2025-002 Campaign Financing Ordinance Oct. 18, 2024 Report No. 2025-003
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Campaign Financing Ordinance Research
BACKGROUND:
On Sept. 11, 2024, Council Member McGee presented a two-minute pitch to hold a
comprehensive work session to examine and reform Denton's local campaign finance rules. On
Sept. 17, 2024, the City Council gave direction to proceed with the two-minute pitch proposal as
outlined in Ordinance 24-1725.
DISCUSSION:
Currently, the City of Denton does not have any regulations that restrict or limit campaign
contributions. The State of Texas generally does not restrict the amount of money that a person
or political committee may contribute to a campaign but does require candidates to appoint a
treasurer, file finance reports every six months, and file reports before elections.
The City of Denton has the authority to establish campaign contribution limits so long as the
limits do not infringe upon a person's First Amendment right to free speech and the City can
show a perception of corruption justifying such laws. Other Texas cities have adopted local
campaign financing limitations as summarized below:
City Individual Limit Political Committee Limits Aggregate Limits
Houston $5,000 $10,000
San Antonio Councilor: $500 Councilor: $500
Mayor: $1,000 Mayor: $1,000
Dallas Councilor: $1,000 Councilor: $1,000
Ma or: $5,000 Mayor: $5,000
Austin $350 $1,000 $36,000 from non-Austin Residents
Councilor: $5,000 Councilor: $5,000
McAllen Mayor: $10,000 Mayor: $10,000
Proposed: $500 Proposed: $500
San Marcos $500 Mayor: $0.75/Registered Voter
Councilor: $0.50/Re istered Voter
In general, limits on campaign contributions made by a candidate to themself are not limited and
there is an indication that attempts to limit self-contributions have not been upheld by courts.
Some cities such as Houston, San Antonio, and Dallas, prohibit the acceptance of campaign
contributions from people who have a pending matter before the City, such as an application for
a permit, proposal to enter into a contract or arrangement, or are involved in ongoing litigation
with the City while those activities are ongoing.
In general, the applicable ethics commission of each City has some degree of authority over the
enforcement of these limitations and restrictions, such as processing a complaint of a suspected
violation of the limits if one is received. Some ordinances allow these commissions to
recommend that the City Attorney pursue prosecution of a municipal code violation.
Oct. 18, 2024 Report No. 2025-003
CONCLUSION:
If Council Member McGee wishes to advance the pitch beyond an Informal Staff Report, City
Staff will present the information to Agenda Committee with a staff recommendation to route the
item through the Board of Ethics prior to Council discussion.
STAFF CONTACT:
Madison Rorschach, City Auditor
City Auditor's Office
(940) 349-7228
Madison.Rorschachkcityofdenton.com
REOUESTOR:
Council Member McGee
PARTICIPATING DEPARTMENTS:
City Attorney's Office
STAFF TIME TO COMPLETE REPORT:
3 Hours