A review of the ratepayer-funded organisations that represent Tauranga's retailers has recommended greater scrutiny of the groups after finding one hasn't submitted an audited financial report since 2018.
The report from Max Pedersen Consulting was commissioned by Tauranga City Council to review the city's four mainstreet organisations - Greerton VillageCommunity Association, Mainstreet (Downtown) Tauranga, Mount Business Association, and Papamoa Unlimited - and identify any recommended changes to the current programme.
Pedersen consulting found "weak" accountability and no specific point of contact at the council for the groups as key issues. The review is expected to be presented to Tauranga City Council today.
It was recommended the council adopt an accountability regime to be implemented "as soon as possible" and provide the mainstreet groups with a three-yearly letter of expectation.
A part-time role should also be created to better manage the council's relationship with the groups. The council should also survey the opinions of owners and occupiers of properties within the targeted rates areas that fund the mainstreet groups about their effectiveness, Pedersen said.
Brian Berry, chairman of Mainstreet Tauranga, also known as Downtown Tauranga. Photo / NZME
Pedersen found annual business plans were not provided by the mainstreet organisations, six-monthly reports to the council were "basic" without the qualitative commentary of performance, and meetings between the council and mainstreet groups were "more perfunctory in nature" than fulfilling their purpose.
"One of the mainstreet organisations has not submitted audited financial reports since the 2018 financial year, without any consequence," he said.
"I got the impression from some of the mainstreet representatives that I met, that they regarded [Tauranga City Council's] role in funding their organisations as being akin to a membership levy collection agency function.
"The reality, of course, is that the council is setting a targetted rate to fund the mainstreet services and is accountable for the use of those rates to the same extent as it is for any other rates that it sets. In effect, the council is giving grants to the mainstreet organisations each year."
The mainstreet group in Greerton employs a manager and received $134,000 from targeted rates in the past financial year.
Mainstreet Tauranga contracts Tuskany Agency and received $353,000.
Mount Business Association employs an operations manager and two other staff and received $188,000 while Papamoa Unlimited which is managed by a volunteer manager who engages a contractor to help with events received $50,000.
While the review was not a performance assessment, it appeared Mount Business Association "has been relatively inactive over the last year or so", Pedersen said.
However, it was noted there was new leadership making a significant effort to rebuild the organisation.
Greerton Village Community Association manager Sally Benning. Photo / NZME
In the report, Mainstreet Tauranga chairman Brian Berry said if the council deemed a survey necessary it should be co-created by the group to ensure "an accurate and balanced representation of our strategic vision and delivery".
Berry said the recommended accountability regime was of "particular concern" and needed more discussion as it left all mainstreet groups exposed to subjective decision making by the council.
"Ultimately it implies that if [the council] does not 'see the value' they could deny the funding.
"As a member organisation and not a CCO (council-controlled organisation), Mainstreet Tauranga sees this wording as outside of [the council's] scope and, as stated, too subjective".
The concern of mainstreet groups being viewed as CCOs was shared by Greerton Village Community Association chair Sue Blomquist and manager Sally Benning who agreed with most recommendations.
Mount Business Association's Kim Renshaw said, in the report, the review appeared to have done little to review the actual value of the organisations. She said she would like a potential letter of expectation to be co-designed and done in time for the new financial year.
Papamoa Unlimited provided a response verbally to the council, which was detailed in the agenda for the meeting, saying comparing Pāpāmoa to Tauranga or Greerton was not fair and current auditing or reporting was "an exercise in futility".
