STAFF REPORT
Meeting Date:
October 28, 2025
CONSENT
19 SUBJECT: FIRST READING OF ORDINANCE UPDATING THE CITY’S CAMPAIGN
CONTRIBUTION REGULATIONS
RECOMMENDATION: It is recommended that the City Council:
1. Introduce and conduct first reading, proceed by title only, and waive further reading in full of an Ordinance titled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, AMENDING SECTION 1.14.030 (CONTRIBUTION LIMITATIONS) OF TITLE 1 (GENERAL PROVISIONS) OF THE LAGUNA BEACH MUNICIPAL CODE TO UPDATE THE CITY’S CAMPAIGN CONTRIBUTION REGULATIONS AND DETERMINE
THE ORDINANCE IS NOT A PROJECT FOR PURPOSES OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT”; and
2. Determine that the proposed ordinance is not a “project’ for purposes of the California Environmental Quality Act or, in the alternative, determine the proposed ordinance is exempt from the CEQA pursuant to section 15061(b)(5).
SUMMARY OF THE MATTER
On May 28, 2024, the City Council adopted Ordinance No. 1698, which adjusted the campaign contribution limit for the 2024 election cycle to $520 based on the Consumer Price Index (CPI) for Los Angeles-Long Beach-Anaheim, and updated the Campaign Contributions chapter in the Laguna Beach Municipal Code to make this adjustment automatic.
On March 11, 2025, the City Council supported Mayor Alex Rounaghi’s recommendation to have an item on a future City Council agenda to lower the City’s campaign contribution limit to the $500 limitation found in the Levine Act – the State law positing a contribution limit in order for City officials to participate in certain actions. The attached ordinance has been prepared in response to the City Council’s direction.
Deletions are identified in strikeout text and additions are identified in bold italics.
DISCUSSION
Ordinance No. 1698 set the baseline campaign contribution limit at $520 per contributor to a candidate/controlled committee per election, to be adjusted automatically by the CPI starting January 1, 2025, and January 1 of each odd-numbered year thereafter.
Effective January 1, 2023, SB 1439 expanded the Levine Act (Government Code Section 84308) to cover all appointed and local elected officials, including members of city council, making them subject to the Levine Act’s restrictions and disqualification rules. Effective January 1, 2025, SB 1243 increased the Levine Act contribution threshold from $250 to $500. Contributions of more than $500 that are made beginning on January 1, 2025, will trigger the Levine Act’s prohibition and disqualification rules and the City desires to align its local contribution limit with the Levine Act.
FIRST READING OF ORDINANCE UPDATING THE CITY’S CAMPAIGN CONTRIBUTION
REGULATIONS
October 28, 2025
Aligning the City’s local contribution limit to match the Levine Act contribution threshold will simplify tracking of contributions to ensure compliance with the Levine Act.
FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.
ENVIRONMENTAL ANALYSIS
Determine that the proposed ordinance is not a ”project” pursuant to State CEQA Guidelines section 15378(b)(5). Specifically, the setting of a local campaign contribution limit to align with the Levine Act is an administrative activity of the City that will not result in a direct or indirect physical change in the environment as the setting of campaign contribution limits has no possibility of creating a change in the environment.
In the alternative, the City Council finds the proposed ordinance is exempt from CEQA pursuant to State CEQA Guidelines Section 15061(b)(5) as changes to the local campaign contribution limit is not anticipated to result in a direct or reasonably foreseeable indirect physical change in the environment, not will the proposed changes have the potential for causing a significant effect on the environment.
ATTACHMENTS
1. Draft Ordinance (Pgs. 3-5)
2. Ordinance 1698 (Pgs. 6-15)
Submitted By: Ann Marie McKay Approved: .David A Kiff
Ann Marie McKay, City Clerk Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Ann Marie McKay, City Clerk Patrick Donegan, Assistant City Attorney