After requesting a grant of $103,000 from the City Service, City Project fund, the orchestra received $88,122 at a grants subcommittee meeting last week, the most received by any applicant.
Despite this, a DSO spokeswoman said it was "naturally disappointed" to receive $15,000 less than it asked for; a decrease of $7000 over the previous year.
The grants subcommittee was tasked with distributing a pool of about $460,000 between 13 arts and 15 community groups.
Of the 28 applicants, 25 were approved for funding; one arts group and two community groups were declined.
In a statement released by the DSO, the spokeswoman said the council grant funding was of "crucial importance".
The fund would be used, not to add new activity, but to sustain existing activities, it said.
"Any reduction in income makes it more difficult for us to meet our costs which continue to rise and, unless this income is obtained from elsewhere, ultimately our planned activity will need to be reduced."
In the statement, the DSO said the cost of hiring the Dunedin Town Hall had increased 322% in the past 10 years.
If increases in its council grant and town hall hire costs had been in line with inflation, over the past 10 years, it would be better off by $89,480 this year, it said.
The DSO was pleased the council would be conducting a review of the grants process, and advocated for funding that was both stable and matched inflation increases.
At the meeting, when asked if there were any of the 13 arts organisations staff wished they could have allocate more to, creative partnerships team leader Lisa Wilkie said it was really hard to differentiate grant allocations for organisations all doing wonderful work.
"It is not an enviable position that I find myself in.
"It’s sometimes like comparing grapes with coconuts with avocados with Brussels sprouts."
