The council for a number of years has put aside $100,000 a year towards dredging Oamaru harbour, which was undertaken last year after several methods had been trialled.
However, in its draft long-term plan, the council is proposing to set aside $100,000 in the 2012-13 financial year, but stop funding dredging by rates income from 2014-15.
Instead, the council is suggesting $25,000 be set aside in 2014-15 to investigate options other than dredging.
One possibility is to revert to what was done decades ago - removing sand from Sandy Beach, in the southeast corner of the harbour opposite the Oamaru penguin colony, to prevent a build-up along the breakwater and in the harbour entrance.
Large vessels stopped using the harbour in the 1970s, but it is still used by commercial fishing boats and pleasure yachts and boats.
The end of dredging received a mixed reaction from councillors when the draft annual plan, with a proposed 7.41% rates increase next financial year, was discussed this week. One councillor suggested the harbour entrance would fill up.
Council assets group manager Neil Jorgensen said removing rates funding from 2014-15 would mean no more money available for dredging. By then, the council would know what effect removing sand from Sandy Bay would have on the harbour entrance.
Cr Kevin Malcolm said the council was competing against Mother Nature, who decided where the bottom of the entrance channel would be.
Cr Sally Hope said the council had a responsibility to keep the entrance dredged and needed money in place to do that.
Cr Peter Garvan would support dredging if it was effective.
To not dredge was "a nonsense" and a cost-effective solution was needed.
Cr Jim Hopkins said the council should continue dredging until the community told it to stop.
The draft plan will go out for consultation with funding for dredging removed in the 2014-15 financial year, despite some councillors predicting that would result in submissions from interest groups and individuals.
