September 5, 2023
Approve the Huntington Beach
Downtown Business
Improvement District’s Annual
Report and Proposed Budget for
Fiscal Year (FY) 23-24, and Adopt
Resolution No. 2023-37 declaring
the City’s Intention to Levy an
Annual Assessment for FY 23-24
at a public hearing scheduled for
October 3, 2023.
Background
• HB Downtown Business Improvement District (District)
established in 2004 in response to request from
downtown merchants
• Purpose to fund activities/improvements, above the
City’s baseline, to benefit and support businesses
within the defined boundary
• Per CA Parking & Business Improvement Area Law of
1989, District’s Advisory Board must prepare an
Annual Report & Budget for Council approval
• Council must also approve the levy of the assessment
for the upcoming fiscal year
The District
• Comprised of approx. 255 businesses
• Assessments range from $80 - $1,404
• Businesses are assessed based on size,
location, and business type
• Boundary has two benefit zones
• Total assessments $115,000 ($110,200
projected to be collected)
• City collects assessments annually with
business license renewal
• Council appoints an Advisory Board to
recommend funding needs
HB Downtown
• In 2008, City Council appointed HB
Downtown as the District’s Advisory
Board
• Private, 501(c)(6) business-based non-
profit corporation formed by
businesses within the District
• Distinction between “BID”
• District (City Program)
• HB Downtown (Non-Profit Organization)
• Agreement between City and HB
Downtown to manage the District’s
funds and activities
FY 23-24 Annual Report
FY 22-23 Highlights
• Board of Directors’ Retreat
Reinstate & Combine Marketing and Events Committee
New Stakeholder Committee
SWOT Analysis
• Successful Weekly and Signature Events
Expansion of Surf City Nights and est. of SCN Task Force • Filled Staffing Needs
Events & Social Media Manager, Admin. Role
• Stakeholder Outreach
Newsletters, Critical Incident Response Training, Member Mixers • Refreshed Website
Member Directory & Event Pages
11,000+ Social Media Followers
FY 23-24 Activities
• Maintenance operations and enhanced security/cleaning during special events, holidays, and peak-season
• Continue to host weekly and signature events:
Surf City Artisan Fair
Surf City Nights
Chili at the Beach
HB4th Block Party
Surf City Spooktacular
Surf City Days and He’e Nalu Pier Festival
Magic on Main Street
• Holiday Beautification (lights, snowflakes, holiday tree) • Improve communication (CRM) and strengthen brand identity through advertising and marketing programs
• Continue day-to-day operations (administration and finances) Budget
INCOME
Surf City Artisan Fair $268,000
Surf City Nights $263,140
City of HB--Maintenance $198,000
BID Member Assessments $110,200
Ambassador Program (VHB) $36,000
Other Events $35,000
TOTALINCOME $910,340
Assessment Breakdown
INCOME
Ambassadors Program (30%) $33,060
Executive Director (20%) $22,040
Enhanced Maintenance (15%) $16,530
Holiday Beautification (15%) $16,530
Marketing & Events (15%) $16,530
CRM Software Program & Staff (5%) $5,510
TOTALEXPENSES $110,200
Annual Renewal
• State law requires an annual protest hearing
to receive and consider any protests against
the assessment for FY 23-24 (scheduled for
October 3, 2023)
• Only protests by affected business owners
can be considered
• If protests received total 50% or more of the
assessment value, no further proceedings to
continue the District can be considered for
one year
• If lack of majority protest exists, Council can
renew assessment for the upcoming year
• Approve the Annual Report and Proposed Budget for FY 23-24; and, • Adopt Resolution No. 2023-37 “Declaring the City’s Intention to Levy an Annual Assessment for FY 23-24 within the HB Downtown Business Improvement District”, which sets a public hearing for October 3, 2023 to consider continuation of the District; and,
• Authorize the revenue appropriation of $3,200 and an expenditure appropriation of $3,200 for a net zero impact to the fund.
Recommendation
Questions?