Council district development deputy chief executive Jean-Paul Gaston said Tabuteau was employed by Rotorua Lakes Council in March on a 20-hours-a-week fixed-term position to work on economic development and housing projects.
"His fixed term has been extended several times while permanent staff recruitment was under way.
"Most recently, his employment was extended to enable project handover with a new employee and he is finishing with [the] council at the end of January as he understands the perceived conflict with his political aspirations."
Gaston said a conflict of interest was considered regarding Tabuteau but "none was identified".
Rotorua Lakes Council district development deputy chief executive Jean-Paul Gaston. Photo / File
"The potential for perceived conflict was recognised by both the organisation and Mr Tabuteau, leading to a mutual decision his contract would end. He stayed on until this month to enable project handover with a new employee."
Mayoral rival Raj Kumar claimed Tabuteau's role had never been announced and believed it should have been.
"If he is doing something with housing, which is our biggest concern at the moment, the lack of housing … why was he never ever introduced to the councillors so we could work alongside with and understand just what he is doing?
"The council's very big on pōhiri … Fletcher [is deputy leader] in New Zealand First, that would be a big coup for the council … they should have a pōhiri for him."
Gaston said pōhiri were regularly held in groups for new staff members, and elected members were invited to attend if they wished.
Kumar said some may view his criticism as politically motivated but he denied it was.
"It does look like that but at the end of the day, don't forget I am still a councillor.
Rotorua district councillor Raj Kumar. Photo / File
"My role as a councillor is to determine where the best rates, where the best revenues are gathered, how we can look after our city … so that is not a conflict of me attacking anybody, I'm doing my role as a councillor."
Rotorua Residents and Ratepayers (RDRR) chairman, current councillor and fellow mayoral candidate Reynold Macpherson said, in his opinion, there was a conflict of interest and it should have been acted on earlier.
RDRR candidate Jim Adams said, in his view, it was unacceptable for even a part-time appointment in a local government bureaucracy to continue after announcing he was standing for the mayoralty.
Tabuteau said he was grateful Kumar saw his appointment at the council as a big coup.
"But actually, I just wanted to get on with working with the great team of people I was assigned to, knowing I would not be there for very long."
"I have working knowledge of Government, application processes and an understanding of the different ministries and their officials."
He said that was "a skill set that will be essential for the next mayor of Rotorua" if the council was to successfully work with central Government in order for Rotorua to thrive post Covid-19.
Tabuteau said the strategy team would submit the almost $100m application to the Government soon, which he believed would accelerate the growth of the city's housing stock.
Tabuteau was formerly the deputy leader of New Zealand First but this position ceased after the 2020 election.
Local Government NZ president Stuart Crosby said there was no conflict of interest "at all" and he supported the council and Tabuteau taking a "cautious approach" with Tabuteau leaving the council this month.
"Perception is everything in our business. It wasn't necessary in July. The election is not until October, it's some time away."
He said Tabuteau ending his time at the council this month was "quite appropriate and plenty of time to remove himself from council activities".
Rotorua local election officer Warwick Lampp said council employees had stood in other council elections from time to time.
"Depending on their role at the council, they have taken a leave of absence for the three-month election period if they are employed by the council during it."
The 2022 local election is by postal ballot, with voting closing at 12pm on October 8.
