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HomeMy WebLinkAboutOrdinance No. 2026-04 | Urgency Ordinance Amending Campaign Finance Limits | Adopted 06/15/2026ORDINANCE NO.2026-04 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY AMENDING CHAPTER 8B OF THE GILROY CITY CODE RELATING TO VOLUNTARY CAMPAIGN EXPENDITURE CEILING WHEREAS, the Political Reform Act of 1974 (the "Act") set forth in California Government Code section 81000 et. seq. governs the conduct of campaigns, and sections 81013 and 85703 grant local agencies the power to enact certain ordinances that govern the financing of local elections so long as the requirements do not interfere with a person's compliance with the Act; and WHEREAS, monetary contributions and expenditures relating to political campaigns are a legitimate form of participation in the American political process, but large contributions and expenditures may have an undue influence on candidates or create the appearance of undue influence in the political process, and regulations are needed to prevent such undue influence; and WHEREAS, Chapter 8B of the Gilroy City Code currently sets forth a monetary voluntary expenditure ceiling that a candidate may agree to, which ceiling is based upon the entire City population; WHEREAS, the City of Gilroy adopted ordinance 2025-04 to establish the election of members of the City Council by six districts; and WHEREAS, the election for the office of Mayor continues to remain an at-large election; and WHEREAS, on June 1, 2026, the City Council reviewed the City's campaign finance regulations and directed amendments to the City's voluntary campaign expenditure ceiling provisions; and WHEREAS, the City Council finds that immediate implementation of these amendments is necessary to provide certainty to candidates and committees participating in the upcoming 2026 election cycle and to promote orderly election administration; and WHEREAS, the subject ordinance amendment is covered under Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines as an activity that can be seen with certainty to have no possibility for causing a significant effect on the environment WHEREAS, this ordinance is adopted pursuant to the City's police powers and applicable provisions of the Political Reform Act. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: Docusign Envelope ID: 6F1C9F3B-B9B5-8489-827B-13D2F143F364 Ordinance No. 2026-04 Urgency Ordinance Amending Campaign Finance Limits City Council Regular Meeting | May 18, 2026 Page 2 of 4 1) SECTION 1. AMENDMENT OF SECTION 8B.4(a) Gilroy City Code Section 8B.4(a) governing voluntary expenditure ceiling is hereby amended to read as follows: a) The city council does hereby establish a voluntary campaign expenditure ceiling as follows: i) City Council District Elections. A candidate for the office of City Councilmember and for any and all controlled committees of such candidate, who voluntarily agrees to a campaign expenditure ceiling, shall not make qualified expenditures exceeding Twenty-Five Thousand Dollars ($25,000) per election. Should a candidate who has elected to comply with the voluntary campaign expenditure ceiling exceed that ceiling, he/she shall immediately notify all opponents and the city clerk by telephone and confirm the same in writing the day that such expenditure ceiling is exceeded. ii) Biennial Adjustment. Beginning in January 2028, the City Clerk shall, in even- numbered years, adjust the expenditure ceiling amount established in subsection (i) based solely upon the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U), San Francisco-Oakland-Hayward Area, or successor index. The adjustment called for by this section shall be the cost-of-living adjustment (COLA) computed by reference to the CPI as indexed from a base year that commences in October 2025. (By way of example, in January 2028, the City Clerk will adjust the voluntary expenditure ceiling amounts by determining the increase in CPI from October 2025 to October 2027). The adjustment to the voluntary expenditure limit shall be adopted by the City Council by resolution. The adjusted amount shall be rounded to the nearest one hundred dollars ($100). iii) Mayoral Elections. A candidate for the office of Mayor and for any and all controlled committees of such candidate, who voluntarily agrees to a campaign expenditure ceiling, shall not make qualified expenditures exceeding one dollar ($1.00) multiplied by the population of the City of Gilroy as established by the most recent annual population estimate published by the California Department of Finance and as acknowledged by the City Council by resolution. 2) SECTION 2. REMAINING PROVISIONS UNCHANGED Except as specifically amended by this ordinance, all other provisions of Chapter 8B of the Gilroy City Code shall remain in full force and effect. All references in other provisions of the Gilroy City Code to Chapter 8B or to the election campaign finance shall continue to apply to Chapter 8B as amended by this ordinance. 3) SECTION 2. SEVERABILITY Docusign Envelope ID: 6F1C9F3B-B9B5-8489-827B-13D2F143F364 Ordinance No. 2026-04 Urgency Ordinance Amending Campaign Finance Limits City Council Regular Meeting | May 18, 2026 Page 3 of 4 If any section, subsection, sentence, clause, or phrase of this ordinance is held invalid, such decision shall not affect the validity of the remaining portions of this ordinance. 4) SECTION 3. URGENCY FINDINGS The City Council finds that this ordinance is necessary for the immediate preservation of the public peace, health, safety, and welfare because immediate implementation is required to provide certainty to candidates, committees, election officials, and the public regarding applicable campaign finance rules for the upcoming election cycle and to ensure orderly administration of municipal elections. Accordingly, this ordinance will go into effect immediately as an urgency ordinance under state law and an emergency ordinance under Gilroy Charter Sections 602 and 608(d). As a fully separate basis upon which the ordinance will go into effect immediately, this ordinance is also an “ordinance calling or otherwise relating to an election” within the meaning of Gilroy Charter Section 602(a). 5) SECTION 4. EFFECTIVE DATE This ordinance shall take effect immediately upon adoption pursuant to the urgency ordinance provisions of applicable law and the City Charter. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Gilroy on the 15th day of June 2026, by the following vote: AYES: COUNCIL MEMBERS: BRACCO, CLINE, FUGAZZI, MARQUES, RAMIREZ, BOZZO NOES: COUNCIL MEMBERS: NONE ABSTAIN: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: HILTON APPROVED: Greg Bozzo, Mayor ATTEST: _______________________ Kim Mancera, City Clerk Docusign Envelope ID: 6F1C9F3B-B9B5-8489-827B-13D2F143F364 Ordinance No. 2026-04 Urgency Ordinance Amending Campaign Finance Limits City Council Regular Meeting | May 18, 2026 Page 4 of 4 CERTIFICATE OF THE CLERK I, KIM MANCERA, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2026-04 is an original resolution, or true and correct copy of a City Resolution, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said Council held on Monday, June15, 2026, with a quorum present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Wednesday, June 17, 2026. Kim Mancera City Clerk of the City of Gilroy Docusign Envelope ID: 6F1C9F3B-B9B5-8489-827B-13D2F143F364