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2006 ANNUAL REPORT FOR THE DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT Back rg ound The Downtown Santa Ana Business Improvement District (BID) was established in February 1984 by the Santa Ana City Council as a means of providing the Downtown business community with funding for promoting the area, increasing security, enhancing maintenance and implementing physical improvements. The Community Redevelopment and Housing Commission (CRHC) of the City of Santa Ana, as the BID Advisory Board, is responsible for the preparation and administration of the BID's budget and annual report, its promotional and marketing programs, security and maintenance plans, and physical improvement projects. Improvement Area Boundaries The geographic boundaries of the district remain unchanged from the original 1984 area, and they include over 700 retail, service and professional members (see Attachment A). Assessment Formula The formula for the BID tax levy also remains unchanged from the original 1984 ordinance and is based on the category and/or sales volume of the business (see Attachment B). Summary of Improvements and Activities The two representatives Downtown associations (Downtown Santa Ana Business Council and La Calle Cuatro De Santa Ana Association) hosted a variety of major community events and promotions during 2006, they included: • Cinco De Mayo Celebration • July 4`" Celebration • Fiestas Patrias de Orange County El Grito Ceremony, Festival and Parade • Fiestas de las Americas Festival • Art Openings • Car Shows • Concerts • Holiday Events On October 6, 2003, the Santa Ana City Council appointed the CRHC as the Downtown Santa Ana BID Advisory Committee. As the BID Advisory Committee, CRHC is responsible for recommending an annual budget and other policies pertaining to the BID. Working with information provided by staff, the Downtown associations developed the 2007 BID budget. EXHIBIT A 19C-4