned whether Mr McKenzie was ‘‘comfortable'' with the analysis.
‘‘They [Murray & Co] are the experts in that area and these are the figures we have relied upon,'' he said.
The investment bank's analysis determined the values of Aurora Energy Ltd ($200million to $275million), Delta Utility Services Ltd ($45million to $60million), City Forests Ltd ($90million to $110million), Dunedin International Airport Ltd ($24million to $29million) and Taieri Gorge Railway Ltd ($1.4million).
Dunedin City Holdings Ltd director Keith Cooper said Delta and Aurora would provide particular challenges if they were to be sold.
‘‘Should council wish to sell one or the other, a certain volume of work would have to take place,'' he told councillors.
‘‘We would have to go to work to get them into some position to be sold before going to market with them.''
Mr McKenzie said now the information was available to the council, ‘‘what the next step is is for councillors to decide''.
The report highlighted the issues of selling and retaining the companies.
The council noted the report, however, no other options were presented during yesterday's meeting.
After the meeting, Mr McKenzie said the analysis had been undertaken at the request of the council and he recommended it be done on a regular basis.
‘‘This is the first time I have been able to find this analysis completed,'' he said.
