Mrs Reid told the Bay of Plenty Times that the Tauranga Charitable Trust would be wound up by the end of July.
"The site is certainly regarded as an irreplaceable icon of our past," she told the council.
The annual grant would cover outgoings and help assist with capital works.
The operation of The Elms relied almost entirely on volunteers, with overheads like rates, insurance and property maintenance the main costs.
There were no payments made to trustees, accountants, guides, consultants and the gardening team.
"However the Elms does have a problem with drainage, electricity and water reticulation due to the age of The Elms."
Mrs Reid said the toilet facilities were under real pressure,with only one male toilet and no urinal.
"It is most embarrassing to see tourists from cruise ships having to wait in a long queue to use the bathroom facilities. Funding is also required for garden watering which is now an urgent necessity, as the gardens have become such a feature."
The council reserved its decision until early next month.