October 3, 2023
Public Hearing to consider
adoption of Resolution No.
2023-38 approving an Annual
Assessment within the
Huntington Beach Downtown
Business Improvement District
for Fiscal Year 2023-2024
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)
HB Downtown 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
TOTAL INCOME $910,340
Budget (Expenses)
HB Downtown EXPENSES
Staff Support $274,060
Maintenance & Cleaning $219,000
Surf City Artisan Fair $100,552
Surf City Nights $85,970
Ambassador Program $81,151
Marketing and Other Events $82,000
Administration/Misc. $67,607
TOTAL EXPENSES $910,340
Assessment Breakdown
Assessment EXPENSES
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
TOTAL EXPENSES $110,200
Public Hearing
• State law requires an annual protest hearing
to receive and consider any protests against
the assessment for FY 23-24
• 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
• Conduct the Public Hearing; and,
• If written protests of at least 50% or more of the total assessments are not received, adopt Resolution No. 2023-38, “A Resolution of the City Council of the City of Huntington Beach Approving an Annual Assessment within the Huntington Beach Downtown Business Improvement District for Fiscal Year 2023-2024.”
Recommendation
Thank you
Questions?