City Council Meeting
October 7, 2025
Public Hearing to consider adoption of Resolution No. 2025-52 approving an Annual Assessment within the Huntington Beach Downtown Business Improvement District for Fiscal Year 2025-26
Background
Established: 2004 at the request of Downtown merchants
Purpose: Fund improvements and services above the City’s baseline levels Process: Per State law, Public Hearing to review Annual Report & Budget (prepared by Advisory Board) City Council Role: Reviews the Annual Report each fiscal year and conduct a public hearing to consider and approve the assessment for the following fiscal year
The District
~255 businesses in the District
Funded by business assessments (ranging from $80 to $1,404) Based on business size, location, and type
Two benefit zones
~$115,000 in assessments projected annually
Collected with business license renewals
Advisory Board (appointed by Council) recommends use of funds
Downtown HB
Appointed in 2008 to serve as the District’s Advisory Board Private, 501(c)(6) nonprofit formed by Downtown businesses Represents business interests and manages programming, events, and services Operates under an agreement with the City to manage District activities Important distinction:
BID (District): City program funded by business assessments Downtown HB: Nonprofit that administers BID funds
FY 2024-25 Highlights
Program & Service Enhancements:
Expanded weekend Ambassador coverage
Extended steam cleaning and porter services
Issued RFPs for maintenance, security, and social media Partnerships & Transparency:
Partnered with City for Independence Day & Bike Valet
Revived Chili at the Beach and Surf City Day
Established separate assessment account for fiscal transparency
FY 2025–26 Proposed Budget
DOWNTOWN HB 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
Ambassador Program: Improves safety, visibility, visitor experience Enhanced Maintenance: Cleaning during busy weekends/events Holiday Beautification: Seasonal lighting and tree display (expanding this year) Marketing: Digital promotion, website, social media
Community Events: Surf City Spooktacular, Magic on Main, etc.
CRM System: Improves outreach and tracking
Financial Services: Third-party CPA ensures accountability How Assessment Funds Will Be Used
Annual Assessment Protest Hearing
State law requires an annual hearing to review any protests against the District assessment Only written protests submitted by business owners or their legal agents may be considered If protests equal 50% or more of the total assessment, assessment cannot be levied for the upcoming year If a majority protest does not occur, City Council may renew the assessment for the upcoming year
Conduct the Public Hearing
If written protests representing less than 50% of the total assessment are received, adopt Resolution No. 2025-52 approving an annual assessment for FY 2025-26 Recommendation
Questions?