Staff Report
City Council
Item No. 3.E
Meeting Date: October 22, 2025
From: Tracey Hermosillo, City Clerk
Title: Adopt a Resolution Establishing Campaign Contribution Limits for 2025 RECOMMENDATION:
Adopt a Resolution Establishing Campaign Contribution Limits for 2025.
BACKGROUND:
In October 2019, the Governor approved Assembly Bill 571 (“AB 571”), establishing campaign contribution limits for candidates for elective city office. Commencing January 1, 2021, a person (individual, business entity, committee/PAC), other than a small contributor committee or political party committee, will be prohibited from making a contribution to a candidate for elective city office in an amount greater than the amount set forth in the Act for limitations on contributions to candidates for State Assembly or Senate. Currently, the contribution limit from a person to a candidate for State Assembly or Senate is $4,700.
Under AB 571, a city retains its authority to impose a contribution limit by resolution or ordinance that is different (either greater or smaller) from the limitation imposed by AB 571 (Gov. Code § 85702.5(a)). The City, however, cannot remove the contribution limit altogether. A city that imposes a different limitation may also adopt different enforcement standards for a violation, including administrative, civil, or criminal penalties. However, a violation of a limitation imposed by a city is not subject to the Act’s enforcement provisions.
At its regular meeting on September 23, 2020, the City Council discussed setting a campaign contribution limit for elective city office for the City of Cathedral City. At the conclusion of that meeting, the City Council provided direction to staff to prepare a resolution establishing a campaign contribution limit of one thousand five hundred dollars ($1,500) for elective city office, and to set the penalty amount for the violation of the campaign contribution limit at five hundred dollars ($500). The penalty can be enforced by the City as a misdemeanor, infraction, or by administrative citation in accordance with Title 13 of the City of Cathedral City Municipal Code.
At its regular meeting on October 14, 2020, the City Council was presented with a proposed Resolution setting a campaign contribution limit of one thousand five hundred dollars ($1,500) for elective city office for Cathedral City and set the penalty amount for the violation of the campaign contribution limit at five hundred dollars ($500). The proposed resolution also included a biennial adjustment to the contribution limit based on the California Department of Finance Consumer Price Index for all Urban Consumers. This biennial adjustment works similar to the biennial adjustment for the contribution limit established under AB 571. While considering the proposed Resolution, Council determined that they wanted to increase the Campaign Contribution Limit to two thousand five hundred dollars ($2,500) for elective city office for Cathedral City and to set the penalty amount for a violation at five hundred dollars ($500). The approved Resolution (Resolution 2020-53) is attached for your information.
Pursuant to Resolution 2020-53, the Campaign Contribution Limit shall be adjusted Biennially by the City Clerk beginning January 1, 2023, and on January 1 of every odd numbered year thereafter according to the formula prescribed in the Resolution. In January of 2023, the City Clerk in coordination with Financial Services, calculated the biennial adjustment pursuant to the adopted Resolution and established a Campaign Contribution Limit of two thousand eight hundred dollars ($2,800) for elective city office for Cathedral City, the $500 penalty remained the same.
DISCUSSION:
Pursuant to Resolution No. 2020-53, the Campaign Contribution Limit shall be subject to adjustment in the year 2025. In order to formally establish said contribution limit, it is proposed that a Resolution be adopted establishing the threshold for 2025 to $3,100 based on the following:
The CPI applicable to January 1, 2021, is based on the July 2020 CPI (August is not available for Riverside). That value is 107.640 for Riverside, All Urban Consumers. The CPI applicable to January 1, 2025, is based on the July 2024 CPI (August is not available for Riverside). That value is 133.113 for Riverside, All Urban Consumers.
The base limit for January 1, 2021, was $2500.
$2500 * 133.113 / 107.640 = $3091.62
Per Resolution 2020-53, this number should be rounded to the nearest $100, therefore, the new Contribution Limit as of January 1, 2025, is $3100.
This Campaign Contribution threshold shall be in effect until adjusted in January 2027 at which time the limit will be adjusted and adopted by Resolution.
There is no recommendation to adjust the penalty for violation of the Campaign Contribution Limit at this time and will remain at five hundred dollars ($500).
FISCAL IMPACT:
There is no Fiscal Impact with this item.
FIVE-YEAR STRATEGIC PLAN:
Not Applicable.
ATTACHMENTS:
1. Resolution 2020-53
2. Proposed Resolution for 2025