October 1, 2024
Approval of the
Huntington Beach
Tourism Business
Improvement District
(HBTBID) FY 2024-25
Annual Report
Background
• The HBTBID was formed in 2014 pursuant to the CA
Property and Business Improvement District Law of 1994. • Its purpose is to increase overnight room sales through targeted marketing, public relations, group sales, and
tourism enhancement programs.
• Funding comes from assessments collected from lodging businesses in Huntington Beach.
• The district runs through June 30, 2028.
• An Annual Report is required for City Council approval each year.
HBTBID
• The HBTBID consists of all lodging
businesses within the City.
• 21 hotels/motels
• Approximately 200 Short-Term Rentals (STRs)
• The assessment rate is 6% of gross room
rental revenue for stays under 30 days.
• Total assessments for FY 2024-25 are
expected to be around $10.7 million.
• The City collects assessments monthly
from hotels/motels and quarterly from
STRs.
Visit Huntington Beach (VHB)
• Visit Huntington Beach (VHB) is a non-
profit 501(c)6 organization that manages
the HBTBID.
• VHB is responsible for implementing the
programs outlined in the Management
District Plan (MDP).
• The City and VHB have an agreement to
manage the district’s funds and activities.
FY 24-25 Annual Report
The Annual Report is required by the Streets and
Highways Code and must include:
• Any changes to district boundaries or classifications. • Planned improvements and activities for the
upcoming year.
• Cost estimates for the proposed improvements.
• The method of collecting assessments.
• Any surplus or deficit from the previous year.
• Contributions from other sources.
FY 24-25 Work Program (Strategic Plan)
HBTBID Budget Allocations
Budget Category FY 23-24 MDP* FY 24-25
Sales & Marketing 83% 65% 63%
Tourism Enhancement Programs 10% 10%
Administration 15% 19% 18%
Contingency/Reserve 2% 5% 8%
City Admin Fee 1% 1% 1%
Estimated TBID Assessments $7,570,979 $10,693,446
*The Annual budget shall conform to adopted budget category allocations per the amended Management District Plan (June 2024).
Additional funding from non-assessment sources will be allocated towards Sales & Marketing per VHB Board direction.
FY 2024-25 VHB Budget
Estimated TBID Assessments 10,693,446$
Retail, Web Ad, Walking Tour Sales, Interest 140,250$
Estimated Carryover from Previous Fiscal Year 456,000$
TOTAL INCOME 11,289,696$
Sales and Marketing 7,578,171$
Tourism Enhancement Programs 1,062,647$
Administration 1,959,838$
Contingency/Reserve 843,000$
City Collection Costs 101,149$
TOTAL EXPENSES 11,544,805$
INCOME
EXPENSES
Expenses
Planned expenses for FY 2024-25 include:
• Sales & Marketing: Focus on campaigns like #BeHere and #MoreHB, influencer collaborations, and promotion of HB as a meeting and event destination.
• Tourism Enhancement Programs: Projects like improving walkability and accessibility, adding temporary beach
restrooms, and surf museum upgrades for the 2028 Olympics. • Administration: Includes advocacy efforts, legal, insurance, and office expenses.
• Contingency Reserve: Provides financial stability for unexpected expenses.
• City Collection Costs: Covers the City’s cost for collecting assessments (1%).
Approve the HBTBID Annual Report for FY 2024-25
Recommendation
Questions?