The board is a company wholly owned by the council and responsible for tourism, economic development and operating the i-Site information centre and Oamaru Penguin Colony.
However, yesterday, the board told the council that it needed more money next financial year than had been budgeted in the council's draft 2012-22 long-term plan.
That could raise the rates rise forecast for the next financial year, unless the council can find another source of revenue.
A week ago, the council settled on a 7.44% rates increase for 2012-13 in a draft long-term plan, but the grant it allowed for its development board came up short.
Yesterday, board chairman Tony Caldwell told the council it would need $688,980 next financial year, $103,390 more than the council had allowed in its draft plan.
That could lift the rates increase from 7.44% to 7.8%.
Waitaki Mayor Alex Familton and some other councillors have already indicated that even 7.4% would be too much.
The council had reduced the funding because it planned to transfer the economic development role from the board to itself.
Mr Caldwell said that, even if the board lost the economic development role to the council, it would still face many of the associated fixed costs, such as building rental, electricity among others. If it did not get more money, it would have to reduce its services.
The council will consider the issue when it makes decisions on the long-term plan.
