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Agenda Report <br />Meeting of April 16, 1996 <br />Page 2 <br />Voluntary Expenditure Limits <br />Proposition 208 creates a set of voluntary expenditure limits and establishes <br />certain incentives to encourage candidates to accept those limits. Cities are encouraged to <br />establish a voluntary expenditure ceiling in any amount of $1.00 or less per resident for each <br />election in the jurisdiction. In council districts, this limitation if enacted by the City, would <br />limit expenditures for council races to roughly $7,000 per ,council candidate per election and <br />$43,000 per mayoral candidate per election. <br />If the City were to adopt voluntary expenditure limits, the allowable individual <br />contribution would increase from $100 to $250 for those candidates accepting the voluntary <br />expenditure ceiling. <br />Once a candidate who does not accept the expenditure limit raises or spends 75 % <br />of that ceiling amount ($5,250 based upon —a$7,000 limit or $32,250 based on a $43,000 limit) <br />the voluntary ceiling limit for other candidates in that race automatically triples. Similarly, if <br />independent expenditure committees in the aggregate spend 25 % or more of the expenditure limit <br />($1,750 or $10,750 respectively) the ceiling for other candidate automatically doubles. If those <br />committees spend more than 50% of the ceiling amount ($3,500 or $21,500 respectively), the <br />ceiling limit for other candidates triples. <br />Candidates who accept the expenditure limits are required to be identified on the <br />ballot, the ballot pamphlet and the sample ballot. <br />Other Contribution Limits <br />In addition to contribution limits, Proposition 208 prohibits certain limitations on <br />who and how contributions are made. For example: <br />1. Transfers. Transfer of funds from one candidate to another is banned. <br />2. Appointed Commission Members Prohibited from Contributing to Any <br />Council Race. Members of appointed boards and commission (planning <br />commission, utility commission, parks and recreation commission, historic <br />preservation commission, etc.) are banned from contributing to, soliciting or <br />accepting contributions for the person who made the appointment. In Colton, this <br />means that members of appointed commissions may not contribute solicit or <br />accept contributions for My member of the City Council because the Council as <br />a body ratifies and approves all appointments. <br />T <br />