DATE: October 7, 2025
TO: Mayor and City Council
FROM: City Manager
SUBJECT: Hayward Municipal Code Chapter 2, Article 13: Review of Campaign Finance Regulations, including campaign expenditures and contributions, as the City converts from At-Large Council Elections to District Elections Starting in 2026
RECOMMENDATION
That the City Council receives this report providing information and possible options to consider updating and amending the City’s campaign finance regulations with a specific emphasis on campaign expenditures and contributions as the City converts from at-large Council elections to Council district elections, starting with two districts in 2026 and subsequently four districts in 2028.
SUMMARY
In 2024, the City initiated a detailed and lengthy process to convert its at-large elections for the six members of the City Council to district elections. The office of Mayor remains at large. Conversion to City Council districts is staggered, with Districts 1 and 6 up in November 2026, and Districts 2, 3, 4 and 5 up in November 2028.
The purpose of this work session is for the City Council to consider whether the campaign finance regulations should be adjusted in light of the conversion to district-based elections. Hayward’s population is 162,500, as presented during the district conversion process and based on the 2020 census. There are approximately 27,000 residents in each of the six districts.
BACKGROUND
In 2002, the City enacted Municipal Code sec. 2-13.00, et seq., (Ordinance 02-19) establishing, among other things, campaign finance regulations for City elective offices which are defined as six members of the City Council and the office of Mayor. These regulations allow candidates to agree to voluntary expenditure and contribution limits, and regulations for candidates who choose not to accept voluntary limits. When first enacted, the limits were set as provided in Table I below. When candidates accept voluntary limits on how much they will spend on campaign activities, the ordinance allows the candidate to accept higher amounts of contributions per person.
Per the regulations, the City Clerk is authorized to adjust the limits annually by a percentage equal to the San Francisco Bay Area All Urban Consumer Price Index (CPI). On January 24, 2025, the City Clerk published the 2025 Notice of Campaign Contribution/Expenditure Limit.
Table I: Existing Hayward Contribution and Expenditure Limits Candidates that Accept Voluntary Limits
Candidates that Do Not Accept Voluntary Limits
YEAR
EXPENDITURE LIMIT
CONTRIBUTION LIMIT
EXPENDITURE LIMIT
CONTRIBUTION LIMIT
2002
$50,000
$1,000
No limit
$250
2025
$91,096
$1,784
No limit
$410
For further reference, pursuant to Assembly Bill 571 (Chapter 556, AB 571 Mullin), beginning January 1, 2021, state law applies a default contribution limit to city and county candidates when the jurisdiction has not enacted a contribution limit. The 2025-2026 state contribution limit is set at $5,900 for jurisdictions that have not enacted limits. Hayward was not affected by provisions enacted in 2021 because there is an ordinance in place. The Fair Political Practices Commission has created a repository of all cities, counties, and districts within California that have established their own contribution limit ordinances.
Actual Expenditures
The City has created a public portal for campaign finance disclosures per election cycle which allows the public to access campaign statements for candidates and elected officials. In the 2022 and 2024 election cycles, candidates for Council raised and spent between $0 and $75,000. In the 2022 and 2024 election cycles, all candidates accepted voluntary limits. There has not been a successful candidate in Hayward who did not agree to voluntary limits
DISCUSSION
The purpose of this work session is for the City Council to consider whether the campaign finance regulations should be adjusted in light of the conversion to district-based elections.
Tables II and III highlight findings from three cities in proximity to Hayward that recently converted from at-large to district-based elections. Table II shows the contribution and voluntary expenditure limits for the districts. Table III shows the range of actual contributions and expenditures for candidates in these cities in 2022 and 2024. As with Hayward, the comparative cities have maximum individual contribution limits that are adjusted per CPI formulas.
Table II: Voluntary Limits
CITY
POPULATION
2023 Data
DISTRICTS
CONTRIBUTION LIMIT
VOLUNTARY
EXPENDITURE LIMIT
Union City
65,414
4 (average of 16,103 ppl/district)
$800
$35,000 City Council
$75,000 Mayor
Redwood City*
80,996
7 (average of 11,570 ppl/district)
$1,000
District population x $2.45
San Mateo*
101,327
5 (average of 20,265 ppl/district)
$500/individual
$1,000/organization
District population x $2.50, rounded to nearest $100
*San Mateo and Redwood City have a rotating mayor.
Table III: Actual Contributions and Expenditures
2024 ELECTION
REDWOOD CITY
SAN MATEO
UNION CITY
Max Contribution
$21,848.00
$65,115.50
$27,941.30
Median Contribution
$15,303.16
$25,196.00
-
Lowest Contribution
$4,750.00
$20,909.00
$19,214.65
Max Expenditure
$33,526.25
$79,472.90
$26,243.40
Median Expenditure
$17,193.51
$40,027.49
-
Lowest Expenditure
$3,781.58
$20,909.00
$16,489.08
Max Contribution Mayor
N/A
N/A
$73,315.00
Lowest Contribution Mayor
N/A
N/A
$45,369.87
Max Expenditure Mayor
N/A
N/A
$70,158.02
Lowest Expenditure Mayor
N/A
N/A
$54,188.74
2022 ELECTION
REDWOOD CITY
SAN MATEO
UNION CITY
Max Contribution
$26,070.00
$76,422.00
$80,636.00
Median Contribution
$15,982.41
$25,375.00
$46,947.68
Lowest Contribution
$2,096.00
$1,849.00
$14,499.25
Max Expenditure
$26,269.58
$57,950.06
$ 94,857.38
Median Expenditure
$10,857.42
$31,608.45
$39,919.23
Lowest Expenditure
$4,488.63
$338.60
$14,199.75
The primary issues for the City Council’s consideration at this work session are 1) whether to reduce the expenditure and contribution limits for district elections, and 2) what should the limits be if Council moves forward.
Setting New Limits on Expenditures
If Council pursues setting new limits, staff recommends balancing the goal of creating equitable and competitive campaigns with a realistic assessment of the cost to run a modern campaign in a district of approximately 27,000 residents. One simple approach to limiting contributions might be to proportionately reduce limits by one/sixth (1/6) to $15,000 for voluntary expenditures, to $300 for voluntary contributions, and to $70 for contributions where voluntary contributions are not accepted. However, these amounts are likely to be too low to run a robust campaign.
Considering Fixed Campaign Costs
Staff solicited comments from local campaign finance professionals who are knowledgeable about Hayward elections. From these discussions, staff’s understanding is that there are common ‘fixed’ campaign expenses that are incurred by candidates who intend to be competitive, as follows:
campaign consultant
logo design
website
social media
design of mail pieces
design of walk pieces
professional photography
campaign paraphernalia (buttons, tee shirts)
video commercials (optional, not necessarily typical)
The following campaign expenses are not ‘fixed’ and could be scaled down in the move to district elections versus:
ballot statement and filing fee
mass texts to voters
mass email to voters
mass robocalls to voters
postage for mail pieces
printing of mail pieces
printing of yard signs
online advertising
Other campaign expenses, for candidates who intend to be competitive, do not fall into one of the above categories, as follows:
printing of walk pieces
banner printing cost
campaign treasurer
fundraising consultant
other fundraising costs
Evaluating Similarly Situated Jurisdictions
In these three cities viewed together, the average per resident expenditure limit is $2.37. When applied to 27,000 residents that equates to approximately $64,000 per district. As mentioned above, there is some economy of scale in running a campaign, so Council may want to consider setting the limit below the per resident rate of these comparison cities.
Considering the benefits of reducing campaign expenditures and contributions as set forth above while considering the unavailable campaign costs, Staff recommends $45,000 to $50,000 as a voluntary limit on expenditures, and $900 to $1,000 on voluntary contributions.
Of significance, the City’s campaign finance regulations do not, as a practical matter, affect independent expenditures for or against candidates. Since 2015, the City’s regulations have required reporting of such expenditures, including the three largest contributors in certain kinds of advertising. It is acknowledged, however, that independent expenditures have an increasing impact on elections at all levels of government.
NEXT STEPS
Based on City Council input at this work session, staff will prepare next steps. No action is required if the City Council determines that no changes are warranted. If the City Council believes adjustments are warranted, the City Council can direct staff to return with an action report within 30 days that includes adjustments to the City’s campaign finance regulations for both voluntary expenditures and contributions, as well as adjustments to campaign contributions for candidates who do decline to agree to the voluntary limits.
Should the City Council direct staff to return with adjustments that lower expenditure and contribution limits, staff recommend that campaign committees and candidates who have raised or spent funds thus far in 2025 in accordance with the City Clerk’s January 24, 2025, published limits not be penalized. Therefore, staff recommend that new regulations be prospective – that is, on a looking-forward basis – and not retrospective.
FISCAL IMPACT
There is no fiscal impact associated with this action.
STRATEGIC INITIATIVES
The agenda item is a routine operational item and does not relate to one of the Council’s Strategic Initiatives.
Prepared and Recommended by: Mary Thomas, Assistant City Manager Michael Lawson, City Attorney
Miriam Lens, City Clerk
Lilia Corral, Deputy City Clerk
Approved by:
Jayanti Addleman, Acting City Manager
HYPERLINK "https://maphayward.org/wp-content/uploads/2024/10/HaywardCity_Adopted_All.pdf"HaywardCity_Adopted_All.pdf Ordinance 02-19
HYPERLINK "https://portal.laserfiche.com/Portal/DocView.aspx?id=128601&repo=r-b6d2994c"https://portal.laserfiche.com/Portal/DocView.aspx?id=128601&repo=r-b6d2994c 2025 Notice of CPI Adjustment/Voluntary Limit Form
HYPERLINK "https://www.hayward-ca.gov/documents/statement-acceptance-or-rejection-voluntary-expenditure-limit-candidates-mayor-or-city"Statement of Acceptance or Rejection of Voluntary expenditure limit for candidates for mayor or city council | City of Hayward - Official website Local Campaign Ordinance
https://www.fppc.ca.gov/the-law/local-ordinances.html
Public Portal for Campaign Finance Disclosure
https://public.netfile.com/pub2/Default.aspx?aid=HWD
Union City has an average of 16,103 residents per district. They have adopted a maximum contribution limit of $800 for their four districts, and maximum limit on expenditures of $35,000 for each district. San Mateo has adopted maximum expenditures in their 2026 cycle of $2.50 per resident in five districts with populations ranging from 19,873 to 21,709, which results in maximum expenditures of $49,700 to $54,200. Redwood City has adopted maximum expenditures of $2.45 per resident in their 2026 cycle, with four of seven districts up for election. The four districts have populations ranging from 11,638 to 12,796, which results in maximum expenditures of $29,000 to $31,000.
Ordinance 15-29
HYPERLINK "https://library.municode.com/ca/hayward/ordinances/municipal_code?nodeId=827714"Ordinance No. 15-29 | Municipal Code | Hayward, CA | Municode Library Page PAGE 1 of NUMPAGES 2