Agenda Packet_2026-05-05 - Laserfiche WebLink

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EXHIBIT 1 - The improvements and activities provided for fiscal year 2025 are consistent with the Management District Plan(Plan). ANNUAL SERVICE PLAN Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the assessed lodging businesses.These specific benefits or privileges granted to assessed lodging businesses are not provided to non-assessed businesses and do not exceed the reasonable cost to the City of conferring the specific benefits or granting the privileges.The privileges and services provided with the TMD funds are sales and marketing programs available only to assessed businesses. A service plan budget has been developed to deliver services that benefit the assessed businesses.A detailed annual budget will be developed and approved by TSA.The table below illustrates the initial annual budget allocations.. Although actual revenues will fluctuate due to market conditions,the proportional allocations of the budget shall remain the same.However,the City and the TSA Board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent(15%)of the total budget per year.For example,the City and TSA may fluctuate the TMD's budget allocation for the Sales and Marketing category from its current seventy percent (70%)to a maximum budget allocation of eighty-five percent(85%)or down to a minimum budget allocation of fifty-five percent(55%).A description of the proposed improvements and activities for the initial year of operation is below.The same activities are proposed for subsequent years.In the event of a legal challenge against the TMD,any and all assessment funds may be used for the costs of defending the TMD.In the first year of operation,the costs of creating the TMD may be repaid by deducting repayment funds proportionally from budget categories. Each budget category includes all costs related to providing that service,in accordance with Generally Accepted Accounting Procedures(GAAP).For example,the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget.The costs of an individual staff member may be allocated to multiple budget categories,as appropriate. The staffing levels necessary to provide the services below will be determined by TSA on an as-needed basis. SALES AND MARKETING •A sales and marketing program will promote assessed businesses and Santa Ana as tourist,meeting,and event destinations.The sales and marketing program will have a central theme of promoting Santa Ana as a desirable place for overnight visits.The program will have the goal of increasing overnight visitation and room night sales at assessed businesses,and may include the following activities: •Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; •Print ads in magazines and newspapers,television ads,and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses; •Attendance of trade shows to promote overnight visitation to assessed businesses; •Sales blitzes for assessed businesses; •Familiarization tours of assessed businesses; •Preparation and production of collateral promotional materials such as brochures,flyers and maps featuring assessed businesses as well as all events, attractions,and reasons to visit(Stay,Shop,Dine,Play); •Attendance of professional industry conferences and affiliation events to promote assessed businesses; •Lead generation activities designed to attract tourists and group events to assessed businesses; •Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses;and •Development and maintenance of a website designed to promote overnight visitation to the city and promote Santa Ana as a tourism destination highlighting the assessed businesses,as well as all events,attractions,and reasons to visit(Stay,Shop,Dine,Play)to increase overnight visitation at assessed lodging businesses. ADMINISTRATION AND OPERATIONS The administration and operations portion of the budget shall be utilized for administrative staffing costs,office costs,advocacy,and other general administrative costs such as insurance,legal,and accounting fees. CITY ADMINISTRATION FEE The City of Santa Ana shall be paid a fee equal to two percent(2%)of the amount of assessment collected,to cover its costs of collection and administration. CONTINGENCY/RESERVE The budget includes a contingency line item to account for uncollected assessments,if any.If there are contingency funds collected,they may be held in a reserve fund or utilized for other program,administration or renewal costs at the discretion of the TSA Board.Policies relating to contributions to the resenP fiind,tha tarQat amnint of tha racarva fiind and Pnd*tiira of menus frnm tha racana fiind shall ha ca tinQan�v//reserve funds&fPeQ8p$lgP_Pistrict programs or administrative and renewal costs in Uh-prg@rtions as determined by the TSA Board.TW&2Q f&d may be used for the costs of renewing the TMD.