What is the sustainable level of debt for Auckland Council?
Measured mainly by net debt-to-revenue. Council targets around 250%, with a policy ceiling of 290%, while holding strong AA/Aa2 credit ratings.
Q.2.2 — Budgeting & Finance
What is the sustainable level of debt for Auckland Council?
A sustainable borrowing ratio is primarily measured by the net debt-to-revenue ratio — how manageable the council's debt is compared to its annual revenue. The council sets its own prudent limits, typically more conservative than external lenders, to maintain strong credit ratings (currently AA/Aa2) and financial resilience amid population growth and infrastructure needs.
These figures are Auckland Council's stated policy in the Long-term Plan 2024-2034, not a City Builders conclusion. This question stays open until a lodgement date, recipient, method and reference are published on this page.
Under the Long-Term Plan 2024-2034, Auckland aims for a group debt-to-revenue limit of around 250% (sometimes excluding the now-independent Watercare), with a previous ceiling of up to 270% and an overall policy upper bound of 290%.
Frequently asked questions
How is Auckland Council's debt sustainability measured?
Mainly by the net debt-to-revenue ratio, which compares the council's debt with its annual revenue. The council sets its own prudent limits, typically more conservative than those of external lenders, to maintain strong credit ratings and financial resilience amid population growth and infrastructure needs.
What is Auckland Council's debt-to-revenue limit?
Under the Long-term Plan 2024-2034, Auckland Council aims for a group debt-to-revenue limit of around 250 percent, sometimes excluding the now-independent Watercare. It previously had a ceiling of up to 270 percent, and its overall policy upper bound is 290 percent. These are the council's stated policy figures, not a City Builders Association conclusion.
What credit rating does Auckland Council have?
Auckland Council's credit ratings are currently AA and Aa2. The council keeps its own debt limits more conservative than external lenders require, partly to maintain those strong ratings and its financial resilience as the city grows and needs more infrastructure.
Why does Auckland Council set its own debt limits?
The council sets its own prudent borrowing limits, typically more conservative than external lenders, to protect its strong credit ratings (currently AA/Aa2) and keep financial resilience while funding population growth and infrastructure. Under the Long-term Plan 2024-2034, that means a group debt-to-revenue limit of around 250 percent, within an overall policy upper bound of 290 percent.
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Written by Mark Pervan, Director, City Builders Association Limited
Mark Pervan is the founder and director of City Builders Association Limited, an Auckland civic think tank funded solely by membership. He has run manufacturing plants, with global sourcing and supply chain management in the same role, and has been project manager on multiple commercial and residential building projects. He was also responsible for product design and development across multiple mediums, and served as sales and marketing manager. He is a company director and business owner, including as a director of Idea Foundry. He served three years as an elected member of the Puketāpapa Local Board (2022–2025) and was a council candidate for the Albert-Eden-Puketāpapa ward of Auckland Council.
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