Don’t Worry, Be Happy!

The City of Fullerton has issued a press release to address the recent revelation that $10,000,000 was erroneously counted in general reserves when it really belonged in special restricted categories. Peruse this soporific and condescending verbiage and see if you can read a single reference to City employees having made a mistake, honest or otherwise.

Alternatively, take an Ambien and relax. Everything’s gonna be fine.

City of Fullerton Budget Update

At the March 17, 2026, City Council meeting, City staff presented an agenda item titled “Second Quarter Financial Report for Fiscal Year (FY) 2025–26 and Mid-Year Budget Adjustments.” The purpose of this item was to provide an overview of the City’s financial position through mid-year FY 2025–26, report on revenues and expenditures from July 1, 2025, through December 31, 2025, and present the updated financial position based on the finalized FY 2024–25 Annual Comprehensive Financial Report (ACFR). Following this presentation, the City would like to provide additional context and clarification to support a clear and shared understanding of the information discussed.

The City Council adopted the Fiscal Year 2024–25 budget on June 4, 2024, which included a planned structural deficit of approximately $9.4 million. As part of that budget, it was understood that the City would utilize a portion of its reserves—similar to drawing from savings—to balance the difference between revenues and expenditures. This approach was discussed publicly during the budget adoption process.

Throughout FY 2024–25, the City took steps to manage costs, including holding vacant positions and limiting expenditures where feasible. As a result of these efforts, the City reduced the actual year-end operating deficit to approximately $5.7 million, reflecting ongoing attention to fiscal responsibility.

At the close of Fiscal Year 2024–25, the City’s General Fund—the primary operating fund used to provide essential services such as police, fire, parks, and infrastructure—reported a total fund balance of $30.0 million. A fund balance can be thought of as the City’s overall savings. Of this amount, $19.8 million is held in the City’s contingency reserve, which serves as the City’s emergency fund to maintain services during economic uncertainty or unexpected events.

A portion of the City’s fund balance—approximately $10.2 million—is categorized as restricted, committed, or assigned for specific purposes. During the fiscal year, approximately $2.7 million was more clearly designated within these categories, increasing the allocated portion of the City’s savings from approximately $7.5 million to $10.2 million. These funds support important community priorities such as capital improvements, General Plan updates, Downtown parking, and street and infrastructure improvements, including road repairs. These funds remain part of the City’s overall financial resources but are set aside for their intended purposes.

Additionally, a $2.9 million prior-period adjustment identified through the City’s independent audit was related to the proper classification of assets between the General Fund and the Successor Agency. This adjustment ensures that funds are reflected in the appropriate account in accordance with accounting standards. The funds were not lost or misspent, but rather properly reallocated.

At the end of FY 2024–25, the City’s contingency reserve was approximately 14% of annual General Fund expenditures, which is above the City’s minimum policy requirement of 10%, though below the long-term goal of 17%. Based on current projections, the City is anticipated to end FY 2025–26 with approximately 12% in reserves, which remains within policy guidelines.

There has also been discussion regarding a potential 2% reserve level. It is important to clarify that this figure represents a baseline, starting position in the City’s long-term financial forecast, assuming no changes to current revenues or expenditures. It is neither the City’s current condition nor its expected outcome. As part of the upcoming budget process, the City Manager will present options during public budget study sessions to reduce the funding gap and improve reserve levels over time, ensuring the City remains on a path toward long-term financial stability.

The City’s financial outlook reflects broader trends impacting many communities, including rising costs for labor, materials, and services. At the same time, revenues remain stable, with property tax revenues increasing by 6.23% due to growth in assessed property values.

To help illustrate, the City’s finances can be compared to a household budget. Revenues function like a paycheck, expenses represent the cost of essential services, and the fund balance serves as savings. Over the past year, the City used a portion of its savings to support planned expenditures, while continuing to maintain an emergency reserve. Moving forward, the City is focused on aligning ongoing revenues and expenses to support long-term financial sustainability.

The Annual Comprehensive Financial Report (ACFR) referenced above is the City’s official year-end financial report and is independently audited. In simple terms, it is similar to a household’s year-end financial statement—it shows how much money came in, how much was spent, and how much remains in savings, along with how those funds are designated.

Looking ahead, the City will continue to evaluate cost containment strategies, operational efficiencies, and potential revenue opportunities, which will be discussed during upcoming public budget study sessions along with updates to the City’s multi-year financial forecast.

In summary, the City of Fullerton’s financial position reflects a planned and publicly approved use of savings to address a budget gap, along with standard accounting updates to ensure funds are properly tracked. No money was lost, missing, or improperly spent. Approximately $2.7 million was reclassified to reflect funds set aside for specific purposes—such as road repairs and capital projects—and a $2.9 million adjustment was made to the appropriate account for those funds. The City ended FY 2024–25 with 14% in reserves and is projected to have about 12% this year, both above the City’s minimum requirement. The 2% figure referenced in recent discussions reflects the City’s baseline financial outlook if no changes are made to current spending or revenue levels, underscoring the importance of taking action. The City is actively working to reduce the budget gap and strengthen its financial position moving forward.

The City of Fullerton remains committed to transparency and keeping the community informed. Residents are encouraged to review financial documents available on the City’s website and participate in the budget process.

$10,000,000 Misdirected; Budget Crisis Suddenly Gets Worse

Off we go, into the Wild Blue Yonder…

At Tuesday’s Fullerton City Council meeting our honorable elected representatives found out that our fiscal reserve funds were overpopulated with bucks that belonged someplace else. I haven’t been able to view the video – the City Clerk’s link doesn’t work so I’m relying on a Voice of OC article.

It seems monies that should have gone to Fullerton’s Redevelopment Successor Agency and other sequestered funds were being counted in the general fund reserve pool – $10,000,000 worth. How and why this occurred wasn’t spelled out in the article except as some sort of accounting error:

“These funds remain part of the city’s overall fund balance, but are now set aside in a way that better reflects their intended purpose,” said Steven Avalos, the city’s finance director, at Tuesday night’s meeting.  

Mr. Steven Avalos, Fullerton’s New City Treasurer

Wow, that’s an application of bureaucratic soft soap, massaging what amounts to an egregious accounting error, or worse.

What it means is that all previous budget discussions led by Mr. Avalos and his predecessor have been nonsense for the past 5 years. And decisions in just the past year obliviously come into sharper focus for their foolishness – like going in-house with ambulance drivers and hiring a bunch of new, permanent “firefighters” based on a one-time FEMA grant. Parenthetically, I note that Mr. Avalos was appointed City Treasurer earlier in the Tuesday meeting. That’s a bit funny, really.

The Voice reports heated and loud interlocutions between Ahmad Zahra, the perpetual grandstander, liar, and victim, in exchanges with Mayor Fred Jung and Nick Dunlap. The exchanges as reported generated a lot more heat than light, but so it is when Zahra begins his sanctimonious routine. Ironically Zahra says a new sales tax increase won’t help.

The Man from Manfro

We are informed by the article that City Manager Eddie Manfro is going to meet with the ad hoc Budget Sustainability Committee on March 30th which seems like just a stall of 12 days.

Won’t look you in the eye while you’re trashing him…

One interesting statement was uttered by Jung in a Voice interview:

“I think we were set up to fail.”

We don’t know what this means because apparently the reporter didn’t follow up. Does the Mayor believe this misallocation of funds was deliberate to create a budget crisis at some point? Who knows?

Things are grim in City Hall, and a cactus garden in front isn’t going to cheer anybody up.

Small Stuff Adds Up

The Fullerton City Council agenda for tomorrow’s meeting is pretty light. Except for a budget discussion everything is “Consent Calendar.” One of those items caught my attention. Item #10 is an emergency, non-bid request to work on some drainage channel wedged between the Uptown Apartments on Yorba Linda and the 57 CalTRANS right-of-way.

Staff is claiming the project (whose scope isn’t described, other than “a damaged wall”) is necessary due to “recent rain events,” always a useful pretext for doing stuff. The channel isn’t one of those big ones with perpendicular walls, but from a satellite view it looks like a simple concrete “V” ditch that enters and exits a concrete drain structure.

It must look something like this, right? A concrete “V” in cross section with woven wire mesh or thin rebar. Has a part of the been washed out or undermined? Who knows? We just know there’s some sort of damage, and I’d bet the “recent rain events” are an excuse for a long-developing issue.

Here’s a google earth view of a portion of the the existing “V” ditch that is either buried or washed out.

This is the funny part. The City Engineer has estimated a construction cost of $105,000, but with an overhead of almost 20%. That’s ridiculous. At $100 an hour for staff time we’d be looking at 200 manhours, or one person working on nothing else for five weeks. The design is negligible since you can just sketch a plan and pull a cross section and specs out of the Green Book or other standard sources, like I did, above. Administration? Processing? You’ve got to be kidding. And then there’s the amount budgeted for “contingencies.” $75,000, or 75% of the construction amount. So they really don’t know what the scope is and are expecting surprises.

If I were on the City Council I would be asking staff about these figures. They don’t make sense, at least not on the surface. Something is going on.

When the 57 freeway was built this drainage flow was created by a giant berm, but I have to wonder how and why the City created a drainage right-of-way on what appears to be the CalTRANS right-of-way, or on private land since the property looks like a jagged remnant of the State’s freeway land acquisitions.

Someone might also reasonably inquire into how come this thing is an emergency at all. That seems awfully strange. The rainy season is virtually over and the amounts of water collected here seem pretty insignificant.

But back to the finances. The problem with all municipal public works budgets are the amount used to cover staff expenses and overhead, and this, normally around 10% or more, is already padded. If you think about it, money from infrastructure funds are being used and abused to support to bureaucracy instead of pouring concrete.

The amounts in this instance are small, but they are indicative of an ongoing philosophy of abusing Capital Improvement budgets. Some might argue that unused funds will simply be returned to the fund from which they came. Could be. But how would anybody know?

More Trouble Down On The County Farm Vis-a-Vis the Do-Si-Do

Do with American flag, busy digging an escape tunnel…

The Voice of OC is reporting more suspicious activity on the part of crooked former County Supervisor Andrew Do. Do is already in the lockup after admitting to scamming OC out of millions in criminal scams with pals to steal COVID relief funds. His daughter, a co-conspirator got a slap on the wrist while his wife, Judge Cherie Pham still revels in the title of “Your Honor.”

“Now, auditors from the Weaver-Tidwell firm say they’ve reviewed over $486 million of contracts and found a series of questionable expenditures where Do ordered county staff to approve a vendor without the proper paperwork or covered up where grant money was actually going.” 

You are ready to depart, young grasshopper…

Do is gone, but his self-proclaimed protégé and great friend, our County Supervisor Doug “Bud” Chaffee, isn’t. He has been stonewalling the Do affair from his dais and even now is quoted as saying:

 “I don’t want to keep spending money if we can’t recover it in some way. The report is disturbing but it’s not what I’d call evidentiary quality.” 

Right. Why pay to find out what happened and where the money went, and who benefitted? Nothing to see here, folks. So sayeth Chaffee, the staunch defender of public resources. Quality evidence is so darn expensive.

Paulette Chaffee discussing complicated education issues with a bunch of helium-filled balloons in front of her garage…

The rancid rodent Chafee has ten months left in his sketchy Supervisorial career. Perhaps he doesn’t want it tarnished by more scandal. Or maybe he’s got his own skeletons locked up some place he doesn’t want auditors poking around. Don’t forget the Little Lady – Pilferin’ Paulette is once again running for public office with her fake “4th District Ambassador” label, a non-job her hubby created to get her photo ops.

But if Chaffee hopes for peace and quiet he hopes in vain. Yet another galactic fuck up in which Andrew Do’s name is attached is addressed in a new Voice of OC post. Apparently the County claims a vendor in the public mental health game, Mind OC, owes them $65,000,000 for payments made without supporting evidence of accomplishment. And guess what? Mind OC has ties with…Andrew Do. Get this:

“Lawyers noted that Do helped increase Mind OC’s role in managing medical operations at the site, despite them being unlicensed, and pointed to a $275,000 contract the nonprofit created with the wife of Do’s then chief of staff Chris Wangsporn.” 

Wangsaporn is not in jail, and neither is his wife. I don’t know whether Mr. or Mrs. Wangsaporn are or have ever been subjects of FBI investigations, but the Mr. W currently peddles his services as a government lobbyist. As usual, our DA Todd Spitzer has been singularly uninterested in the activities of Do and his Chief of Staff.

Off we go, into the Wild Blue Yonder…

And now back to Chaffee. How much did he know about his best bud’s side gigs on the Board of Supervisors? What did he know and when did he know it? Chaffee has a million dollar+ office budget to help him “supervise” and there seems to have been nobody looking into a damn thing; if they did, Chaffee said nothing about the ocean of cash that was disappearing through the OC Health Care Agency funnel, abetted by the politcal puppets that ran it. And what did Pilferin’ Paulette know about the chicanery down on the County farm?

Traut endorsers. Look at names #1 and #2!

Have any of the current 4th District candidates addressed this ongoing scandal at the County? I am unaware of any statement promising a clean sweep and a reckoning for those who aided Do in his malfeasance. I would think this is something Fred Jung, Connor Traut, and Tim Shaw would be all over. But opposing corruption is scary because you never know who might prevail. And some of the miscreants may have endorsed you!

What’s a Chamber of Commerce For?

A Friend has forwarded a press release from the North Orange County Chamber of Commerce. This used to be the Fullerton Chamber of Commerce that merged with other groups in neighboring towns, I’ve been told.

The Chamber is throwing itself a birthday party brunch in celebration of 133 years of existence. The fare, donuts, is in keeping with the odd year number to celebrate.

Notice that presentations will be made by Republic Services, the massive corporate trash hauler whose contract with Fullerton is up this year; and SCAG, the completely opaque regional agency responsible for the nonsensical 13,000 new housing units shoved up our backside by the Sacramento Affordable Housing Cartel (SAHC). That seems sooooo fitting.

For the past 30 years Fullerton Chamber of Commerce has gone from tax-fighter to weak little sister of Fullerton City Hall. Under the dim bulb Theresa Harvey, the Chamber became an auxiliary of the City, which is appropriate because after she left the Chamber she became the Chair of the CSUF Auxiliary – another totally opaque agency that plays monopoly with money with virtually no oversight.

The Chamber became a lap dog, not a watch dog for the waste and dumbassery in City Hall. Ms. Harvey was a completely clueless puppet. Under her, the Chamber actually threw their lot in with the public employee unions in 2020 in support of the Measure S sales tax.

It likes meal worms.

Parenthetically, the CSUF Auxiliary has become a final stop for local small-time influence shoppers like Harvey and her predecessor James Alexander, and that brought us the disastrous Elk’s Club/Universaity Heights faculty housing debacle.

Apparently there’s a new guy in charge at the Chamber, but I can’t say I’m hopeful. The Chamber should be promoting small businesses at City Hall, and promoting economy and efficiency in local government, not “tax your way out of it” boohooism. Will it?

Anyway, I thought back to the days in 1993 and 1994 when the Chamber stood up for businesses large and small, fighting City Hall on the unnecessary utility tax imposed by McClanahan, Bankhead, and A.B. Catlin. Those were fun times.

Zahra Tells All – Part I

Land of opportunity…

No, of course not. The truth is not in him. If it were he would have explained how he, the first gay Muslim in America married a local woman in Arkansas to jump the Green Card line.

Not asking real questions is a great way to avoid getting real answers…

The Damascus Dodger is featured in a three part interview with Stiskia Kennedy in the Fullerton Observer. It’s an opportunity for the Kennedy Sisters to give the scam artist another of their tongue baths and to avoid anything that resembles the truth about Zahra and his career, a career that resembles a jailbreak more than anything else.

In a recent discussion, I spoke with Fullerton City Council Member Ahmad Zahra about his role and responsibilities. We engaged in a Q&A session that delved into the challenges and rewards of serving the community at the municipal level. 

Bushala says stop!

First Satkia wants to know how to stand up to influential donors. Suddenly Tony Bushala’s unseen presence fills the room. Zahra’s response? He lies of course. Naturally, Zahra is a profile in courage, standing up to the “special interests” over whom he prevailed in his two elections. This demanded his “wisdom and thick skin.” This history is false, of course. Nobody knew who he was in 2018 and he slipped in past a couple others; naturally he ignores the facts of his 2022 run when his victory was not won on any issues, but by spending $120,000. And then there was his recruitment of Tony Castro, the dummy Latino candidate who the OC Dems set up to take votes away from Oscar Valadez. Oops.

Stikia follows up with campaign finance. Zahra complains about political action committees and the poor plight of the “community-focused” candidate (presumably just like him). No questions are asked or answered about Zahra’s big campaign donors, just as the Kennedy Sisters never bothered to ask who gave money to Cannabis Kitty Jaramillo in 2024, and what they hoped to get out of it. The cannabis workers’ PAC gave $60,000 to help Cannabis Kitty, but that’s not the sort of mean, nasty PAC Zahra has in mind.

Malo, indeed…

Zahra says his opponents spent more than he did and he still won in 2022. That’s a lie, too, but he knows the Sisters won’t check him on it. Dredging up another Fullerton Boohoo gripe about Mr. Bushala, Zahra bemoans the fact that donations can be returned so that councilmembers can vote on the donor’s project. This is reference to Councilwoman Jamie Valencia’s return of money to Bushala before the vote on the stupid Walk on Wilshire in which Bushala had no legal interest. That return wasn’t even necessary per state law so why is this a problem?

What, me lie?

Staksia’s last question is about ranked choice voting about which her interlocutor knows nothing and doesn’t care. He wants to curb “unethical practices” by PACs, saying nothing about the fraudulent candidates Tony Castro and Scott Markowitz whom his party set up so their pals like Zahra and Jaramillo could get elected in Fullerton. And that betrays Zahra’s true feelings about the community he pretends to love so much.

The Nuisance

At last Tuesday’s Fullerton City Council meeting three gentlemen got up to speak about problems they’re having with the Union Pacific Railroad, specifically, the lack of policing along the unused line just south of Imperial Highway.

It seems that members of the homeless “community” have taken up residence along the unused right-of-way with the attendant trespass, trash, peeping-tommery, and even fornication. The residents are sick of it and the railroad has been uncooperative, they say. The situation even made the news.

The speakers at the meeting were quick to thank Nick Dunlap and Fred Jung and the Fullerton PD for their help and numerous calls for police help. Can the City persuade the railroad to do something?

The giant railroad corporation issued a canned and useless response; possibly responding only because a lawsuit maybe be coming.

Since the line (according to reports) hasn’t been used for between twelve and seventeen years, you have to wonder what the UP has in mind. This track is the remnant of the UP line that came northward from Anaheim past the Hunt Wesson plant, know as the “Basta Crossing” and north through La Habra. The line south of the Basta Crossing was abandoned and sold off long a go. Obviously lots of people see the remaining portion as having potential for a rec trail.

Is the ROW legally abandoned through disuse? Not yet. That’s up to an arcane Federal agency called the Surface Transportation Board.  Have prescriptive easements been established where bikers have created an informal parallel trail? I don’t know, and I’m not sure the railroad would even care despite liability issues.

Surpise!

On Tuesday night the Fullerton City Council did something very rare for a government agency. Nothing.

The issue at hand was a response to a State mandate to get rid of non-functional turf by denying it potable irrigation water. Therefore it was believed that some sort of xeriscape would be needed to replace the lawn in front of City Hall. I have has posted a couple times about this nonsense.

Oh Dear. Surveys were conducted, the charade of public input was exercised, copious staff time was spent culling and collating in preparation for the inevitable routine: hiring consultants and “designers,” organizing charettes, redrafts; months of fruitful effort developing bid quantities, taking bids, awarding and managing contracts, etc., etc., ad nauseam.

And then the remarkable occurred: leave the damn thing alone. In fact, while you’re leaving the grass alone, re-open the fountain that has been shut down as a virtue-signaling gesture years ago. Staff didn’t see that coming. Neither did I.

Some folks rightly pointed out that the lawn was functional – as a gathering place for meetings, protests and even municipal-sponsored events! First Amendment and civic pride. That sealed the deal.

But the road of lawn laissez-faire was not without a couple of speed bumps. “Dr.” Ahmad Zahra wanted a grand public arts gesture somewhere on the lawn; maybe All the Arts for Kids could help! Seeing the opportunity for a grand social gesture slipping away Shana Charles asked that “options” be presented to the Council, completely contradictory to the motion that had been made to leave the damn thing alone. She used to make this strategy of last minute obfuscation work, but it won’t work this time, despite her insistence on MORE TREES, maybe even an enormous fig that would serve as shade for generations to come.

Completely absent was the Fullerton Heritage Group who should have been there to protect the integrity of the original building elevation’s relationship to its surrounding. Nick Dunlap got it. The formal exterior of the building was part and parcel with the site design – created 65 years ago. It’s a landmark. The Heritage Group wasn’t interested, apparently.

I wonder if anybody has notices several empty tree wells in the sidewalk along Commonwealth in front of City Hall. There used to be shady ficus trees there (see picture, above), but not any more. If anybody had given this any thought they didn’t say so.

Anyhow, well-done Jung and Dunlap and Valencia for doing the smart and the right thing.

Government Make-work Alive and Well

Fullerton may be on the verge of financial crisis, but let it not be said that creative ways for its employees to stay busy aren’t possible, if you can find “other peoples’ money” to do it. We’ve seen it in spades on the ridiculous Trail to Nowhere, built mostly with money from an unaccountable and irresponsible State agency whose only observable job is to give away money with no answers to questions even checked for truthfulness.

The next silly project in line comes to us courtesy of the State Legislature, again, in the form of AB 1572 that mandates that “non-functional” turf can’t be watered with potable water. Municipalities are first on the hit list, and that includes the formal lawn in front of City Hall. The item is on tomorrows Council meeting agenda.

The City can declare that the City Hall lawn is functional and walk away. Oh, but that won’t do! We have to get rid of the grass and replace it with drought resistant plantings of some sort or other. This strategy scratches the itch of those who feel moral gestures are more important that facts, who love big government mandates, no matter how footling, and those who want city staff to be happy and productive.

How much water will this use? Who cares?

The City thoughtfully promulgated a call for ideas from the citizenry in a press release a couple of months ago. Re-imagine the municipal front yard! A blank slate! A blue sky! The world is your oyster! Presumably your idea will save water and respect the ecosystem, etc., etc. Grateful citizens sent in pictures of idyllic succulented and lavendered walkways!

At least one submission had a sense of the ridiculous nature of this nonsense.

A giant Hornet and a giant Titan! Come to think of it, maybe this suggestion was serious, Fullerton being Fullerton.

But there is no money budgeted, alas! What to do? Well a budget transfer from Water Non-Rate Revenue funds can be tapped. I have no idea where this money would even come from, the Water Fund being supplied by rate payers. Another option to pay for the new, giant cactus garden is to apply for, and get, a grant from the Metropolitan Water District, one of those huge, opaque agencies that practically answer to nobody.

I have to wonder what the ultimate savings would be water-wise, and what the existing cost of watering the grass is. The fact that the City uses free water paid for by the rate payers has always been an issue and naturally no facts about the acre foot volume or the cost to the rate payers are included in Tuesday’s staff report. No data will be presented except the results of the survey done to solicit public opinion.

I could make the pitch that the reflecting pool, steps and lawn were part of a neo-formal aesthetic that went along with the 1962 building, but that would be a waste of my time and yours. Somebody has decided that the pool and the grass is offensive to modern sensibility, and provides an opportunity to engage the public in a feel-good Kabuki drama.