"I'm sure there will be one this year - people will rally around to make sure it carries on."
But after several years of the festival "limping along", he warned it was time for a serious rethinking of the event and a return to the basics.
Approached by the Otago Daily Times for comment about the festival being insolvent, Dr Macpherson said, despite advance warning of the loss, its extent was a surprise.
The financial statements tabled at this week's annual meeting revealed the 2009 loss was $73,143, and the festival owed creditors $81,920.
The "back to basics" approach mooted by the festival committee was the right one, Dr Macpherson said.
"Local management - it's good to see Martin [McPherson] back again as event manager - and a back to basics approach.
"I think that's the way to go.
"The model is the Art Deco Festival at Ranfurly.
"It's a low-key festival, predominantly using local acts and working with locals, and it works well.
"It [the festival] is not dead.
"There will always be a festival in Alexandra.
"The residents will make sure of that.
"If we have to reinvent it, we will.
"This should be seen as an opportunity, not as a threat.
"There is a rescue job to do and it's the first year that's ever happened, but maybe it's time for a serious rethink of the festival, what it does and how it's funded, instead of just limping on, year after year."
If the Vincent Community Board was prepared to put money in to bail out the festival, the Central Otago District Council would expect to have more direct involvement with the event, maybe to the extent of overseeing the festival finances, he said.
The fringe events which made up the festival - the arts and crafts exhibitions, Senior Festival Queen contest and the many smaller activities, were just as important as the "big ticket" items, including the float procession, he said.
"It's all about community involvement; that's the key.
"It's part of this town's heritage, part of this town's culture, and I'm positive the community will attend the public meeting next week in a positive frame of mind and with determination for it to succeed."
Acting festival committee chairman Tim Cadogan said he received a "massive response" of positive comments yesterday following his warning the festival was in jeopardy.
Mr Cadogan said a public meeting, in the Alexandra Memorial Theatre next Wednesday at 7.30pm to rally support for the event, was "crunch time" to decide whether it would go ahead this September. It would also be the launch of a fundraising appeal for the festival.
Local MP Jacqui Dean (Waitaki) also voiced her support for the festival.
`The Vincent Community Board will meet on March 29 and the festival's financial woes are likely to be on the agenda.
