Novato set to adopt contribution reforms

Ordinance would increase limit from $400 to $750 for candidates

Novato elections could see more cash flowing into campaigns.

The Novato City Council voted unanimously on Tuesday to advance an ordinance that would increase the individual campaign contribution limit from its current $400 to $750. The ordinance, set for final adoption later this month, would also annually increase the donation limit based on changes in the consumer price index.

Council members said the city's campaign finance rules have not been updated since 2006 and do not reflect modern elections expenses.

“We need to do a cost of living adjustment so we don't have to wait almost 20 years to change the ordinance to catch up with inflation,” Councilwoman Pat Eklund said.

Earlier this year, the council was considering raising the limit to as much as $1,000. But it lowered the limit to $750 after receiving input from former councilman and mayor Bernie Meyers, who helped spearhead the adoption of Novato's original campaign finance reform measures in 2003.

In a letter to the council this week, Meyers advocated for a $600 limit. While he recognized elections have seen changes in costs, Meyers also noted that council elections are now held by-district and not citywide, thus reducing the need for candidates to raise as much money.

“New costs have arisen, like the social media ads,” Meyers wrote to the council. “What hasn't changed appreciably, in my opinion, is the public's perception of what constitutes an appearance of impropriety. It is not a fixed star, but going to $1,000 is, for 2022 Novato, a bridge too far.”

Reached Wednesday, Meyers said he could live with a $750 limit, but said he believes a $750 donor would still have more influence over candidates than if a lower limit was in place.

“That candidate will pay attention to whatever it is that person who donated $750 says,” Meyers said. “They may not do what the $750 donor may like but the $750 donor will be heard.”

The ordinance also would make changes to financial disclosure requirements for campaigns and political action committees.

Anonymous donations could be made to campaigns so long as they are below $100. The current rules only allow anonymous donations below $25.

City staff and Mayor Eric Lucan said Novato's $25 threshold for anonymity is unique especially compared to other areas and the state, which caps anonymous donations at fewer than $100.

“I know from personal experience, I had some individuals who donated $99 to my campaign not knowing there was that lower limit in Novato,

thinking they were giving that contribution anonymously because they give to other candidates,” Lucan said.

Meyers said increasing the threshold for anonymous donations is “abhorrent to democracy” and will likely result in voters not knowing who the bulk of the candidate's financial supporters are.

General purpose committees, such as political action committees, would also have to begin reporting large contributions or expenditures sooner under the ordinance.

Under existing rules, committees that receive or spend $1,000 or more in support or opposition of a candidate or ballot measure within 90 days of an election must:

• Report any contributions the committee receives totaling $1,000 or more within 72 hours

• Report any contribution or expenses of $1,000 or more made by the committee in support or opposition of a campaign

The ordinance would require these committees to make the same reports once they receive or spend $500 within 90 days of an election.

The city also plans to remove a $50,000 voluntary spending limit for candidates. Candidates would be able to voluntarily limit the amount of money they loan to their campaigns to $25,000. This limit would be increased based on annual cost-of-living adjustments.

Eklund originally proposed updating the city's campaign finance rules in 2019 following the elections that November. She was concerned about the spending by a Novato Chamber of Commercesponsored political action committee, Citizens for a Sustainable Economy, in the 2017 and 2019 council races.

At the time, Eklund said the spending by this group “heavily influenced” the outcome of the elections, including the reelection of Councilwoman Denise Athas and the election of council members Susan Wernick and Amy Peele in 2019.

Eklund and Athas are both up for reelection in November.