Budgeting & Finance

A sustainable borrowing ratio for Auckland Council is primarily measured by the net debt-to-revenue ratio, which shows 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. Under the Long-Term Plan 2024-2034 and recent annual plans, Auckland aims for a group debt-to-revenue limit of around 250% (sometimes excluding the now-independent Watercare for water services), with a previous ceiling of up to 270% and an overall policy upper bound of 290%. As of late 2025, the ratio remains well within prudent limits—forecasts for upcoming years are as low as 225%—allowing the council to fund essential investments in transport, water, and community facilities while keeping interest costs affordable and preserving borrowing headroom for emergencies. Staying at or below 250-270% is considered sustainable, balancing growth demands with ratepayer affordability and risk management. For the most current figures, refer to Auckland Council's latest annual reports or long-term plan documents.