September 2, 2025
Renewal of the
Huntington Beach
Downtown Business
Improvement District
for FY 2025/2026
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
• $115,000 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 25-26 Activities
Downtown HB Total Budget
INCOME
Surf City Nights $300,000
Surf City Artisan Fair $258,375
City of HB – Maintenance $220,000
BID Member Assessments $115,000
Ambassador Program (VHB) $40,000
Chili at the Beach $25,000
Surf City Days $10,000
Parking $4,070
TOTAL INCOME $972,445
Assessment Breakdown
Allocation of Business Assessments
Ambassador Program (30%) $35,000
Enhanced Maintenance (18%) $21,000
Holiday Beautification (22%) $25,800
Marketing (9%) $10,000
Community Events (16%) $18,000
CRM (3%) $3,000
Financial Services (2%) $2,200
TOTAL EXPENSES $115,000
Annual Renewal
• State law requires an annual protest hearing
to receive and consider any protests against
the assessment for FY 25-26 (scheduled for
October 7, 2025)
• 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 25-26; and, • Adopt Resolution No. 2025-51 “Declaring the City’s Intention to Levy an Annual Assessment for FY 25-26 within the HB Downtown Business Improvement District”, which sets a public hearing for October 7, 2025 to consider continuation of the District;
Recommendation
Questions?