The Alexandra District Museum Inc. which runs Central Stories Museum and Art Gallery, is at odds with the Central Otago District Council over funding cuts which they say may force staff cuts, reduction in opening hours and entry fees charges.

Fifty-five members of Alexandra District Museum Inc (ADMI) met at Central Stories recently to consider “serious operating continuity issues” raised following a reduction of $49,000 in its annual grants from Central Otago District Council (CODC).

In a statement, ADMI says it has received an operational grant from CODC Councillors since 2008.  

“The level of that grant in recent years has been $49,000,” the statement says. “This has been delivered by CODC under a Service Level Agreement which set out a number of agreed deliverables.

“CODC claims that ADMI had not met that deliverable specifically relating to advice and support to other museums in the district hence the reason for the reduction in funding. 

“It is proposed by CODC that the $49,000 funding previously delivered to ADMI is to be re-allocated to a staff position either within the Council’s own Offices or through a museum sector trust, yet to be established, to provide support to the five museums in Central Otago.

“ADMI disputes that it was not meeting the expectations under the Service Level Agreement that expired in June 2018 with no evidence that the agreement had been rolled over.”

ADMI claims the main reason for the agreement ceasing in 2018 was that a review of museums and libraries was being undertaken by the Council. 

“This review has still not been concluded,” ADMI says. 

“Three of the four stated deliverables were being fully met and the Advice and Support to district museums was being delivered willingly when requested which was the requirement under the Agreement.”

ADMI claims it reported to and liaised regularly with CODC and delivered annual reports fully outlining the year's financial and operating activity. 

“At no time had CODC indicated that there were issues relating to the delivery of the Service Level Agreement deliverables,” the statement says.  

“There was also no discussion with ADMI on this matter when it was decided that the funding should be removed under the Long-Term Plan (LTP).    

Chair of the ADMI Board Dianne Duncan says, “ADMI has consistently pushed for the status quo in all meetings and communications with CODC staff and as part of its LTP submission. 

“The final LTP decision is an indication that the status quo did not find favour with the Council,” she says.

“The $49,000 grant was part of a total grant of $124,000 provided annually by CODC and the Vincent Community Board (VCB). 

“This covered salaries and wages, energy costs and insurance with little to spare. 

ADMI still has access to funding through the VCB by way of application to a contestable fund. 

“It is the ADMI Board’s view that contestable funding, although suitable for event or specific projects, creates uncertainty when being relied upon to meet annual commitments to salaries and wages and normal operating expenses, particularly for Central Stories which is a valuable community and regional entity.

“The loss of this funding significantly affects the way that Central Stories Museum and Art Gallery can operate moving forward.”

The Alexandra District Museum Inc. says council funding cuts may force staff cuts, entry fees and reduction in opening hours. 

Central Otago District mayor Tim Cadogan says has received funding from both the Vincent Community Board and the Central Otago District Council for many years.

In relation to the District funding, Mayor Tim says ADMI conceded that components of the agreement with the Council, that related to the District role ADMI was to fill, had not been done for a number of years.  

“That role is crucial to effective management of the overall museum sector across the district, a sector Council and the four boards provide almost $350,000 a year in grants, building maintenance and running costs.”

In October last year, ADMI was advised that Council was not happy with non-delivery.  

“This was further enforced at the Council meeting of 18 November 2020 when a report was put to Council to consider Council’s role in the museum and heritage sector and approve the proposal of a new in-house function to be included in the 2021-31 Long-term Plan consultation process.  

“No Board member took the opportunity to speak to this Report, but the museum manager did, noting that the organisation was not against the establishment of the position as suggested in the report, however submitting that this should not come at the expense of a reduced grant to the Museum.

“In essence, what the Board through its representative was asking was that even though what I would say were significant components of what $49,000 a year was being paid for would no longer be undertaken by the Board, the $49,000 should still be paid.

“Because of the community interest in any decision to remove the funding, the matter was placed into the LTP consultation.   

“In its submission ADMI conceded it had not fulfilled the district role for a number of years and that it “had a difficult three years both from the point of view of staffing resources and financially which did have an impact on its ability to focus on anything other  than maintaining its own operation at a minimum level”.  

“At no time that I am aware of in those three years did ADMI come to Council and advise it was not fulfilling roles it was being paid to undertake.”

Central Otago District mayor Tim Cadogan.

Mayor Tim says for ADMI to claim that “There was also no discussion with ADMI on this matter when it was decided that the funding should be removed under the Long-Term Plan” is plainly incorrect.  

“ADMI did not take the opportunity that is open to all submitters to speak to their submission nor was any other opportunity for discussion sought before the decision was made,” Mayor Tim says.

“Neither has ADMI at any stage offered advice on how it would work toward fulfilling the roles it was being funded to undertake.  

“Indeed, the 2020-2022 ADMI Strategic Plan makes no mention of the district role the district was funding the Board to provide.

“The Long-Term Plan consultation sought the community view on retaining the funding with ADMI or three different options that involved removing it.  471 submitters favoured the funding being either brought in-house or removed totally, while 152 felt it should be retained by ADMI.”

A fifth option was raised by the museum sector that would involve the sector undertaking the coordination rather than Council staff.  

“Council has determined in the finalised LTP that the ADMI funding would be applied to this sector-led initiative, provided Council are satisfied with the full proposal which will be in front of it in three months.

“The loss of $49k is going to create some challenges for the board, but those challenges noted by the Board in its release generally do not relate to what the funding was being provided to ADMI to undertake.”