Mayor Alex Walker said the "complicating factor" was the ageing pool's filter.
There had been "minimal maintenance" carried out on the pool and for three years council had been concerned the filter could break at any time, which would cost $250,000 and take months to replace.
"We have a risk that we could spend the $80,000 that we have budgeted, and we could somehow find another $100,000 to do the resurfacing and do the painting, but we have no guarantee that the filter system will allow us to reopen for the summer.
"We are stuck between a rock and a hard place," she said.
A few weeks before the discovery of the problems, Ms Walker said council had started work on long-term redevelopment options for the pool.
One option was to reline it and reinstate the children's wading pool in a $650,000 remodelling, while a "bells and whistles" option to completely overhaul the pool would cost an estimated $1.6m.
The options would need to be consulted on in the 2018-28 long term plan and would involve not reopening the pool this summer - a decision that would have to be made by the council chief executive due to the pool's classification as a significant strategic community asset.
Residents were invited to ask questions and give feedback and ideas.
Asked how long the pool would be closed for in the cheapest option, painting contractor Craig Ross said the curing stage of the repair work could take as long as 28 days, even before painting was done.
Waipawa resident and former councillor Terry Kingston reckoned that would see the pool closed until February and half the swimming season would be lost anyway.
"I would prefer the pool close for a year and get the real McCoy job done," he said.
When asked how long the pool would be closed if the longer-term options went ahead, councillor Shelley Burne-Field said her feeling was it would be closed for two years.
The impact of the closure on pupils at Waipawa Primary was also discussed, as was the swimmability of the Waipawa River.
Given the river had been reduced to a "creek containing algae and nutrient run-off", the pool assumed even greater importance for the town, one resident said.
Residents suggested if the pool was temporarily closed the money saved on operating costs could be used for a temporary above ground pool while long-term works were carried out.
Resident Jacqui Cudby said council had funded the new skatepark and splash pad at Russell Park in Waipukurau, and felt Waipawa's youngsters and ratepayers deserved the bells and whistles option.
"Our skate park, if you compare it to the one in Waipuk ... well, we pay our rates as well and I think it's time our kids got some bells and whistles."
A report from chief executive Monique Davidson to go before council's finance committee today makes no recommendation, but includes three options:
• approve an additional budget of $100,000 and contingency funding of $250,000 for the pool filter,
• approve $100,000 but not the filter contingency funds,
• not approve either amount and instead consult on a redevelopment during the 2018-28 long-term plan.
Any money saved by not opening the pool could be set aside to fund a redevelopment.
Her report says any funds should be raised by loans taken out over 10 years.
A $100,000 loan would have an impact on rates of $13,000 a year, while a $350,000 loan would cost $45,500 a year to repay.
