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BID 2008 Annual Report April 7, 2008 Page 2 the City Council on the expenditure of revenue derived from assessments, the classification of businesses, and the method and basis of levying assessments. The advisory board also has an annual report prepared which it files with the Clerk. The report includes the name and boundaries of the BID, the activities and their cost proposed for the coming year, the method and basis of levying and collecting the assessments, and basic financial information covering such things as prior year surplus or deficits and non assessment revenue. The critical factor behind the success of BIDS is that district stakeholders control and manage their own programs and budget. In nearly every BID in California, district stakeholders those businesses actually paying into the district - are designated as the advisory board. Until October 2003, the Downtown Santa Ana Business Association (DSABA) fulfilled that role. When DSABA wound down its affairs as an active stakeholder group representing the greater Downtown in general, and the BID in particular, the Council appointed the Community Redevelopment and Housing Commission (CRHC) as advisory board to fill the void. Wi th respect to the actual programming and acti vi ties that had been implemented by DSABA, two new groups emerged: Downtown Santa Ana Business Council (DSABC) and La Calle Cuatro de Santa Ana (LACCSA), to develop programs and manage the BID funds by way of contract with the Ci ty. These two groups shared the assessment funds according to an agreed-upon formula. On December 13, 2006, the CHRC sent a report and recommendation to the City Council; and on February 5, 2007, the City Council adopted the 2007 budget for the BID in Downtown. The budget specifically called for $9,900 to be allocated toward Downtown's winter holiday decorations, while the remainder ($219,200) was generally designated for promotions and marketing, with the anticipation that a more detailed work plan would be submitted by stakeholders. No such work plan was submitted; and therefore, the assessments collected in 2007 were not spent. The 2008 work plan and budget has been developed by Downtown stakeholders wi th the assistance of staff. It calls for 1) programs of general benefit to the greater Downtown, 2) programs targeted to benefit businesses usually considered to be represented by the DSABC, and 3) programs targeted to benefit businesses along and adjacent to 4th Street that were formerly represented by LACCSA and which can generally be categorized as appealing predominantly to a Spanish-speaking market sector. The City will retain fiduciary oversight of the programs intended to be of general benefit to the Greater Downtown ($105,000), the fifty-two 20A-2