Otago had a few "basket-case councils" of its own that had also been "influencing the political environment around us".
Asked by the Otago Daily Times to elaborate, Cr O’Malley identified the Clutha and Central Otago district councils.
The mayors of both, brothers Bryan and Tim Cadogan, defended their councils and said the commentary was unhelpful.
They also rejected any suggestion their councils had looked to skimp on infrastructure spending when the Government was set to have regional entities take over water services.
His council had resolved in July last year to accelerate work.
The council was also into the largest capital works programme in its history, focused mostly on Three Waters.
The first stage of the Clyde wastewater project was completed in December last year, and the Lake Dunstan water supply scheme, which is to bring "fully compliant" water to Alexandra and Clyde, is to be commissioned next month.
Achieving these goals put the council into external debt for the first time in its history, Tim Cadogan said.
Clutha Mayor Bryan Cadogan chairs an Otago and Southland zone for councils.
New Zealand was facing significant infrastructure challenges, including finance, and it was important for the country to get the reform process right, Bryan Cadogan said.
The Government identified affordability of upgrades as a key driver of reform.
Cr O’Malley said the city council had bolstered its programme and sought to demonstrate to the Government aspects of reform were not needed.
The Clutha and Central Otago councils had gone "almost in the opposite direction", he said.
Dunedin’s "success story" had been ignored by the shapers of policy, he said.
