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.

THE DEAD BUDGET SOCIETY, Pt. 2

Well, it’s two weeks later and our city council still can’t decide on a budget. I’ve been asking around and nobody can remember this ever happening before.

Staff had presented a whole slew of options but the basic premise remained the same for our brave councilors: budget reductions or not?

The fact that the budget still includes numerous unfilled positions seems not to have sunk in to the avowed defenders of Fullerton’s bureaucrats, Ahmad Zahra and Jesus Quirk-Silva who also want to remunerate employees with Federal Biden Bucks. Bruce Whitaker and Nicholas Dunlap keep insisting on cuts to address our permanent structural budget deficit.

I’m not voting yes and you can’t make me…

And then there’s the guy in the middle, Fred Jung, who has staked out a via media and hasn’t moved from his position of a smaller cut.

But what seems to have happened is That Quirk-Silva was willing to go along with Jung at a 1% budget cut, but that Zahra would have none of it. Meantime Whitaker and Dunlap were willing to come down too, but not far enough for Jung.

My bet is we will see Jung, Whitaker, and Dunlap at 2%, or so; Zahra will pout; Quirk-Silva, seeing the handwriting on the wall may want to show unity. But more likely he’ll vote no and at least appear to be supporting his real constituents in City Hall.

What fun! I don’t know how this can keep going, but I love the lack of appeasement and fake collegiality, and the Fitzgeraldine behind-the-scenes monkey business.

Fish This: Burning the Budget

Some things in life are perfectly predicable.  Things like physics and math.  They’re not really that difficult to understand, but some people in our society are a little slower than others.

For example, next week there will be idiots who put a frozen turkey into a vat of hot liquid fat because #Merica.  Despite many public service announcements to the contrary, stupidity will have its unavoidable and predicable consequences.

Tonight Fullertonians will miss out on the discussion taking place behind closed doors at City Hall concerning the state of the city’s budget.  Voters won’t get to hear about the new contract negotiations designed to help the massive multi-million dollar structural deficit, the $100,000,000 in deferred infrastructure maintenance, or the equally massive unfunded pension debt.  Instead, we’ll get a null report from The Other Dick Jones ™, and the facade of all being well will continue into this year’s planned First Night festivities.

Like so many idiots with a tank of propane, recent City Councils had fair warning of the current financial crisis.  The math just isn’t that hard to understand.  Every year, every single year, since each of their elections, Fullerton has spent more from the general fund than it has taken in.  Tens of millions of dollars in reserves have evaporated.  *POOF* gone, without a trace.

At the current rate, Fullerton may be bankrupt in two years.

This Thanksgiving, while you’re enjoying your non-idiot prepared bird, I want you to remember tonight’s secret city council meeting.  I also want you to remember a meeting held just last year.

Just last year, the council authorized the largest pay raises for staff in a decade.

“The budget is balanced!” — Jennifer Fitzgerald

“Fullerton is in excellent financial shape!’ — Jan Flory

Well, the math simply doesn’t lie.  The budget was not balanced and the city was not in excellent financial shape.  Jen and Jan dunked their frozen bird and lambasted all the chronic malcontents who protested their fine stewardship.

*POOF*

Like that, Joe Felz hit a tree, and their financial bird exploded, the raging predictable disaster apparent for all to see.

Tonight the Fullerton City Council will likely authorize reducing pay and benefits for city employees, just in time for the holidays.  When this is over, some employees will have their salaries reduced or their hours cut.  Others will simply lose their jobs.  Many of those individuals are good people who do good work. This isn’t their fault, but it will be their house that gets burned down and it will be their life that gets ruined.

Now Jen and Jan, two of those responsible for dunking this turkey?  Don’t worry.  They’ll be fine.  Jen just gave herself a $9000 raise and Jan retired.

Seems just, don’t you think?

The Slow Drip of Deficit Spending – Part 1 of an Endless Series

The Mayor likes to say that we have a “Balanced Budget” and that we’re making great strides on our roads, parks, et cetera. All of this in spite of closing the Hunt Branch Library, having rundown parks and having to beg, borrow and steal from our City reserves every year to keep the lights on. Why?

Oh, because we send people to Canada. That’s one reason why.

canada1

canada2

We sent five people to Canada because apparently PowerPoint, Video Conferencing and YouTube don’t cost the taxpayers enough money.

As far as we can tell the City of Fullerton sent Anthony J. Bogart (Police Sergeant), Cesar A. Navarro (Lead Police Dispatcher)m Julie A. Langstaff (Police Technical Services Manager), Christopher J. Overtoom (Information Systems Assistant) & Helen M. Hall (Information Technology Manager) to a conference in Ontario about “Thinking Forward” in policing. But hey, at least according to the agenda they got to attend a Curling Bonspiel on our dime so it wasn’t a total waste of money.

current_conference_agenda

Stay tuned as we show off some more bang that we’re getting for our collective bucks.

City of Fullerton’s Proposed Budget Unveiled – $274.9-Million To Be Spent

The City of Fullerton unveiled the proposed budget for fiscal year 2011-2012 and 2012-2013.

The budget appears to be largely a rearrangement of the deck chairs with no real cuts proposed.  There are proposed cuts in certain projected spending to help make up for significant increases in employee benefits.

There were no explanations about the benefits increasing which Councilmember Whitaker took issue with.

Councilmember Quirk-Silva reminded staff that last year there were several ideas proposed for generating revenue and increasing fees such as the tow franchise which will be heard by the Council later this year.  Quirk-Silva expressed appreciation that the tow franchise was moving forward but would like to know about the other measure proposed last year.

One of my major concerns continues to be the infrastructure.  As Public Works Director Hoppe pointed out, we still have a nearly $150 million dollar paving deficit to deal with.  The current paving plan does not adequately address this nor does this proposed budget.  I hope the council members and City Manager Joe Felz will give serious consideration and address our infrastructure with this budget.

Below are the summaries for the proposed budget. (click on image to read)  The big question remaining in my mind is how does $274.9 million in taxpayer expenditures next year benefit my family, my neighborhood, and the quality of life in my community?

 

Will There Be a District 3 Challenger For Shana Charles?

Right now it looks like Ms. Charles, the sanctimonious and self-important gasbag representing District 3 on the Fullerton City Council has no competition for re-election this November.

I suppose this is a testament to the apathy of the electorate because there should be at least one person willing to challenge the otiose uber-leftist whose constant stream of self-righteous and ignorant bullshit almost demands an opponent.

A visit to the City Clerk’s webpage listing candidate committees shows no one except Charles in the Third District.

This doesn’t mean that a non-committee candidate isn’t running, or that a potential opponent isn’t waiting to file the forms necessary to raise funds like a serious contender. But time is almost up. Candidates will be able to “pull papers” to run in just a few weeks. If they haven’t announced yet, at this late date, it seems unlikely.

Why?

Charles has taken lots positions that would undoubtedly be unpopular among responsible, taxpaying citizens outside the Fullerton Boohoo echo chamber. Let’s put aside her flip-flops on issues like the downtown noise regulations and the issue of private publications on city property. Instead, let’s focus on issues that would be pretty damaging to Charles once voters learn about them. They involve wasting money, or trying to. A lot of it.

First is her steadfast support of handing over $200,000 of public funds to support illegal aliens harassed by ICE. You can feel sympathy for people snagged by the ICE goons without wanting to use public funds to pay for their groceries.

That can’t be good…

Then there is the embarrassing matter of the so-called boutique hotel, where the Council approved massive entitlements on a property and then “sold” it for peanuts to build a massive and harebrained project on Santa Fe Avenue. The worst part was deeding over the property to a couple of inveterate con men who, after many years, haven’t turned a shovel of dirt on the site and never will. Providentially, that approval was Shana Charles’ very first vote.

Green means green. One way or another…

How about the issue of her income from the marijuana lobby – gained via her husband’s effort to get Cannabis Kitty Jaramillo elected in the 2024 D4 election. Her tribe is always blathering about the evils of money in campaigns; Jaramillo got $60,000 of Washington DC lobbyist cash working for her and $4000 went right into the Charles family wallet. Would the residents of D3 like a dispensary on State College?

I don’t want to forget the disastrous Trail to Nowhere that cost $2.5 million and has virtually no use. FFFF predicted that over and over again, although it wasn’t hard for anybody to foresee. The last half dozen times I have driven down Richman at various hours, I have yet to see a single user. Charles was stupid enough to fall for all the bullshit peddled by staff; either that or she knew it was nonsense and didn’t care. Does it make a difference?

Spinning, spinning…

If there is a tax on the November ballot Charles will have to take a stand. Spinning won’t help. She won’t get her 13% general sales tax increase, but there could be two 6.5% special sales taxes to vote for, infrastructure and “public safety.” Opposing these would send a signal that she doesn’t care about fixing the budget deficit she helped create: just a couple years ago she bragged about hiring more people.

She has to run on the state of the City and that state isn’t good. She’s been there for four years with nothing to show for it except foolish positions and non-stop, rambling lectures.

I could go on, but really why bother?

Taking Out the Trash, Redux

On Tuesday the Fullerton City Council is going to address the topic of selecting the next solid waste hauler. This is a big deal, with a lot of money involved.

Last time, we saw the can kicked, as usual, when the council decided that six finalists would be permitted to sharpen their proverbial pencils and make final and best offers, en route to a final selection.

And so they did. I won’t bore the Friends with the various details of proposals because in the end each is offering different rates, services, and feel good community involvement, the last item a useless PR gesture that somebody in City Hall thought merited points in their selection calculations.

But two RFP respondents offered something else. Big loans to the City’s General Fund that would be recovered over many years via augmented rates.

EDCO has sweetened the pot by offering a $15,000,000 one time payment to the City to be recovered by a differential in the annual Consumer Price Index that is applied to fees.

Republic, the current hauler, is offering a $10,000,000 one time payment they are charmingly calling a “Community Enhancing Payment” which sounds better than “City of Fullerton Bailout.”

Obviously these two cash offer proposals would present the City Council immediate, if only very temporary, relief from the impending budget reserve liquidation, and will attract attention for that. The other positive political result could be the elimination of a November 2026 ballot tax question – a problem in getting on the ballot, and passage by the voters. However, the underlying structural budget deficit would remain and would need to be addressed, anyway, and immediately.

The formulas increasing the CPI scales would really be amount to a hidden tax on waste producing customers in Fullerton, and the City would be in the effective position of incurring debt leveraged on hauling fee increases. I presume the offerors and the City have investigated the legality of this.

Of the two proposers, EDCO was previously ranked first by a narrow margin, while Republic was in last place. The City’s relationship with Republic really soured during negotiations for SB 1383 when Republic did the old bait-and-switcheroo so there’s that to consider.

Meantime CR&R is promising $4,000,000 upfront to pay for road improvements – no strings attached – however there are always strings attached and in this case recovery of the 4 mil will certainly be reflected in rates higher than other proposers.

Is the upfront payment concept viable? I think so. It would buy some time for the City. But somebody would have to pay the piper, and somebody is still going to have to make the budget cuts required to balance a budget and no one has shown any appetite for this bitter menu. Appointing a useless committee to study things has been a waste of time. Almost.

One of the committee members did suggest the very thing that EDCO, Republic and CR&R are offering demonstrating that at least somebody was thinking of alternatives.

My guess is that “Dr.” Ahmad Zahra and Shana Charles will not support this big payment option, seeing great liberal virtue in imposing a 13% sales tax increase like the ill-fated measure M of 2020. On the other hand, that passage is a risky business and they need 4 votes to make it even get on the ballot. Nick Dunlap probably would not vote for putting a tax on the ballot, or going with the upfront payment plan. But his vote might not be needed. The waste contract only needs 3 votes. Where are Jung and Valencia? I guess we’ll find out Tuesday.

An Audit Report

Off we go, into the Wild Blue Yonder…

At tomorrow’s Fullerton City Council meeting, agenda item #1 features a report by the firm of Grant Thornton Risk Advisory Services. They will present what the City is calling a “special fiscal audit.”

What does that mean, and what are the results? Unknown because there is no staff report – not even a little introductory prose. This is in keeping with former City communications regarding the recently revealed erroneous assignments of millions into General Fund reserves – money that was supposed to go elsewhere. The last post FFFF did on this subject in March pointed out the condescending gobbledygook press release that emanated from City Hall. I believe this “audit” was commissioned to address the big errors and allay fears that some sort of malfeasance took place.

I hope that Messrs. Shawn Stewart and Charles Mayes (CPA) of Grant Thornton will present something real simple. Like maybe a diagram, or a flow chart to explain how these bogus transactions took place. Where did the money come from, where did it go, and when was it fixed? One hopes there will be no verbal or logical gymnastics to dodge assignment of responsibility. Does one hope in vain? And of course please let us know:

What are the true balances in General Fund and Capital Improvement Reserves.

Item #12 on the agenda is a report on staff vacancies and retention recruitment efforts required, as usual, by a nosey and intrusive State legislature. I’m not sure what the purpose of the law is, but the information contained in the report is worth considering. According to staff there are currently 65 vacancies, two thirds of which are non sworn, general public employees. 65 vacancies is about 10% of the total labor force.

In past years the vacancy rate has done as high as 25% in Fiscal Year 21/22.

Here’s the issue. How many of these vacant positions are included in the current 25/26 budget deliberations? All of them? Some cities use a “vacancy factor” in their budgeting – an estimate of how many vacancies will be unfilled in the fiscal year. Does Fullerton do this? They should if they don’t.

I also note that the labor force in Fullerton is up 7% since 22/23 even as dire predictions of the structural deficit were publicized. Why did this happen? The architect of past city budgets, City Manager Eric Levitt quit and took a higher paying job in San Bernardino last year so no answer will be forthcoming from him.

As an example of a recruitment the staff report includes this graphic from last fall:

An Associate Planner goes for $84K to $108K per annum – not counting benefits and pension costs, of course. If those are generally calculated at a modest 25% we can assume this Associate Planner will cost the taxpayers around $120,000 a year, which I think is fairly reasonable.

If we assume the average total cost of those 65 vacant positions is, say, a conservative $100,000, then we are looking at an annual cost of $6,500,000. That closes a lot of budget deficit, right there.

Pro sales tax advocates will claim there is a vital quality-of-life issue at stake, as if the number of public employees in City Halls guarantees such a concept; these vacant jobs are key to life, liberty, and the pursuit of happiness in Fullerton. The same alliance of cops, “firefighters” and local City Hall camp followers who pushed Measure S in 2020 will claim it to be so. These are the same folks who get guaranteed defined benefit pensions, step pay increases, etc. They make no sacrifices and are rarely asked to do so. That task falls upon the citizenry.

The Case Against Jan M. Flory

You are what you eat…

Well, she’s at it again. The old warhorse appears yet again to darken our collective doorstep with her presence. Janesse “Jan” M. Flory was on the Fullerton City Council from 1995 to 2003, then reappeared in 2012 like the Ghost of Christmas Past. And yet, she still wasn’t done, getting herself appointed to the Fullerton City Council in 2019, and continuing her history of incompetence, negligence and indifference to her constituents.

She’s running for the 2nd District council seat currently occupied by popular Mayor, Nick Dunlap. Her rationale? That’s not hard to figure out. She is running to protect Fullerton’s highly compensated and highly unresponsible public employees.

Flory must 80 years old if she’s a day, and Fullerton has changed a lot since 1994 – thirty long years ago, but Flory doesn’t seem to have changed at all. The sneer. The disdain for anyone not toeing the bureaucratic line, not accepting any bullshit emanating from City Hall.

Here’s a robotext recently received by a voter in Fullerton’s 2nd District.

Experience? We all know experiences can range from good to horrendous.

It’s nice to see Janesse let us know her campaign promises, because they remind students of Fullerton history that she was front and center of the disasters that she helped create. We can skip over the illiteracy of the writing and focus on the issues.

Fix our roads and streets? Who the Hell was running the City for 14 years while the pavement went to shit? That’s right, you, Janesse. “Saving” the ridiculous money pit called Walk on Wilshire? Really?

You want to hire more cops and firefighters? Who gave those guys the budget busting pay and pension increases? That’s right, you Janesse.

You want civility? Who treated her constituents like trash when they had the effrontery to stand up for themselves? That’s right, you Janesse.

And now for some fun history, yanked from FFFF headlines, a Flory of bill of indictment.

Too much scotch, not enough water…

In 1994 Jan Flory, supported the unnecessary utility tax and actually proclaimed she wished it were doubled.

In 1995 Flory directed the City Attorney to disclose confidential legal advice in order to build a low-income housing project.

Looking down at someone is best…

In 1998, and in years after Jan Flory cheerfully supported the illegal Water Fund diversion, a tax, to support her pals in City Hall.

In 2000 she supported the disastrous retroactive “public safety” pension giveaway, a breathtaking gift of public funds.

Don’t go there…

In 2000 she approved the $3,000,000 Poison Park, a Redevelopment acquisition of contaminated, gang-infested property on Truslow Avenue, an action she never acknowledged or demanded accountability for. The goddamn thing is still sitting there with a fence around it, 25 years later.

In 2012 she banded together with the cops to get herself elected, and then protected the Fullerton Police Department from reform. The Culture of Corruption continued unabated.

Well, it might have happened like this…

In 2016 she favored Police Chief Danny “C’mere, Big Boy” Hughes with a big, wet, goodbye kiss, three days after he tried to organize the cover-up of the drunken Wild Ride of City Manager, Joe Felz.

The hours are great. So is the pay!

To get appointed to the City Council in 2019, she bribed the unemployed Ahmad Zahra with a lucrative seat on the Orange County Water District.

On her way out the door (again) in 2016, she supported the dishonest “bar owners map” for Fullerton’s first redistricting effort, allegedly created by the miscreant scofflaw, Jeremy Popoff that gerrymandered Jesus Quirk-Silva into a free run for City Council.

The closer you look, the worse it gets.

During the years of the Flory, Fitzgerald, Quirk-Silva, Zahra budget deficits, Flory lied to the public, insisting that the budget was balanced, when in fact, the City was raiding reserve funds to pay for increased employee contracts. Or maybe she simply doesn’t understand what deficit spending means.

No On S
Don’t Reward the City’s Stupidity

In 2019 Flory embarked with Zahra, Quirk-Silva, and Fitzgerald on an idiotic, spiteful legal vendetta against this blog, Joshua Ferguson and David Curlee, that cost Fullerton upwards of a million dollars in settlement and legal fees.

In 2020, on her way out the door for the third time, she voted in favor of Measure S, the ill-fated sales tax increase for which she was put on the Council to support.

If there were time and temperament, I could examine even more closely Flory’s “experience,” but, really why bother? Why recall all the Redevelopment boondoggles she supported in the 1990s, or the Downtown booze culture that she helped create in the early 2000s?

Mu’u mu’us and wood beads: I have always hated you, and I always will…

Flory’s bile and animus, directed at anybody who challenges City Hall – citizens and taxpayers, has been going on since 1994 and is well documented.

She once proclaimed that the City department heads were “the heart of the City,” And that tells you all you need to know about Janesse “Jan” M. Flory.

Five of a Kind

A friend of mine in Fullerton just received a brochure from the City Parks and Recreation Department that showed all the super-fun activities our city government provides for them.

What’s really funny is that this guy then received another. And another. And another. And another.

Five of a kind beats a royal flush.

Small stuff adds up they say, and I have to wonder how many people got five (or maybe more) copies of this thing.

One thing is pretty clear. This sort of sloppiness reflects really poorly for an organization responsible for a massive budget deficit.