Dunedin City Council will for the first time in more than a dozen years begin paying back its debts.
In 2012, the council's total debt was $620 million and it faced having its credit rating downgraded with the possibility of higher interest costs on that debt.
That threat was removed last year and the council says it was because of a faster debt repayment plan.
Council chief executive Sue Bidrose says every council department has had to reduce its spending.
She says the council will begin paying off debt from July.