The statement said despite the consultation, only a few expressions of interest were received "but unfortunately not sufficient to address the funding shortfall".
While the kindergarten served the community's needs, these were not recognised by the bulk funding system, the statement said.
"The system recognises numbers and not need. Transience and the housing crisis have effected the number of children and families who could enrol."
The statement said every effort was being made to relocate children to other kindergartens operated by Inspired.
"The board wishes to acknowledge the kindergarten's very dedicated and highly competent staff who have worked tirelessly and beyond the call of duty to address the declining roll," the statement read.
"The board wishes to thank the core group of parents who have supported the kindergarten over a long period of time."
In the previous article, parents expressed deep upset at the possible closure.
Deanna Sampson, who has had a son and daughter at the kindergarten, said it was "very upsetting".
"Both of my children have excelled since starting at this kindy. The teachers are amazing and it's a huge part of the community.
"It's family-orientated and everyone knows everyone. No one judges anyone and it is very multicultural, which is a plus as all the kids treat each other the same."
Tracey Clay, who had five grandchildren at the kindergarten, said she would be very disappointed if it closed.
"Kids just thrive at that kindy. There's something different every week, and the kids adore their teachers."