A complete refurbishment of the complex is the preferred option out of three outlined in the council's long-term plan consultation document - but that would require "a significant community and or commercial contribution (50 to 66 per cent) before it could proceed".
Feedback from residents will be sought on the proposal when the consultation document is released next month.
The least expensive option consists of minor upgrades to the centre costing around $5 million. These would include re-roofing the indoor pool, a redesign of the reception and changing rooms, and the addition of more play structures to indoor areas.
At the other end of the scale, a total rebuild of the Aquatic Centre is expected to cost approximately $25 million. The document notes that "other recent new developments such as the Baywave complex in Tauranga and Coastlands Aquatic Centre in Paraparaumu have cost $18 million and $19.3 million respectively, but do not feature an outdoor 50m pool".
The council's preferred $15 million refurbishment option is predicted to incur borrowing costs of $2.5 million more than the minor upgrades plan, costing ratepayers an average additional $8.50 a year over a 15-year period.
Plans for a complete refurbishment would still rely heavily on private contributions.
Swimming Bay of Plenty president and Swim Rotorua coach Bronwen Radford said she welcomed a number of features in the proposal, although she did acknowledge that it was "a lot of money" being discussed.
She expressed enthusiasm about the plans for a cafe, which she thought would further integrate the Aquatic Centre with the surrounding park.
"They [the council] have spent a lot of money tidying up walkways and the hot pools. It would be magical to have a cafe there."
A new cafe would also make her job of organising high-profile swimming events in Rotorua a lot easier, she said.
"There's a place for coffee out of a machine, but at a swim meet it doesn't really work," she said.
Mrs Radford said the addition of a dedicated teaching pool would be "amazing" for the centre, but suggested that other activities for young people, such as hydroslides, were needed.
"It seems to be inevitably focused on the adults ... some more things for the kids would be beneficial," she said.
In 2012, the Rotorua Daily Post asked readers what improvements they would like to see made at the Aquatic Centre: by far the most popular suggestions were the creation of a cafe and hydroslides.
Other ideas included another pool for small children, a deeper pool for high diving and scuba, a wave pool, heated floors near the pools, cleaner changing rooms, a direct link with Kuirau Park and a better area for mothers to care for their babies outside the water.
Councillor Charles Sturt said the council's focus for the Aquatic Centre was on "educational and physical exercise" but that it was open to any possibilities of a partnership with outside organisations.
"There is an opportunity for a commercial operator to build a wave machine or water slides if they are prepared to make an investment," he said.
The Aquatic Centre dates back to 1975, when the 50m outdoor pool was built with the help of community funding.
During its 40-year history there have been a number of upgrades to the complex (most recently in 2003), but the council now believes it is showing its age and requires major refurbishment.
A feasibility study conducted in 2013 recommended a $13.7 million upgrade to modernise facilities at the Aquatic Centre, including the provision of more learn-to-swim spaces and better integration of the centre with Kuirau Park.
The proposed refurbishment forms part of the council's "master plan" for the park, which includes the possibility of a Japanese-style steam kitchen, viewing towers, shared cycleways and new toilet facilities.