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How BIDs work

How BIDs work, governance, funding, accountability and renewal.

On behalf of the BID Association, the Council uses its authority under the Local Government (Rating) Act, to collect a target rate from BID property owners, and provides these funds to the BID Association for its initiatives.

Governance

BIDs in Wellington are governed by a business-led association as a legal entity, with a Board of Directors drawn from local businesses. This governance structure ensures that decisions and spending reflect the priorities of the business community.

The BID must operate transparently and accountably, with annual reporting requirements that include:

  • Financial statements and audited accounts
  • Progress reports on projects and outcomes
  • Holding Annual General Meetings (AGMs) to keep members informed and engaged.

Funding

The BID programme is funded primarily through the BID levy, calculated as a targeted rate based on the rateable value of commercial properties and fixed amount, you can choose one of the 3 Rating options.

Targeted rates can be established by the:

  • proportional value method - the total amount of the targeted rate to be collected is divided by the capital value of the properties within the collection area. As a result, larger capital value properties pay a greater proportion of the targeted rate. Every property will therefore be paying a different BID targeted rate amount. This method is preferable where owners owning or renting more valuable areas of land or businesses will gain significantly more from the BID programme than owners with less valuable areas of land or businesses.
  • flat rate method - the Council applies a flat rate for every rateable business (commercial property) within the BID programme area. This method is used where there is little difference between the size of the businesses within the boundary or the likely benefits from the BID programme.
  • hybrid method (which is a combination of both the proportional value and flat rate methods). Council staff will work through the different options with BIDs on a case-by-case basis. within the BID boundary. - rate per business and a proportional rate based on capital value. This method is most appropriate where there are a large number of small businesses balanced by a smaller number of large businesses operating within the BID area. The advantage of this approach is that it evens out the impact of the targeted rate across all businesses and ensures the larger businesses pay a higher amount proportional to their value. The hybrid rating method is often the preferred approach for a BID targeted rate.

This funding is ring-fenced exclusively for projects and services within the BID area.

Additional funding may be secured through sponsorships, grants, or partnerships, but the levy remains the core sustainable funding source.

Accountability and Renewal

BIDs operate under the Wellington City Council BID Policy, which sets clear expectations for performance, financial management, and community engagement.

The BID Association will be required to have processes in place to ensure that it can demonstrate accountability to the levy payers. This will include having:

  • an appropriate constitution including membership rights for any eligible voting business within the boundary area (and any associate membership types) and entitlements of the individual member
  • meeting processes including for the initial annual general meeting following a successful establishment poll and subsequent annual general meetings
  • processes for the appointment of any officers and Executive Committee and their rights and responsibilities
  • processes for the development, approval and updating of the BID Association budget, strategic and business plans, and performance measures. The Council must be advised of any changes to the constitution and the contact details of elected officers and committee members