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DT S.A. BID 2006 Annual Report and 2007 Budget January 16, 2007 Page 2 Code, creating a Business Improvement District (BID) in Downtown Santa Ana. On October 6, 2003, the City Council appointed the Community Redevelopment and Housing Commission (CRHC) as the Downtown Santa Ana Business Improvement District Advisory Board. As the BID Advisory Board, the CRHC is responsible for making recommendations to the City Council on the expenditure of revenues derived from the levy of assessments, on the classification of businesses, as applicable, and on the method and basis of levying the assessments (including the annual budget). The proposed budget for 2007 has been developed in cooperation with the Downtown Santa Ana Business Council, La Ca11e Cuatro de Santa Ana Association, Cart Vendors and Merchants of Historic Santa Ana, Inc., and the Fiesta Marketplace Partners (Associations). As a result of input from the Associations and the BID Advisory Board, the 2007 BID budget focuses on two key areas: (1) continued promotions and marketing of the BID (as permitted by Ordinance No. NS-1715) and (2) maintenance/safety/security services that equitably cover all the streets in the BID area. The activities described in item (2) require an affirmative action by the City Council and are permitted by California Streets and Highways Code Sections 36513(d), 36533(c), 36534(a)(3), and 36542(a). The activities and improvements described and recommended in the 2007 BID Budget and 2006 Annual Report may be approved pursuant to Sections 36533(c) of the California Streets and Highways Code. The estimated contribution from the 2007 BID budget for items 1 and 2 is $229,100. The 2006 Annual Report/2007 Annual Budget contains the basis and method of levying the assessment, an estimated cost of providing the improvements and activities and the amount of surplus revenue carried over (Exhibit A). In order to comply with State law, the City Council must approve the annual report and budget as well as conduct a public hearing prior to levying the annual assessment. FISCAL IMPACT There is no fiscal impact associated with this action. .~~ ~~ Ste hen G. rding Deputy City Manager for Development Services Community Development Agency SGH/NE/mlr H:\ACTIONS\2007 CC\DTSA BID2006AnnRept2007Bdgt 1-16-07 REVISED by lcp.doc 19C-2