After an hour-long discussion at its meeting yesterday, the Vincent Community Board agreed the event was "iconic" and voted to bail out the festival by ensuring its 2009 debts were fully paid.
Two of the eight board members, acting festival committee chairman Tim Cadogan and Martin McPherson (who will be the 2010 festival event manager) abstained from voting after declaring an interest.
Board member Cam Withington was the only member to vote against the decision.
The board's discussions centred on whether it should grant money or loan it, whether the committee could repay a loan, the event's financial viability and the requirement to see a budget for this year's festival.
Mr Cadogan said the 2010 festival depended on the board's decision.
"We can't go forward until this problem [the debt] is faced.
"It's as simple as that," he said.
The festival, believed to be New Zealand's longest-running, was technically insolvent after three successive years of losses, totalling more than $131,000.
The 2009 festival still owed creditors $80,232 and the committee faced going into receivership.
A public appeal had raised more than $9000.
The board decided to grant the committee $50,000 and offer a loan to cover the remaining shortfall, so debts could be paid.
The loan amount would depend on several factors, including donations still coming.
The $47,000 bulk of the grant was from funds the board allocated for promotions in Alexandra and $3000 was unspent facilities budget money.
"Alexandra Blossom Festival is synonymous with Alexandra.
"There's no way we can let this thing go into receivership," board member Tony Lepper said.
Fellow member Mary Flannery was concerned at setting a precedent.
"This is opening the floodgate.
"We'll open a gate to any community organisation that runs any event to run to us to bail it out.
"There's not a bottomless pit of funds," she said.
Member Barrie Wills said the festival deserved respect as an iconic event, but previous festival committee budgets seemed to have had plenty to trim out.
Mr Cadogan said costs would be pruned severely for the 2010 festival, with savings of $100,000 so far identified.
Mr Withington believed the split between the grant and loan given by the board should be "50/50".
"This is ratepayers' money, no matter how you slice and dice it," he said.
Former committee chairman Steve Battrick, one of 10 people in the public gallery for the festival discussion, said he was "passionate" about the festival and his reason for resigning earlier this year was not financial.
It was because of a decision the committee made about the future management of the event, he said.
