Revenue Enhancement

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

It seems like every few years Fullerton City Councils are presented by the bureaucracy with a new “fiscal cliff”: It’s done slowly, tentatively, and then with an ever-increasing tone of persuasion, the argument for “revenue enhancement” unfolds.

Revenue enhancement means taxes or debt – one way or another. And so it is in 2024.

With time running out to put a tax increase on the November ballot, the urgency from “staff” is getting more direct. Time has run out for soft-sell concepts like phony push polls of unwitting citizens. At Tuesday’s council meeting our esteemed City Manager is presenting ideas for raising money.

Well, it might work…but, then again…

TOT Tax. What is a TOT tax? Transient Occupancy Tax is a tax levied on visitors who stay in Fullerton hotels. The staff report tells us that several million can be raised with a slight increase and that hopefully we will remain competitive because we are so close to the Anaheim “Resort.” No on can prove this one way or another, but it seems like becoming comparatively less competitive is a poor way of raising revenue. The positive thing about a TOT increase, says the staff report, is that Fullerton taxpayers won’t be affected (unless, of course the concept turns out to be a money loser).

Sales tax. We have already seen the sales pitch on how a general sales tax only needs 50%+1 to pass. We are told that a “1%” increase (from 7.75 to 8.75) on sales tax is being pursued by cities up and down California, etc, etc. Of course they think we’re too dumb to know that this isn’t a 1% increase, but a 13% increase. As with a TOT increase, it’s hard to see how becoming comparatively less competitive is going to make money. The sales tax issue seems DOA. 4 votes are needed to put this on the ballot and Whitaker and Dunlap aren’t going for that.

POBs. And then we see the concept of Pension Obligation Bonds, in which bond revenues are deposited with CalPERS to buy down the actuarial unfunded liability. The idea is that the interest rate on the bonds is lower than the return CalPERS will give us and the difference is all gravy. This idea was floated back in 2021 by then Interim City Manager, Jeff Collier. FFFF covered the proposal, here. One upside is that this scheme is not constrained by the usual debt ceiling limits placed on local governments by the state. Great. More gambling.

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

Mr. Collier was kind enough to visit our humble site to educates us on POBs. Friends immediately pointed out the risks involved with POBs, and the lack of skin in the game Collier and his pals had. And that was three years ago when market interest rates were way lower. The equities market is now going through the roof so the idea looks appealing to our bureaucrats, but not to California pension system observers who note CalPERS ever-declining return assumptions and remember the disaster of 2008. Will the City Council approve this gambit? It’s possible, and a public vote is not required.

Hey, you down there…

These various options involve raising taxes or encumbering property to some extent. That’s risk with a speculated payoff. Ahmad Zahra is bound to support anything risky and foolish so as to protect his friends in City Hall. So is Shana Charles, another liberal torchbearer who will tell us this is for our own good; or for the urban forest; or for boutique hotels, or something else nonsensical. Whitaker won’t go for any of this nonsense. Dunlap? Who knows these days. And then there is Fred Jung who had the opportunity to be the third vote to shut down talk of revenue enhancement last year and didn’t.

Hero. Deserve.

A problem with any tax revenue increase is that the increase, such as it were, will immediately be snatched up by the so-called “public safety” employees, whose unions have the clout to grab what they want and everybody else be damned. That’s exactly what happened in Westminster a few years when the cop union pounded the pavement for a sales tax increase, got it, then gobbled it all up. And Westminster is right back where they were before.

The Opportunity Site

A few days back I shared a couple of upcoming agenda items that the City Manager had forecast for the May 21st Fullerton City Council meeting.

I observed the reference to a development agreement with some entity called “Frontier” and also to an item simply called “Fox Block.” The two are related, but oddly, not listed together. Fullerton being Fullerton.

What I didn’t notice at the time was another item called “Chapman Parking Lease” another non-descriptive term, possibly not meant to attract attention.

A helpful Friend point out my oversight and got me thinking. Chapman parking? What the Hell is that? Then the other shoe dropped. There is a city-owned parking structure on the south side of Chapman Avenue, between Lemon and Pomona. It was built by the Fullerton Redevelopment Agency back in the ’90s the heyday of Fullerton Redevelopment, when they had so much money they could build parking structures that nobody even needed. Could this be what the cryptic agenda item referred to? Supposedly the facility was meant to help out Fullerton JC and maybe this is the entity with whom a lease was worked out.

The Junior College District has now built parking structures of its own, using our property tax increases to do it. Maybe the Chapman structure is now superfluous.

Could be. Check this out:

This satellite image has been used to accompany information/propaganda relating to the development known as the “Fox Block.” And the violet shape over in the lower left side of the image is the parking structure.

Hmm. Can this possibly be the site of yet another butt-ugly, monstrously overbuilt, under-parked housing project? Why not? It would be the only part of a Fox Block fiasco that could be worth anything to anybody. And since the City can no longer hand over piles of cash to “developers,” they can certainly hand over free land, enriched by the necessary zone changes.

I’m sure it’s all a big secret now. But in a couple days the May 21st agenda will be posted and maybe we can find out what “Frontier,” whatever that is, might be getting gratis from the people of Fullerton.

No Solution in Search of a Problem

Clean sweep

Back on its May 7th meeting the Fullerton City Council had a hearing about street sweeping ticketing. It was such a super-critical issue that the Voice of OC wrote about it here. The author is none other than Mr. Hossam Elattar, the same boob who missed the Trail to Nowhere scam.

So many injustices, so little time…

Reading the Voice article you get the idea that the ticketing was a great social injustice, affecting the lives of what the author charmingly calls the “working class” in overcrowded parts of town. This is the editorial narrative the Voice of OC always deploys in its “news” – the oppression of the underserved.

Of course at the meeting, this same tack was immediately propounded by Councilmember Ahmad Zarha, who would go on to conflate this parking issue with the principle one affecting neighborhoods with too many cars: overnight parking bans. But a hero needs a problem to fix for the “poorer part of town” as he put it. The two issues are quite different since cars of the “working class” are used, presumably, to take those people to work and are gone when the sweeper rolls by. Oops.

The sweeping problem is that regular street sweeping keeps our trash out of the Pacific Ocean and instead goes to a big hole in a Brea hillside. The storm water system is regulated by National Pollutant Discharge Elimination System (NPDES) permits. The age-old practice of allowing cars to park on street sweeping days is no longer a thing.

Good Lord, what a to do over a non-problem.

Staff, to their credit, recommended to keep things the way they are – weekly sweeping of each side of each street, and tickets for those vehicles that haven’t been relocated.

Three proposed “options” added significant costs for more complicated logistics and signage, or a violation of the NPDES permit. Whether these costs were legitimate or just jacked up to undermine the options is open to cynical speculation. Obviously, the violation option was just an obvious non-starter made to look like a choice. And with our latest budget crisis nobody is going to waste hundreds of thousands down this rathole.

Our city council (Fullerton, being Fullerton) hemmed and hawed and finally decided the current system was flawed and requested new options. Our Mayor, Nick Dunlap was not happy with the “one size fits all” approach and found an ally in Ahmad Zahra who again pitched the issue as a discriminatory one since the most ticketing took place in south Fullerton. Fred Jung didn’t say much except to say he wanted something better, or to leave the status quo. All so helpful. Dunlap even proposed possible refunds to ticket receivers.

So just as with the downtown noise fiasco this issue will be kicked around some more. I’m surprised it wasn’t sent to the Traffic and Circulation Commission for lengthy cogitation.

No one really bothered to ask what the big deal was and how come people can’t get off their asses and move their cars. Yes, multiple-hour windows of time are used for sweeping, but in reality the sweeping schedule is an extremely predictable period of time, easily planned for. No tickets are handed out after the sweeper passes. While it’s true people may forget to attend to their vehicles, the cost of a ticket is educative, as I well know. Also, my street is a few blocks away from an overcrowded collection of 1950s apartments with too many cars. And yet, on street sweeping days these good folk are astute enough to relocate their vehicles by the time the sweeper rolls through. And after it does the streets slowly fill up with cars again.

I’m left wondering how this item was even agendized in the first place. Staff didn’t want it, obviously, so it must have been done at the behest of councilmembers looking for an issue to waste their time and our money on.

Zahra’s Past Catching up Quick

Go west young man. Try Arkansas.

The other day FFFF related a story told on the Orange Juice Blog about Fullerton City Councilman Ahmad Zahra having been married to a woman in Arkansas in the late 1990s. It’s always been a blank time in Zahra’s otherwise detailed autobiographies.

The problem is that Zahra has been very clear about being a gay man and “always” knowing it. The unambiguous statements asserting his self-awareness are published in interviews. So how and why did he come to marry a woman?

From beautiful Pulaski County

According to the OJB story, Zahra tells of his arriving in the United States (no mention of what sort of visa he held); and, not knowing a blessed soul, heading to Little Rock, Arkansas where he claims a friend of his father lived. There, says Zahra, he met a woman whom he says he “liked” and who liked him in return. This tepid romance led to a marriage, dissolved a few years later after Zahra had made his way to Los Angeles to learn the movie trade.

The story is so outlandish that it stretches credulity far past the snapping point. The OJB forewent an opportunity to delve farther into the strange tale, but the obvious difficulties emerge with startling clarity.

An immigrant to the United States of America shows up for some reason, not knowing anybody. Is he a tourist? Maybe. But if so he decides to go to Arkansas, of all places – not exactly a well-know tourist destination. Well, there he is in Little Rock. Where does he live? How does he get by? He can’t get a job, at least not legally, so he must have a little something stored up for a rainy day Stateside.

Michelle Salmon

Enter Michelle Salmon, stage right. Somehow our eager young visitor crosses paths with Ms. Salmon. How and where they meet is at the heart of this mystery and is open to some interesting conjecture. Inexplicably the relationship leads to matrimony at the Pulaski County Courthouse where a marriage license is obtained.

Michelle has hooked herself quite a prize catch: a 27 year-old foreigner with no job (legal anyway), no job prospects, and, according to Zahra himself, completely aware of his homosexuality. On the surface he seems like pretty poor husband material for an Arkansas gal, so we have to wonder if poor Michelle was either mentally challenged or perhaps in need of financial assistance.

Zahra makes no mention of his visa status in his story to the OJB, but we have to assume that he received either a work visa or permanent residency status because not long after his connubial union he goes to LA, bravely living in a car on the streets of Hollywood (so he says). His visa would have been helped along by a marriage certificate to a citizen and it’s safe to say he got one that permitted him to stay in the US.

Well, says Zahra cavalierly, the marriage thing didn’t “work out,” what with the husband living in a car in Southern California, and with Michelle deciding to remain in Arkansas “with her family.” Divorce ensued and Ahmad’s new life journey had begun. He became a citizen in the course of time, a fact he shares as if this simple fact absolves him of any impropriety in the acquisition thereof.

Here’s what happened…

Naturally, Zahra tried to paint this ludicrous picture to the OJB as his “coming out” portrait, and invited homophobic and Islamophobic FFFF to “make fun” of the narrative. The old dodge. Homophobia. Islamophobia. Be a victim.

I’m not the least bit interested in making fun of anything relating to Zahra’s gay coming out story – whichever variation he is selling at any given time; except when the story is cooked up to obfuscate what looks like a serious and likely problematic question. To wit: did Ahmad Zahra commit Marriage Fraud to expedite the legal requirements for him to stay in this country?

Surprise: High School District Wants More of Your Money

Just in case you thought the City of Fullerton was the only government agency that wants to put their hand in your pocket, you can think again. Back on April 9th the Fullerton Joint Union High School District held another one of those ridiculous “workshops” where the only work going on is push polling designed to get the school board to put yet another school bond on the ballot.

This item was agendized under the harmless sounding title of Facilities Master Plan Update.

This was none other than an opportunity for the school district’s army of six-figure educrats to sing the blues about how they need hundreds upon hundreds of millions of new property taxes to bring the wonders of technology to the districts underserved teenagers.

Just as the City did, the high school district employed the kindly offices of a consultant, True North, to do a poll. And guess what? The consultant (who specializes in managing technology upgrade projects) informed the Board that indeed, yes, their survey of 695 individuals indicated support for a bond, perhaps not realizing that district property owners are still in the process of paying off two previous facilities bonds and will be doing so for another twenty years.

Well, there it is. As with Fullerton, the District will need to adopt a resolution pretty quickly to get this bond on the November 2024 ballot. These things usually are timed with annual budgets although assuming a victory at the polls remains iffy, indeed.

In March of 2020 the FJUHSD’s Measure K – a deceitful operation from A to Z – went down to defeat. So did the Fullerton Elementary School District bond attempt, Measure J, on the same day. Will the FSD try another bond double-header like they did last time?

Stay tuned Friends and let’s see what happens in June. And like last time we’ll be reporting on the Bond Sales Industrial Complex to see who’s funding such an attempt.

The Fiscal Cliff

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

Read. Weep.

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.

How did things get so bad?

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.

Whitaker for City Council

Yes, Friends, you read that correctly.

Bruce Whitaker is serving his final term this year representing Fullerton’s Fourth District, and apparently his wife, Linda Whitaker, has decided to carry on the family tradition.

Here’s her recipient committee listing on the California Secretary of State’s website:

Mrs. Whitaker has been around politics alongside her husband in Fullerton and the County for 30 years, and so has institutional knowledge of how things go (or don’t go, as the case may be), and would be bound not to take staff bullshit at face value. The extent to which she shares her husband’s political philosophy remains to be seen, but I’m sure we could expect a conservative, anti-tax mindset.

Two Whitakers…

She has the Whitaker name going for her. Bruce Whitaker has been on the Council for almost 14 years and won the inaugural Fourth District election in 2020. In politics, name recognition is a big deal. Just as importantly, she will have access to County Republican resources to help her, directly; or, just as likely, in the form of independent political action committees.

Bad news comes in threes…

This bad news for Vivian “Kitty” Jaramillo, the choice of the Democrat officialdom in the Fourth District, and someone who has allegedly accused Linda Whitaker’s husband of racism. If she had been thinking about an easy path to victory, she’ll have to think again.

I wouldn’t be the least bit surprised if the OC Democrats try the same ploy they rolled out in District 5 in 2022; namely, creating a fake candidate to draw votes away from Mrs. Whitaker. On the other hand, this is a heavily Latino district and a Latino candidate or two would certainly have the same effect on Jaramillo.

Kitty Throws Hello Party For Self

A couple weeks ago FFFF posted about Fullerton’s 4th District Council election this fall. Incumbent Bruce Whitaker will be incumbent no longer – finally termed out. One of the subjects was the candidacy of Ms. Vivian “Kitty” Jaramillo, a former City employee, former council candidate, and most recently an annoying presence at City Council meetings.

Well, it turns out the wheels of another Jaramillo candidacy were indeed in motion. Here’s an invite to her coming out party. Oops. Somebody doesn’t use spellcheck.

“Appetisers” for all…booze is extra.

Josh Newman and Sharon Quirk-Silva are taking time out of their busy schedules messing up California to be there, so Ms. Kitty must have the backing of the OC Democrat operation, although this time there will be no fake candidates created to protect an incumbent.

So the first battle line is drawn: do we want another former public employee on the Fullerton City Council? Do we want one who will certainly be willing to raise our taxes to support her pension? Do we want Ahmad Zahra to have a third vote to promote stupid vanity projects that will promote his “brand?”

Congrats to Fullerton Planning Commission

It’s pretty rare when one of our commissions really does its job, so when they do I’m happy to advertise the fact. Last week the Fullerton Planning Commission re-reviewed the noise ordinance that was kicked back to them by the City Council for further consideration, and they excelled themselves.

Their performance was so rewarding it almost makes me want to overlook the first time this group unanimously passed virtually the same proposed ordinance in November, 2023. This time they really took their jobs seriously.

The staff report for the item, given by some guy named Edgardo, was the same nonsense they pitched before, and they essentially asked the Commission to rubber stamp it yet again.

But this time there is a problem. It seems that no matter how many words they throw at the issue, staff can’t talk around their own complete lack of effort at code enforcement in Downtown Fullerton. They admit it now, claiming (without a shred of evidence) that the existing noise level is unsupportable in court, and begging the question of why amplified music is then allowed outdoors at all – it wasn’t for decades. We were informed that a “vibrant” downtown (pictures of happy people) requires more noise, not less. The underlying theme was the usual tripe: DTF is an economic asset whose saloon proprietors must be coddled at all cost. Look the other way, fast!

Incredibly, our new friend Edgardo informed the Commission that current levels of noise are acceptable to the citizenry based on the fact that so few complaints are lodged. Complete balderdash, of course. Naturally the bald declaration of “acceptability” was unsupported by any complaint data, suggesting that if there is a record, it is an embarrassing one. And the Commission learned from public speaker Joshua Ferguson that the City doesn’t bother with code enforcement and almost never has, leading Commissioner Patricia Tutor to wonder if this lack of responsiveness might have caused citizens to give up complaining.

One poor lady, the owner of Les Amis was there to push for the proposal. Unfortunately, as she admitted, she does live music in her establishment without the benefit of the required entertainment permit. Oops. Code enforcement to the rescue!

Local hero…

Tony Bushala got up to speak, sharing his story of being driven out of his downtown home due the noise. He also produced a lengthy list of errors and omissions in the proposed ordinance and stuff that was just contradictory. It turns out that the public and the Commission were not presented with a complete underline/strike-out version, showing pretty clearly that counsel Baron Bettenhauser of the I Can’t Believe It’s a Law Firm, had not, as he claimed, looking up from his cell phone, read the damn thing.

Edgardo and Baron work their magic…

One zoom caller named Maureen said the smartest thing of the night. She actually suggested that without actually hearing the sound on site, she (and presumably everybody else) was at a loss to really fathom the mystery of decibel levels.

Tutor tutors staff.

Commissioner Tutor was particularly effective in asking pertinent questions, one of which, was how come, after 10pm when music is supposed to move indoors, isn’t the decibel level lowered. A really commonsensical question. She didn’t get a commonsensical answer. The acoustical consultant from some operation called Dudek explained that during their noise collection procedure, that seemed to be the general noise level.

What’s going on here?

Oops again. Commissioner Cox pounced on the fact that the collected data was based on a noise level that was one, currently illegal; and two, based on a situation where there is no code enforcement, thus kicking up the noise level that staff was claiming was acceptable! He didn’t say so, but it was pretty clear that Mr. Dudek Guy had been receiving coaching from staff on the noise levels they found acceptable.

Mansuri ain’t buying it.

The other main sticking point was where to measure noise from – a certain distance from the noise source or a certain distance from the property line; two choices were offered with the greater distance being recommended. Commissioner Mansuri was unpersuaded by staff. That issue tied everybody up in knots off and on for the better part of an hour. Finally it was concluded that the noise sampling site needed a rethink.

Thanking God it’s over…

Finally, mercifully, Commissioner Arnel Dino moved that the whole thing come back in May with the entire code changes organized and clarified and that in the interim the Planning Commissioners would go out themselves with decibel monitors and experience for themselves the problems of sound accumulation, reverberation, etc. So that’s what is going to happen. Imagine that – first hand experience without the muddled abstraction of decibel levels on a piece of paper.

As usual it was obvious that our hand-wringing staff was pursuing their path of least residence by raising sound thresholds, making it harder to enforce even that, and refusing to enforce the requirements of the bar-owners’ entertainment permits – things like closing doors and windows. How many times have we seen staff guide the consultant they chose to get what they want? Happens all the time. And how many times must the public be subjected to uninformed or misinformed opinion passed along as Gospel truth by our public employees? Happens all the time. And when will the City Council demand honesty and competence from its bureaucrats? I’m afraid we all know the answer to that.

Fullerton, being Fullerton.