A district council could lose almost a third of its population in a breakaway attempt, as a ratepayer's fight for democracy sparks an official proceeding.
At the same time, its newly elected mayor has become the target of a police investigation over his campaign spending.
The Whakatane District Council faces turmoil with the possibility of 10,000 residents defecting to neighbouring Kawerau following a petition against alleged mismanagement and exorbitant dog registration fees.
Matata resident Bill Hutchinson, who took to rural roads on his diesel truck to gather signatures, said ratepayers were taking back control - and their action should be a warning to councils across the country.
"Councils are there to serve the ratepayer, not the other way round," Mr Hutchinson said.
"This will bring home to them that in a democracy, it's government for the people and by the people: We govern the council."
The petition, signed by 1600, seeks to remove the 9890-person Rangitaiki ward from the Whakatane council's domain.
"The administration side of the council is, to my mind, dysfunctional," Mr Hutchinson said.
"They don't listen to the local people. They have spent an awful lot of money using consultants, who don't know the area but do know how to come up with some very, very expensive solutions."
Discontent had been building over several years, but the straw that broke the camel's back was a hike in dog registration fees to $55 - Kawerau charges just $25.
The petition has put in motion an official process administered by the Local Government Commission to determine whether administrative boundaries will be changed.
Public submissions have been collected, with about 600 made before a deadline on December 20.
If the motion is successful, Kawerau, among the smallest districts in the country with 7010 residents, would more than double in population.
Whakatane, with 34,000 people, would lose almost a third of its residents and, according to one estimate, $9 million in rates - $2.4 million of it surplus and spent outside the ward.
Newly elected Whakatane Mayor Tony Bonne opposed the boundary change as costly. He said the problems had preceded him, and he had already brought greater transparency to the council by holding meetings about the possible breakaway.
But the mayor has come under scrutiny himself after admitting he had blown his election spending limit by almost $1000.
Dog fee boost makes rebel ratepayer seek breakaway
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