Known for its wine and beer booths, food supplied by Saratoga's upscale restaurants and live music on outdoor stages, the end-of-summer event has drawn large crowds to the Village for the last 17 years. It has also been the biggest annual revenue generator for the Saratoga Chamber of Commerce.

Celebrate Saratoga! earned the Chamber about $23,000 this year, compared to an estimated $60,000 last year.

"We were all surprised that the number was low," Councilwoman Aileen Kao said. "Everyone was a little disappointed that the event did not take in as much as was expected."

Executive Director Kathy Phelan has been running the chamber since May, when she succeeded interim director Sheila Arthur, who was filling in after the departure of Kristin Davis in 2004.

A loss of institutional knowledge and of a core group of volunteers were two reasons cited for the lower take this year.

"It's growing pains for the chamber," Phelan said. She said that some merchants in the Village have been concerned with business losses caused by the shutdown of Big Basin Way for the event. The association of Celebrate Saratoga! with alcohol and with large groups of teenagers were also seen as negative factors.

"I don't want to do the event just because we've always done it, but because it makes sense," Phelan said. "I'm determined to evaluate all aspects of why we do it, including financial reasons, to create an informed decision that I can recommend to the board, which has final approval."

Nomita Shahani is board president. "We had fewer people this year definitely--fewer people, fewer booths," she said. "All that contributed to less income. We sort of expected that it would be down because we got a very late start because of the change in management.

"Usually, we start this process in February, but [this year] we didn't start until July," she said. "We also tried something new. We got an outside event planner. We knew that would take away part of the revenue."

Phelan said that other new expenses, such as the hiring of a clean-up crew, barricade costs and the use of additional outside security contributed to the smaller revenue.

With Celebrate Saratoga! providing the lion's share of the chamber's budget each year, the lower number this year is a concern. "We have low funds," Shahani said. "We have some savings to work with. We have enough money to function.

"We are in major cost-cutting mode," Phelan said. "We're looking at events that will bring people into the Village throughout the year in addition to Celebrate." She said that in addition to the Village, the chamber is concentrating on businesses in the Gateway District and the Argonaut Shopping Center.

John Marian, a chiropractor on Big Basin Way and a former chamber board member, said that the loss of Davis and of her contacts in the community were big factors in the drop in revenue. "I think it's more to do with the complete changeover from one group of people who were volunteers, to outsiders who were brought in," he said. "It was all-volunteer before and run a certain way."

"It's kind of a balancing act for businesses--staying open for the exposure versus the hassle of the event," he said. "This year the balance tipped more to the hassle side."

Marian said chamber membership is down after the departure of Davis, and that her management is missed by many in the Village.

"Given the situation we were in, I think we did pretty well," Shahani said. "There's always going to be change. Businesses come and go and we have to cope with it and bring in new businesses. Next year is the 50th anniversary of Saratoga being a city. We have started the wheels in motion for a phenomenal, successful Celebrate Saratoga! in 2006."

Phelan said that a great group of people is representing the chamber during a period of learning and reorganization. "They're smart, community-driven and entrepreneurial," she said. "I feel confident that we'll survive through cost-cutting and by making up lost income through streamlined and more efficient strategies."