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: 29 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: July 28, 2025
SUBJECT:
Amendment to Contribution Limits for City Candidate Campaigns – Ordinance Introduction and Public Financing Briefing RECOMMENDATION:
Introduce an Ordinance to amend San Mateo Municipal Code Chapter 2.80: "Contributions and Loans to City Candidate Campaigns” to adjust contribution limits for individuals to $1,000, thereby aligning with organizational contribution limits, link future contribution limits adjustments to the CPI, and enhance incentives for participation in the voluntary expenditure limits program, all in accordance with Council direction. Receive an informational briefing on Public Financing of City Candidate Campaigns and provide direction on future action.
BACKGROUND:
In 2005, the City Council adopted Chapter 2.80 of the San Mateo Municipal Code, entitled “Contributions and Loans to City Candidate Campaigns.” This chapter originally established limits of $250 from individuals and $500 from organizations to City Council candidate campaigns, as well as a $15,000 cap on the amount a candidate could loan to their own campaign.
Subsequent amendments include:
2012: Section 2.80.070 was revised to state that any violation of this chapter constitutes a public offense. 2017: Contribution limits increased to $500 for individuals and $1,000 for organizations. 2021: “Contribution” revised to include goods and services received at no charge or at a discount 2024: Voluntary expenditure limit added
Recent Council Direction and Proposed Amendments:
On February 18, 2025, staff provided the City Council with a post-election review of candidate campaign activity from the November 5, 2024 general municipal election, pursuant to Section 2.80.080. Following this review, the Council directed staff to return with an ordinance proposing two changes:
1. Aligning the contribution limits for individuals and organizations at $1,000.
2. Future contribution limit adjustments to align with changes in the Consumer Price Index (CPI), rounded up to the nearest $10.
Voluntary Expenditure Limits:
In 2024, the City Clerk’s Office administered its first election under the newly implemented Voluntary Expenditure Limit (VEL) program. This program allows City Council candidates to voluntarily agree to a spending cap in exchange for specified benefits intended to encourage broader participation and promote transparency.
During the post-election review on February 18, 2025, the City Council noted that additional incentives may be necessary to increase candidate engagement with the program. In response, staff reviewed comparable programs in other
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jurisdictions, including the City of Redwood City’s VEL program.
Currently, candidates in San Mateo have the opportunity to publish a statement in the County’s Voter Information Guide and the Charter mandated newspaper publication, and the City publishes which candidates have agreed to the VEL on its website, in its regular digital newsletter, and in a newspaper of general circulation. The draft ordinance would include the additional benefit of allowing candidates who agree to the VEL to submit a 400-word written statement that would appear on the City’s website, exactly as submitted, and in accordance with guidelines to be provided by the City Clerk, along with Elections Code Section 13307(a)(1). This law includes certain technical requirements and requires a Spanish translation to those candidates who wish to have one.
These changes largely mirror language in the City of Redwood City municipal code, which offers participating candidates the opportunity to publish a 400-word candidate statement and a photo on the City's website. Candidates who opt into their program are likewise prominently identified on the website, and their statements are published exactly as submitted—without editing by staff. If a statement exceeds the 400-word limit, it is returned to the candidate for revision and resubmission. Candidate statements must conform to the guidelines established by the City Clerk and comply with the content requirements set forth in the same Elections Code provision. Guidelines from the City Clerk could incorporate other provisions from the Redwood City code.
Proposed Ordinance
The proposed ordinance (Attachment 1) includes amendments to San Mateo Municipal Code Chapter 2.80 to reflect recent City Council direction for contribution limits, which would be increased from the current $500 to $1,000, thereby matching the contribution limit applicable to organizations. Future increases to the contribution limit would be adjusted according to the CPI, and rounded up to the nearest $10. Staff has also included language providing for an additional candidate statement for candidates who opt to participate in the voluntary expenditure limits program, as noted above. If approved, the ordinance would take effect on January 1, 2026 in order to align with campaign reporting periods. It is scheduled to be considered on the consent calendar at the regular City Council meeting on August 18, 2025.
Public Financing of Candidate Campaigns:
At the September 5, 2023 Study Session, City Council expressed general interest in further exploring a public financing model for City Council elections, however due to existing staff commitments at the time it was decided to pause further review. Subsequently, during the February 18, 2025 post-election review, City Council provided staff with further direction to return with a discussion on exploring public financing of election campaigns. Below is an overview of the legal framework, existing systems for participating in such programs and an approximate estimate of their cost for implementation in San Mateo.
Legal Framework:
Under current state law, public financing of candidate campaigns are prohibited for general law cities, counties, and special districts. However, charter cities like San Mateo may establish such programs under their “home rule” authority. A small number of charter cities—including San Francisco, Berkeley, Los Angeles, Oakland, and Long Beach—have adopted different public financing systems, most of which include expenditure limits for candidates who accept public funds, with the objective to reduce candidate reliance on private donations and increase participation in local elections.
1. Matching Funds Model
Under this model, small contributions from individual donors are matched with public funds, typically at a fixed rate. San Francisco, Los Angeles, and Berkeley all provide a 6:1 match. San Francisco: Candidates receive up to $1.2 million (mayoral) and $255,000 (supervisorial). In 2022, $1.16 million was disbursed, with a 46% participation rate. San Francisco’s Ethics Commission has a $4.9 million annual budget. Los Angeles: Candidates must meet contribution thresholds and spending limits. In 2022, LA disbursed $12.8 million, with a 65% participation rate.
Estimated Cost for San Mateo: Based on 2022 campaign activity, a 6:1 match would have cost approximately
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$127,000 in public funds (excluding administrative costs to operationalize the program).
2. Grant-Based Model
Candidates who meet eligibility criteria receive a lump-sum grant for campaign use. Santa Fe, New Mexico: The City provides $60,000 for mayoral and $15,000 for council candidates. A total of $150,000 is budgeted annually. Participation in 2022 was 33%. Estimated Cost for San Mateo: A grant model could require budgeting $100,000–$200,000 per cycle, depending on participation.
3. Reimbursement Model
Candidates are reimbursed for qualified campaign expenses. Oakland’s Former Model: Provided reimbursements up to a capped amount. In 2022, $159,038 (90% of allocated funds) was disbursed, with a 63% participation rate.
Note: This program has been phased out in favor of a voucher model starting in 2024.
4. Voucher Program
Eligible residents receive vouchers (publicly funded) to donate to candidates. Seattle’s Democracy Vouchers: Voters receive four $25 vouchers. In 2021, the program reached 7.6% of voting-age residents and cost $3 million annually (funded by property tax). Estimated Cost for San Mateo: If 7.6% of voters (approx. 4,365 people) used $100 in vouchers, it would result in $436,500 in public funds, plus administrative costs—bringing the total to at least $500,000 per election cycle.
Table 1: Summary of California Cities Public Financing Models:
City Qualification System Maximum
Funds Per
Candidate
Expenditure
Limits in
Place?
Enforcement
Berkeley 30 contributions of $10–$50
totaling at least $500 from
unique Berkeley resident.
6:1 matching
on small
contributions
(≤ $50).
$43,000 per
candidate.
None. Berkeley Fair
Campaign
Practices
Commission.
Long Beach $5,000 in contributions
≤ $400.
Matching
funds: 1:2
match for
Primary and
1:1 match for
Runoff for
contributions
up to $400 per
unique donor.
$23,760 -
$28,380 for
Primary,
$18,000 -
$21,500 for
Runoff (varies
by district:
33% [Primary]
and 50%
[Runoff] of the
expenditure
limit).
$72,000 -
$86,000 in
Primary,
$36,000 -
$43,000 in
Runoff (varies
by council
district based
on voter
registration).
City Attorney
with Ethics
Commission’s
assistance.
Los
Angeles
Raise at least $11,400 in
district contributions
between $5-$800 from
individual contributor.
6:1 matching
funds for
contributions
up to $114 per
unique City-
resident-
donor.
$161,000 for
Primary,
$201,000 for
Runoff
$571,000 for
Primary,
$476,000 for
Runoff.
Los Angeles
City Ethics
Commission.
Oakland Receive at least 125
contributions from
Vouchers:
each eligible
resident
2/3 of
expenditure
limit
$150,000 Oakland Public
Ethics
Commission
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individual residents
between $10-$600.
registered to
vote receives
four $25 public
vouchers to
distribute to
candidates.
($150,000) for
competitive
races, no more
than 10,000 for
noncompetitive
races.
and City
Attorney.
San
Francisco
Receive a minimum amount
of qualifying contributions
from residents: Mayor -
$50,000 from at least 500
contributors; $10,000 from
at least 100 contributors.
6:1 matching
on small
contributions
(≤ $50).
$1.2 million
(mayoral) and
$255,000
(supervisorial).
Supervisorial
candidates:
$350,000.
Mayoral
candidates:
$1.7 million.
San Francisco
Ethics
Commission
Summary and Next Steps:
Public financing programs are designed to reduce the influence of money in local elections and encourage broader participation in the democratic process. However, these programs often require significant financial and administrative resources to implement effectively. In the City of Oakland, voters approved Measure W in 2022, which established a “democracy voucher” program intended to expand access to public financing, as seen in Table 1. Despite voter approval, the City has delayed implementation of the program due to budgetary constraints. In the interim, Oakland continues to offer a more limited public financing option.
Under Oakland’s Limited Public Financing (LPF) program, the amount available to candidates is determined by the total funding appropriated by the City Council and the number of participating candidates in the current election cycle. For the 2024 election, approximately $177,000 was available for distribution among eligible City Council District candidates.
Individual candidates could receive between $8,000 and $25,000, but no more than 30% of the voluntary expenditure ceiling for the office they are seeking.
To manage the distribution of funds, Oakland’s Public Ethics Commission oversees the program in two phases. In Phase I, eligible candidates opt in, and the Commission determines the initial disbursement amounts. Phase II involves a reallocation of remaining funds following a deadline for participants to submit required reimbursement documentation.
Candidates who meet this deadline may receive increased distributions, depending on how many participants remain in the program.
Oakland’s experience illustrates both the potential benefits and practical challenges of implementing a public financing program. While the City has prioritized equitable access to campaign funding, limited resources have required a measured and adaptive approach. Notably, the administration of Oakland’s program is supported by a dedicated ethics agency with significant staffing and infrastructure.
In considering similar models, it is important to recognize that in San Mateo many of these responsibilities—such as verifying candidate eligibility, processing reimbursements, and tracking compliance—would fall to the City Clerk’s Office.
Successful implementation would therefore require careful planning, clear procedures, and potentially additional administrative support to ensure the program is both effective and manageable within existing capacities.
Direction Needed:
To guide staff’s next steps on public financing of candidate campaigns, Council is asked to provide direction on the following options regarding public financing of future election campaigns:
1. Should staff actively pursue the development and implementation of a public financing program for future City elections, including evaluating feasibility, administrative requirements, and potential funding mechanisms?
2. Should staff continue to monitor developments in Oakland and other jurisdictions to gather best practices and lessons learned, with the possibility of revisiting the topic at a later date?
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3. Should no further action be taken at this time?
BUDGET IMPACT:
There is no budgetary impact associated with this study session.
ENVIRONMENTAL DETERMINATION:
This ordinance introduction 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 – Proposed Ordinance
Att 2 – Proposed Ordinance – Tracked Changes
STAFF CONTACT
Martin McTaggart, City Clerk
[email protected]
(650) 522-7044