While a $43,846 grant by the Queenstown Lakes District Council helped maintain the building, about 50 committee members and supporters of the Arrowtown museum were told at the annual meeting the toilets urgently needed renovating and it was unclear where funding for the major restoration of the Arrowtown jail would come from.
Committee president Jim Fraser and museum director David Clarke delivered updates at the 62nd annual meeting.
Mr Clarke said just over 40,000 people visited the museum, slightly down on the 2009 figure and a low total compared with the past decade. However, retail sales were not affected.
Mr Fraser said the economic climate, coupled with increasing costs across most of the museum's activities, had meant the year under review had been "financially challenging" for staff.
Exhibitions including "Speaking of Change" and "Favourites" and the Autumn Festival Art Competition attracted many visitors. Coach tours again provided a good income stream.
"It was somewhat disappointing however, that individual, or free and independent traveller, admissions, especially during the ski season, were below expectations, indicating that visitors were on tight budgets."
Entry fees were increased by $1 but compared to charges for other tourist activities in the region, this was not seen as a deterrent, Mr Fraser said.
With GST about to rise, consideration may have to be given to a another small increase, he said.
Mr Clarke said more signs had been installed and computer maintenance was out-sourced in the information centre, which was a "crucial part of our business".
Considerable time and money had been spent upgrading the museum's website and the museum was now promoted on a GPS radio system installed in almost all campervans, Mr Clarke said.
Hiring an extra staff member for six months, costly new displays, continually rising electricity and insurance bills and general maintenance on both the museum and the historic post office had taken expenses over budget.
The $28,000 construction and presentation of the rediscovered vault under the museum's Bank of New Zealand building was now being prepared for public display. The Central Lakes Trust granted $20,000 towards the project.
The Lakes District Museum will host the Small Museums Seminar, for museums with seven or fewer staff, at the museum and Arrowtown Bowling Club on October 14 and 15. Speakers would discuss interpretation, display and the digital world, Mr Clarke said.