The Money Grab

Fullerton’s illustrious ad hoc Budget Sustainability Committee was treated to a marathon “we’re cut to the bone” presentation by the City’s department heads last Tuesday night.

One of the interesting concepts for revenue enhancement, albeit one-time, came from our Director of Public Works Stephen Bise.

It seems that over time, unrefunded “engineering” fees from City permit applicants adds up. Currently, the City has about $700,000 in such fees sitting idly in a Public Works account. According to Bise some of the fees were collected way back in the 1990s. The City Council would have to put its seal of approval on the deal and a notice to the rightful owners of this money would have to be made.

Similarly, funds gathered from contractor bonds and not claimed piles up, too. Bise reckons that ampount is $145,000. Presumably the same process for keeping that dough would be deployed.

This situation begs the obvious question: what responsibility does the City have to notify its customers that they have positive balances; or better yet, why can’t the Public Works Department simply write checks and return the money to its rightful owners before it piles up? There seems to be an unwritten rule that the money belongs in City funds (gathering interest at least) until such time, if any, that the owners request reimbursement. It really is a form of indirect “taking.” These individual amounts may be small, but as Director Bise indicated, are substantial in aggregate.

Apparently Fullerton made a grab of these bond funds a few years ago that had accumulated up to 2016. That amounted to $800,000. The next decade’s worth is now on the table, apparently. Can the Council resist seizing this cash? I wouldn’t bet against it.

As to the process of notification I admit my ignorance. Are such notifications made to the real owners or their heirs and assigns? I wonder. It would be so much easier to put a public notice in a “newspaper of record” where virtually nobody would ever see it; and then put it on a Council Agenda, posted 72 hours before the meeting where even fewer people would see it.

Derek Smith and the Anaheim Cabal

Backscratching is fun – with other people’s money…

This blog has introduced Mr. Derek Smith to our friends. He is the appointee of “Doctor” Ahmad Zahra to the so-called Budget Sustainability Committee. His qualifications? Well, none are apparent. But we do know that Smith is (or was) the political lobbyist for the union that organizes cannabis store employees.

Cannabis Kitty Jaramillo

We already knew that Smith’s union was bankrolling a PAC for the benefit of Cannabis Kitty Jaramillo’s scampaign in 2024 to the tune of $60,000, $4000 of which went to The Councilwoman Shana Charles Self-improvement Fund.

And now thanks to detailed reporting by Mr. Duane J. Roberts, a true citizen journalist, we know that the union in question, UFCW Local 324, was up to it’s neck in schemes to bring legal cannabis to Anaheim. Roberts’ post is a must-read, for it details the close alliance between Anaheim’s crooked cabal and the union. For several years Smith and his union worked closely with disgraced Anaheim Chamber of Commerce head Todd Ament, Anaheim fixer Jeff Flint, and the Mayor, Harry Sidhu.

Ament, Flint, and Sidhu (graphic by Duane J. Roberts)

For the cabal the dope incentive was money, and lots of it. Money that would go to the cabal leaders, the Chamber of Commerce, and campaign funds of the later-convicted Mayor. For Derek Smith’s union, the promise of a Labor Peace Agreement (LPA) that would eventually cover even part-time workers was the goal.

Belal Dalati wanted in. And then out.

First this association of strange bedfellows tried to get the City Council to go along. Then they began the process to put the issue on the ballot, with proposals written by the cabal, and then by the lobbyist for the Long Beach dope cartel; they were submitted by a UFCW Local 324 employee, and then a local realtor and insurance salesman, Belal Dalati, respectively. Both were eventually retracted, but not without threats, according to Roberts.

Rafiei not looking so hot…

Left unreported by Roberts was the role of Melahat Rafiei, the acknowledged queen bee of OC dope lobbying, and a player deeply involved with Anaheim’s cabal. She later went to jail after she was busted by the FBI for wire fraud; Harry Sidhu did a prison stint, too for destroying evidence; Todd Ament pleaded guilty to fraud and his buddy Jeff Flint left town – for a while. Nice people, right?

While none of the Anaheim MJ activities were illegal, at least as far as can be discerned, the whole episode gives off a real bad smell; and in the middle of it was Derek Smith’s union.

Anybody who thinks Ahmad Zahra was ignorant of what was going on in Anaheim and with Rafiei (whom he recommended to at least one Fullerton businessman as a necessary contact) is pretty credulous. And his appointment of Derek Smith to the budget committee comes into sharper focus.

All that transparency can give a lad a headache…

The fact that the self-righteous clamorers who have decried the appointment of Tony Bushala to this committee have diligently ignored the appointment of Smith is telling. Bushala’s political involvement is a disqualification; Smith’s political history is assiduously ignored – just like the Fullerton Observer Sisters relentlessly ignored the Scott Markowitz conspiracy and the massive contribution by Derek Smith’s union to a pro-Jaramillo political action committee.

Both Zahra and Charles are beholden to the dope lobby, but they still need another vote to revive the 2020 marijuana ordinance approved by Jan Flory, Jesus Quirk-Silva, and Ahmad Zahra. They won’t get it this year.

When is An Audit Not An Audit?

Well, there she goes. Don’t worry. There’s more where that came from…

When a misleading City of Fullerton agenda proclaims: “Introduction of Special Fiscal Audit – Grant Thornton Risk Advisory Services.”

I assumed, wrongly, that somebody had already been hired to look into the misdirection of funds into the General Fund Reserves that should have gone some place else, a fact that has caused considerable embarrassment to our severely and habitually underinformed City Council. I also figured this firm was going to talk about what they found.

But no.

A Manfro all seasons…

In fact, the firm of Grant Thornton Risk Advisory Services were brought before the council by the City Manager, Eddie Manfro, simply to make a sales pitch for their services. And what services.

Step one is to be some sort of forensic accounting exercise, a fishing expedition to explore the world of Fullerton’s accounting regime to see what, if anything, is amiss. Nobody said anything, but there must have surely been some internal squirming when the company rep kept using the word “fraud.” And that included our Finance Director and recently anointed City Treasure, Steven Avalos who was sitting in the pit.

The second phase of GTRAS’s endeavor was to explore how the City might improve efficiencies, save money, and help address Fullerton’s grim fiscal situation. Why this all-purpose company was suggested for this task seems odd, the two tasks having nothing to do with one another.

I’ll address the first project first. Why is it necessary at all to delve into Fullerton’s accounting with an audit? We have been told that there were seemingly honest bookkeeping errors – embarrassing, sure and it did alter the already dire projection of General Fund reserve draw downs, but fear not, all was well. The councilmembers kept talking about transparency and public trust, but what does that really mean? Is this serious or just a political pantomime?

Consider the following facts. GTRAS was picked by the City Manager under his own authority and just brought to the council to give them a chance to ratify the decision. That’s a sole source contract, and the public has no idea how much they will be paid, and won’t without a PRA request. Will added scope to the $100,000 contract be reviewed by anybody except the City Manager and Steven Avalos? If some sort malfeasance were actually discovered – purely by accident, of course – would offender(s) names be published? Is any of this going to discussed in Closed Session because it touches on employee issues? Who knows? The Council approved the deal, without knowing whatever it is or might be.

As for the second part of GTRAS offer, the City Manager announced that would be returned to the Council for approval of a $130,000 deal. At least someone might get the chance to ask some pertinent questions, such as why is this “economic development” effort needed, given that Fullerton has highly paid staff who enjoy employment as economic developers. What have these people been doing and why do they need outside help. These people have been on the payroll for years. What have they accomplished?

Economic Development is my specialty…

Sunaya Thomas, in charge of economic development, was in attendance. Her presence at the meeting was an almost begging of the question about her own success in this endeavor, the effort of bureaucrats that never even pays for itself.

I wonder if GTRAS will actually suggest something that might help, outside of taxes. Personally, I doubt if their suggestions would even pay for their own service. That we will probably never know because no one will talk about it. This will be an agreement with no metrics for success or failure, just more electronic billboards and hotel occupancy taxes. Staff reductions? Getting rid of all our brand new “firefighters” and ambulance drivers? Don’t be ridiculous.

Anyhow our brave Council voted unanimously to proceed down this dark corridor, protesting their sincere desire to pursue those most elusive prey: transparency and public trust. No one said much about accountability. They never do.

Campaign Sign Thievery. The Return of Raccoon Boy?

Here’s a video of a couple derelicts stealing or vandalizing Fred Jung campaign signs.

Fullerton has a long history of anti-democratic sign thefts, including Roland Chi’s proud papa in 2010.

The most famous instance was Pilferin’ Paulette Chaffee, in 2018, who was actually charged by the then DA, Tony Rackaukas. The nauseating Pilferin’ Paulette is now on her third campaign for office since she had to quit the City Council election in disgrace.

Raccoon Boy gets a job….

Sometimes it has almost been funny. In 2022 such was the unearthing of Raccoon Boy, a local low-life employed by Ahmad Zahra to swipe opposition signs in 2022. Is Raccoon Boy back? I doubt if he could afford a beat up 20 year old Crown Vic or even a gallon of gas to make it run. He couldn’t afford a dog leash, either, so for now he gets a pass.

This sort of thing will keep happening, of course, so let’s see if we can identify some of these miscreants and hand them over to the long arm of the law.

The Doctor is In

Some skeptical folks in Fullerton have long wondered aloud if 5th District Councilman Ahmad Zahra is really a doctor. His acolytes and camp followers in the Fullerton Observer call him “doctor” and he doesn’t correct them. Still there’s no evidence that he ever practiced medicine, so the skeptics had some reason to wonder, given Zahra’s ever shifting “origin narrative” and omission of salient features of his past – like the gay man’s stop over in Little Rock, Arkansas to marry…a woman.

But now the truth will out. The FFFF Research Department has done a deep dive into photographic evidence and discovered unequivocal proof of Zahra’s doctorhood.

Unless it was Halloween.

Take Out The Trash Tuesday

Tomorrow evening a special session of the Fullerton City Council will review responses to a Request for Proposals for a new trash hauling contract.

It seems sort of mundane, but the issue is big. Really big. The amounts of money at stake are enormous and the contracts typically run for years and years – as we have seen with our current provider Republic Services.

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

An ad hoc committee of Fred Jung and Jamie Valencia were involved in reviewing this process although their contributions aren’t really known. We do do now that the evaluation of the responses and subsequent interviews resulted in these rankings.

15 scoring categories, somewhat weighted to proposed rates, were the basis of the evaluation.

The winning score was earned by EDCO, based in Lemon Grove, down in San Diego County with an office in Signal Hill. CC&R, based in nearby Stanton placed a close second. Universal Waste, based in Santa Fe Springs was a close third. The lowest score was given to trash giant Republic, with whom the City has been having issues for years both in labor impacts and environmental compliance under SB1383 (organic waste recovery).

I have no idea how much lobbying of councilmembers has been going on, but I assume it’s been significant.

Smoke it down, Kitty…

Tomorrow night we should have an interesting show since Fullerton Boohoo is mad at Valley Vista Services for contributing to the PAC that torpedoed the candidacy of Cannabis Kitty Jaramillo. Ahmad Zahra’s followers and the Kennedy Sisters are sure to bring this up.

Trouble in College Park

College Park is an old neighborhood adjacent to Fullerton Junior College. Back in 1979 the City designated it as an historic preservation zone. That was 46 years ago if you’re counting. The area is full of little bungalows and small spanishy looking houses. It’s a nice neighborhood even if you add in the dinky roundabouts on Wilshire – the brainstorm of Wild Ride Joe Felz, who certainly could not have navigated them on election night, 2016.

But I digress.

Cornell Avenue resident

At the last City Council meeting a woman who lives on Cornell Avenue in the district complained about a building on her street under construction that was completely out of character with the neighborhood and the preservation rules, adopted in 1996, that are supposed to protect against such things. She kindly reminded the Council that she lives in D5 – Ahmad Zahra’s district.

So I went over to the 100 North block of Cornell Avenue and snapped some images.

The Thing That Ate Cornell…

Now I’m not an architect, but something is awfully wrong here. Yeah, it’s a big box with cheap, misaligned windows that is completely out of scale with the houses around it. Yikes. Check out the puny little rooflet over the cheapo Home Depot door.

It may be ugly but it sure is big…

How could this happen? It looks like somebody in City Hall dropped the melon with a loud plop. As I understand it, there is a staff process for reviewing these developments. Did it occur? I don’t know. But whether it did or didn’t happen, the problem is obvious. If it didn’t, why not? If they did what sort of knucklehead(s) could have approved this?

Eyesore is right.

At the meeting Development Director Sunaya Thomas preposterously claimed this hulking monster was somehow an ADU development – meaning a mere accessory dwelling unit, a “granny unit,” and that the City had no real control over the design of the beast; and also that it was up to the owner to figure out parking for his tenants! Up to the owner? Since when?

Of course Ms. Thomas is talking out of her backside, as is so often the case. The rules for preservation in the R2P zone are called out in the Municipal Code – Chapter 15.17.60, from which I quote:

 All proposed development, including the rehabilitation of existing structures, will be reviewed for compliance with established design criteria and standards, specific to the preservation zones and identified significant properties. These adopted design criteria and standards, entitled “Design Guidelines for Residential Preservation Zones,” are intended to serve as a baseline — a set of elementary guidelines — by which a proposal will be evaluated.

Here are the the guidelines, supposedly unknown to the very person in charge of applying them to new development in preservation zones:

https://www.cityoffullerton.com/home/showpublisheddocument/1232/637436214735730000

I learned a long time ago that it’s almost impossible to make Fullerton planning bureaucrats do their jobs (see noise ordinance issues). The defensiveness and lack of shame will always prevail. But this is appalling. The rules are there to follow, not to pick and choose.

Thomas failed and failed badly. The Council was lied to on Tuesday night. Does anybody care?

Hopefully the D5 council representative Ahmad Zahra, who champions transparency and accountability, will get to the bottom of this fiasco.

Jan Flory Sues OC Registrar Over Fred Jung Ballot Statement

I was bamboozled…

Yes, that Jan Flory. The Mistress of a hundred Fullerton disasters during her three terms on the Fullerton City Council.

New and improved. At least that’s her story.

It seems she is very unhappy with Mr. Jung for his Supervisorial campaign ballot designation as a business owner and many of his claims in the ballot statement. She is so unhappy, in fact, that she is acting as a surrogate for Connor Traut, who is pretty unlikely to state his real occupation: ambulance chaser.

I’m a bid, I’m a plane, I’m a lawyer!

Anyway, Flory claims Jung has resorted to falsehoods about his record, including the Fullerton budget; and she should know. She lied to the people of Fullerton about her budgets as being balanced when of course they weren’t, facts she didn’t share with voters in her recent try for a fourth time around the track.

She has sent her complaint to the courts naming the OC Registrar of Voters, Bob Page, as the respondent.

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.