San Jose Downtown Association reached a record $3.8 million in revenue and managed to build up its financial reserves during fiscal year 2017-18, which ended June 30.
“SJDA had a good year,” said Sarju Naran, SJDA treasurer, at the October SJDA Annual Meeting. “Thanks to our two sold-out Music in the Park shows last summer and the weather cooperating with us during the Downtown Ice season.”
SJDA revenues begin with a Business Improvement District (BID) fee paid by its members plus a contract for services from the City of San Jose. Those funds are leveraged with earned income from SJDA events and programs. A small portion also comes from grants.
The Association’s $3.6 million in expenses went into the events, communications deliverables such as Downtown Dimension, marketing services such as Downtown for the Holidays, and promotions such as Dine Downtown. SJDA’s management and administration accounted for 18 percent of costs. With the big year, SJDA’s reserves increased from $582,000 to $792,000.
“The health of an organization is to have reserves on hand in the event of crisis,” said Michael Rewkiewicz, board president. “It takes the Board’s leadership, Finance Committee and staff all working together.”