In the financial year to the end of March, the trust recorded a $512,000 loss, compared with a $282,000 loss in the previous financial year.
Its annual accounts, released yesterday just a week from the closing of the polls to elect trustees to the board, show book depreciation rose from $394,000 in 2008-09 to $686,000, virtually all due to the increase in the value of the Northstar motel-bar-restaurant-bottle store complex in north Oamaru.
Northstar opened in April last year after the trust had redeveloped the former Northside complex.
Chairman Ali Brosnan acknowledged yesterday the trust had to improve its performance over this 12 months, but said it would be difficult with the continuing economic recession.
"Northstar is the key and returns so far this year have been improving each month," he told the Otago Daily Times.
The complex had been transformed from predominantly a bar, to a top-quality accommodation, dining and function venue.
The past year had been challenging and the trust, like the rest of the community, had found trading more difficult.
"Trading profitably has been a real challenge.
"While we continue to hear about the economy recovering, it has been difficult to see any sign of this," he said.
The trust was trading in one of the toughest environments in its history and Mr Brosnan predicted it would "be a long while before any significant increases in revenue".
It had made some tough decisions, including disestablishing its head office in Oamaru for joint management with other trusts and scaling back its wholesale liquor operation.
This had allowed the trust to get into a stronger position without debt levels growing to an unmanageable level.
Now having established Northstar, the trust over the next 18 months would redirect its focus to the Kingsgate Brydone Hotel to return it to a high standard.
There were compliance and upgrade issues which needed to be addressed to have an asset the community would be proud of.
The board increased its operating revenue from $11.02 million in 2008-09 to $11.42 million last financial year.
Operating expenditure also rose, from $11.12 million in 2008-09 to almost $11.7 million last financial year.
That resulted in an operating loss of $271,367 this financial year compared with $101,970 in 2008-09.
After interest and other expenses, the total loss for last financial year was $512,000, compared with $282,000 in 2008-09.
Donations by the trust last financial year through gaming machines totalled $97,000.
