AN EVENTS levy could have helped fund the creation of the council's National Thunder motorbike rally.
But the council has defended the money it's set to invest in this new event because it will become a source of income into the future.
The council will spend $117,000 over the next year to establish the event which isn't forecast to turn a profit until, at least, its second year.
"I believe this has the capacity to be a big earner for the city and be a positive a revenue base for council," mayor Col Murray said.
"Council's intention won't be make a lot of money out of this event, the intention will be to bring another strong performing economic event to Tamworth."
The inaugural rally will be held on the 2020 October long weekend and is expected to foster a $3 million economic benefit for the city, once it gets increased traction in coming years.
It's hoped it will rival the Harley Davidson convention which was hosted at AELEC four years ago with council opening the event to all manufacturers and enthusiasts.
The mayor said this event was not established in light of the events levy being blocked earlier this year.
"This event was probably hatched back in 2015, well before the events levy," he said.
"We have found some money in our budgets and we are able to support that from existing budgets and it's a matter of squeezing the lemon and getting every last drop out of the budget.
"We found a way we can do that, but that doesn't mean, long-term, it can be sustainable to create other events from those recurrent budgets."