E$9-40.($Reporting entity$)$

Sarasota, Florida's financial statements refer to an entity called the Downtown Improvement District $($DID$).$ Based on the following information, state $(1)$ whether DID should be reported as a component unit of Sarasota and $(2)$ if$,$ so$,$ whether it should be blended or discretely reported. Give reasons for your answers.

DID was created by City ordinance. The physical boundaries include all non$-$residential parcels of property within the downtown core of the City of Sarasota. The City refers to DID as a "dependent taxing authority" because DID has the power to levy up to two mills of property taxes$-$with the approval of the City Commissioners$-$for the purpose of purchasing supplemental services such as maintenance, security, sanitation, promotions, infrastructure, and capital improvements. The City Commission appoints DID's entire governing board.