Unpalatable spending cuts, and higher rates and water bills could be on the table in Auckland -- as the local council looks to plug a billion dollar hole

Earlier this month, Mayor Phil Goff said the 450 million dollar hole in this year's Auckland Council "emergency budget" could continue to hammer finances by a further 540 million over the next three years.

The mayor's signalled the strain of the pandemic could last four years as he prepares to unveil the first draft of a new 10-year budget.

Goff says no decision has been made on a proposed rate rise -- but he's cagey on a suggestion water bills could rise by eight per cent, saying that's a matter for Watercare.