by LILLY HAINES
On Tuesday, Newcastle Council will consider a Review of Business Improvement Associations (BIAs) in Newcastle for public exhibition.
The review suggests reactivation of the Mayfield BIA, a potential new BIA for The Junction, and up to $100 000 in annual funding for Newcastle's existing BIAs in the City Centre, Hamilton, Wallsend and New Lambton.
BIAs receive funding from the council which in turn is collected from commercial ratepayers that exist within the BIAs local precinct.
Late last year Newcastle Council employed independent company AECOM to undertake a review of BIAs.
AECOM found there were significant government issues for many of the associations and that ratepayers were not getting value for money considering the $1.5 million being provided annually to the BIAs.
Council's review comes after an investigation into Newcastle Now found significant breaches of the funding agreement since signing with the council in 2011.
AECOMs review of BIAs recommends all Special Benefit Rate Levy funding above $100 000 be opened up to the community for awarding from contestable funds.
City Council CEO Jeremy Bath says introducing a competitive funding model will mean a better range of ideas for community events and projects from a number of different groups.
"The BIAs will still receive about $100 000 a year in funding to deliver a number of key events and projects in their local areas but they will have to compete with the broader community and with other public and private organisations for about $800 000 in funding," said Mr Bath.
"We have seen that far too much money has been spent on employing people and on administration, and that really when you're talking about a BIA is just red tape."
Jeremy Bath said council is looking for projects that will deliver activity and economic stimulus into local areas including Newcastle CBD, Hamilton, Mayfield or Wallsend.
"We haven't been getting that to my satisfaction and I am very confident that under a competitive funding model we will get far better ideas and therefore better outcomes for the community."
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Source: Newcastle City Council |
