The city council's books are in better shape than expected, heading into the start of a new financial year.

DCC spending was under budget by about $700,000 for the six months to the end of December.

That's partly offset by higher than expected depreciation costs, and the loss of some overseas investments.

But overall the council's got almost a million dollars more in its accounts than anticipated.

Staff are also reducing debt ahead of schedule, with $233m remaining.