The council also sought independent legal advice to confirm it can continue opposing Three Waters Reform while accepting the funding.
The council argues that refusing to apply for the funding now would be "cutting off our nose to spite our face".
In a statement, the council says: "The incoming council could still opt not to accept or draw down the funds, but by not applying, the current council would be limiting the options for the next council."
"The funds will be able to be used to progress projects that are already in our plans, that can make a real difference to the community, at a lower cost to ratepayers."
Mayor Ash Tanner says he is disappointed but respects and accepts the majority decision.
"Endorsing the funding application sends the wrong message to the Government. For me personally, accepting the money means we are accepting the reforms," Tanner says.
He says he resents that councils had to make such a decision so close to elections. Tanner is not standing again this year.
"It puts councillor and mayoral candidates in a predicament, knowing the communities will judge them on how they voted on this," Tanner says.
Mayoral candidate Stu Husband says if he was elected mayor, he would get further legal advice. "I would repeal that decision of taking the money," he says.
Mayoral candidates Russell Smith and Adrienne Wilcock both say they oppose the reforms but voted in favour of the funding application to give the next council the opportunity to decide if and when they take the money.
Smith says: "Just because we applied, doesn't mean we need to take it."
Wilcock says: "So far, none of the other councils is turning it down."