Rainbow Sports Club will have to pay last year's missed $12,857 loan repayment to the Tasman District Council by October 20 to qualify for a remission of this year's payment.
The staged repayments are for a $90,000 loan made to the club in 2010. Similar loans were granted by the Nelson City and Marlborough District councils.
Club chairman Jo Rainey told those at yesterday's full council meeting that this winter's warm, dry weather had been the second-worst in the club's 10-year history, and had seen it make a net loss of $145,000.
It would not be clear if the club had enough in reserve to pay its creditors and set itself up for next winter until the season's accounts were reported to the club at the end of November, he said.
The council's insistence that the club make the repayment could set a precedent with the other councils, he said.
The club had a reserve fund of $130,000 set aside but did not want to pay the council the combined $25,000 because it could affect Rainbow Ski Area's future viability, Mr Rainey said. The club chose not to use debt funding.
Accounts supplied by the club showed that its net surplus from last winter was $25,000, compared to $268,000 in 2011. Warm weather and increased road and vehicle expenses and wages contributed to a drop in revenue.
Richmond councillor Zane Mirfin made a plea on behalf of the club, saying the council might have "done its dough" and he would not want to see the voluntary club's future put at risk.
Richmond councillor Kit Maling asked why the repayments could not be spread over a longer term.
Corporate services manager Mike Drummond said the terms of the loan meant repayments accepted as not made were treated as a grant to the club. The terms could not be changed.
"I believe they are in a financial position to make the repayments, and do not believe it will push the club into liquidation," he said.
"They have had a difficult year and will need to trade out of that."
Voting on Richmond councillor Judene Edgar's resolution that the club be asked to pay last year's account by October 20 in order to be discharged from this year's debt was split seven-all. Tasman Mayor Richard Kempthorne used his casting vote in favour of the resolution.
The $12,857 would come from the council's reserve financial contributions account.
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