September 16, 2025
Approval of the
Huntington Beach
Tourism Business
Improvement District
(HBTBID) FY 2025-26
Annual Report
Background
• Created in 2014 under CA law.
• Purpose: dedicated funding to attract overnight visitors. • Benefits: supports hotels, local businesses, and City TOT revenues.
• Funded by a 6% assessment on hotel & STR stays under
30 days.
• District runs through June 30, 2028.
• Annual report required by state law.
HBTBID
• Who pays? 21 hotels/motels + ~203 STRs.
• Rate: 6% of gross room revenue (under 30 days).
• Total projected revenue: ~$10.3M for FY 2025-26.
• Collection method: City collects monthly (hotels)
/ quarterly (STRs).
• Use of funds: By law, revenues must directly
benefit the lodging businesses that contribute.
• Note: No changes to HBTBID boundaries for FY
2025-26.
Visit Huntington Beach (VHB)
• Visit Huntington Beach (VHB) =
the City’s official destination
marketing organization.
• Nonprofit 501(c)(6).
• Manages HBTBID funds under the
Council-approved Management
District Plan (MDP).
• Partnership agreement with the
City.
• Role: drive overnight stays
through marketing, sales, PR, and
visitor programs.
Annual Report & Budget Overview
Annual Report Requirements (per State Law)
• Changes to boundaries or classifications
• Planned programs and improvements with cost
estimates
• Assessment collection methods
• Prior year surplus/deficit
• Contributions from other sources
Budget Framework
• Allocations follow Council-approved MDP
categories: Sales & Marketing, Tourism
Enhancements, Administration, Reserve, City
collection
• Non-assessment funds directed to Sales &
Marketing (per VHB Board guidance)
FY 2025-26 Work Program (Strategic Plan)
1. Driving Global Brand Awareness
Boost Surf City USA® visibility globally via campaigns, events, influencers, and trade shows.
2. Enhancing Destination Experience
Improve visitor experiences, accessibility, and local
attractions; implement enhancement projects and highlight local gems.
3. Championing the Value of Tourism
Educate stakeholders on tourism’s economic, community,
and quality-of-life benefits.
4. Prioritizing Organizational Effectiveness & Culture
Strengthen team culture, gather visitor feedback, and
deliver on VHB’s mission and brand promise.
FY 2025/26 Expenses
Category $ Amount
% of TBID
Assessment
Revenue
Notes
Sales &
Marketing $7.8M 69% Ads, PR, events, influencer campaigns, UK/Ireland promotion, website updates, research
Tourism
Enhancements $1.5M 10%
Gateway signs, Pier signage, pedestrian lighting, seasonal restrooms, ambassadors, Surf Museum, Wi-Fi, seating, Pier markers
Administration $2.2M 20% IT, facilities, security, strategic planning, leadership transition Reserve $25K Minimal $1.5M reserve target already achieved City Collection
Costs $98K 1% Collection fees
Total $11.6M
100% of TBID
assessment
revenue +
rollover/reserves
Percentages shown reflect allocations of TBID assessment revenue only
VHB Tourism Enhancement Projects
DESCRIPTION FY 25/26 BUDGET
Wayfinding $285,000
Pier Sign $300,000
Walkability and Connectivity $200,000
Temporary Beach Restrooms $100,000
Ambassador Program $40,000
Accessibility $24,000
Bike Valet $24,000
Beach Event Enhancements $40,000
Surf City USA Stories Pier Markers $65,000
Downtown Improvements (seat walls) $250,000
Improved HBISM in Preparation for LA28 $175,000
Contingency $28,958
TOTAL INVESTMENT $1,531,958* *$496,471 has been rolled
over from FY 24/25
VHB Tourism Enhancement Projects
City Tourism Enhancement Projects
DESCRIPTION FY 25/26 BUDGET
General Restroom Improvements $300,000
Restroom Project, Sunset Beach $85,000
Irrigation Upgrades, Bluff Top Park $110,000
Bluff Top Slope Repair, Dog Beach $310,000
HVAC Installation, Main Street Library $650,000
Refurbished/Replace Bike Racks, Downtown $100,000
Light Bulb Upgrades, Downtown $16,000
Enhanced Downtown Maintenance $220,000
TOTAL INVESTMENT $1,791,000
*In FY 24/25, the City invested approximately $1.5M on TEP projects, including elevator upgrades, mobility (Circuit) and accessibility enhancements, playground and park lighting upgrades, and maintenance.
FY 25-26 VHB Budget
INCOME
Estimated TBID Assessments $10,354,873
Retail, Web Ad, Walking tour Sales, Interest $153,500
Estimated Carryover from Previous Fiscal Year $800,058
TOTAL INCOME $11,308,431
EXPENSES
TBID Assessment Expenses
Sales and Marketing $7,765,342
Tourism Enhancement Programs $1,531,958
Administration $2,178,608
Contingency/Reserve $25,000
City Collection Costs $98,047
TOTAL $11,598,955
Non-TBID Fund Expenses (Advocacy, Board/Staff Events) $30,900 TOTAL EXPENSES $11,629,855
Approve the HBTBID Annual Report for FY 2025-26
Recommendation
Questions?