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 HallWhile 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:

2024: $235,248
gdfgdfgd
2023: $455,176. And they were nice enough to put in a reminder that this was not legal spending.
2022: $3,881,625
2021: $5,057,613

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.

2020: $2,200,681.
2019: $1,701,966

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:

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

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.

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 Marovic Sidewalk

A new year, and for Fullerton, lingering problems remain a municipal embarrassment, except that the people in charge don’t seemed particularly inclined to terminate them.

Formerly a public sidewalk

The seven year-old boutique hotel has lots of current actors’ fingerprints on it. And then there’s the decades old case of the hijacked sidewalk on Commonwealth and Harbor, heisted by the Florentine Crime Family in 2002, who put a permanent structure on it, attached to a building they didn’t even own. It has never been returned.

Zahra Congratulates Marovic (in green cap) for his lawsuit…against us.

The current owner of the adjacent structure and the business in it, Mario Marovic, made a deal with the City in 2022 to remove the offending structure.

Marovic reneged on the agreement, and boy he reneged hard. The demotion was to start in March 2023 and be done by that July. Nothing started except that Marovic filed some sort of claim and lawsuit against the City for some made up reason, and the the whole mess disappeared into the usual mists of Closed Session.

In the meantime, Marovic has continued to benefit from the add-on as an integral part of his bar – Mickey’s Irish Pub for three years, and counting.

Meet the new proprietor, same as the old proprietor…

Although I can’t verify the rumor, Marovic finally got sick of paying legal bills last fall and decided to perform the scope of his original agreement. A status (secret) of the lawsuit popped up on the October 7th, 2025 City Council Closed Session agenda. This might have led to some new deal.

It’s there, just take it.

According to the deal rumor, Marovic was supposed to start removing the addition this month, January 2026. If there was a behind the scenes agreement, it should have been made public, although the City lawyers would proclaim the lawsuits pending until the removal is complete, and therefore not subject to public airing in public. Of course that would make no practical difference, but that’s the way it is – secrecy for secrecy’s sake.

Still there, after all these years…

I can’t see Marovic settling anything, stalling has been so fun; but maybe his legal bills are costing him more than revenue from the dozen chairs within the “bump out.” It would be nice to see Fullerton play hardball with this scofflaw, but it probably won’t happen. If the add-on actually does go away, I bet the taxpayers get stuck with the legal bill.

In the meantime the small contingent of “transparency” whiners at City Council meeting, the Fullerton Observer and their tender young investigative reporter Sweet Elijah Manassero don’t seem at all curious about this twenty four year-old scandal. I wonder why.

Public Property Lease Rates on Agenda; And the Reality of the Santa Fe Café

The conversation at tonight’s Fullerton City Council meeting will turn to public property leases in Downtown Fullerton. A few years ago the Council raised rates. The jump was high – around 90% – but the City hadn’t increased rents for 10 years so the real increase over time was about 9% a year. Add the three succeeding years and it’s 7.7% per annum. That’s still high, but that’s what the Council approved, most notably the self-styled “pro business” Councilman, Ahmad Zahra.

Les Amis sans meubles...

The matter is now controversial because one restaurant occupying City space, Les Amis, run by the Montecristo clan, is using the 2022 rent hike as justification for their refusal to pay rent for years – dating back to 2011. They don’t bother explaining to their dupes all the years they stiffed their landlord (us) rent; and they never mention all the times they encroached on City property without permit or agreement. The City government bent way over backwards to accommodate Les Amis, who have shown very little gratitude for the latitude they were given for a decade and a half. Quite the contrary.

Apropos of the rent issue, one of the other complaints from the grand bruit Les Amis claque is that that one patio in particular pays no rent – the Santa Fe Café, run by Salma Bushala-Hamud.

Salma Bushala-Hamud, Fullerton small business owner and philanthropist.

First it should be mentioned that the patio in question is included in the Bushala Brothers, Inc.’s lease at the depot. Therefore it is reasonable to conclude that the area designated as 9 in the site plan is included in BBIs master lease with the City and is thus included in the entire lease. Here’s the leasehold plan:

Even if this weren’t the case, BBI has obviously decided to let the public occupy shade covered tables and chairs even if they don’t patronize the café. All you have to do is look at the people sitting in the area. Almost none of them are café patrons.

This policy is indicated by an actual sign that lets the public know they can sit there, gratis, a decent and civilized gesture.

Cry harder…

But back to the meeting. I hope the item starts out with a reminder from Mayor Jung and the City Attorney to the predictably frothed up Les Amis amigos who show up all the facts of the situation; to relate the years of skipped rent, the tens of thousands in overdue amounts, and the illegal encroachments; to let them know they’re being played by the Noaccounts of Montecristo and the rank-and-file of Ahmad Zahra’s Fullerton Boohoo stooges who demand a victim-of-the-week to weep for.

The Saga of Zahra’s Immigration

It was a slow journey but worth it…

A week and a half ago Fullerton councilman Ahmad Zahra agendized an item to dole out $200,000 from the General Fund to immigrants hassled by Immigration and Customs Enforcement. He thought it was an excellent opportunity to burnish his own immigrant travails to the full house. He didn’t bother sharing any of the details of his own arduous trail to citizenship, of course – like his marriage fraud – a federal crime.

Fortunately, the distinguished ladies of FFFF’s Fine Arts, Cinema, and Book Club Division have recreated the elevation of the poor, Syrian immigrant to what he is now – a poor (targeted, don’t forget!) American citizen.

Enjoy the histrionics: the wistful smiles, the knowing head bobs, the empathetic tone.

I guess Zahra figures he can get away with telling only a small part of his heroic origin story, even if it changes a little now and then. The whole story, or most of it, was hidden for decades in order to create the Zahra brand he sells to the ignorant.

I guess we’ll see what the 4th District voters have to say.

Accessory to Commit Perjury

Last August supporters of Fullerton 4th District Council candidate, Democrat Vivian Jaramillo, created a fake “conservative” candidate to draw votes away from the person presumed to be Jaramillo’s principal opponent – Linda Whitaker. The candidate, Scott Markowitz, committed, and plead guilty to perjury.

It’s abundantly clear that at least one person helped phony candidate Scott Markowitz commit the perjury when he falsely swore that he collected his nominating signatures. How is it clear? Because at least one of his nominators told the District Attorney Todd Spitzer that it wasn’t Markowitz who got them to sign, it was someone else; either that or Markowitz himself volunteered the information, which isn’t likely since he was arrested and booked into the Santa Ana Jail.

Speculation is increasing and questions are still being asked, such as: what’s the name of the person or persons who suborned Marko’s perjury, and why hasn’t Spitzer prosecuted him/her/them? In fact, a Public Records Act request was recently made to Spitzer’s office to reveal the name of the person or persons involved in the Markowitz case.

I’m not talking…

Back in the fall, suspicion fell immediately on a guy named Ajay Mohan, a former Democrat operative who held Markowitz’s hand at the City Clerk’s office while picking up nominating materials. But could Mohan have known any of the nominators well enough to get them to sign the papers of a MAGA-sounding candidate?

The Usual Suspects are smiling. For now.

Some folks behind the scenes put early money on creepy and desperate Councilman Ahmad Zahra, the immigrant marriage fraudster and serial prevaricator. Then attention turned to the equally seedy Aruni Thakur, the guy who tried to get elected to the Fullerton City Council in 2020 in a district he didn’t live in. Both are well-known local Democrat office holders who would have been familiar to the Democrat nominators like our old friend Diane Vena. Hey, what about Jesus Quirk-Silva, the dim-witted ex-councilman and husband of wannabe king/queenmaker, Assemblycreature Sharon Quirk?

Recently a new front runner has emerged, a chap named Andre Charles. Charles revels in the lofty title of President of the North Orange County Democrats club. His wife, the self-important, wordy, and ingratiating gasbag, Shana Charles, is on the City Council. Charles had both the motive and the means to sucker local Dems to nominate Markowitz in absentia. Indeed, several nominators of the faux Trumpy Markowitz are members of Charles’ Democrat club. Hmm.

Spitzer gets choked up…

So what was the result of the PRA request? Predictably, the DA’s office isn’t answering, saying they don’t have to – the records are confidential even in closed cases. But if no other crimes were committed, then who cares, right? Yet the response from some guy named Wayne Philips in the DA’s office does include this tidbit:

Is this merely a boiler plate brush-off, or is some investigation really still underway? Personally, I doubt any investigation is going on, but if I were one of the perps involved I’d still be a little nervous. There are probably lots of weak links in the chain of this scandal, and even Spitzer may be induced to do his job if evidence he is now suppressing is published.

Another Police Shooting Fatality

According to the Fullerton Police Department, their employees killed another person Saturday night.

Responding to a domestic dispute call in the 700 block of West Orangethorpe Avenue the cops arrived on the scene and discovered a 19 year old male “matching the description” on the sidewalk. Here’s the tale from the press release:

Despite repeated commands from officers, the suspect was noncompliant. In a sudden turn of events, he lifted his shirt and pulled what appeared to be a handgun from his waistband, prompting an officer-involved shooting.

Officers immediately began life-saving measures until paramedics arrived, but the suspect was pronounced dead at the scene. A pellet gun, closely resembling a Smith & Wesson handgun, was recovered near the suspect.

Oh, no. Another one of those dreary FPD press releases that always sound like an immediate exculpation rather than a simple statement of the bare facts

At the point of first contact the cops confronted a guy who may or may not have done anything wrong. We know he wasn’t juiced because if he had been the statement would have said so. There goes Excuse Option One.

We don’t know what those “commands” given by the police were, of course, or even if they were reasonable. It will be interesting to see and hear what sort of dialog ensued during this confrontation. Was it calming, or was it the sort of thing that might prompt escalation?

Then there was “…a sudden turn of events.” What is this a high school creative writing class? For some as yet unknown reason this young man decided on the ever popular Excuse Option Number Two: suicide by cop. The inevitable “waistband” is deployed by the cop writer, although the PR had earlier stated that the culprit had been waving a knife at Dad at the incident address. I’m not sure who wanders around with a pellet gun shoved in his pants but there was one, apparently that (closely!!) resembled a Smith and Wesson handgun.

We will be comforted to know that all will be revealed within 45 days via one of those Critical Incident Community Briefing Video.

Bushala Exposed, Yet Again

It seems that the name Tony Bushala has once again become a byword for selfish self-interest among a certain segment of Fullertonions. This time it’s the the ultra-liberal boneheads who want to waste public money on stupid make-work boondoggles like the Trail to Nowhere and the idiot Walk on Wilshire, ideas catapulted forward by ideology instead of commonsense.

Pay no attention to the dinosaur behind the curtain…

Last time, it was the the balding Fullerton Republican Establishment that objected to Bushala’s political involvement in creating the 2012 recall. At the time, these sad relics of an earlier epoch claimed that Bushala wanted to buy the City, failing to admit that it would have been an awful lot cheaper to just give the incumbents a few grand and a pat on the head.

At the time, the following video was made. It’s still worth watching 13 years later.