The council has applied for a $10,000 grant from the government's $8 million maintenance fund to reduce the grade of the Hemo Gorge section of Te Ara Ahi and make it more consistent with the rest of the ride.
If the council's bid is successful, the project will also receive $10,000 in local funding. The Ministry of Business, Innovation and Employment (MBIE) will announce how the first round of the four-year fund will be divided by the end of next month.
Mr Donaldson said consultation was also under way on establishing a Rotorua Trails Trust to take over maintaining and enhancing trails in the district and to consider linking Te Ara Ahi with neighbouring trails, such as the Waikato River Trails.
Not all trails have enjoyed the same success. The Twin Coast Cycle Trail in Northland has been battered by storms, had issues with cars driving on it and - according to some neighbouring businesses - thieves using the trail to break in, steal expensive products and assets, and make an easy getaway from police.
The Far North District Council is also reviewing how it will make up for a $3 million shortfall of funding needed for a proposed coast-to-coast cycleway. Prime Minister and Minister of Tourism John Key is confident the bike trails will be hugely beneficial to host regions.
He said Nga Haerenga was already "an incredible network of cycle trails" and a great tourist attraction.
"There are many anecdotal reports of new business being developed and existing businesses expanding to meet the needs of cyclists using the trails," he said. "Last year saw a 56 per cent increase in the number of people using the trails, with an estimated 97,000 trail users in January this year alone.
"Although it is still early days for many of the Great Rides, I am confident these trails will deliver a range of economic and social benefits to the regions they are located in."
Nga Haerenga was proposed by Mr Key as the 21st "surprise" item from a national job summit held by the Government in early 2009.
The trails were granted $50 million in government funding and supported with additional funding from regional stakeholders. The maximum level of government funding available for a proposal was $300,000.
The original focus of Nga Haerenga was to develop a series of "great rides" to showcase the best of New Zealand's landscape, environment, culture and heritage.
It has since expanded to include existing off-road trails, including the Otago Central Rail Trail, and a number of existing roads and paths to form a national cycling network.
"[The network] aims to encourage cycle tourists and recreational cyclists away from busy state highways and arterial routes and on to scenic, quiet backcountry roads where they will experience heartland New Zealand," MBIE spokesman Edd Brooksbank said.
Five trails are due to open in the next 12 months: the West Coast Wilderness Trail will be opened later this year, and the Old Ghost Road, Alps 2 Ocean, Twin Coast Cycle Trail, the Little River Trail and second stage of the Around the Mountains trail will be opened next year.