This agency has the same AA+ credit rating as the central Government and although the Government does not guarantee the debt, investors are betting that councils across the nation will always pay because they have the power to levy rates to pay the interest bill.
Councils can reduce their borrowing costs by piggybacking on the stronger financial profiles of the biggest councils.
But what happens when a council goes berserk with the national council credit card? It all sounds very Eurozone-ish.
For years Portugal, Ireland, Greece and Spain were able to borrow on low German interest rates. But if Germany had been able to exclude Greece in 2000 it would have done so.
In New Zealand, the LGFA has been lucky enough not to have all councils in the club from the start. Chief executive Philip Combes said this week that Kaipara may want to be in the club, but its admittance was no sure thing.
So how often will the rest of New Zealand have to bail out a council? Or force it to undergo a Greek-style austerity programme?
The commissioners for Kaipara could learn a few lessons from the "troika" overseeing the Greek austerity programme. One thing they do have in common is sun and beaches.