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(1) Establishment of Fair Elections Fund. A special, dedicated, non-lapsing Fair Elections Fund shall be established by the City Council for the purpose of:

(a) Providing public financing for the election campaigns of certified participating candidates; and

(b) Paying for the administrative and enforcement costs of the Berkeley Fair Campaign Practices Commission (“Commission”) and City staff related to the Fair Elections Fund public campaign financing program. The administrative and enforcement costs shall not exceed $250,000 in any four year election cycle.

(2) Appropriations to the Fair Elections Fund.

(a) The City Council shall appropriate $4 per Berkeley Resident per year, as determined by the most recent official United States Census Bureau Population Estimate for the City of Berkeley, from the City General Fund to the Fair Elections Fund.

(b) Other sources of revenue to be deposited in the Fund shall include:

(i) Unspent funds distributed to any participating candidate who does not remain a candidate until the election for which they were distributed, or such funds that remain unspent by a participating candidate following the date of the election for which they were distributed;

(ii) Fines levied by the Commission against candidates for violation of election laws;

(iii) Voluntary donations made directly to the Fair Elections Fund;

(iv) Other funds appropriated by the City Council;

(v) Any interest generated by the Fund; and

(vi) Any other sources of revenue determined as necessary by the City Council.

(c) The amount in the Fair Elections Fund shall not exceed $2 million at any time. In order to comply with this limitation, revenue that would otherwise be deposited in the Fair Elections Fund pursuant to subsections (a) and (b) shall instead be deposited in the City General Fund.

(d) The City Council may, by adoption of an ordinance by not less than two-thirds vote of its membership, make an official declaration of fiscal emergency and suspend or reduce the amount of the annual appropriation specified in subsection (a). Any such ordinance suspending or reducing the annual appropriation shall be effective for no more than one year.

(3) Cost of Living Adjustments. The Commission shall adjust the dollar amounts specified in subsections (1)(b), (2)(a) and (2)(c) of this Section upward or downward, for changes in the cost of living, by the percent change in the Consumer Price Index.