CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 10 Section Name: {{section.name}} Account Number: 10-1511 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Clerk's Office
MEETING DATE: February 18, 2025
SUBJECT:
Campaign Contribution Limits – Review UPDATED: February 14, 2025 RECOMMENDATION:
Review and provide direction to staff on whether the City's campaign contribution limits and campaign rules should be amended, or if no changes should be made; and receive an update on the City's Campaign Finance Dashboard.
BACKGROUND:
Purpose and Intent of Campaign Finance Regulations:
In 2005, the City Council added Chapter 2.80 to the San Mateo Municipal Code entitled “Contributions and Loans to City Candidate Campaigns.” San Mateo's campaign finance regulations aim to uphold election integrity and transparency, ensuring fair participation. Rising campaign costs have raised concerns about the disproportionate influence of special interests in local elections. To address these concerns, the City established contribution limits to enhance public trust, prevent undue influence, and encourage broader citizen participation in campaign financing.
Chapter 2.80 (Attachment 1) originally established limits on the amount of the contributions from a single source that may be made to City Council candidate campaigns to $250 by an individual and $500 by an organization, as well as limiting the amount a candidate can loan to their own campaign to $15,000. In 2017, the City Council amended the limits by increasing the amount an individual can give to $500 and an organization to $1,000. In 2012, section 2.80.070 was amended to read:
“Penalties. Any person who violates the provisions of this Chapter is guilty of a public offense.” Campaign Activity Analysis (2017-2024):
Section 2.80.080 requires the City Council to conduct a post-election review within three months of election certification.
This review assesses the appropriateness of the chapter’s provisions, including contribution and loan limits outlined in Sections 2.80.030 and 2.80.040. The City Council certified the results of the November 5, 2024 election with Resolution 110 (2024) on December 9, 2024. See Table 1 for a comparison of campaign funding between 2017 and 2024 below:
At-Large Elections By-District
2017 2020 2022 2024
Number of Candidates in Contest 7 3 7 3
Contributions - Total Raised * $191,910 $263,562 $199,036 $146,766.50 Contributions - Largest Total Amount ** $56,332 $118,759 $76,282 $82,800.50 Contributions - Smallest Total Amount ** $0 $69,876 $1,849 $20,909
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At-Large Elections By-District
2017 2020 2022 2024
Loan - Largest Amount ** $6,500 $0 $1,500 $5,000
Independent Expenditures – Total * $79,710 $74,036 $35,915 $7,467.76 Independent Expenditures - Largest Amount ** $70,468 $30,570 $11,233 $7,467.76 Independent Expenditures - Smallest Amount ** $9,242 $14,767 $4,154 $0 In-Kind Donations – Total * $3,185 $13,951 $1,207 $35
In-Kind Donations - Largest Amount** $1,485 $6,890 $927 $35 In-Kind Donation - Smallest Amount** $500 $400 $140 $0
Average Raised per candidate $27,416 $87,854 $28,434 $48,922.17 Average Independent Expenditure per candidate $11,387 $24,679 $5,131 $2,489.25 Average In-Kind per candidate $455 $4,650 $172 $11.67
*Total of all candidates. **By a single candidate.
Further details of the individual campaign reporting can be found on the City’s website or by contacting the City Clerk’s Office.
Statewide Analysis:
All California municipalities have some form of campaign controls in place, due to defaults set in place by state law. As of January 1, 2021, a state campaign contribution limit applies by default to city and county candidates, when the city or county has not already enacted a law that addresses a local contribution limit on such candidates. The current state default limits per contributor are as follows:
Candidate or Officeholder Person (individual,
business entity,
committee/PAC)
Small
Contributor
Committee
Political
Party
City and County Candidates subject to Section 85301 (d) $5,900 $5,900 $5,900 Senate and Assembly $5,900 $11,800 No Limit
CalPERS/CalSTRS $5,900 $11,800 No Limit
Lt. Governor, Secretary of State, Attorney General,
Treasurer, Controller, Supt. Of Public Instruction,
Insurance Commissioners, and Board of Equalization
$9,800 $19,600 No Limit
Governor $39,200 $39,200 No Limit
Common Cause, a nonpartisan 501(c)(4) nonprofit, publishes the California Municipal Campaign Finance Index (MCFI), with its most recent update in 2024. The report provides a comprehensive analysis of municipal campaign finance regulations across the state. According to MCFI, as of 2022, 124 of California’s 482 cities—representing 44% of the state’s population—had self-imposed contribution limits lower than the AB 571 limit, which was $4,900 at the time. Among these 124 cities, which have an average population of approximately 140,000, the average contribution limit was $711.
Including cities with the default AB 571 contribution limits and those with self-imposed limits, 82% of these cities adjust contribution limits to follow changes in the Consumer Price Index (CPI). San Mateo does not pin contribution limits to CPI changes. As of 2022, there were 40 cities or 8% of California cities with limits on the amount of money a candidate can loan to their campaign. San Mateo limits candidate loans to $15,000.
Using MCFI data, the following section outlines 8 key findings on five-member by-district City Councils, including an overview of their existing campaign finance regulations:
▪Finding 1. 22 (81.5%) of the 27 cities have individual donor limits ▪Finding 2. $1,233.18 is the average self-imposed donor limit among the 22 cities with individual donor limits ▪Finding 3. For cities with a comparable population size to San Mateo (within 20% of its population), the average
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donor limit per individual is $768.
▪Finding 4. 2 (7.4%) of the 27 cities, including San Mateo, have different contributions based on the type of giver (i.e. individual or organization).
▪Finding 5. 12 (44.4%) of cities adjust limits to inflation. ▪Finding 6. 9 (33.3%) of cities limit loans on candidate campaigns. ▪Finding 7. 3 (11.1%) of the cities have voluntary expenditure limits. ▪Finding 8. None of the 27 cities have public financing.
City Population Public
Financing
Donor
Limits
Different
limits
based on
the giver
(e.g.,
political
committee
vs
individual)
Limits
Adjust to
Inflation
or
Deflation
Limits
Apply to
Multiple
Committee
Types
Limits on
Candidate
Loans to
his/her
Campaign
Voluntary
Expenditure
Limits
Alhambra 82,868 No $250 No Yes Yes Yes No
Arcadia 56,681 No No No No No No Yes
Buena Park 84,034 No $4,000 No No No Yes No
Burlingame 31,386 No $350 No Yes No Yes No
Cathedral City 51,493 No $2,500 No Yes No No No
Claremont 37,266 No $250 No No No No No
Concord 125,410 No $1,000 Yes No Yes No No
Dana Point 33,107 No $880 No Yes No No No
Davis 66,850 No $150 No No No No No
Folsom 80,454 No $150 No No Yes Yes* No
Hesperia 99,818 No $500 No No No No No
La Mirada 48,008 No No No No No No Yes
Menlo Park 33,780 No No No No No No No
Montebello 62,640 No $5,000 No Yes No Yes* No
Murrieta 110,949 No $1,310 No Yes No No No
National City 56,173 No $1,000 No Yes No No No
Novato 53,225 No $750 No Yes No Yes No
Pacifica 38,640 No No No No No No No
Rohnert Park 44,390 No $500 No No No No No
Roseville 147,773 No $500 No Yes No No No
San Juan Capistrano 35,196 No $610 No Yes No Yes No
San Mateo 105,661 No $500 Yes No No Yes Yes
Seal Beach 25,242 No $500 No No Yes No No
South Pasadena 26,943 No $1,000 No No No No No
Victorville 134,810 No $4,900 No Yes No Yes No
West Covina 109,501 No $530 No Yes No No No
Woodland 61,032 No No No No No No No
Voluntary Expenditure Limits:
San Mateo’s Voluntary Expenditure Limits program was introduced in 2024 to provide City Council candidates with the option to cap their campaign spending in exchange for public recognition on the City’s website, digital newsletter, and in a newspaper of general circulation. The initial spending limit was set at $2.50 per resident in each electoral district, using the 2020 U.S. Census population data to determine the maximum allowable expenditures. Certain expenses, such as filing fees, legal costs, and post-election events, are excluded from this limit.
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For the 2024 election, two of the three candidates agreed to the spending cap of $54,000 for District 2 and $49,700 for District 4.
As outlined in the ordinance, these limits will be reviewed and adjusted for inflation on January 1, 2026, based on changes in the Consumer Price Index (CPI) for the San Francisco Bay Area. The updated expenditure ceilings will be published by the City Clerk no later than February 1, 2026, ensuring the program remains reflective of economic conditions while continuing to promote fair and transparent elections.
Campaign Dashboard
In an effort to enhance public transparency into candidate campaign finances, the City Council directed staff in 2021 to develop a Candidate Finance Dashboard as part of its review of Municipal Code 2.80, “Contributions and Loans to City Candidate Campaigns.” The City Clerk’s Office led an interdepartmental effort to create the Campaign Finance Dashboard, which was first launched for the November 8, 2022, General Election. To date, it remains the only campaign disclosure dashboard available within San Mateo County, providing voters with interactive visualizations of campaign finance activity.
For the November 2024 election, the Campaign Finance Dashboard has been updated to reflect the latest candidate finance reports, offering voters a clear and accessible overview of financial activity. The dashboard details the amounts received and spent by candidates and includes user-friendly breakdowns of contributions, loans, debts, liabilities, and expenses. This tool continues to support transparency and informed decision-making for San Mateo voters.
The Campaign Finance Dashboard also provides users with a clear breakdown of contributions by contributor type, helping voters understand the sources of campaign funding. Candidates may receive contributions from individuals, committees,
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businesses, self-contributions, and other entities, and the dashboard visually represents these proportions for easy review.
For the November 2024 election, this feature has been updated with the latest campaign finance data, ensuring that users can explore the most recent contribution patterns for each candidate. By offering this level of transparency, the dashboard continues to support informed voter engagement in San Mateo’s elections.
The campaign dashboard also provides users with the ability to see the proportion of contributions provided to candidates by range of dollar amount, including small (under $100), medium ($100 to $499), and large ($500) contributors.
A frequent question regarding campaign contributions is where the funding originates. To address this, the Campaign Finance Dashboard includes bar chart and mapping visualizations that categorize contributions based on the donor’s location. Contributions are grouped into five categories: within the City of San Mateo, within San Mateo County but outside City limits, within California but outside San Mateo County, outside California, and unknown locations.
For the November 2024 election, this feature has been updated with the latest contributor location data, allowing users to analyze where candidates are receiving financial support. These visual tools help voters better understand the geographic distribution of campaign funding and enhance transparency in local elections.
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For the first time, the Campaign Finance Dashboard now includes ballot measure campaign data, providing voters with greater insight into funding for local measures. Similar to candidate contributions, this feature offers bar chart and mapping visualizations that categorize contributions by donor location, including within the City of San Mateo, within San Mateo County but outside City limits, within California but outside San Mateo County, outside California, and unknown locations. With this update for the November 2024 election, users can now track both candidate and ballot measure contributions, further enhancing transparency and public understanding of campaign financing in San Mateo. Staff intend to further enhance the ballot measure campaign data to include independent expenditures.
Council Direction Requested:
1. Alignment of Contribution Limits for Individuals and Organizations:
Currently, San Mateo sets a $500 contribution limit for individuals and a $1,000 limit for organizations. To ensure consistency, staff recommend aligning these limits.
2. Adjustment of Contribution:
Research indicates that San Mateo’s contribution limits are lower than those of comparable cities (including, for example, Redwood City which has a $1,000 contribution limit). Staff requests input on whether the individual contribution limit should be increased from $500 to $750, $1,000, or another amount to remain consistent with peer jurisdictions. These limits were last adjusted in 2017 to $500, which at that time is equivalent to approximately $650 today.
3. Review Process for Contribution Limits:
Currently, contribution limits are reviewed only after each election. Staff seeks direction on whether to continue this approach or adopt an automatic adjustment based on the Consumer Price Index (CPI) for more consistent updates.
General Feedback:
4. Voluntary Expenditure Limits:
Staff will proceed with the next scheduled adjustment to the Voluntary Expenditure Limits in 2026, as outlined in the ordinance. However, staff welcomes feedback on the initial rollout of the program to assess its effectiveness and consider any potential refinements.
5. Campaign Finance Transparency:
Staff have successfully operationalized the Campaign Finance Dashboard and has received positive feedback from California Common Cause and other agencies. Moving forward, staff plan to enhance the tool further, including increasing public awareness of the dashboard. Staff welcomes input and feedback on its functionality and potential improvements in campaign finance transparency.
BUDGET IMPACT:
There is no budgetary impact associated with this post-election review.
ENVIRONMENTAL DETERMINATION:
This review is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Municipal Code 2.80
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STAFF CONTACT
Martin McTaggart, City Clerk
[email protected]
(650) 522-7044