October 6, 2026
Approval of the
Huntington Beach
Tourism Business
Improvement District
(HBTBID) FY 2026-27
Annual Report
HBTBID Overview
• Established: Formed in 2002 under the California Property and Business Improvement District Law of 1994.
• Purpose: Increase overnight room sales through targeted marketing, public relations, group sales, and tourism
enhancement programs.
• Funding: Supported by assessments collected from
lodging businesses in Huntington Beach.
• Term: Runs through June 30, 2028.
• Annual Reporting: Requires an Annual Report and City
Council approval each year.
HBTBID Assessment Structure
• HBTBID Participants: 21 hotels/motels and
approximately 200 Short-Term Rentals (STRs).
• Assessment: Overnight guests pay a 6% assessment
on gross room rental revenue for stays under 30
days, separate from the City’s 10% Transient
Occupancy Tax (TOT).
• FY 2026-27 Assessments: Approximately $10.3M
• Hotels: $9.78M
• STRs: $545K.
• Collection: City collects assessments monthly from
hotels/motels and quarterly from STRs.
Visit Huntington Beach (VHB)
• Organization: Private, nonprofit
501(c)(6) organization responsible
for tourism marketing.
• City Partnership: The City
contracts with VHB to manage
HBTBID funds and activities.
• Established: Founded in 1989,
with a mission to drive overnight
visitation by sharing the
Huntington Beach experience.
Annual Report Requirements
Required by State Law:
The Annual Report must document
• district boundaries,
• planned activities,
• costs,
• assessment collection,
• prior-year surplus or deficit,
• and contributions from other sources.
FY 26-27 Key Initiatives
• Brand & Marketing: Surf City USA® and Huntington Beach brand study and expanded domestic/international marketing
• PR & Global Reach: Expand Brand USA, Australia and
Canada markets; increase media/content partnerships
• Visitor Experience: Explore California Welcome Center and expand accessibility initiatives
• Group Sales: Incentives and meeting planner FAM tours to drive room nights during need periods
• Events: Develop multi-day events to increase visitation during need periods
• Industry Partnerships: Expand cooperative marketing, trade representation, exposure and business referrals
• TEP: Wayfinding, Pier signage, restroom improvements, accessibility, Downtown initiatives, Bike Valet and Surfing Museum support
VHB FY 2026-27 Budget
INCOME
Estimated TBID Assessments $10,321,773
Retail, Web Ad, Walking Tour Sales, Interest $127,600
Estimated Carryover from Previous Fiscal Year $1,452,675 TOTAL INCOME $11,902,048
EXPENSES
Sales and Marketing (65%) $6,709,152
Administration (24%) $2,467,852
Tourism Enhancement Programs (10%) $1,032,177
City Collection Costs (1%) $97,413
Contingency/Renewal $37,000
Non-TBID Expenses $11,500
TOTAL EXPENSES $10,355,094
Actual Sales & Marketing expenses are $8.7M and actual TEP expenses are $1.85M, reflecting the planned use of rollover and reserve TBID/TEP funds; and actual operating expenses are $13.16M, with VHB Board-approved reserves covering the $1.26M budget difference.
FY 2026-27 Planned Expenditures
• Sales & Marketing: Expand cooperative marketing and partnerships with Brand USA and Visit California; increase destination exposure through travel advisors, media, content creators, and meeting planners; expand accessible travel programs and resources.
• Tourism Enhancement Programs: Support wayfinding, Pier landmark and interpretive signage, beach restroom and accessibility improvements, Downtown Ambassadors, Main Street seat wall enhancements, Bike Valet, and the Huntington Beach International Surfing Museum.
• Administration: Maintain Destination Marketing Program Accreditation and support associated administrative, financial, and program controls. • Contingency Reserve: Provides financial flexibility for unexpected expenses.
• City Collection Costs: Covers the City's cost of collecting HBTBID assessments.
VHB Tourism Enhancement Projects
DESCRIPTION FY 26/27 BUDGET
Wayfinding $385,000
Pier Sign $300,000
Beach Restrooms $600,000
Ambassador Program $40,000
Accessibility $35,000
Bike Valet $10,000
Improved HBISM in Preparation for LA28 $100,000
HB Pier Interpretative Signs $65,000
Downtown Improvements (Main Street Seat Walls) $250,000 Contingency $64,076
TOTAL TEP FUNDS AVAILABLE $1,849,076*
Includes rollover of $816,899 from FY 25/26
VHB Tourism Enhancement Projects
City Tourism Enhancement Projects
DESCRIPTION FY 26/27 BUDGET
General Restroom Improvements $300,000
Downtown Pedestrian Safety Bollards $1,156,000
Enhanced Downtown Maintenance $220,000
TOTAL INVESTMENT $1,696,000
Approve the HBTBID Annual Report for FY 2026-27
Recommendation
Questions?