They also say it is a loss of democracy and has come just after councils from all round the country had sent staff to Auckland to help out following weather events.
Queenstown Lakes District Council chief executive Mike Theelen said it had no plans to follow Auckland’s lead and leave LGNZ.
Last week, Auckland councillors were tied 10-all on whether to stay or go until Mayor Wayne Brown used his casting vote in favour of withdrawing from New Zealand’s local government association.
Mr Theelen said while he had not been aware the supercity councillors were having that debate, he understood Mr Brown went through a similar exercise when he was mayor of the Far North district.
"So I suspect it’s probably more that he’s got form in this space, rather than there was anything in particular [prompting the decision].
"At the end of the day, with the size of their budget, saving that amount of money is chicken feed," he said.
The Queenstown Lakes District Council "certainly see the advantages of being and working as part of a collective".
"We don’t always agree with LGNZ, we don’t use all their services, but we certainly like to contribute and we like to see ourselves both as benefiting and contributing to LGNZ."
In terms of implications of Auckland Council’s decision, Mr Theelen said because Auckland was the largest single financial contributor to LGNZ, that could have an impact on the association’s ability to continue some of its policy advocacy and services.
"If you don’t have the largest single council in the country being ... willing to collaborate in that way, I think it’s a really sad outcome."
Former Queenstown-Lakes mayor Jim Boult described Auckland Council’s decision as "really disappointing".
"Auckland is representative of ... it must be something close to a third of our population in New Zealand, and all those little councils around the place, like ours, like Central Otago, like Clutha, Waitaki, etc, rely on the larger councils to bring that firepower when it comes to talking to central government.
"I really think, as our premier city, maybe they should have ... thought about the rest of New Zealand before making this decision.
Central Otago Mayor Tim Cadogan said LGNZ let everyone have a voice.
"At a time when local government in our country faces its greatest challenges and opportunities, it is a major concern that Mayor Brown has led this move to fracture the sector based on spurious financial savings and bogus allegations," Mr Cadogan said.
" As mayor of one of the smaller districts in the country, I would never consider leaving LGNZ as it has allowed our voice, and the voices of other rural councils, to be heard far more loudly than it ever would be if we went on our own".
Clutha Mayor Bryan Cadogan said when he was new to the mayoralty, LGNZ had been vital in being able to provide advice and make connections.
"I’m extremely disappointed in what Auckland has done. It is the collective of New Zealand.
"The strength of each other will make us stronger. They will need us as much as we will need them."
He said it was a loss for democracy and a loss for the country.
LGNZ was a good voice for councils and to him it was not solely about cost but what value the organisation brought to the district.
Waitaki Mayor Gary Kircher said the withdrawal was disappointing, especially since council staff from all over the country had gone to Auckland to help out over the past few weeks.
"To pull out is pretty gutting for the whole rest of the sector. They are totally overlooking the benefits of being a member," Mr Kircher said.
He said on a per capita basis Auckland actually got a good deal.
LGNZ did a good job in what was a difficult role at times.
Gore Mayor Ben Bell could not be contacted.
