September 1, 2026
Renewal of the
Huntington Beach
Downtown Business
Improvement District
for FY 2026/2027
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 authorized assessment district)
• Downtown HB (Non-Profit Organization)
• Agreement between City and Downtown
HB to manage the District’s funds and
activities
Downtown HB Total Budget
Total Downtown HB Budget
Surf City Nights/Surf City Artisan Fair $595,000
City of HB – Maintenance $220,000
BID Member Assessments $115,000
Ambassador Program (VHB) $40,000
Events (Chili on the Beach, Surf City Days etc.) $12,500 Parking $7,000
Carryover $55,000
Total $1,044,500
Assessment Allocations
Allocation of Business Assessments
Ambassador Program (30%) $35,000
Holiday Beautification (22%) $25,800
Enhanced Maintenance (18%) $21,000
Community Events (16%) $18,000
Marketing (9%) $10,000
CRM (3%) $3,000
Financial Services (2%) $2,200
Total $115,000
• 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.
Assessment Funds at Work
Annual Renewal
• State law requires an annual protest hearing
to receive and consider any protests against
the assessment for FY 26-27 (scheduled for
October 6, 2026)
• 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 26-27; and, • Adopt Resolution No. 2026-26 “Declaring the City’s Intention to Levy an Annual Assessment for FY 26-27 within the HB Downtown Business Improvement District”, which sets a public hearing for October 6, 2026 to consider continuation of the District;
Recommendation
Questions?