The fund's validity was raised as part of the 2022-23 annual plan because it was uncertain if or when Pukehina would need a wastewater scheme, and the impact Three Waters reform would have on it.
As part of the council's annual plan consultation, people were asked if they wanted the rate to continue to be collected, paused, stopped or repurposed.
Every ratepayer in Pukehina was contacted via postcard, providing information on the consultation, and asking for feedback. Views were also collected online and through an information session in Pukehina.
Of the 138 submissions received, 29 (21 per cent) wanted collection to continue, 24 wanted it paused (17 per cent), 42 requested it stopped being collected (30 per cent) and 43 opted for repurposing (31 per cent).
Those in favour of repurposing the fund suggested putting it towards a new surf club, footpath, cycleway or developing and maintaining the wetland.
During the meeting councillor Margaret Murray-Benge moved to continue collecting the rate because there was no "guarantee that Three Waters will be passed by the present government".
"The people of Pukehina who want to have sewerage schemes in their area, they're ready for it, and if they're not seen to be helping, how can we then ask for government support as we did with Maketu," Murray-Benge said.
"It's just so logical that I think it's really disastrous if we try and stall in any way."
The movement was voted down and councillors voted to pause collecting the fee and retain the funds already accumulated.
Deputy Mayor John Scrimgeour said many Pukehina residents had requested the rate be ceased and possibly repurposed.
"We've canvassed this extensively and the repurposing of the rate is not practical at this point in time or at all," he said.
Scrimgeour said pausing was the "appropriate mechanism".
"We stop this and give some time for the dust to settle and see where to proceed from there."
Councillor Allan Sole agreed: "To me at present, this is definitely the most logical and prudent action we could take for the people in Pukehina who have invested a sizeable sum of money over the years."
He said retaining the fund meant it was secured for the community.
Te Puke–Maketu councillor Grant Dally was in favour of repurposing the accumulated funds because it was what the majority of submitters wanted.
"We know that Three Waters reform is likely to happen and we don't know what the outcome of that will be for this small, isolated rural community," Dally said.
Dally questioned the collection of such a small rate in comparison with the cost of a sewerage scheme.
"If we were serious about building a sewerage scheme in Pukehina, why weren't we collecting a thousand dollars a year to go towards it?" he said.
"The $483,000 is just a drop in the bucket. What's the point?"
Councillor Anne Henry was against repurposing and also in favour of the pause in case the funds were needed for a future scheme.
"We don't know what's going to be happening within the next couple of years with Three Waters," she said.
If in future Pukehina needed a wastewater scheme, the funds would be available, Henry said.
Murray-Benge "sympathised" with Dally about repurposing, but said it was too soon to do so.
"If this magical Three Waters does go ahead and there is money from heaven coming down for us all, then obviously it would be sensible to redirect the money, but at the moment, it's too soon to consider that," she said.
Council will formally adopt the resolution when the annual plan is adopted at the end of June.
- Local Democracy Reporting is Public Interest Journalism funded through NZ On Air