The Alexandra Blossom Festival is "in the black" for a second successive year and the bulk of the profits will be used as a buffer against any future financial woes.
The festival finances were discussed at the committee's annual meeting this week. The 2011 festival recorded a net profit of $27,149, after a profit of about $30,000 from the 2010 festival.
Earlier in 2010, the festival was declared insolvent, after three successive years of losses. It owed creditors more than $80,000 after the 2009 festival.
The community rallied in support and the proceeds from the "back-to-basics" 2010 festival paid the debt off as well as leaving a surplus.
Festival chairwoman Clair Higginson said the committee was building up a "cushion" of funds as a backstop against any downturn in the festival finances.
Two donations, totalling $4000, were made from the 2011 proceeds, but the bulk would remain in the bank.
"The underlying objective of the festival is to raise funds for community projects, but we also need to consider our stakeholders and our sponsors now that they are involved in the festival as well - for example, should they have a say in where those profits are spent?" Ms Higginson said.
"However, that underlying focus of the festival - the goal of a community project - is what incites the energy and activity of the volunteers who get involved." The committee needed to develop a long-term funding strategy which looked at those challenges, she said.
