Katikati ratepayers have bombarded Western Bay of Plenty District councillors with questions over why the council proposes funding the town's museum in its 2014/2015 draft annual plan.

With about 60 people attending the council draft plan presentation at the Memorial Hall on Tuesday, many asked why $65,000 is being proposed to assist Katikati Heritage Museum in paying its mortgage and interest payments during the next 12 months.

About 60 people fronted to Western Bay council's annual plan presentation in Katikati Tuesday night, many wanting answers about the museum.

But meeting chair Deputy Mayor Gwenda Merriman urged ratepayers to go to next Monday night's public meeting at the museum, to educate the public on its work and financial position.

But it didn't stop many asking councillors about the $65,000 proposal when council went guarantor for a $550,000 bank loan two years ago to enable the community to buy the facility via the Katikati Heritage Museum Charitable Trust.

'Whilst we have given to you some of the options [in the draft plan] for the museum funding, there is going to be the opportunity to meet on Monday and ask questions on operations, future vision and planning for the museum.”

Despite trying to get ratepayers to focus on other annual plan topics, such as an individual proposals to amalgamate water schemes and waste water projects in the Western Bay – set to affect rate rises more than the museum funding – residents kept going back to it.

Western Bay councillor Garry Webber told attendees the museum in is in the process of establishing itself 'and it's acknowledged over time it will grow to be not only be a national attraction but will also get some international visitors”.

'So that's where we hope the income will come through but in the meantime, like all businesses starting up, it's had its troubles; and it approached council for a one-off grant of $65,000 to assist them with their short-term finances.”

Garry says council's now proposing three funding options.

Option one is to provide the funds two-thirds from the general rate and one-third from the Katikati Community Board rate.

'That will average $2 per property across the district and $5 per ratepayer in Katikati.”

Option two is fund it only from the Katikati Community Board rateable area.

'That will see a $15.51 increase in rates for Katikati people.”

Option three is gain the funds from the whole Western Bay district.

'That will be $3.20 per ratepayer district-wide.”

Asked if the council was ultra vires – beyond one's legal power or authority – in supporting an organisation with a commercial arm – such as the museum's café – WBOPDC CEO Glenn Snelgrove says museums are a core service of council under the Local Government Act.

'And any other issues other than core services are subject to public consultation and that's exactly what we're going through now – seeking views from the community about supporting both the museum and the operation that sits alongside it, because it's hard to separate the two.”

'If there's support for that council has mandate under the Local Government Act to rate for that.

'If there is no support for it, then council has to consider the alternatives.”

Katikati resident Anne Bowling asked if the council had given any funds to the museum since going guarantor on the bank loan.

Glenn says on two occasions the museum has gone to council, when their operating costs wouldn't meet expenses.

'In the first instance a cash grant of $3000 was made from the district with the purpose of that money being an advance and be paid back – that hasn't been paid back.”

Glenn says the second advance was from the Katikati Community Board, approved by council, as a $10,000 grant.

Asked if either is part of $65,000 in the council's 2014/2015 plan, Glenn says ‘no'.

Katikati Heritage Museum manager Paula Gaelic says she asked council for funds from its Recreation and Leisure budget. 'I believe this budget has a $1.5m surplus. If the money [for the museum] came from this budget it wouldn't have an effect on rates at all.

'The museum comes under recreation and leisure just like a sports ground, public toilet or park.”

Glenn says fund requests made to the Recreation and Leisure budget can't be used for operational costs 'only for development or enhancement”.

'If coming from the operating costs of that budget – it's district-wide funded and a very tight budget – to take $65,000 out of that would require us to reduce service somewhere in the district,” says Glenn.

The museum's public meeting is next Monday April 14, from 5.30pm, at the museum, Corner SH2 and Wharawhara Rd.