September 3, 2024
Renewal of the
Huntington Beach
Downtown Business
Improvement District
for FY 2024/2025
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. 270 businesses
• Assessments range from $80 - $1,404
• Businesses are assessed based on size,
location, and business type
• Boundary has two benefit zones
• $117,000 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 24-25 Annual Report
• Ambassador Security Program improves visitor
experience and safety.
• Enhanced Maintenance ensures cleanliness, especially
during peak seasons.
• Holiday Beautification transforms the district with
festive decorations, creating a magical atmosphere.
• Marketing efforts promote the area through various
channels, strengthening brand identity.
• Community Events like the HB4TH of July Block Party,
Surf City Spooktacular, and Magic on Main Street foster engagement and attract visitors.
• A Customer Relationship Management (CRM) system
improves relations and operational efficiency.
• Financial Services provided by a third-party CPA ensure transparent and streamlined fiscal management.
FY 24-25 Activities
Downtown HB Total Budget
INCOME
Surf City Nights $270,000
Surf City Artisan Fair $252,625
City of HB – Maintenance $198,000
BID Member Assessments $117,000
Ambassador Program (VHB) $38,000
Chili at the Beach $25,000
Surf City Days $10,000
TOTAL INCOME $910,625
Assessment Breakdown
Allocation of Business Assessments
Ambassador Program (37%) $42,813
Enhanced Maintenance (17%) $20,000
Holiday Beautification (17%) $20,000
Marketing (13%) $15,027
Community Events (11%) $13,000
CRM (3%) $4,000
Financial Services (2%) $2,160
TOTAL EXPENSES $117,000
Annual Renewal
• State law requires an annual protest hearing
to receive and consider any protests against
the assessment for FY 24-25 (scheduled for
October 1, 2024)
• 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 24-25; and, • Adopt Resolution No. 2024-41 “Declaring the City’s Intention to Levy an Annual Assessment for FY 24-25 within the HB Downtown Business Improvement District”, which sets a public hearing for October 1, 2024 to consider continuation of the District; and,
Recommendation
Questions?