{"id":250363,"date":"2026-04-03T18:04:10","date_gmt":"2026-04-03T18:04:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/250363\/"},"modified":"2026-04-03T18:04:10","modified_gmt":"2026-04-03T18:04:10","slug":"setting-the-record-straight-on-fullertons-finances-orange-county-register","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/250363\/","title":{"rendered":"Setting the record straight on Fullerton\u2019s finances \u2013 Orange County Register"},"content":{"rendered":"

I am writing in response to your April 1 editorial titled \u201cFullerton wants to tax public to fix dumb mistake<\/a>.\u201d While we appreciate the opportunity for public dialogue on important fiscal issues, the editorial contains several inaccuracies and lacks critical context that may lead to a misunderstanding of the city\u2019s actual financial condition.<\/p>\n

First, the assertion that the City \u201cerroneously accounted for over $10 million in reserves that was actually money already spent\u201d is incorrect. These funds were not spent or missing. Approximately $10.2 million of the General Fund balance is allocated for specific purposes\u2014such as capital projects, General Plan updates, and Downtown Parking Program revenues\u2014and must be used accordingly. This is a standard municipal accounting practice. These funds remain part of the City\u2019s total fund balance but are not available for general discretionary use.<\/p>\n

Similarly, the referenced $2.9 million \u201caccounting error\u201d reflects a prior-period adjustment identified through the City\u2019s independent audit. This correction ensured that certain assets were properly attributed to the Successor Agency rather than the General Fund. It was not a loss of funds, but a technical adjustment made to comply with established accounting standards.<\/p>\n

The characterization that\u00a0Fullerton\u2019s reserves have been \u201cobliterated\u201d is also misleading. At the close of Fiscal Year 2024\u201325, the City\u2019s General Fund balance totaled $30.0 million, including $19.8 million in contingency reserves\u2014approximately 14% of General Fund expenditures. This remains above the City\u2019s adopted minimum reserve policy of 10%. While reserves have declined, this was the result of a budget that was publicly presented, discussed, and approved by the City Council.<\/p>\n

It is also important to note that the City\u2019s financial challenges are not the result of a single \u201cmistake,\u201d but rather reflect broader structural factors impacting municipalities statewide, including rising labor costs, inflationary pressures, and long-standing infrastructure needs. Like many older cities,\u00a0Fullerton\u00a0is addressing the cumulative effects of deferred maintenance over time.<\/p>\n

Importantly, the City is actively working to reduce its structural deficit through cost containment strategies, operational efficiencies, and evaluation of potential revenue opportunities\u2014regardless of any future ballot measure. Any potential measure would require voter approval and, even if approved, would not generate revenue until approximately Spring 2027. As such, the City must and will address its current budget deficit independent of any future measure.<\/p>\n

Any discussion of a potential local funding measure should be viewed in this broader context. Such a measure would include accountability provisions such as independent audits, public reporting, and citizen oversight, ensuring transparency and responsible use of funds. The goal is to provide a locally controlled funding source to address critical infrastructure needs\u2014particularly street repairs, which remain a top priority for residents.<\/p>\n

We remain committed to transparency and welcome the opportunity to provide accurate information and context. We respectfully request that future commentary reflect a more complete and fact-based understanding of the City\u2019s financial position.<\/p>\n

Daisy Perez is deputy city manager of the city of\u00a0Fullerton<\/p>\n","protected":false},"excerpt":{"rendered":"I am writing in response to your April 1 editorial titled \u201cFullerton wants to tax public to fix…\n","protected":false},"author":2,"featured_media":81427,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[163,165,164,1564,975],"class_list":["post-250363","post","type-post","status-publish","format-standard","has-post-thumbnail","category-anaheim","tag-anaheim","tag-anaheim-headlines","tag-anaheim-news","tag-letters-to-the-editor","tag-opinion"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/250363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=250363"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/250363\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/81427"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=250363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=250363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=250363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}