May 28, 2026May 28, 2026A Manfro All Seasons

More Monkey Business With the Budget?

If as is being claimed by “Erik” at Fullerton City News is unequivocally stating that Fullerton City staff has been unilaterally backfilling departmental funds without approval by the City Council. This would be unethical and illegal.

Elected officials have to approve these sorts of transfers from the General Fund as well as periodic budget adjustments. Period. Erik claims this has been going on for at least seven years and the amounts are substantial.

Erik uses this situation to suggest a City sales tax bailout is the wrong way to reward the bureaucrats who perpetrated this possibly criminal hairball.

Here is his post:

I’ve Got 24,816,001 Reasons To Not Support A Sales Tax

City Hall Spent $24.8 Million Without Council Approval And Now Wants A Tax Increase

Erik

May 21, 2026

Budgets are estimates, it’s an unpredictable world, and not getting it perfect is understandable. Fullerton City Hall staff and the city council are supposed to work together to determine how much money should go to each fund / department but ultimately it is the city council who, being elected, gets the final say on how we prioritize and spend that money. When council does this properly the residents are happy and councilmembers get re-elected, run for higher office, etc. When they don’t get it right they lose elections, get recalled, and/or face public scorn. The city council is our control mechanism over how our money is spent.

When a council appropriation ends up being more than what was needed, the remaining money can return to the General Fund without issue. When a council appropriation is not enough, the correct action is to request an increase from the city council. Again, city council is our control mechanism over how our money is spent. Staff does not have the legal authority to increase spending, only council does.

This is spelled out in City Municipal Code 2.68.030:

Prior to June fifth of each year, the City Administrator shall submit a budget for the coming fiscal year to the City Council for adoption.

And the restrictions given in City Municipal Code 2.68.050 which states:

C. Transfers of appropriations between departments and funds, or use of salary and accounts, other than those exceptions authorized herein, may be made only by authority of the City Council.

D. Expenditures in excess of the budgeted amounts are prohibited. (Ord. 1485 § 5, 1967).

This should be clear and simple. Need more money? Go ask council for it. However, it appears City Hall chose not to follow this practice (or the law).

During a conference call with a municipal finance expert, I was directed to the ‘Budgetary Compliance’ Section of the City’s 2025 Annual Comprehensive Financial Report (ACFR). They summarized that when that section is present in the report it means that something has gone wrong and in this case it’s by a lot. The ‘Excess’ column of this section lists money that city staff spent in excess of the council-approved budget and for 2025 it totals $11,148,422.

Consider for a moment what this means. Our only way of having a say over how our taxpayer money is spent is through the city council. They are elected to represent us and our interests. The municipal code confirms this is their decision to make. Yet in FY25 unelected bureaucrats at City Hall simply ignored the city council and the voters they represent and went and spent whatever they wanted.

Police couldn’t manage on their budgeted $61.3M? They spent $63.9M.
Fire couldn’t operate on $34.6M? They spent $36.2M.
‘Capital Outlays’ went over by $6M. This one is especially troubling because there’s no clear explanation of what those funds were actually spent on.

Put another way, the city council budgeted a total of $132.9M to the General Fund but staff spent $144.1M … $11,148,422 of which was without council approval. You might notice on the Revenue side that we brought in $8.9M more than anticipated and should have had a $5.4M surplus. But staff’s $11,148,422 unauthorized spending pushed us from a large surplus to a $5.7M deficit.

This is a complete disregard of good financial practice by City Hall. While some overspending covers legitimate needs, the lack of prior approval violates the process residents rely on, a process that does not include staff spending whatever they want and stashing it on page 105 of next year’s ACFR. Their actions were in direct violation of the city municipal code and are a slap in our faces.

But wait… it gets worse. Much worse. If this were a one-time thing I could almost understand. But, Dear Readers, City Hall staff has disregarded city council approved budgets every single year for the past decade. See for yourself:

gdfgdfgd — 2023: $455,176. And they were nice enough to put in a reminder that this was not legal spending.

Prior to 2021 accounting used a different format for the annual financial report known as the Comprehensive Annual Financial Report (CAFR) and the format is a little different, but the pattern of spending beyond authorization continues.

Starting in 2019 to present, staff has helped themselves to $24,816,001 of our taxpayer dollars beyond what our duly-elected council representatives legally allocated them. This money was taken without permission, outside of our established legal process, repeated every single year in recent history. This is an outrage.

Our current unrestricted cash reserves are $19.8M which, with a general fund of $144.1M gives us the current 14% reserve level. This is well below the council target of 17% and translates to 1-1/2 months. Had staff followed the budget all these years, our reserves could be as high as $44.6M which comes out to a 31% reserve level or 3-1/2 months. Or some of that could have gone to paving more streets.

But alas, it is already spent and gone and those who spent it are telling you to just give them more money via a sales tax increase. You should ask your councilmember how they feel about this, do they still trust City Hall, and what are they going to do about it?

We are being robbed.

Back to Harpoonville. This sounds pretty serious and I sure hope the crack accountants we have hired to check the books to explore a few facts:

How were these transactions booked and who authorized them.
Were the transactions simply glossed over in annual CAFRs and budgets without saying who approved them?
When, if ever did the Fullerton City Council approve these transfers? Were any of them ratified after the transfers ere made.

We have already seen the City play fast and loose with Redevelopment Successor Agency funds as well as other non-discretionary funds to pad the invalid General Fund. That was bad. And in retrospect, maybe those transfers were just part of an overall scheme.

February 27, 2026A Manfro All Seasons

A Manfro All Seasons. Eddie Manfro to Be Anointed New City Manager

by The Fullerton Harpoon24 Comments

At next Tuesday’s Fullerton City Council meeting Eddie Manfo. Acting City Manager will be hired by the City Council to fill the job formally.

He will get $305,000 per year as base pay, plus a cornucopia of benefits that amount to, well, a helluva lot of money. Does he get to keep his current pension?

He’s quasi-at-will until this November, after which he gets nine months’ severance if fired.

Apparently there are at least three votes for Manfro’s appointment, but the sledding will not be without some controversy. Manfor was one of four Fullerton hires post COVID that attracted the negative attention of CalPERS, the State’s public employee retirement system. Once you officially retire there are limits to what you can do for employment inside the system. I don’t know what is required to unretire yourself so maybe Manfro has done that.

However, the CalPERS controversy, such as it is, is bound to arouse the indignation of certain elements in Fullerton Boohoo/Crazy who will use any opportunity, no matter how slim, to impugn the Jung/Dunlap/Valencia troika; the Kennedy Sisters, for instance, continue to bemoan the loss of “excellent” City Manager Ken Domer the incompetent stooge of Jennifer Fitzgerald, and wail about all subsequent replacements.

February 11, 2026Ahmad Zahra

Tender Young Elijah Strays off Reservation

by Disillusioned Ex-Hippy27 Comments

The sweet young “investigative reporter” Elijah Manassero has posted an “opinion” piece at the Observer blog. No investigative research was necessary for the Kennedy Sisters’ cub reporter. It’s all sanctimonious cant about how Fred Jung and Nick Dunlap have demonstrated “how not to run a city,” by delaying a necessary tax increase, and of course by getting rid of the ever incompetent Jennifer Fitzgerald lackey, Ken Domer.

Fullerton is in dire economic straits because of the Jung/Dunlap mismanagement, says the youthful bud Elijah, whose grand experience running anything other than his eager mouth is exactly zero.

But hold on a second!

If I knew what I was talking about this wouldn’t be Fullerton!

It was just a few weeks ago that Shana Charles and “Dr.” Ahmad Zahra and Co. were touting Fullerton’s massive reserve funds, funs so well and amply stocked – $30,000,000 – that Fullerton taxpayers could easily cough up a tiny $200,000 to hand over to undocumented immigrants for lawyers, food and rent.

So which is it? Is it possible that Charles and Zahra deliberately lied to their acolytes? Or is the situation really as dire as the green sprout Elijah now asserts?

It seems both can’t be true.

Fullerton Boohoo is generally so stupid and so lacking in self-awareness that they end up arguing against what they have previously said. This sort of inconsistency is not abnormal for people clinging to ideology over practicality.

January 13, 2026January 16, 2026Ahmad Zahra

The Boutique Hotel to Nowhere, Part 2

by Mr. Peabody25 Comments

Warning: Conceptual only, not to be taken seriously!

The other day I described the history of the idiotic Boutique Hotel – a notion to build a high-end hotel on the site of the East Santa Fe parking lot at the Depot. The idea was, and is so stupid that it astounds any commonsensical thinker. And even worse, as the “unsolicited,” exclusive deal became less and less likely, the concept became bigger and dumber. The approved plan more than doubled the density allowed by the Transportation Center Specific Plan.

City projects are virtually immortal if they look like work for eager “economic development” bureaucrats or look like they can be sold as accomplishment by people like Ahmad Zahra and Shana Charles, who think (or pretend to think) that their gullible followers can be fooled into believing something good is happening.

Except that nothing good is happening. Our City officials increased the value of the property ten-fold through entitlements, but sold it for its original value – a staggering subsidy of at least ten million bucks. And that subsidy was handed to TA Partners, a flimflam operation fronted by a couple of con men, Johnny Lu and Larry Liu, at the end of 2022.

In the three intervening years nothing has happened so far as the public knows, even as TA Partners’ legal and financial woes have become public; woes that certainly should have been known by our economic development experts in City Hall prior to signing a contract, but weren’t. Why not? And why is the project at least two years behind schedule? Don’t ask. Fullerton being Fullerton.

The land was deeded over to Johnny and Larry without even an approved set of conceptual plans. But the deed was encumbered after a fashion with development and construction milestones.

And here’s the Schedule of Performance mentioned above:

I don’t know what sort of plans have been submitted, if any, but I know that grading should have started at least 20 months ago and hasn’t. And look at that project completion deadline – a Certificate of Occupancy by 10/21/26. That’s only nine months from now. As this fiasco looks worse and worse, not a peep from our friends at Fullerton Angry and Fullerton Transparency about the initial giveaway or the state of the schedule. They have more important if less expensive “scandals” to rant about.

Of course the paragraph tacked on to the Grant Deed, above, describes the covenants attached to the land, but that’s it. Other language talks about the City’s right to legal recourse if the conditions of the covenants are not met. That’s pretty toothless since lawsuits are always possible; there is no mention of Johnny and Larry surrendering their new asset, an asset whose entitlements could still make it worth a fortune. Why the City hasn’t already initiated legal action is a mystery worth speculating upon.

We all know that when it comes to Fullerton redevelopment boondoggles, nobody ever takes responsibility for failures. It’s just not good form to hold the masterminds accountable. Often it’s not enough to just keep quiet; sometimes staff actively tries to keep the boondoggle gasping for air so it can be reassigned to some new front man. That’s what I think must be happening now.

By the way, a majority of the current City Council has not voted for this hot mess. It’s a legacy mess.

It’s way past time to learn what’s going on, to find out what the status of the Boutique Hotel and Apartment monster and to find out why the City hasn’t pursued legal remedy to protect our interests.

April 23, 2024April 23, 2024Ahmad Zahra

The Fiscal Cliff

by The Fullerton Harpoon33 Comments

The Fullerton City Council is holding a special meeting tonight – a 2024-25 Budget “workshop.” No work will get done but there will be shopping going on as staff begins its formal press to raise a sales tax.

There is a lot of self-serving verbiage about how well our City staff has performed its tasks up ’til now, but then the hard reality hits because budget numbers can’t pat themselves on the back.

There are some harrowing numbers in the proposed budget – including a $9,400,000 draw-down from strategic reserves. This means of course, that the budget is no where near balanced as City Hall apologists like Jennifer Fitzgerald and Jan Flory claimed when they ran the place into the red almost every year.

M. Eric Levitt. Will he save us from ourselves?

Let’s let our City Manager, Eric Levitt tell the tale:

“Financial Stability. The City has been able to over the last two years (for the first time in recent history of the City) to reach and maintain a 17% contingency reserve level. This budget maintains that reserve level; however due to an operating deficit, we will be utilizing one-time excess reserves this year and coming close to that 17% level in FY 2024-25 and below that in years beyond next year“

The overall picture gets even worse as the levels of reserves slowly dwindle away. After this year Fullerton continues to be upside from $7.5 to $8.8 million each year until the end of the dismal decade. We are not favored with the running reserve funds balances.

Infrastructure is supposedly a big deal. Which reminds me of a quotation attributed to Mark Twain: Everybody talks about the weather but nobody does anything about it. But this year we are told, we can push get going on our deteriorating infrastructure along by borrowing! Once again let’s heed the words of Mr. Levitt:

“I have also put together a strategy to increase that funding level to closer to $14 million over the next four years through the use of financing. However, there are both upsides and downsides to this approach which will be discussed with you in more detail at today’s presentation.“

Now this should be a red flag: borrowing to perform maintenance, a basic accounting no-no. And what form will the borrowing take? Not a municipal bond, you can be sure, It would likely be by selling certificates of participation or some other dodge to avoid municipal debt restrictions. Here’s the table that shows our Maintenance of Effort (MOE) shortfall without financing.

Now we all know that interest payments are made by somebody, somewhere, and that somebody is you and me. We get to pay the interest on debt incurred by years of municipal mismanagement by people like Joe Felz and Ken Domer and Jeff Collier who get to sail off to a glorious and massively pensioned retirement at 55 years of age.

And finally, to circle back to the story lead, here’s a distasteful nugget carefully slipped into the City Manager’s report:

“Staff recommends City Council review options over the next year to stabilize the budget and ensure the City remains financially sound.“

Jesus H. There it is. Not quite explicitly stated, but we know very well where this is going. Another general sales tax effort, just like the ill-fated Measure S of four years ago. The seeds for this have already been planted, of course, in a nasty little taxpayer-funded fishing expedition in the guise of a community survey. Last November I regaled the Friends with this slimy maneuver, here.

By the way, this is exactly the same process City Hall rolled out four years ago. And we will be told By Ahmad Zahra, Shana Charles and Vivian Jaramillo that if we don’t pony up we will be morally deficient.

Well, good luck Friends. This is going to be a long year and you can bet the farm that we will be asked to pick up the check – again.

February 15, 2024February 15, 2024Ahmad Zahra

I Think I’ve Seen This Movie

by Fullerton Engineer8 Comments

It’s real expensive, but it sure is short…

When thinking about the Trail to Nowhere it seemed to me that I had seen this same sort of thing before. Then it struck me. Of course.

An expensive and unnecessary project that dragged out for years, and that was supposed to be paid for with other people’s money, “free money” as it is known in City Hall, I recalled.

It may have been expensive, but it sure was unnecessary…

I remembered because I wrote about it, here. The second elevator towers at the Fullerton train station, a project so ridiculously over-engineered, so expensive, so reliant on phony ridership projections and so expensive and mismanaged that it ended up raiding Fullerton’s own Capital Budget to the tune of $600,000. In the end no one knows how much was actually spent on that boondoggle when everything was said and done. But one good thing that came out of it was teaching me to appreciate how things are done in Fullerton, and how there isn’t one cent’s worth of accountability on the part of anybody.

If the Trail to Nowhere actually ever gets built but is way over budget, unused, unmaintained and falls into decrepitude, who will stand up to take responsibility? Not the City Council who approved it without question. Not City staff – the chief architects of this disaster in-waiting are already gone – nor will the City Manager, who will be gone as soon as his pension formula tops him out. None of the people stirred up to insult and harangue the City Council will be in evidence and the proprietors of the Fullerton Observer, if they are still around annoying people, will not be searching for those accountable. No one else will be, either.

Remember the multi-million dollar Poison Park intergenerational fiasco? Has anybody ever taken responsibility for that poster child of bureaucratic incompetence and political indifference? Of course not. That would be a horrible precedent. Fullerton.

February 12, 2024February 13, 2024Ahmad Zahra

The Compartmentalization Effect. Or Worse.

by Fullerton Engineer17 Comments

It’s a total waste of money, but it sure is short…

Now that the Council majority of Dunlap, Whitaker and Jung have done a 180 flip-flop and accepted the so-called Trail to Nowhere grant, it seems like a good idea to remind Fullerton about some things that the City still doesn’t want us to know.

About eight weeks ago – several weeks before the Council flip-flop – I wrote a post about the presence of test wells on the Trail to Nowhere. These wells were installed to test the levels of trichlorethylene (TCE). Not only were the wells situated on the trail but also farther south, in the middle of the street in the 300 block of West Truslow Avenue.

I offered the fact that no one can do this sort of thing on public property without permits from the City of Fullerton and that surely the Engineering Department or Development Services Departments has records of those encroachments. The scope of the actual TCE contamination has been known for 20 years or more, and the State of California and the Environmental Protection Agency have known all about it. So has City Hall, since groundwater contamination in north Orange County was the subject of a massive lawsuit involving the Orange County Water District. Plus, someone was installing test wells on City property.

I asked how was this contamination could be omitted from the City’s grant application to the State Natural Resources Agency.

The grant has finally been accepted by the City, but the problem remains. Two problems, in fact. The contamination is still there, of course, and so are the test wells – an issue not addressed in the project budget. But an even bigger question remains. Was the omission due to a management problem – complete compartmentalization of City departments? Or, worse was the problem deliberately ignored?

In either case Fullerton has a fundamental problem the cause of which is clear: complete lack of accountability that appears cultural. City Manager Eric Levitt was preceded by a long leadership vacuum in which City Managers like Joe Felz and Ken Domer were simply along for the ride – chosen, apparently for their elastic sense of responsibility. Yet, Levitt has been around for two years and seems to show the same flexible attitude.

If departments are sequestered behind opaque compartment walls, there is a failure of corporate leadership, and an inevitable decentralization that was, and is, a recipe for costly failure. That’s on Mr. Levitt. If City employees knew about the contamination issue and either said nothing or deliberately lied to the State, that’s a problem of employees who feel utterly secure in their behavior, knowing that consequences for bad actions is not a problem; this is on Levitt, too.

In the specific case of the Trail to Nowhere, the three councilmembers who flipped their votes have some explaining to do, and not just about a matter of opinion, good idea/bad idea. They need to explain how and why the City application for the grant omitted mention of a real and present issue, and also what their City Manager (who just got an 8% raise) is going to do about it. If they don’t they’re part of the accountability problem.

January 27, 2024January 27, 2024Behind Closed Doors

A Couple of Old Friends

by Mr. Peabody18 Comments

I noticed two items that popped up on the Fullerton City Council’s December 19th, 2023 Closed Session Agenda, two things that remind us that in our town bad news never seems to go away, if it ever needed to happen in the first place.

One item had to do with Jacob Poozhikala, the slimy SOB who owned JP23 on the southwest corner of Harbor and Commonwealth.

Poozhikala is a poster child for the miscreant club owners in DTF who slithered in as our city government kept bending over backward to accommodate them. Pooz’s place of hospitality was probably the worst offender of them all – quite a feat. A shooting, alleged drug rape, overcrowding, operating without permits, etc.

There wasn’t a legal barrier Pooz chose not to ignore. In the end he tried to shift the stalled permit process to a new owner – his nephew. That didn’t work. There’s a new establishment there now, but evidently Pooz isn’t through with us. I Can’t believe It’s a Law Firm to the rescue!

The other item involves our old friends from Air Combat.

In case you forgot, Air Combat, a lessee out at the airport, sued the City for violating its lease agreement, an incompetent ploy by our wonderful Airport Director, Brendan O’Riley to push out Air Combat and install a new tenant whose use was illegal.

Ultimately a jury found the City at fault and awarded the aggrieved party $1.2 million. Of course nobody suffered any consequences, although the man in charge, City Manager Ken Domer eventually was fired and is now plying his dubious abilities in Laguna Beach.

Domer-Decorations — Hitching to Willow Springs…

I don’t know what is still being litigated here, but it’s nice to see familiar faces, isn’t it? Jones and Mayer presided over this fiasco, too, but unfortunately for us taxpayers, Dick Jones ran up against Sheppard, Mullin, Richter, a real law firm.

October 11, 2023October 11, 2023Ahmad Zahra

Part II: Is the “Trail to Nowhere” Poisoned?

by Mr. Peabody59 Comments

It could be. Last post I described how the the UP Park was contaminated and shut down for remediation just after $2 million were sunk into building a park. Nobody in the City bothered to do an Environmental Analysis.

I asked, rhetorically, whether the rest of the long UP right-of-way had been subsequently tested for toxins in light of the fact that trichloroethylene (TCE) had been detected on the property at 311 South Highland Avenue, a property adjacent to the proposed Trail to Nowhere. It seems that some years ago the Hughes Corporation used the solvent to clean up the circuit boards they made at this location, and the EPA still regards it as an active site.

A little digging uncovered the fact that ground zero seems to be the west end of the property where testing has been periodically done in the area of a likely dump site for the nasty TCE toxin. Apparently there are several monitoring wells located in the yellow areas circled in red in the image below.

Please note the proximity to the Trail to Nowhere of the wells in the lower left. 15 feet? 10 feet? 5ft? Surely somebody in the Parks or Engineering Departments gave thought to this when the Trail to Nowhere concept was developed; when the grant application was made; even when the proposed project budget was laid out. No? If not, why not? How could they not have known? The EPA has recognized this as a site of TCE ground water contamination where a toxic plume is heading southward – under the proposed trail.

At this point questions are starting to pile up. Questions that may have uncomfortable answers.

We are fortunate that Messrs. Dunlap, Jung and Whitaker have put the kibosh on the silly and wasteful Trail to Nowhere proposal for other common sensical reasons. And yet there remains the problem about lack of disclosure to our elected officials in their decision making process, and perhaps even in the grant application itself.

October 4, 2022October 4, 2022Ahmad Zahra

The Mysterious Police Report

by Disillusioned Ex-Hippy30 Comments

FFFF has just received an interesting document from an anonymous, yet seemingly informed source.

Something happened after a council meeting last year that caused the Fullerton cops to take a police report and to inform the councilmembers, obliquely, what they were doing – as if the council already knew. So what was it? Our informant tells us that Ahmad Zahra, the perpetual victim, filed a complaint against Fred Jung for some sort of assault, or threat or something. That part isn’t clear.

The fact that this police report never went anywhere means that there was nothing behind it, and in fact that Zahra probably and deliberately filed a false report to begin with. That would be a crime, of course, if anybody is keeping track, and well within broadly described moral compass Zahra has drawn for himself.

FFFF could do a Public Records Act request to get the documents, but I have a sneaking suspicion they are long gone, rather like the records surrounding Zahra’s battery and vandalism case.