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Mosgiel-Taieri Community Board chairman Bill Feather said people had been complaining about the general untidiness of the sign for some time.
He had been approached by the Mosgiel Lions Club, which had expressed interest in restoring the sign.
The community board supported the concept of tidying up the sign and agreed the population figure should be removed from the sign, as the boundaries of the township were too fluid. Mr Feather said the Lions Club would look into the project further.
Some thought would be put into whether the sign should be sited with the information board in nearby Gladstone Rd.