October 1, 2024
Public Hearing to consider
adoption of Resolution No.
2024-42 approving an Annual
Assessment within the
Huntington Beach Downtown
Business Improvement District
for Fiscal Year 2024-2025
Background
• Huntington Beach 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
• Total assessments $117,000 projected to
be collected
• City collects assessments annually with
business license renewal
• Council appoints an Advisory Board to
recommend funding needs
Downtown HB
• In 2008, City Council appointed
Downtown HB 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)
• Downtown HB (Non-Profit Organization)
• Agreement between City and
Downtown HB to manage the District’s
funds and activities
• 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
Public Hearing
• State law requires an annual protest hearing
to receive and consider any protests against
the assessment for FY 24-25
• 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. 2024-42, “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 2024-2025.”
Recommendation
Thank you
Questions?