Several South Otago community groups will have to look to alternative sources of funding this year, after Clutha District Council slashed its grant allocations by more than 50% yesterday.
The council met at its Balclutha headquarters for annual plan decision-making and brows were more furrowed than usual as councillors wrestled with more than $1.2 million of grant requests from the district’s community and other groups.
During a preliminary debate about how much discretionary grant funding was available from the council’s investment surplus, councillors appealed both for financial prudence, and consistency in how grants were allocated.
Staff said, subject to council decisions regarding depreciation funding, a minimum of $330,000 was available from investments this year.
This was down substantially from previous years due to the unfavourable global economic situation.
However, Cr Dane Catherwood pointed out not all requests needed to be granted in full or funded from investment surplus.
That appeared to set the tone for the meeting, as many requests received only partial funding, allocated from a mixture of investment surplus and rates.
Comprising about 75% of the $1.2m requested were grants for Lawrence’s Tuapeka Aquatic Centre, the Lawrence Chinese Camp, Clutha Development and new Balclutha community centre TPŌMA.
Collectively those four applicants were granted $305,000, about two-thirds less than requested.
Tuapeka Aquatic Centre requested about $450,000 for new heating systems, after experiencing critical issues with existing pool heating arrangements this summer.
Councillors voted to defer any funding decision until council staff helped the pool trust examine alternative options.
The Lawrence Chinese Camp applied for $200,000 to progress the next phase of a planned visitor centre at the historic site.
Councillors voted down proposals to fund $50,000, then $100,000, from investment surplus, before they agreed on a figure of $75,000.
Regional development organisation Clutha Development, which receives more than $500,000 a year from the council for its services, had requested an additional $150,000 grant this year to continue working on the district’s destination marketing strategy.
Councillors voted 8-5 to grant the full sum, funded from rates, rather than investment surplus.
Last year, TPŌMA received an $80,000 operational grant to meet shortfalls in its target of financial self-sustainability.
Cr Ken Payne said the facility had been proving its way, and had been used by nearly 50,000 people last year.
It expected to break even next year, he said, and the managing trust needed an identical grant to "keep them afloat" until that happened.
Councillors voted 9-4 to grant the full sum, paid for 50-50 from targeted and general rates.
Yesterday’s funding decisions meant a provisional final rates increase of 16.04% was anticipated.
