Long-term funding sought for facility

The West Otago Community Board is to consider providing sustained funding for the area's health facility in Tapanui.

Representatives of the West Otago Health Trust gave a financial update to the board during its final pre-election meeting in the town this week, and requested it consider providing regular funding from its "commonage" fund.

The board controls substantial rural commonage lands in West Otago, which generate a surplus income of about $27,000 a year.

The health trust and its associated company had benefited from several commonage grants towards capital projects since the facility was conceived in 2009, but had struggled to generate capital reserves because of revenues dominated by "fixed" DHB funding and outgoing salaries, trust treasurer Hans van der Linden said.

Despite that, the trust had begun to take steps towards establishing a limited reserve thanks to efficiencies created on the "medical side" of the business, which now allowed the health company to pay about $40,000 a year to the trust for rent.

That payment was expected to double during coming years, but it would still leave the board lacking "fat" to counter depreciation, and address continued maintenance and improvement of its buildings.

"How long can you keep asking the public for donations? We need to look at alternative funding sources, and would like the board to consider using its commonage fund to support this important West Otago public facility," Mr van der Linden said.

The funding would be for capital, not operating, costs, he said.

"Without the commonage support to date we'd be right in the bloody crack right now. So we'd like that to continue for the long term".

West Otago ward councillor Michelle Kennedy said she favoured board support.

"We can't keep bashing our community for fundraising. We have money sitting here for community use - we should use it for this." Board chairwoman Barbara Hanna said the board would consider the request fully during its next meeting.

The trust agreed to provide its accounts for the board's information.

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