Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities

Top Governmental Activity Revenue Sources

As shown below, our top four revenues sales tax, property tax, In-lieu sales and use tax and utility users’ tax accounted for approximately 87% of total governmental activities revenues excluding other taxes and other revenues, with franchise taxes at 3.1%, use of money and property accounted for 1.4%, transient occupancy tax at 1.4%, gain on sale of capital asset at 4.9%. Generally, revenues for FY 2020-21 increased from those of the prior fiscal year due to the economic recovery.

The following narrative addresses the significant variances in key revenues and expenses from the prior fiscal year:

1. Sales Tax. General sales tax receipts were $2.7 million or 9.06% over prior year. In FY1920 there was a decrease of revenue due to COVID 19 mandated closure of retail and restaurants slowing economic activity. There has been an increase of online retail triggering an rise in Sales Tax Revenue. Additional, consumer confidence grew because of the COVID 19 vaccine and the government stimulus have formed an economic recovery.

2. Capital Grants and Contributions: Capital Grants revenue decreased by 1.3 million or 57.8% percent. Prior year the city received 7.37 million dollars from Caltrans for relinquishment of Lakewood Blvd between Century and Gardendale.

3. Gain on Sale of Capital Asset: The revenues decreased by 4.6 million because of the sale of parcel of vacant land and property during prior fiscal year FY19-20. There was no sale of vacant land in current year.

Governmental Activities -Revenue by Source

2021 In-lieu Sales and Use Taxes 11.7%

Sales and Use Taxes 34.4% Franchise Taxes 3.1%

Utilities Users' Taxes 6.9%

Transient Occupancy Taxes 1.4% Property Taxes 33.8% Other Taxes 2.1%

Other Revenues 4.9% Gain on Sale of Capital Assets 0.1% Use of Money and

Property 1.5%