The kindergarten had been charged $36,563 in water, waste-water and roading-development contributions for its new building in the grounds of Alexandra Primary School, which will open next term.
Central Otago Kindergarten Association manager Angela Jacobson told the board the existing building was dilapidated and no longer fit for its purpose.
Because of an appeal against resource consent being granted for the project, construction had been delayed by a year, which added additional building costs.
The kindergarten owned its building in Matau St, but it was sited on Department of Conservation land. The building had been offered for sale to Ngai Tahu.
Board member Tim Cadogan said the kindergarten had simply shifted its activity from one location to another so had no extra capacity.
He suggested the water and waste-water component of the development contribution be removed, which left the kindergarten with $7039 roading contribution to pay.
The board agreed to pay the water and waste-water part of the contribution.
Alexandra Golf Club: The board agreed to fund a new schist sign at the entrance to the Alexandra Golf Club, deciding against funding it from its promotions funding.
Its grant of $8306 towards the cost of the sign will be allocated from the board's reserves contribution fund.
Thyme Festival: The 2009 Alexandra Thyme Festival will receive a grant of $10,300.
Co-ordinator Kathi McLean said the event operated on a meagre budget.
It was difficult to put a financial value on the festival, but it involved the wider community.
