October 6, 2026
Public Hearing to consider
adoption of Resolution No.
2026-27 approving an Annual
Assessment within the
Huntington Beach Downtown
Business Improvement District
for Fiscal Year 2026-27
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, if no majority protest exists,
approves the assessment
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
• Downtown BID Structure
• BID (District): Property-based assessment district funded by business assessments.
• Downtown HB: Nonprofit organization that administers
BID funds and programs.
FY 2025-26 Highlights
Program & Service Enhancements:
• Launched Sweet on Surf City and Burger Fest
• Increased interactions on Social Media by
400% on Facebook and Instagram
• Installed lighting in Z Park
Partnerships & Transparency:
• Hosted Strategic Plan Workshop
• Partnered with Chamber of Commerce and
The Strand for two Business Expos
• Established Quarterly Marketing Plan
FY 2026–27 Proposed 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 Breakdown
Allocation of Business Assessments
Ambassador Program $ 35,000
Holiday Beautification $ 25,800
Enhanced Maintenance $ 21,000
Community Events $ 18,000
Marketing $ 10,000
CRM $ 3,000
Financial Services $ 2,200
Total $ 115,000
• Ambassador Program: Helps visitors feel safe
and welcomed around town
• Enhanced Maintenance: Keeps streets clean
during busy weekends and large events
• Holiday Beautification: Brightens the area
with festive lights and trees
• Marketing: Uses social media, websites and
digital ads to spread the word
• Community Events: Hosts fun local activities
like Surf City Spooktacular and Magic on Main
• CRM System: Improves outreach and tracking
• Financial Services: An outside CPA ensures all
finances are tracked responsibly
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. 2026-27 approving an annual assessment for FY 2026-27
Recommendation
Questions?