OCEANSIDE -- A popular Day of the Dead celebration is likely to be scrapped as part of a sweeping reorganization of MainStreet Oceanside, an official with the nonprofit downtown booster group said this week.

On Monday night, MainStreet's board cut ties with its executive director, canceled some of its signature events and decided not to seek city funding next fiscal year, according to businessman Rick Wright.

Wright, owner of Little Louie's Gift Shop downtown, has relinquished his seat on the board to serve interim executive director of the private group. He replaces Kim Kimball, who was hired as executive director in September.

"We're just going to go back to basics, back to our roots," Wright said.

In a brief e-mail Tuesday, Kimball said she had accepted a position in Greece.

MainStreet has faced pressure from critics and city officials to improve its budgeting and reduce overhead. It recently hired a consultant to conduct a "management audit," Wright said.

The board heard the recommendations Monday. One suggestion was to part ways with Kimball, Wright said.

"It was just not a good fit for the organization," he said, though he declined to elaborate.

Wright said MainStreet plans to focus on helping small businesses and move further away from special events. It will continue hosting its weekly farmers markets, but will cut the annual Dia de Los Muertos festival and its antique fair.

Dia de Los Muertos brought approximately 50,000 people each year to Oceanside's downtown. City Councilman Jerry Kern called it "one of the premier cultural events in Southern California."

"I would probably like to save that," Kern said Tuesday, "but at what cost, I don't know."

Kern has been critical of MainStreet in recent months, saying it lacked a long-term strategic plan. On Tuesday, he said he was pleased with the restructuring.

"What is MainStreet for?" Kern said. "It's to promote business in the downtown. It's not for pageants, parades and all this other stuff."

MainStreet has been partially funded by the city since it was established nine years ago. This fiscal year, the city chipped in $190,000, nearly 40 percent of the group's anticipated revenue.

But officials have cautioned that money will be harder to come by in the next fiscal year.

Wright said the group won't even ask. MainStreet will have to rely on membership fees, the farmers markets, advertising near the pier and beach vending for revenue.

The group still plans to put on the city's July 4 activities near the beach on a fee-for-service basis.

"What we're going to have to do is figure out how to run the organization using that revenue and not depend on that boost from the city," Wright said.

Wright said it would be up to the board whether to hire a permanent director.

The San Diego County Grand Jury is auditing MainStreet Oceanside's contracts with the city in response to a citizen complaint. Wright said that did not influence Monday's decisions.

Contact staff writer Craig TenBroeck at (760) 901-4062 or ctenbroeck@nctimes.com.