The future of Elgin BID will go under the spotlight at a Moray Council meeting today.
Councillors will discuss the request made by BID to waive the £4,100 administration costs of the membership levy.
The policy and resources committee will also consider whether to contribute £55,000 per annum from the economic development budget towards a BID manager, support staff and all overheads.
The business plan for the next five years will be looked at and the council will decide whether to support it.
Councillor John Divers, who is the local authority’s representative on the board that overlooks BID, said: “It first came to a meeting of the economic development meeting two weeks ago and it looked unworkable – how much funding was given.
“When BID was first set up it operated from within the council.
“Now they have an office in the town.
“Each authority is different in the amount that it contributes to BID with some giving £94,000 each year. Others give the total amount up front and some give it in installments.
“Moray Council decided to put all the money up front and that allows more money to be spent on the town centre.
“The town centre has become a talking point and there has been a surge in footfall.”
The issues surrounding BID have come under the spotlight in recent weeks after Elgin shopkeeper David Cairns refused to pay his levy.
However, the case was thrown out after Mr Cairns proved the authority had “substantially undervalued” his stock.
Mr Cairns said: “I’ve written to the 25 Moray councillors and not had a response.
“Moray College pay into BID and I can’t work out why, they have no reason to contribute.
“The three largest parties are Tesco, Moray College and Moray Council.
“Mark Watson the undertaker sent the manger of BID an email saying that he wanted to opt out and all businesses should be treated the same and afforded the same privileges.
“Tesco can opt out of it when they choose.”
BID which stands for Business Improvement District, was set up in November 2009 after more than 75% of firms in the town centre voted in favour.