The festival, held for 13 years and set down for February 19, is one of the biggest annual events in Oamaru, attracting thousands of people to the Oamaru Gardens.
However, earlier this year its organising committee resigned because of the risk involved with such a large event, but a new committee took it over.
It approached the council last month, asking for a $10,000 guarantee in case it was rained out, but was turned down after a miscommunication over providing an audited budget for the event.
Cr Peter Garvan planned to bring a notice of motion to today's council meeting rescinding that decision and asking the council to reconsider the request, but in the interim, the organising committee found affordable insurance against the event being cancelled.
Committee chairman Mark Julius yesterday said the council's own insurers had offered a very competitive price for $10,000 worth of cover if the festival was "washed out".
It was "considerably less" than quotes of "thousands of dollars" received for covering previous festivals.
"The cost is within our budget," he said.
However, the committee would be making a submissions as part of next year's council long-term plan seeking support for the event to secure it long-term.
In any good year, the festival broke even or made a slight profit, which was used for the following year.
"But there is always the question of the weather, and there would be nothing left if something did happen," he said.
That would jeopardise the festival.
Mr Julius said that, at this stage, it was not known what sort of long-term support would be sought from the council. That was something the committee would work on once next year's festival was held.
Tickets for the festival go on sale later this week from the i-SITE and BNZ. Pre-sales for adults are $15, which includes a wine glass, and $20 for gate sales, limited to 2000 tickets.
Already more than 30 stalls have been registered and the maximum of 40 are expected to be occupied.
