Agenda packet, first session — Laguna Beach City Council, May 12, 2026 (part 1 of 6)

CITY OF LAGUNA BEACH
CITY COUNCIL AGENDA
MAY 12, 2026
COUNCIL CHAMBERS – 505 FOREST AVENUE, LAGUNA BEACH, CA 92651 REGULAR MEETING 5:00 P.M.

MARK ORGILL, Mayor
HALLIE JONES, Mayor Pro Tem
SUE KEMPF, Councilmember
ALEX ROUNAGHI, Councilmember
BOB WHALEN, Councilmember
DAVE KIFF, City Manager
MEGAN GARIBALDI, City Attorney
LAURA PARISI, City Treasurer
ANN MARIE McKAY, City Clerk
LEVINE ACT DISCLOSURE: Pursuant to the Levine Act (Govt Code Section 84308), any party to a permit, license, contract, or other entitlement before the City Council is required to disclose on the record any campaign contribution, including aggregated contributions, of more than $500 commencing on January 1, 2025, made by the party or the party’s agents within the preceding 12 months to any City official.

Participants and agents are requested to make this disclosure as well. The disclosure should be made when the agenda item is called and must include the name of the party, participant, or agent, and any other person making the contribution, the name of the recipient, the amount of the contribution, and the date the contribution was made. Council Members are also required to make such disclosures and recuse themselves.

Public Participation: You may submit comments in person on any agenda item or any item not on the agenda. You may also submit written comments on any agenda item or on any item not on the agenda via mail to the City Clerk at 505 Forest Avenue, Laguna Beach, CA. 92651 or by email to [email protected]. In order to allow sufficient time for members of the City Council and staff to review and consider your written comments, written comments will be accepted for consideration up until the close of business (i.e., 5:30 p.m.) on the business day before the date on which this public meeting is scheduled. Written comments WILL NOT be read aloud during the City Council Meeting. Please note that written comments are posted on the City’s website, so do not include any personal information you do not want posted on the web. Any comments received after the deadline for submittal may not become part of the public record for that meeting. For comments submitted on a topic not on the agenda, please indicate that you would like your comments included in the official record for this meeting. 1 of 1519
[email protected]. In order to allow sufficient time for members of the City Council and staff to review and consider your written comments, written comments will be accepted for consideration up until the close of business (i.e., 5:30 p.m.) on the business day before the date on which this public meeting is scheduled. Written comments WILL NOT be read aloud during the City Council Meeting. Please note that written comments are posted on the City’s website, so do not include any personal information you do not want posted on the web. Any comments received after the deadline for submittal may not become part of the public record for that meeting. For comments submitted on a topic not on the agenda, please indicate that you would like your comments included in the official record for this meeting.

Courtesy Virtual Broadcast: Please take notice that the City also plans to broadcast the meeting via the below listed mediums. These virtual broadcast mediums are also provided as a courtesy only and are not guaranteed to be technically feasible or uninterrupted. Thus, in order to guarantee livetime viewing, members of the public are encouraged to attend in person.

1. Online on the City of Laguna website: www.lagunabeachcity.net/meetings

2. Cox cable channel 852

3. Online on YouTube: https://www.youtube.com/channel/UCQsj8cEM7IvTH6p4uf3NUzQ REGULAR CITY COUNCIL MEETING
********************************************************** A. ROLL CALL – 5:00 PM
B. PLEDGE OF ALLEGIANCE Councilmember Rounaghi
C. CLOSED SESSION ANNOUNCEMENT(S). A Closed Session report shall be provided, as required pursuant to California Government Code Section 54950 et seq.

D. ADDITIONS AND DELETIONS. As may be deemed necessary by the City Manager, agenda items may from time to time be deleted from the agenda; in such event, the City Manager shall endeavor to provide as much advance notice to the community as reasonably possible about the removal of such items. Agenda items may only be added in accordance with Government Code Section 54950 et seq.

E. PRESENTATIONS. The City Council shall from time to time recognize individuals and organizations and present awards or Certificates of Appreciation, or receive special presentations, as previously scheduled and described below.

1. PROCLAMATION RECOGNIZING ROGER KEMPLER
Recommendations: 1. Approve a Proclamation recognizing Roger Kempler’s service to the community

2. RECOGNITION OF GUILLERMO MORATORIO FOR HIS LIFESAVING ACTION Recommendations: Receive a presentation recognizing Guillermo for his heroic actions in assisting a swimmer in distress at Woods Cove and April 11, 2026.

3. PROCLAMATION FOR NATIONAL PUBLIC WORKS WEEK
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Recommendations: 1. Approve a Proclamation recognizing Roger Kempler’s service to the community

3. PROCLAMATION FOR NATIONAL PUBLIC WORKS WEEK
Recommendations:

1. Approve the Proclamation recognizing the week of May 1723, 2026, as National Public Works Week in the City of Laguna Beach.

4. PRESENTATION FROM LAGUNA BEACH HISTORICAL SOCIETY
Recommendations: Receive a presentation from the Laguna Beach Historical Society highlighting the history of Laguna Beach.

A. PUBLIC COMMENTS NONAGENDIZED ITEMS. The City Council shall consider Public Comments, of up to three minutes each as determined by the Mayor and for a total of 45 minutes, from the audience concerning items not appearing on the agenda, but that is within the subject matter jurisdiction of the City Council. Public comments beyond 45 minutes shall be reconvened at the conclusion of public hearings. In accordance with the provisions of the Brown Act (Government Code Section 54950 et seq.), no action or discussion may take place by the Council on any item not on the posted agenda. Speaker cards may be used by the City Clerk’s Office for the orderly conduct of the meeting; those not completing speaker cards may speak after those who completed speaker cards. Pursuant to California Government Code section 54953(b)(3), any member of the public wishing to address the legislative body directly pursuant to California Government Code section 54954.3 may do so at each teleconference location at the time the item is considered.

B. MATTERS FROM THE MAYOR, CITY COUNCIL MEMBERS AND CITY MANAGER. This is a time for brief updates to the public from the City Council and the City Manager on various City matters.

C. CONSENT CALENDAR. All matters listed under Consent Calendar are considered by the City Manager to be routine and will be enacted by one roll call vote. There will be no discussion of these items unless a Councilmember, the City staff, or a member of the public requests removal of an item (please identify the item by its number) from the Consent Calendar for separate discussion, and that person shall be identified and noted in the minutes for the item. Once any additions or removals are made, the City Council will vote to approve all items remaining on the Consent Calendar. Any item that was removed will be considered following the action on the Consent Calendar; each speaker shall have up to three minutes, and may be shortened or extended, or a cumulative limit on the time for all public speakers may be imposed, at the discretion of the presiding officer (the Mayor).

5. MINUTES OF THE CITY COUNCIL MEETINGS
Recommendations: Receive and file the minutes of the April 28, 2026, City Council Study Session, and minutes of the Regular Meeting for the City Council of April 28, 2026.

6. APPROVAL OF GENERAL WARRANTS AND PAYROLL DISTRIBUTIONS Recommendations:

1. Approve the general warrants and payroll distributions.

7. MONTHLY TREASURER’S AND INVESTMENT REPORT (MARCH 2026) 3 of 1519
minutes of the Regular Meeting for the City Council of April 28, 2026.

6. APPROVAL OF GENERAL WARRANTS AND PAYROLL DISTRIBUTIONS Recommendations:

1. Approve the general warrants and payroll distributions.

7. MONTHLY TREASURER’S AND INVESTMENT REPORT (MARCH 2026) Recommendations:

1. Receive and file the March 2026 report.

8. AWARD OF CONSTRUCTION CONTRACT FOR FIRE STATION COMMUNICATION SYSTEM UPGRADES
Recommendations:

1. Award and authorize the City Manager to execute a contract with Intelinet, Inc., in the amount of $197,422, for construction of Fire Station Communication System Upgrades project;

2. Authorize the City Manager to approve projectrelated expenses and contract change orders for unforeseen circumstances in an amount not to exceed $30,000; and

3. Find that the award of contract is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301.

9. FISCAL YEAR 2024/25 AUDIT REPORTS
Recommendations: 1. Receive and file the Fiscal Year 2024/25 audit reports.

10. RECEIVE AND FILE THE CLASSIFICATION AND COMPENSATION STUDY PREPARED BY BAKER TILLY
Recommendations:

1. Receive and file the Classification and Compensation Study prepared by Baker Tilly, US, LLP; and

2. Find that the recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378, as it does not constitute a project.

11. APPROVAL TO PROCEED WITH CONSTRUCTION FOR UNDERGROUND UTILITY DISTRICT 20191 (COAST HIGHWAY)
Recommendations:

1. Authorize the use of $5,097,358 Rule 20A credits to proceed with construction for Underground Utility District 20191 (Coast Highway);

2. Award and authorize the City Manager to execute a contract with Hot Line Construction, Inc. in the amount of $2,363,255 for the construction of City street lighting and nonRule 20A private connections;

3. Authorize the City Manager to enter into a utility company agreement with Frontier Communications to construct nonRule 20A underground utilities and make an advanced payment for a total amount of $1,151,743;

4. Authorize the transfer of $2,780,127 from the Coat Highway UD 20201 project (6343150C81000C2118) to the Coast Highway Utility District 20191 project (6343150C81000 C2614);
5Appropriate$135609(accontnmber6343150C81000C2614)fromtheStreetLighting 4 of 1519
the amount of $2,363,255 for the construction of City street lighting and nonRule 20A private connections;

4. Authorize the transfer of $2,780,127 from the Coat Highway UD 20201 project (6343150C81000C2118) to the Coast Highway Utility District 20191 project (6343150C81000 C2614);

5. Appropriate $135,609 (account number 6343150C81000C2614) from the Street Lighting and Utility Fund to approve a total budget of $2,915,736 for the Coast Highway Utility District 20191 project; and

6. Authorize the City Manager to approve projectrelated expenses and construction change orders for unforeseen circumstances for an amount nottoexceed $351,500.

12. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH US DIGITAL DESIGNS FOR FIRE STATION ALERTING
Recommendations:

1. Approve a Professional Services Agreement with US Digital Designs for the purchase and installation of a Phoenix G2 fire station alerting system in an amount not to exceed $329,910.66;

2. Authorize the City Manager, or designee, to execute the agreement and any necessary related documents, in a form approved by the City Attorney;

3. Authorize a reduction in $35,000 from the IT budget (account 110120572111) and an increase in the Fire Department budget (account 1412406C80010) to fully fund the project;

4. Authorize the transfer of $35,000 from the General Fund (#110) to the Wildfire Mitigation and Fire Safety Fund (#141); and

5. Determine that the proposed project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1 – Existing Facilities).

13. THIRD AMENDMENT TO AGREEMENT BETWEEN THE CITY OF LAGUNA BEACH AND FROGPARKING, INC. FOR SMART PARKING GUIDANCE
Recommendations:

1. Authorize the City Manager to execute the Third Amendment to the Agreement with Frogparking, Inc. for parking services, in a form approved by the City Attorney, to extend the agreement until October 2, 2026 for an amount not to exceed $47,040; and

2. Find the action is not a project within the meaning of the California Environmental Quality Act under Public Resources Code Section 21065.

14. RESOLUTION ACCEPTING THE FIRE DEPARTMENT’S REPORT ON COMPLIANCE WITH STATE INSPECTION MANDATES
Recommendations:

1. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, ACKNOWLEDGING RECEIPT OF A REPORT FROM THE LAGUNA BEACH FIRE DEPARTMENT DEMONSTRATING COMPLIANCE WITH HEALTH AND SAFETY CODE SECTION 13146.4 AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT,”acceptingtheFireDepartment’sreportoncompliancewithstate 5 of 1519
WITH STATE INSPECTION MANDATES
Recommendations:

1. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, ACKNOWLEDGING RECEIPT OF A REPORT FROM THE LAGUNA BEACH FIRE DEPARTMENT DEMONSTRATING COMPLIANCE WITH HEALTH AND SAFETY CODE SECTION 13146.4 AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT,” accepting the Fire Department’s report on compliance with state inspection mandates.

15. CONSIDER AND RESPOND TO A BROWN ACT ALLEGATION REGARDING THE CITY COUNCIL’S FIRST READING OF THE TITLE 18 ORDINANCE AT ITS APRIL 14, 2026 MEETING
Recommendations:

1. Receive and file the April 27, 2026 complaint demanding the City Council “cure and correct” alleged Brown Act violations relating to the City Council’s April 14, 2026 consideration of the Title 18 Ordinance (Agenda Item No. 16 at that meeting);

2. Receive and file this report analyzing the allegations in that complaint; and

3. Direct the City Attorney to prepare, execute, and send, a letter pursuant to Government Code section 54960.1(c)(2), to the complainant conveying that the City Council considered the April 27, 2026 email demanding a cure or correction under the Brown Act, determining that no Brown Act violation occurred as the agenda title was sufficient and the City Council action was consistent with the agenda title, and therefore the City Council will not take further action regarding this matter as there is no action to correct.

16. TRANSPORTATION DEVELOPMENT ACT ARTICLE 4 FUND ACTIVITY FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Recommendations:

1. Receive and file the Transportation Development Act (TDA) Article 4 Fund Activity financial statements for the fiscal year ended June 30, 2025; and

2. Find that the recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378, as it does not constitute a project.

D. REGULAR BUSINESS. This section is for a wide variety of matters generally worthy of separate discussion such as the consideration of ordinances for introduction, resolutions, extraordinary policy and business matters, staff reports and recommendations. The presiding officer will take public comment on each Regular Business item. Each speaker shall have up to three minutes for each agendized Regular Business item, as may be shortened or extended, or a cumulative limit on the time for all public speakers may be imposed, at the discretion of the Presiding Officer. Pursuant to California Government Code section 54953(b)(3), any member of the public wishing to address the legislative body directly pursuant to California Government Code section 54954.3 may do so at each teleconference location at the time the item is considered.

17. CONSIDERATION OF CITY POSITION ON LAGUNA BEACH MARINE PROTECTED AREA BOUNDARY PETITION AND STATE REVIEW PROCESS
Recommendations:

1. The Environmental Sustainability Committee recommends that the City Council support California Department of Fish and Wildlife’s recommendation to deny the petition and maintain 6 of 1519
California Government Code section 54953(b)(3), any member of the public wishing to address the legislative body directly pursuant to California Government Code section 54954.3 may do so at each teleconference location at the time the item is considered.

17. CONSIDERATION OF CITY POSITION ON LAGUNA BEACH MARINE PROTECTED AREA BOUNDARY PETITION AND STATE REVIEW PROCESS
Recommendations:

2. It is recommended that the City Council further find the recommended action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 and is alternatively exempt under CEQA Guidelines Section 15061(b)(3).

18. CONTRACT SERVICE AGREEMENT FOR TROLLEY AND ONDEMAND TRANSIT SERVICES AND OPTIONS TO REDUCE OFFSEASON SERVICE COSTS AND IMPLEMENTATION OF ONDEMAND PASSENGER FARES
Recommendations:

1. Authorize the City Manager to execute a fiveyear Professional Services Agreement, in a form approved by the City Attorney, with LAZ Parking California, LLC (“LAZ”) for trolley and ondemand transit operating services for the period of July 1, 2026, through June 30, 2031, in an amount not to exceed $19,102,790;

2. Consider approving reductions to certain offseason trolley and ondemand transit services, as reflected in Figure 4, in order to reduce Transit Fund subsidy requirements while maintaining compliance with Orange County Transportation Authority (“OCTA”) Measure M2 Project V grant requirements;

3. Authorize implementation of up to a $5 per passenger fare for Laguna Local ondemand transit services, as reflected in Figure 6; and

4. Find the action exempt under the California Environmental Quality Act under CEQA Guidelines Section 15061(b)(3).

E. PUBLIC HEARINGS NON APPEALS. This section is for matters (other than appeals) that are structured as Public Hearings. Public hearings are different from regular business items in that there is a specific time period where a formal hearing is opened by the presiding officer, public comment is accepted from any member of the public, and the hearing is closed by the presiding officer. Generally each public speaker has one opportunity to speak. The City Council conducts all Public Hearings in accordance with the provisions of applicable Laguna Beach procedure and State law. The presiding officer shall have discretion to establish the time allocated for public comment.

19. LOT LINE ADJUSTMENT 20231747 AND COASTAL DEVELOPMENT PERMIT 2025 0096 AT 675 BUENA VISTA WAY AND 620 TEMPLE HILLS DRIVE
Recommendations:

1. Conduct a Public Hearing, including receiving a staff report and taking public testimony and evidence related to the consideration of Lot Line Adjustment 20231747, Coastal Development Permit 20250096, and CEQA exemption under State CEQA Guidelines Section 15061(B)(3); and

2. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, APPROVING LOT LINE ADJUSTMENT 2023 1747 AND COASTAL DEVELOPMENT PERMIT 20250096 TO MODIFY THE LOCATION OF A COMMON PROPERTY LINE BETWEEN TWO LOTS AT 675 BUENA VISTA WAY AND 620 TEMPLE HILLS DRIVE, AND FINDING THE PROJECT EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO STATE CEQA GUIDELINES SECTION 15061(B)(3)”, approving Lot Line Adjustment 20231747 and Coastal Development Permit 20250096 to modify the location of a common property line between 675 Buena Vista Way and 620 Temple Hills Drive, and finding the project exempt from finding the project categorically exempt from the California Environmental Quality Act.

20. PUBLIC HEARING REGARDING THE ANNUAL SIDEWALK AND INTERSECTION VISIBILITY NUISANCE ABATEMENT PROGRAM
Recommendations:

1. Conduct a public hearing to hear protests regarding any noticed nuisance as established by Resolution No. 26.017;

2. Allow or overrule any protests based on facts or circumstances presented by protestors (Mayor Orgill to recuse, if protest regarding Property 8, and Councilmember Kempf to recuse, if protest regarding Property 30, as listed in Attachment 2.);

3. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, DIRECTING THE DIRECTOR OF PUBLIC WORKS & UTILITIES TO PROCEED WITH ABATING ALL NOTICED NUISANCES ON PROPERTIES THAT DO NOT ABATE THE NUISANCES WITHIN THE PRESCRIBED TIME AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT”, directing the Director of Public Works & Utilities to abate all noticed nuisances established by Resolution No. 26.017 for Properties 135, as listed in Attachment 2, if not removed by June 12, 2026 (Mayor Orgill shall recuse from deliberation and voting on Property 8. Councilmember Kempf shall recuse from deliberation and voting on Property 30); and

4. Find the abatement of public nuisances exempt from California Environmental Quality Act pursuant to State CEQA Guidelines section 15304.

21. PUBLIC HEARING FOR ANNUAL WEED ABATEMENT PROGRAM
Recommendations:

1. Conduct a public hearing to hear protests regarding any noticed nuisance as established by Resolution No. 26.XXX (Attachment 1) and Resolution No. 26.010;

2. Allow or overrule any protests based on facts or circumstances presented by the protestor (Mayor Orgill, Mayor Pro Tem Jones, Councilmembers Kempf, Rounaghi, and Whalen to recuse if the protest concerns properties listed in the subsequent recommendations);

1. Conduct a public hearing to hear protests regarding any noticed nuisance as established by Resolution No. 26.XXX (Attachment 1) and Resolution No. 26.010;

3. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, DIRECTING THE FIRE CHIEF TO PROCEED WITH ABATING ALL NOTICED NUISANCES ON PROPERTIES THAT DO NOT ABATE THE NUISANCES WITHIN THE PRESCRIBED TIME AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT” directing the Fire Chief to abate all noticed nuisances established by Resolution No. 26.010 on Exhibit A for property # 186 (APN 64404420) not removed by May 12, 2026 (Mayor Orgill to recuse);

4. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, DIRECTING THE FIRE CHIEF TO PROCEED WITH ABATING ALL NOTICED NUISANCES ON PROPERTIES THAT DO NOT ABATE THE NUISANCES WITHIN THE PRESCRIBED TIME AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT” directing the Fire Chief to abate all noticed nuisances established by Resolution No. 26.010 on Exhibit A for property # 242 (APN 64425412) not removed by May 12, 2026 (Mayor Pro Tem Jones to recuse);

5. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, DIRECTING THE FIRE CHIEF TO PROCEED WITH ABATING ALL NOTICED NUISANCES ON PROPERTIES THAT DO NOT ABATE THE NUISANCES WITHIN THE PRESCRIBED TIME AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT” directing the Fire Chief to abate all noticed nuisances established by Resolution No. 26.010 on Exhibit A for properties # 325 and 326 (APN 65605317 and 65605327) not removed by May 12, 2026 (Councilmember Kempf to recuse);

6. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, DIRECTING THE FIRE CHIEF TO PROCEED WITH ABATING ALL NOTICED NUISANCES ON PROPERTIES THAT DO NOT ABATE THE NUISANCES WITHIN THE PRESCRIBED TIME AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT” directing the Fire Chief to abate all noticed nuisances established by Resolution No. 26.0010 on Exhibit A for property #356, 357, and 358 (APN 658091 01,65809105, and 65809106) not removed by May 12, 2026 (Councilmember Rounaghi to recuse);

7. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, DIRECTING THE FIRE CHIEF TO PROCEED WITH ABATING ALL NOTICED NUISANCES ON PROPERTIES THAT DO NOT ABATE THE NUISANCES WITHIN THE PRESCRIBED TIME AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT” directing the Fire Chief to abate all noticed nuisances established by Resolution No. 26.010, for properties # 1185, 187241, 243324, 327355, and 359 368 on Exhibit A if not removed by May 12, 2026; and

8. Identify the abatement of public nuisances exempt from the California Environmental Quality Act pursuant to Section 15304 of the State CEQA Guidelines.

22. FIRST READING OF DESIGN REVIEW EFFICIENCY ORDINANCE AND EFFICIENCY

ORDINANCE
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FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT” directing the Fire Chief to abate all noticed nuisances established by Resolution No. 26.010, for properties # 1185, 187241, 243324, 327355, and 359 368 on Exhibit A if not removed by May 12, 2026; and

8. Identify the abatement of public nuisances exempt from the California Environmental Quality Act pursuant to Section 15304 of the State CEQA Guidelines.

22. FIRST READING OF DESIGN REVIEW EFFICIENCY ORDINANCE AND EFFICIENCY

ORDINANCE
Recommendations:

1. Waive full reading and introduce by title only an Ordinance titled, "AN ORDINANCE OF THE CITY COUNCIL OF LAGUNA BEACH, CALIFORNIA, AMENDING ITS LOCAL COASTAL PROGRAM AND MUNICIPAL CODE TO MODIFY TITLE 25 (ZONING), TITLE 21 (SUBDIVISIONS), AND TITLE 22 (EXCAVATING, GRADING, AND FILLING) TO STREAMLINE THE DESIGN REVIEW AND OTHER PERMIT PROCESSES; AND FINDING SAID ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CEQA GUIDELINES SECTION 15301;

2. Waive full reading and introduce by title only an Ordinance titled, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, AMENDING ITS MUNICIPAL CODE TO MODIFY CHAPTER 7.25 (NOISE), 12.08 (PRESERVATION OF HERITAGE TREES), 12.16 (VIEW PRESERVATION AND RESTORATION), AND 17.50 (PRIVATE SEWER LATERALS) TO IMPROVE CONSISTENCY WITHIN THE CODE; AND FINDING SAID ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CEQA GUIDELINES SECTION 15301”;

3. Direct staff to return with the Ordinances, identified in recommendations 1 and 2, above, for a second reading and adoption at the May 26, 2026, City Council meeting;

4. Direct City staff to present an urgency version of the Design Review Efficiency Ordinance at the May 26, 2026, City Council meeting;

5. Direct City staff to return with proposed City Council resolution with revisions to the Design Guidelines – A Guide to Residential Development that are consistent with the revisions to the Design Review Efficiency Ordinance;

6. Give further direction as to the policy regarding concept review for certain capital improvement program projects, direct City staff to draft a Resolution memorializing the City staff policy for such concept reviews, and direct City staff to bring the draft Resolution to the May 26, 2026, City Council meeting for adoption; and

7. Find that the recommended actions are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301.

23. PUBLIC HEARING TO ADOPT RESOLUTION UPDATING THE MASTER FEE SCHEDULE FOR FISCAL YEAR 2026/27
Recommendations:

1. Open the public hearing and receive input;

2. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, ADOPTING ITS MASTER FEE SCHEDULE AND FINDING SUCH ACTIONS EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT,” thereby approving the update Master Fee Schedule effective July 1, 2026; and
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SCHEDULE FOR FISCAL YEAR 2026/27
Recommendations:

1. Open the public hearing and receive input;

3. Find the action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378.

F. COUNCIL MEMBER ITEM(S). The City Council shall consider matters submitted by members of the City Council in accordance with Resolution No. 24.011, as it may be amended.

G. ADJOURNMENT. The Laguna Beach City Council will adjourn to its next regular or other meeting, tentatively set for:

Tuesday, May 26, 2026
LAGUNA BEACH CITY HALL
COUNCIL CHAMBERS
505 FOREST AVENUE, LAGUNA BEACH, CA
CLOSED SESSION AT 4:00 P.M. AND
REGULAR CITY COUNCIL MEETING AT 5:00 PM.

ADA ACCOMMODATIONS
*************************
Pursuant to the Americans with Disabilities Act, persons with a disability who require a disabilityrelated modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the City Clerk at (949) 4970705 (telephone) or (949) 4970771 (facsimile). Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting.

COMPLIANCE WITH GOVERNMENT CODE SECTION 54957.5
********************************************************* Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packets are available for public inspection in the City Clerk's Office at 505 Forest Avenue, Laguna Beach, California, during normal business hours. 11 of 1519

STAFF REPORT
Meeting Date:

May 12, 2026

PRESENTATION
1 SUBJECT: PROCLAMATION RECOGNIZING ROGER KEMPLER
RECOMMENDATION: It is recommended that the City Council:

1. Approve a Proclamation recognizing Roger Kempler’s service to the community.

SUMMARY OF THE MATTER
A Proclamation recognizing Roger Kempler.

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.

ATTACHMENTS

1. Proclamation (Pg. 2)
Submitted By: Alexis Braun Approved: .David A Kiff
Alexis Braun, Acting Director of
Transit and Community Services
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Alexis Braun, Acting Director of Transit and
Community Services
Garrett Rauch, Recreation Coordinator
1 of 2
Attachment 1
2 2 of 2

STAFF REPORT
Meeting Date:

May 12, 2026

PRESENTATION
2 SUBJECT: RECOGNITION OF GUILLERMO MORATORIO FOR HIS LIFESAVING ACTION
RECOMMENDATION: It is recommended that the City Council:

1. Receive a presentation recognizing Guillermo for his heroic actions in assisting a swimmer in distress at Woods Cove and April 11, 2026.

SUMMARY OF THE MATTER
This item presents a Certificate of Recognition honoring Guillermo Moratorio for demonstrating exceptional bravery and public service by taking immediate action to assist a swimmer caught in a rip current at Woods Cove on April 11, 2026. His actions demonstrated courage, awareness, and a willingness to act in support of another individual during a potentially life-threatening event.

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.

ATTACHMENTS
None
Submitted By:
. Approved: .David A Kiff
Gavin Curran, Assistant City
Manager
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Gavin Curran, Assistant City Manager Kai Bond, Chief of Marine Safety 1 of 3

STAFF REPORT
Meeting Date:

May 12, 2026

PRESENTATION
3 SUBJECT: PROCLAMATION FOR NATIONAL PUBLIC WORKS WEEK
RECOMMENDATION: It is recommended that the City Council:

1. Approve the Proclamation recognizing the week of May 17-23, 2026, as National Public Works Week in the City of Laguna Beach.

SUMMARY OF THE MATTER
The American Public Works Association (APWA) has sponsored National Public Works Week since 1960 to honor public works professionals and educate the public on the importance of public works in the community. Annually, APWA selects a theme to highlight the public works profession. The designated theme for the 66th National Public Works Week is “Rooted in Service, Powered by Community”. The theme highlights how public works professionals are driven by a commitment to serve their communities, and how that community support and empowers them to deliver their best work every day.

Staff recommends the City Council proclaim the week of May 17-23,2026, as National Public Works Week in the City of Laguna Beach (Attachment 1) to recognize the hard work, commitment, and contributions that Laguna Beach’s public works professionals provide to the community

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.

ATTACHMENTS

1. Proclamation for the 66th National Public Works Week (Pg. 2) Submitted By: Mark McAvoy Approved: .David A Kiff
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Catalina Ramirez, Administrative Assistant Ashley Moran, Sr. PW Analyst/Solid Waste Coordinator
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Attachment 1
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STAFF REPORT
Meeting Date:

May 12, 2026

PRESENTATION
4 SUBJECT: PRESENTATION FROM LAGUNA BEACH HISTORICAL SOCIETY RECOMMENDATION: It is recommended that the City Council:

1. Receive a presentation from the Laguna Beach Historical Society highlighting the history of Laguna Beach.

SUMMARY OF THE MATTER
Receive a presentation from the Laguna Beach Historical Society highlighting the history of Laguna Beach.

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.

ATTACHMENTS
None
Submitted By:
. Approved: .David A Kiff
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PRESENTATION FROM LAGUNA BEACH HISTORICAL SOCIETY
May 12, 2026

Page 2 of 2 ends

Gavin Curran, Assistant City
Manager
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Gavin Curran, Assistant City Manager
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STAFF REPORT
Meeting Date:

May 12, 2026

CONSENT
5 SUBJECT: MINUTES OF THE CITY COUNCIL MEETINGS
RECOMMENDATION: It is recommended that the City Council:

1. Receive and file the minutes of the April 28, 2026, City Council Study Session, and minutes of the Regular Meeting for the City Council of April 28, 2026.

SUMMARY OF THE MATTER
All components of minutes are for the primary purpose of memorializing decisions made by the legislative body during the meeting. Any minute component that does not serve this primary purpose is minimized or eliminated; this includes comments made by individual body members and members of the public.

Discussions that occurred during the meeting can be viewed in archived video recordings on the city’s website. Public submittals on items received prior to adjournment of the meeting are retained in the administrative record and can be viewed in the City Clerk’s records repository.

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.

ATTACHMENTS

1. 4/28/2026 Study Session DRAFT Minutes (Pgs. 2-4)

2. 4/28/2026 Regular Meeting DRAFT Minutes Pgs. 5-15)
Submitted By: Ann Marie McKay Approved: .David A Kiff
Ann Marie McKay, City Clerk Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Ann Marie McKay, City Clerk
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MINUTES

LAGUNA BEACH CITY COUNCIL STUDY SESSION
April 28, 2026
A Study Session of the City Council of the City of Laguna Beach was called to order on Tuesday, April 28, 2026, at 3:00 p.m., in the City Hall, 505 Forest Avenue, Laguna Beach, California, Mayor Orgill presiding.

ROLL CALL
PRESENT: COUNCILMEMBERS: Kempf, Rounaghi, Whalen, Jones, Orgill PARTICIPATING REMOTELY: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None

STUDY SESSION
*****************

1. POLICY CONSIDERATIONS FOR DEVELOPMENT IN THE VERY HIGH FIRE HAZARD SEVERITY ZONE
Presentation and Discussion: Staff provided a presentation and responded to Councilmember questions. In response to Councilmember Bob Whalen’s question, Assistant City Attorney clarified that the policy questions do not relate to ADUs (Accessory Dwelling Units).

Public Testimony: Matt Lawson, James Dockstader, Tom Gibbs, David Horne, and Ann Christoph commented on the topic.

City Council Direction:

Question 1: Should the City continue allowing broad use of AM&Ms for core access issues, or narrow that practice? The City Council expressed support for limiting AM&M practice, treating it as a last resort when code compliance is otherwise infeasible. The City Council acknowledged that past AM&M approvals were not necessarily unsafe on an individual basis, but that a cumulative, site-by-site approach may leave broader community safety needs unmet. Examples of appropriate AM&M exceptions include on-site water reservoirs to offset a hose-lay distance deficiency, where equivalent safety is demonstrably achieved. The City Council directed staff to return with more clearly defined parameters.

In response to the question of whether residential fire code review should be returned to the Fire Marshal, noting that commercial properties are reviewed by the Fire Marshal rather than the Building Official, staff clarified the current bifurcated system (single-family/duplex via Building Official; commercial via Fire Marshal) and noted the change was made pursuant to previous City Council direction. Staff indicated either approach is achievable but that keeping review within the Building Division maintains permit system efficiency. The City Council expressed interest in exploring whether the Fire Marshal should have direct Attachment 1
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approval authority over AM&M determinations, recognizing a preference for preserving staff processing efficiency. Staff noted that pending Zone Zero regulations from the State may necessitate additional Fire review capacity within the Building Division process.

Question 2: Which fire access requirements should be treated as non-negotiable baseline standards? The City Council expressed general support for treating street width and evacuation-related standards as the highest priority for non-negotiable compliance. The City Council directed staff to return with more specific and prescriptive parameters, including grade thresholds, with concrete examples. Staff indicated they would bring back tiered examples for further discussion, including scenarios illustrating when AM&M approval would and would not be appropriate.

Question 3: How should projects currently in the pipeline or under review be treated? The City Council expressed general support for a pipeline provision; however, revocable encroachment permits (REPs) are discretionary and should not be grandfathered in the same manner.

Question 4: At what level of development should compliance be triggered? The City Council directed staff to return with a tiered compliance framework with options for thresholds below the major remodel level. Windows, siding, garage door replacement, and similar maintenance-category work should be excluded from triggering compliance requirements. Simple bathroom and kitchen remodels should also generally be excluded.

Whereas additions of square footage, additional rooms, or increases in intensity of use should be treated as triggers. The City Council also directed staff to bring back options in requiring removal of right-of-way encroachments even for projects below the major remodel threshold.

Question 5: What frontage or right-of-way improvements should be required when triggers are met? The City Council expressed support for staff’s centerline approach and directed that all recommendations be analyzed for nexus and proportionality consistent with applicable constitutional requirements. The City Council also directed staff to develop specific turnaround scenarios for new construction, road extensions, and subdivisions versus infill redevelopment, acknowledging that conditions cannot be imposed requiring third-party compliance. The City Council also directed staff to develop an inventory of known encroachments and existing REPs to inform future policy.

Question 6: Any additional areas for staff to address in returning policy documents? The City Council also provided the following additional direction:
• Capital Improvement Program (CIP) for Priority Streets: The City Council expressed strong interest in staff evaluating a CIP approach targeting the most critically constrained streets identified in the City’s evacuation study, rather than relying solely on incremental improvement through project conditions.
• Intermediate Access Improvements: The City Council directed staff to identify nearterm options short of full CIP projects, including elimination of on-street parking on 3 3 of 15
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constrained streets. Staff noted the City has already expanded its red flag parking program on certain streets and banned parking on one side of at least one constrained street. • General Plan Update: Community Development Director Matt Schneider noted that a comprehensive look at the City’s Circulation Element, evacuation planning, and interrelated fire safety policies is contemplated as part of a General Plan update, and that this topic will be included in the forthcoming request for proposals.
• ADUs in High Fire Risk Areas: The City Council directed staff to explore whether the City can join other similarly situated cities in lobbying the State for an exemption from ADU mandates in high fire risk areas, or whether other legitimate fire-access-based restrictions are available.
• Encroachment / Right-of-Way Inventory: The City Council directed staff to compile an inventory of recorded encroachments and unexercised easements to support future access improvement planning, with particular attention to neighborhoods with the most constrained roadways.

ADJOURNMENT
****************
There being no further business, Mayor Orgill at 4:00 p.m., Tuesday, April 28, 2026, adjourned to Closed Session, then to the Regular City Council Meeting at 5:00 p.m. on Tuesday, April 28, 2026, at City Hall, 505 Forest Avenue, Laguna Beach California. ****************
Approved: May 12, 2026

______________________________
Ann Marie McKay, City Clerk
Note: All components of minutes shall be for the primary purpose of memorializing decisions made by the legislative body. Any minute component that does not serve this primary purpose will be minimized or eliminated; this includes comments made by individual body members and members of the public. Discussions that occurred during the meeting can be viewed in archived video recordings on the city’s website. Public submittals on items received prior to adjournment of the meeting are retained in the administrative record and can be viewed in the city clerk’s repository. 4 4 of 15
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MINUTES

LAGUNA BEACH CITY COUNCIL REGULAR MEETING
April 28, 2026
A Regular Meeting of the City Council of the City of Laguna Beach was called to order at 5:00 p.m. on Tuesday, April 28, 2026, in the City Hall, 505 Forest Avenue, Laguna Beach, California, Mayor Mark Orgill presiding.

ROLL CALL
PRESENT: COUNCILMEMBERS: Kempf, Rounaghi, Whalen, Jones, Orgill PARTICIPATING REMOTELY: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
Councilmember Bob Whalen led the Pledge of Allegiance.

CLOSED SESSION
****************

1. Conference with Labor Negotiators
Pursuant to Government Code § 54957.6
1a. Agency-designated representative: Dave Kiff, City Manager Employee Organization: Police Employee’s Association
1b. Agency-designated representative: Dave Kiff, City Manager Employee Organization: Municipal Employee’s Association

2. Real Property Negotiations
Pursuant to Government Code Section 54956.8
2a. Property: 30622 Coast Highway, Laguna Beach, California, 92651 Agency Negotiator: Dave Kiff, City Manager
Negotiating Parties: Kenneth J. Cummins Trust
Under Negotiation: Price and Terms of Payment
2b. Property: 30802 Coast Highway, City of Laguna Beach, California, 92651 Agency Negotiator: Dave Kiff, City Manager
Negotiating Parties: Hometown Laguna Terrace, LLC
Under Negotiation: Price and Terms of Payment

CLOSED SESSION ANNOUNCEMENT(S)
*********************************
City Attorney Megan Garibaldi reported that all Councilmembers were present and there were no public comments prior to the City Council convening into the Closed Session, and that there was no reportable action on any of the items discussed.

Attachment 2
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ADDITIONS and DELETIONS – None.
*******************************

PRESENTATIONS
***************

1. YEARS OF SERVICE RECOGNITION
Received and filed the report recognizing the following City employees with milestone years of service: Sarah Limones, Brandon McLaughlin, Hailey Ramirez, Abraham Marin, Samantha Beier, Samantha Montalto, and Bill Rodrigues for 1 year; Daniel Latham, Nicole Bovey, Michaela Milone, Jacob Strangis, Tony Manzano, Kyle Valmassy, and Matthew Barker for 5 years; Elias Carrera Campos for 10 years; and Barrett Schulenburg for 20 years.

PUBLIC COMMENTS - NON-AGENDIZED ITEMS
*****************************************
Michelle Highberg, Just Gather, announced their new partnership with the Orange County Mountain Bike Association (OCMTBA) to create “Zen Zones” at pump tracks, and she invited everyone to their May 8 “The Art of Being” event at Galerie Rue Toulouse.

Joy Berry read a letter submitted by Merrill Anderson, and she encouraged everyone to direct their anger towards issues and not individuals.

Cathy Jurca thanked Councilmember Sue Kempf for actively cleaning the City’s beaches, and she requested that the City consider requiring bird-safe glass for new windows.

Mike Rauch and Vicki Johnson suggested that the City rescind its load data permission and table any further considerations of joining the Orange County Power Authority (OCPA).

Pat Menne noted that the new owner of a property on Coast Highway was actively planting Ficus trees in the view corridor, until they were reported to Code Enforcement who stopped them. She also expressed her consternation with the conversion of public parking to metered parking in South Laguna.

Ed Bayuk provided a packet regarding a civil issue and reiterated his suggestions to the City.

Jacob Cherub and Doug Vogel opined on how the City responds to citizen input.

Ruben Flores commented on local events and asserted that the City is no longer resident-friendly. 6 6 of 15
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[Appeal A, Item #16, then Item #15 were heard at this time.]

MATTERS FROM THE MAYOR, CITY COUNCIL MEMBERS AND CITY MANAGER **************************************************************** City Clerk Ann Marie McKay announced that the official ballot drop box has been relocated from in front of the library to the parking lot next to City Hall. She also announced that one of the Vote Centers will be at the Community Recreation Center instead of Lang Park, and reminded everyone that removing and defacing political signs is a crime, unless placed without permission on their own personal property. She encouraged anyone that sees signs in unpermitted locations, such as the public right-of-way and on utility poles, to report those signs to the City. She also announced that the City is accepting applications for several committees, including Planning Commission, Arts Commission, Emergency/Disaster Preparedness Committee, Housing & Human Services Committee, Parking, Traffic & Circulation Committee, and View Restoration Committee, and applications must be submitted by 5:00 p.m. Thursday, May 14. City Clerk McKay concluded by recognizing the loss of a member of the community, Roger Kempler.

Councilmember Sue Kempf also reflected on Roger Kempler’s contributions to the City. She then reported on the Community Preparedness & Evacuation workshops, and once again encouraged everyone to attend one.

Councilmember Alex Rounaghi requested that the City Council adjourn the meeting in honor of Roger Kempler. Councilmember Bob Whalen supported the request, and commented on his relationship with Roger Kempler and Roger’s impact.

Mayor Pro Tem Hallie Jones also commented on Roger Kempler. She then reported on various events and meetings she attended.

Mayor Mark Orgill also expressed his thoughts about Roger Kempler. He then reported on various meetings with members of the public and events he attended.

CONSENT CALENDAR
**********************
Moved by Councilmember Alex Rounaghi, seconded by Councilmember Sue Kempf, and carried unanimously 5/0 to approve items 1 – 4, 6 – 7, 9 – 11, and 13 – 14.

2. MINUTES OF THE CITY COUNCIL MEETINGS
Received and filed the minutes of the April 14, 2026, City Council Study Session, and minutes of the Regular Meeting for the City Council of April 14, 2026. 7 7 of 15
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3. APPROVAL OF GENERAL WARRANTS AND PAYROLL DISTRIBUTIONS

Approved the general warrants and payroll disbursements.

4. PLANNING DIVISION UPDATE AND WORKLOAD SUMMARY THROUGH APRIL 6, 2026 Received and filed the Planning Division Update and Workload Summary, which covers the period from August 2024 through April 6, 2026.

5. ADOPTION OF AN ORDINANCE AMENDING CHAPTER 3.24 OF THE LAGUNA BEACH MUNICIPAL CODE REGARDING THE CITY’S FINANCIAL GUIDELINES AND BUDGETING

PROCEDURES AND APPROVAL OF BUDGET CHANGE PROCESS ADMINISTRATIVE POLICY This item was pulled by a member of the public.

Public Testimony: Deborah Laughton raised questions and staff responded.

Moved by Councilmember Bob Whalen, seconded by Councilmember Alex Rounaghi, and carried unanimously 5/0 to adopt Ordinance #1727 titled, "AN ORDINANCE OF THE CITY COUNCIL OF LAGUNA BEACH, CALIFORNIA, AMENDING CHAPTER 3.24 OF THE LAGUNA BEACH MUNICIPAL CODE REGARDING THE CITY’S FINANCIAL GUIDELINES AND BUDGETING PROCEDURES, DELETING SECTION 3.01.060 DEALING WITH A BOND REQUIREMENT FOR

THE FINANCE DIRECTOR, AND FINDING THE ORDINANCE IS NOT A PROJECT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.”
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6. ADOPTION OF AN ORDINANCE AMENDING LAGUNA BEACH MUNICIPAL CODE SECTION

6.24.030 AND ADDING SECTION 6.24.070 TO PROHIBIT THE SALE AND USE OF GLUE TRAPS

WITHIN THE CITY
Adopted Ordinance #1728 titled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, AMENDING SECTION 6.24.030 OF THE LAGUNA BEACH MUNICIPAL CODE AND ADDING SECTION 6.24.070 TO CHAPTER 6.24 OF THE LAGUNA

BEACH MUNICIPAL CODE RELATING TO THE SALE AND USE OF GLUE TRAPS AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT”.

7. APPROVE AMENDMENT TO SEWER LINE MARKETING LICENSE AGREEMENT (a) Authorized the City Manager to execute an amendment to existing agreement #15-57 with Service Line Warranties of America, Inc. to offer service line warranty policies to residential property owners within the City of Laguna Beach; and (b) Found the recommended action is not a “project” under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 and alternatively exempt under CEQA Guidelines Section 15061(b)(3).

8. UPDATE AND ADDITIONAL FUNDING APPROVAL FOR CLEAN LAGUNA STEWARDSHIP

INITIATIVE
This item was pulled from the Consent Calendar by a member of the public.

Public Testimony: Nick Aronoff, Aaron Peluso, and Jennifer Zeiter commented and voiced concerns regarding the item.

Moved by Councilmember Sue Kempf, seconded by Councilmember Alex Rounaghi, and carried unanimously 5/0 to:
(a) Approve an additional appropriation of $66,845 from the Cultural and Environmental Stewardship Special Revenue Fund to complete the implementation of the Clean Laguna Campaign;
(b) Authorize reimbursement to Visit Laguna Beach for eligible program costs, in an amount not to exceed $66,845, subject to submission of itemized invoices, supporting documentation, and review and approval by the City; and (c) Find the recommended action is not a project subject to the California Environmental Quality Act (CEQA) pursuant to Section 15378 of the CEQA Guidelines. 9 9 of 15
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9. COOPERATIVE AGREEMENT WITH INTELINET INC., FOR NETWORK REPAIR (RACK, STACK,

PORTS, TONING), CAMERAS (REPAIR, INSTALLATION, AND CONFIGURATION) FIBER (REPAIRS AND CABLING)
(a) Authorized the City Manager to execute 5-year cooperative purchasing agreement #26- 83 with Intelinet Inc. a C-10 contractor for project and on-call Cabling, Fiber, and Camera products and services utilizing City of Long Beach contract numbers 37614, 37626, and 37627, in an amount not to exceed $120,000 annually and $840,000 over the full sevenyear term, subject to approval as to form by the City Attorney; (b) Authorized the City Manager to approve up to two (2) additional one-year renewal terms, subject to the continued availability of the City of Long Beach contracts and annual budget approval;
(c) Authorized the City Manager to issue on-call task orders, on an as-needed basis for projects with fees of $100,000 or below; and
(d) Found that the recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378, as it involves administrative procurement activities that will not result in a direct or reasonably foreseeable physical change in the environment.

10. AMENDMENT TO SERVICE AGREEMENT FOR GEOGRAPHICAL INFORMATION SYSTEM (GIS)

PROFESSIONAL SERVICES
(a) Approved Amendment to Agreement #25-58 with Infinity Technologies for Geographic Information System (GIS) Professional Services to revise the scope of work and increase the contract by $29,960 for a revised total not to exceed the amount of $149,960; and (b) Found that the action does not constitute a project under the California Environmental Quality Act pursuant to Guidelines Section 15378(b)(4) and Section 15378 (b)(5).

11. AGREEMENT WITH PACKET FUSION (AUTHORIZED ZOOM PHONE RESELLER/ PARTNER) FOR

VOIP TELEPHONE SYSTEM REPLACEMENT
(a) Authorized the City Manager to execute five-year agreement #26-79 with Packet Fusion for the purchase, implementation, and support of a cloud-based Voice over Internet Protocol (VoIP) telephone system using Zoom Phone services through Packet Fusion as an authorized reseller/implementation partner, to replace the City’s existing telephone system, in an amount not to exceed $419,128.67;
(b) Authorized the City Manager to approve change orders and additional expenditures in an amount not to exceed $55,000.00 during the initial five-year term for potential increases in service needs and unforeseen conditions identified during implementation, subject to available budget authority; and
(c) Found that the action does not constitute a project under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(b)(4) and Section 15378(b)(5).
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12. ADOPTION OF AN ORDINANCE AMENDING Title 18 AND SECTIONS 6.16.020 AND 8.04.010

OF THE LAGUNA BEACH MUNICIPAL CODE, AND ADOPTION OF A RESOLUTION

ESTABLISHING CERTAIN SHADE COVERING ZONES AT MAIN BEACH AND ALISO BEACH This item was pulled from the Consent Calendar by a member of the public.

Public Testimony: Susan Kinsey, Aaron Peluso, Whitney Aronoff, Nick Arnoff, and Christine Cernick urged the City Council to modify the usage of canopies on the beaches and parks.

Claudia Redfern and Jerome Pudwill voiced their concerns about the item.

Moved by Councilmember Bob Whalen, seconded by Mayor Pro Tem Hallie Jones, and carried unanimously 5/0 (with the caveat that Kempf and Rounaghi remain opposed to the proposed revisions to Laguna Beach Municipal Code section 18.04.020 “Canopies, awnings, umbrellas, tents and other covers,”) to:
(a) Adopt Ordinance #1729 titled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, AMENDING TITLE 18 AND SECTIONS 6.16.020 AND

8.04.010 OF THE LAGUNA BEACH MUNICIPAL CODE; AND FINDING SUCH ACTION

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CEQA GUIDELINES SECTION 15304”;
(b) Adopt Resolution #26.030 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA BEACH, CALIFORNIA, ESTABLISHING CERTAIN SHADE COVERING ZONES AT

MAIN BEACH AND ALISO BEACH, AND FINDING SUCH ACTION EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CEQA GUIDELINES SECTION 15304”; and
(c) Find the action exempt from the California Environmental Act under State CEQA Guidelines Section 15304.

13. SETTING A PUBLIC HEARING TO CONSIDER PROPOSED MAXIMUM RATES FOR SOLID WASTE

AND RECYCLING COLLECTION SERVICES
(a) Received a report on the proposed maximum solid waste service rates, including the proposed cart-based pricing structure for multi-family residential properties with two to eight units;
(b) Directed the City Manager, or designee, to prepare and distribute all notices required for the proposed rate adjustments and set a public hearing for June 23, 2026, at 5:00 p.m.; and
(c) Found the proposed action exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines sections 15061 (B)(3) and 15308 or, alternatively, determine that the proposed action is not a “project” under CEQA pursuant to CEQA Guidelines section 15378.
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14. TEMPORARY (2 WEEKS) BIKE PUMP TRACK AT THE COMMUNITY AND RECREATION CENTER (CRC)
(a) Authorized the City Manager to participate in the temporary pump track program in summer 2026 for a period of approximately two weeks at the Community and Recreation Center, to be located on a portion of the grass area near the lower parking lot, including submitting an application for a Temporary Use Permit and executing any necessary rental agreements, in a form approved by the City Attorney, for an amount not to exceed $16,000; and
(b) Found the recommended actions are exempt from the California Environmental Quality Act under CEQA Guidelines Section 15304.

REGULAR BUSINESS
********************

15. APRIL 20TH REMOVAL OF NINE TREES ON THE PROMENADE
This item was heard before the Consent Calendar, after Item #16.

Staff provided a presentation detailing the events that led to the decision to have nine existing trees removed from the Promenade.

City Manager Dave Kiff advised two trunk structures remain, and staff will consider possibilities for memorialization of the trees.

Public Testimony: Mark Christy, Ruben Flores, Jacob Cherub, Cathy Jurca, Lisa Mansour, Carrie Reynolds, David Rubel, Jorge Dubin, Gemma Totten, Deborah Laughton, a member of the public, Christina, Carter Frazer, Toni Iseman, Leslie Elliott, Larry Nokes, Edward Bayuk, Jo Johnson, Liza Stewart, Robin Hall, Nelson Coates-Vandyke, Aaron Peluso, Ann Christoph, David Browning, Jennifer Zeiter, Anne Krisman and Jerome Pudwell weighed in on the item.

The City Council directed staff to investigate possibilities for more variety (biodiversity) of trees in the project.

PUBLIC HEARINGS –-NON-APPEALS
******************************
Item #16 was heard before the Consent Calendar, after Appeal A.

16. CONTINUATION OF PUBLIC HEARING FOR ADOPTION OF THE MASTER FEE SCHEDULE Moved by Councilmember Bob Whalen, seconded by Councilmember Alex Rounaghi, and carried unanimously 5/0 to:
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(a) Continue the public hearing to the May 12, 2026, City Council meeting; and (b) Find that the action to continue the public hearing is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption).

17. FIRST PUBLIC HEARING PURSUANT TO GOVERNMENT CODE SECTION 34458 REGARDING A

POTENTIAL CITY CHARTER
Presentation and Discussion: Staff gave a presentation and responded to the Councilmembers’ questions regarding a potential City Charter.

Public Testimony: Aaron Peluso, City Treasurer Laura Parisi, Sheri Shiftman, Mary Locatelli, Deborah Laughton, Jennifer Zeiter, and Jerome Pudwill stated that they did not support the item.

The City Council directed staff to not proceed with the process of creating a City Charter.

PUBLIC HEARINGS – APPEALS
*************************
A. 30801 DRIFTWOOD DRIVE: APPEAL OF DESIGN REVIEW BOARD APPROVAL OF DESIGN REVIEW 25-1883, COASTAL DEVELOPMENT PERMIT 25-1884, AND REVOCABLE ENCROACHMENT PERMIT 25-1885 FOR DEMOLITION OF THE EXISTING STRUCTURE AND

CONSTRUCTION OF A NEW SINGLE-FAMILY DWELLING, NEW TWO-CAR GARAGE,

VEHICULAR ACCESS, SKYLIGHTS, GRADING, LANDSCAPING, AND WALKWAY WITHIN THE PUBLIC RIGHT-OF-WAY IN THE R-1, RESIDENTIAL LOW-DENSITY ZONE, AND CATEGORICAL

EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15303 (CLASS 3)
Appeal A was heard before the Consent Calendar.

Public Testimony: Molly Zurfleuh, representing the appellant, stated that the appellants and applicants had reached a resolution. Steve Kawaratani, representing the applicant, confirmed that an agreement had been reached.

Moved by Councilmember Sue Kempf, seconded by Councilmember Alex Rounaghi, and carried unanimously 5/0 to adopt Resolution #26.031 titled, “A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, AUTHORIZING LAGUNA BEACH,

CALIFORNIA, THE WITHDRAWAL OF THE APPEAL, UPHOLDING THE DESIGN REVIEW BOARD’S APPROVAL OF DESIGN REVIEW 25-1883 FOR DEMOLITION OF THE EXISTING

STRUCTURE AND CONSTRUCTION OF A NEW SINGLE-FAMILY DWELLING, NEW TWO-CAR

GARAGE, VEHICULAR ACCESS, SKYLIGHTS, GRADING, AND LANDSCAPING, COASTAL 13 13 of 15
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DEVELOPMENT PERMIT 25-1884 FOR NON-EXEMPT DEVELOPMENT IN THE COASTAL ZONE, AND REVOCABLE ENCROACHMENT PERMIT 25-1885 FOR A WALKWAY WITHIN THE PUBLIC

RIGHT-OF-WAY, SUBJECT TO IMPOSING A MORE RESTRICTIVE CONDITION OF APPROVAL, AT 30801 DRIFTWOOD DRIVE LOCATED IN THE R-1, RESIDENTIAL LOW-DENSITY ZONE, AND

FINDING THE ACTION CATEGORICALLY EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT
GUIDELINES SECTION 15303.

B. 511 BROOKS STREET: APPEAL OF APPROVAL OF HEDGE HEIGHT CLAIM 25-1254 FOR HEDGE HEIGHT VIOLATIONS IN THE R-1, RESIDENTIAL LOW-DENSITY ZONE, AND CATEGORICAL

EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15304 (CLASS 4)
Presentation and Discussion: Staff gave a presentation and responded to Councilmembers’ questions regarding the appeal of a hedge height claim at 511 Brooks Street.

Testimony in Support of the Appeal: Angelique Hoskins, vegetation homeowner and appellant, argued that her trees would not block the neighbor’s ocean view and she wanted the trees for privacy purposes. Ernst Dewarty stated that he supported the appeal.

Testimony in Opposition of the Appeal: Amy Calvert, claimant homeowner, requested the City Council direct the homeowner to reduce the hedge from 14 feet to a 6- to 8-foot height to maintain their ocean view. Larry Nokes, representing the claimant homeowners, urged the City Council to uphold the ruling of the approving body.

Rebuttal: Bryan Zuetel, representing the vegetation homeowner, encouraged the City Council to support the appeal of the hedge height claim and he listed the reasons.

Councilmember Comments: Councilmember Bob Whalen commented that he did not see an abuse of discretion and he was inclined to deny the appeal. The Councilmembers said they agreed with Councilmember Whalen.

Moved by Councilmember Alex Rounaghi, seconded by Councilmember Bob Whalen, and carried unanimously 5/0 to adopt Resolution#26.032 titled, “A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, DENYING THE APPEAL AND SUSTAINING THE DIRECTOR OF COMMUNITY DEVELOPMENT DESIGNEE’S APPROVAL OF HEDGE HEIGHT CLAIM 25-1254 FOR HEDGE HEIGHT VIOLATIONS ON THE PROPERTY LOCATED AT 511 BROOKS STREET IN THE R-1, RESIDENTIAL LOW DENSITY ZONE, AND

CATEGORICAL EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15304,” upholding the Designee’s conditional approval of Hedge Height Claim 25-1254, finding the project categorically exempt from the California Environmental Quality Act, and directed staff to establish a baseline measurement. 14 14 of 15
Laguna Beach City Council Minutes April 28, 2026
-11-
COUNCILMEMBER ITEM(S) – None.
******************************
**************
There being no further business, Mayor Orgill at 10:16 p.m., Tuesday April 28, 2026, adjourned the meeting in memory of Roger Kempler, to the City Council Closed Session at 4:00 p.m. and Regular City Council Meeting at 5:00 p.m., Tuesday, May 12, 2026, at City Hall, 505 Forest Avenue, Laguna Beach California.
****************
Approved: May 12, 2026

STAFF REPORT
Meeting Date:

May 12, 2026

CONSENT
6 SUBJECT: APPROVAL OF GENERAL WARRANTS AND PAYROLL DISTRIBUTIONS RECOMMENDATION: It is recommended that the City Council:

1. Approve the general warrants and payroll distributions.

SUMMARY OF THE MATTER
The following provides a summary of all-general warrants and payroll disbursements issued between March 28, 2026, and April 10, 2026. Total disbursements issued during this period was $4,094,199.32.

DISCUSSION
• Check numbers 23011913, 23011920, and 23011969 were not issued. The City’s finance system assigns a check number when a “prenote” is processed. A “prenote” is a $0 payment to verify a bank account before crediting it. It is the City’s practice to process a “prenote” to verify banking information before the vendor receives their first payment from the City electronically.

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
City fiscal sustainability and building a culture of excellence.

ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.

Date Description Reference Nos. Amount
Payroll-Related Payments
04/03/26 Payroll Checks and Wires FY 2026 #20 1,852,018.82$ Pg.3 04/02/26 Payroll Checks and Wires FY 2026 #20-1 16,406.29$ Pg.4 Total Payroll-Related Payments 1,868,425.11$
Payments to Vendors:
03/28/26-04/10/26 Wire Payments to Vendors 28-30 59,352.79$ Pg. 5 03/28/26-04/10/26 Check Payments to Vendors 23011902-23012144 2,166,421.42$ Pg. 5-36 Total Payments to Vendors 2,225,774.21$
TOTAL PAYMENTS 4,094,199.32$
1 of 51

APPROVAL OF GENERAL WARRANTS AND PAYROLL DISTRIBUTIONS
May 12, 2026

Page 2 of 2 ends

ATTACHMENTS

1. Payroll Wires #20 (Pg. 3)

2. Payroll Wires #20-1 (Pg. 4)

3. Check Register from March 28, 2026, to April 10, 2026 (Pgs. 5-36) Submitted By: Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Director of
Administrative Services
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Miguel De Dios, Accounting Technician Kacie Takata, Accounting Technician 2 of 51
CHECK REGISTER:

DIRECT DEPOSITS:

FEDERAL TAXES:

STATE TAXES:

DEFER COMP-GREAT WEST

DEFER COMP-PERS
PARS CONTRIBUTION:

RHS CONTRIBUTION:

WAGE ATTACHMENTS:

PAYROLL TOTAL:
$ 12,388.43
$ 1,348,709.22
$ 278,762.42
$ 234.46
$ 1,852,018.82
$ 11,976.95
$ 19,776.79
$ 96,155.38
$ 26,054.30
$ 57,960.87
Interoffice
Memo
To: Laura Parisi
From: Kacie Takata
Subject: Payroll Wires
_____________________________________________ PAYROLL #20 PAYDATE: 4-3-2026
Attachment 1
3 3 of 51
CHECK REGISTER:

DIRECT DEPOSITS:

FEDERAL TAXES:

STATE TAXES:

DEFER COMP-GREAT WEST

DEFER COMP-PERS
PARS CONTRIBUTION:

RHS CONTRIBUTION:

WAGE ATTACHMENTS:

PAYROLL TOTAL:
$ -
$ 13,019.08
$ 2,323.26
$ -
$ 16,406.29
$ -
$ 92.32
$ 971.63
$ -
$ -
Interoffice
Memo
To: Laura Parisi
From: Kacie Takata
Subject: Payroll Wires
_____________________________________________ PAYROLL #20-1 PAYDATE: 4-2-2026
Attachment 2
4 4 of 51
1-0922.300-031626ACH 4/1/2026 Water: 2/09/26 to 3/09/26 233.29 0.00 233.29 1-1433.301-031626ACH 4/1/2026 Water: 2/08/26 to 3/08/26 6.22 0.00 6.22 1-1472.300-031626ACH 4/1/2026 Water: 2/09/26 to 3/09/26 387.24 0.00 387.24 1-3117.301-031626ACH 4/1/2026 Water: 2/09/26 to 3/09/26 323.24 0.00 323.24 1-3123.301-031626ACH 4/1/2026 Water: 2/09/26 to 3/09/26 13.00 0.00 13.00 1-3124.301-031626ACH 4/1/2026 Water: 2/09/26 to 3/09/26 13.00 0.00 13.00 1-3125.301-031626ACH 4/1/2026 Water: 2/08/26 to 3/09/26 290.39 0.00 290.39 Check # 28 Total: 1,266.38
Check # 28 Date 4/1/2026 SOUTH COAST WATER DISTRICT
032026 4/6/2026 P-Card Auto Debit for City of LB - March 2026 50,252.53 0.00 50,252.53
Check # 29 Total: 50,252.53
Check # 29 Date 4/6/2026 BANK OF AMERICA, N.A.
2-0039.301-032326ACH 4/8/2026 Water: 2/12/26 to 3/16/26 4,710.36 0.00 4,710.36 2-0202.301-032326ACH 4/8/2026 Water: 2/12/26 to 3/16/26 3,087.75 0.00 3,087.75 2-3655.300-032326ACH 4/8/2026 Water: 2/12/26 to 3/16/26 35.77 0.00 35.77 Check # 30 Total: 7,833.88
Check # 30 Date 4/8/2026 SOUTH COAST WATER DISTRICT
712269-1 5/14/2025 RJ - CREDIT - TOOL RETURN (429.92) 0.00 (429.92) 5790485-1 8/9/2024 RJ - Maintenance Supplies 807.05 0.00 807.05 Check # 23011902 Total: 377.13
Check # 23011902 Date 4/2/2026 CITIBANK N.A.
5065 2/28/2026 2260383 Solicitation/Procurement Sup for MPPS Svcs Feb 26` 6,392.50 0.00 6,392.50
Check # 23011903 Total: 6,392.50
Check # 23011903 Date 4/2/2026 DIXON RESOURCES UNLIMITED 0058218239154-032626 4/2/2026 Electricity: Multiple Periods 2,703.08 0.00 2,703.08 Check # 23011904 Total: 2,703.08
Check # 23011904 Date 4/2/2026 SAN DIEGO GAS & ELECTRIC 1135379 3/26/2026 (AM) Compost Giveaway Ads - April 600.00 0.00 600.00 Check # 23011905 Total: 600.00
Check # 23011905 Date 4/10/2026 2S PUBLISHING,LLC
271195 3/19/2026 Fire Helmets 904.96 0.00 904.96
Check # 23011906 Total: 904.96
Check # 23011906 Date 4/10/2026 ALLSTAR FIRE EQUIPMENT, INC.

City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3
5 5 of 51
W62026Motus 3/30/2026 Winter 2026 Audit 327.25 0.00 327.25 SP12026Motus 3/30/2026 Spring 70% installment 294.00 0.00 294.00 Check # 23011907 Total: 621.25
Check # 23011907 Date 4/10/2026 RYAH ARTHUR
WI25#2 3/26/2026 February & March swim teams 5,919.42 0.00 5,919.42 Check # 23011908 Total: 5,919.42
Check # 23011908 Date 4/10/2026 CHAD BEELER
1598401515-2 3/3/2026 2260393 PP-GEMT (Payment #2) - 01/2024 to 06/2024 50,868.54 0.00 50,868.54
Check # 23011909 Total: 50,868.54
Check # 23011909 Date 4/10/2026 CA DEPARTMENT OF HEALTH CARE SERVICES - 7623 34793 3/25/2026 RJ - Urinals & Valves for Corp Yard
Restrooms 1,514.49 0.00 1,514.49
Check # 23011910 Total: 1,514.49
Check # 23011910 Date 4/10/2026 CALIFORNIA PLUMBING PARTS Dale.AuditW26 4/1/2026 Audit W2026, March payment 962.50 0.00 962.50 Check # 23011911 Total: 962.50
Check # 23011911 Date 4/10/2026 CARISSA DALE
6078 3/13/2026 Public Hearing Notice Services (660
Temple Hills) 227.50 0.00 227.50
Check # 23011912 Total: 227.50
Check # 23011912 Date 4/10/2026 SUSAN W. CASE
5558 3/16/2026 IT Carwash Service 85.50 0.00 85.50
5588 3/31/2026 2260250 Mobile car wash and detailing services Mar2026 6,440.00 0.00 6,440.00
Check # 23011914 Total: 6,525.50
Check # 23011914 Date 4/10/2026 CAR FIRST HOME MOBILE DETAIL 39738 4/3/2026 Payroll Run 1 - Warrant 260403 530.77 0.00 530.77 Check # 23011915 Total: 530.77
Check # 23011915 Date 4/10/2026 JONI R. CHINTALA
39739 4/3/2026 Payroll Run 1 - Warrant 260403 1,984.74 0.00 1,984.74 Check # 23011916 Total: 1,984.74
Check # 23011916 Date 4/10/2026 CIGNA HEALTH AND LIFE INSURANCE 4302722-0-C 3/26/2026 Copier Paper for City 1,463.25 0.00 1,463.25 Check # 23011917 Date 4/10/2026 COMPLETE OFFICE OF CALIFORNIA, INC City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 6
6 of 51
Check # 23011917 Total: 1,463.25
7479 3/17/2026 Manual printing 3.34 0.00 3.34
7478 3/16/2026 1,000 Recruiting Cards 145.51 0.00 145.51 Check # 23011918 Total: 148.85
Check # 23011918 Date 4/10/2026 COPY & PRINT CENTER
Cortes.aduitW26 4/1/2026 Audit Winter 2026 207.20 0.00 207.20 Check # 23011919 Total: 207.20
Check # 23011919 Date 4/10/2026 GLORIA JUDITH CORTES
B260235 - Rev. 1 3/2/2026 2260096 Building Plan Review Services - February 2026 80,055.67 0.00 80,055.67
Check # 23011921 Total: 80,055.67
Check # 23011921 Date 4/10/2026 CSG CONSULTANTS, INC.
10867227510 3/20/2026 2260196 Video Conf Monitor, Webcam and Peripherals 649.73 0.00 649.73
Check # 23011922 Total: 649.73
Check # 23011922 Date 4/10/2026 DELL MARKETING L.P.

BE006990498C 3/19/2026 Delta Dental Weekly 3-13 - 3-19-26 3,806.30 0.00 3,806.30 Check # 23011923 Total: 3,806.30
Check # 23011923 Date 4/10/2026 DELTA DENTAL OF CALIFORNIA WI#2 3/31/2026 February & March private swim lessons 1,248.00 0.00 1,248.00 Check # 23011924 Total: 1,248.00
Check # 23011924 Date 4/10/2026 MARIANNE DILWORTH
202602780 3/27/2026 2260367 TP_Promenade on Forest Conversion - Arboricultural 3,300.00 0.00 3,300.00
Check # 23011925 Total: 3,300.00
Check # 23011925 Date 4/10/2026 DUDEK & ASSOCIATES
4856 3/19/2026 240 Volt Circuit For Sauna-Station 2 2,690.00 0.00 2,690.00 4857 3/19/2026 Reconfigure 240 Volt Pole Breaker for
Sauna-Sta2 1,375.00 0.00 1,375.00
Check # 23011926 Total: 4,065.00
Check # 23011926 Date 4/10/2026 DAN MARRUFO
SINV10033002 4/1/2026 H&W and PEPM 2,250.75 0.00 2,250.75 Check # 23011927 Total: 2,250.75
Check # 23011927 Date 4/10/2026 EMPYREAN BENEFIT SOLUTIONS, INC.

Check # 23011928 Date 4/10/2026 ERICA IERARDI
City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 7
7 of 51
Erica.3.30.26 4/1/2026 Winter 2026 payment 136.50 0.00 136.50 Check # 23011928 Total: 136.50
01010115202677 1/16/2026 2260380 Galls - PD uniform and duty gear 1/1- 1/15/26 2,360.43 0.00 2,360.43
01160131202677 2/1/2026 2260380 Galls - PD uniform and duty gear 1/16- 1/31/26 1,266.52 0.00 1,266.52
02010215202677 2/16/2026 2260380 Galls - PD uniform and duty gear 2/1- 2/15/26 1,953.55 0.00 1,953.55
03010315202677 3/16/2026 2260380 Galls - PD uniform and duty gear 3/1- 3/15/2026 3,958.32 0.00 3,958.32
03160331202677 4/1/2026 2260380 Galls - PD uniform and duty gear 3/16- 3/31/26 5,225.14 0.00 5,225.14
Check # 23011929 Total: 14,763.96
Check # 23011929 Date 4/10/2026 GALLS, LLC
040656855 2/12/2026 RJ - Maintenance supplies for Sign
Division 70.62 0.00 70.62
040660773 3/12/2026 RJ - S. Laguna Concrete Work 197.20 0.00 197.20 040661043 3/13/2026 RJ - Fleet Shop Supplies (batteries) 4.95 0.00 4.95 040661037 3/13/2026 RJ - Main Beach Playground repairs 78.05 0.00 78.05 040662329 3/23/2026 RJ - Sign Division painting/maintenance supplies 125.28 0.00 125.28
040662282 3/23/2026 RJ - Sign division paint maintenance supplies 108.09 0.00 108.09
040661803 3/19/2026 RJ - For Bollard Lights 33.48 0.00 33.48 040662308 3/23/2026 RJ - Toilet replacement at City Hall 81.49 0.00 81.49 040662000 3/20/2026 RJ - Bluebird Swingset 18.16 0.00 18.16 040661643 3/18/2026 RJ - Maint.supplies (board install & tools) 41.05 0.00 41.05 Check # 23011930 Total: 758.37
Check # 23011930 Date 4/10/2026 GANAHL LUMBER COMPANY
38793 3/23/2026 2260100 DT-000372PL/390PL Prof Svcs (854 Tia Juana) 2,500.00 0.00 2,500.00
Check # 23011931 Total: 2,500.00
Check # 23011931 Date 4/10/2026 REGULATORY SERVICES GLENN LUKOS ASSOCIATES 10 3/30/2026 2250458 PS_CIP 21-107 Anita St Sewer LS &
Beach Access 219,070.97 0.00 219,070.97
Check # 23011932 Total: 219,070.97
Check # 23011932 Date 4/10/2026 GMZ ENGINEERING, INC
2376899 3/18/2026 Professional Services 2/11-2/17/26 150.00 0.00 150.00 Check # 23011933 Total: 150.00
Check # 23011933 Date 4/10/2026 HANNA, BROPHY, MACLEAN, MCALEER & JENSEN, LLP City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 8
8 of 51
51988 3/20/2026 2260165 RJ- FY25-26 On-Call Pavement
Maintenance Services 16,643.00 0.00 16,643.00
51987 3/20/2026 2260165 RJ- FY25-26 On-Call Pavement
Maintenance Services 11,668.00 0.00 11,668.00
Check # 23011934 Total: 28,311.00
Check # 23011934 Date 4/10/2026 HARDY & HARPER, INC.
122652 3/19/2026 2250022 PS_AD 2014-2 Woods Cove
Undergrounding 445,018.99 0.00 445,018.99
Check # 23011935 Total: 445,018.99
Check # 23011935 Date 4/10/2026 HOT LINE CONSTRUCTION, INC. 199428-C 3/5/2026 2260228 PS_ CIP C2602 Hagan Place Stairs & Susi Q Trellis 18,045.00 0.00 18,045.00
Check # 23011936 Total: 18,045.00
Check # 23011936 Date 4/10/2026 HR GREEN INC
26020234 3/19/2026 2250086 TP_CIP 24-9456 Zone 4 Street Overlay 3,510.00 0.00 3,510.00 Check # 23011937 Total: 3,510.00
Check # 23011937 Date 4/10/2026 HUNSAKER AND ASSOCIATES IRVINE INC.

PG000045089 2/10/2026 Printing of Muni Code - Supplement No 5 3,628.00 0.00 3,628.00
Check # 23011938 Total: 3,628.00
Check # 23011938 Date 4/10/2026 QUALITY CODE PUBLISHING, LLC LB-111 3/8/2026 2260302 Video Production Services for City Meetings 2,016.57 0.00 2,016.57
Check # 23011939 Total: 2,016.57
Check # 23011939 Date 4/10/2026 ORLANDO RODRIGUEZ
G.Drum.3.31.26 4/1/2026 Drum session 2 W26 136.50 0.00 136.50 Check # 23011940 Total: 136.50
Check # 23011940 Date 4/10/2026 KAREN GARMAN
104293954 3/20/2026 (AB) Transit stock 169.42 0.00 169.42 104316064 3/27/2026 AB - Transit Supplies 271.81 0.00 271.81 Check # 23011941 Total: 441.23
Check # 23011941 Date 4/10/2026 MIDWEST MOTOR SUPPLY CO KIMBALL MIDWEST 43122 2/28/2026 2260098 DT-000185PM Geo Review (890
Hillcrest) 1,800.00 0.00 1,800.00
43121 2/28/2026 2260098 City Paid Geo Review (2500 Glenneyre St.) 1,800.00 0.00 1,800.00
Check # 23011942 Date 4/10/2026 KLING CONSULTING GROUP, INC City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 9
9 of 51
Check # 23011942 Total: 3,600.00
Lisa.jazz.3.31.26 4/1/2026 Jazz class finial w26 payment 347.34 0.00 347.34 Lisa.Priv.3.31.26 4/1/2026 Private W26 221.00 0.00 221.00 Check # 23011943 Total: 568.34
Check # 23011943 Date 4/10/2026 LISA KYNE
KDA.4.1.26 4/1/2026 Winter 2026 rest of Payment 2,235.12 0.00 2,235.12 Check # 23011944 Total: 2,235.12
Check # 23011944 Date 4/10/2026 PAULINE ROSS KYNE
803886708 3/26/2026 K9 Cooper Vet Visit 3/26/26 185.32 0.00 185.32 Check # 23011945 Total: 185.32
Check # 23011945 Date 4/10/2026 PATHWAY VET ALLIANCE HOLDING LLC 39740 4/3/2026 Payroll Run 1 - Warrant 260403 4,569.02 0.00 4,569.02 Check # 23011946 Total: 4,569.02
Check # 23011946 Date 4/10/2026 LAGUNA BEACH FIRE ASSOCIATION 39741 4/3/2026 Payroll Run 1 - Warrant 260403 971.11 0.00 971.11 Check # 23011947 Total: 971.11
Check # 23011947 Date 4/10/2026 LAGUNA BEACH MARINE SAFETY ASSN 39742 4/3/2026 Payroll Run 1 - Warrant 260403 453.45 0.00 453.45 Check # 23011948 Total: 453.45
Check # 23011948 Date 4/10/2026 LAGUNA BEACH MUNICIPAL EMPLOYEES 39744 4/3/2026 Payroll Run 1 - Warrant 260403 225.00 0.00 225.00 Check # 23011949 Total: 225.00
Check # 23011949 Date 4/10/2026 LAGUNA BEACH POLICE & FIRE MANAGEMENT ASSOCIATION 39745 4/3/2026 Payroll Run 1 - Warrant 260403 5,158.40 0.00 5,158.40 Check # 23011950 Total: 5,158.40
Check # 23011950 Date 4/10/2026 LAGUNA BEACH POLICE ASSOCIATION 62807 3/16/2026 Fire Uniform-Gilmore 192.87 0.00 192.87 62428 1/15/2026 Wildland Uniform-Kalscheuer 724.08 0.00 724.08 62429 1/15/2026 Wildland Uniform-Ornelas 724.08 0.00 724.08 62434 1/20/2026 FireEquipmentTalkBox5000 1,698.14 0.00 1,698.14 62534 2/2/2026 Fire Leather Workglove-Gilmore 15.62 0.00 15.62 Check # 23011951 Total: 3,354.79
Check # 23011951 Date 4/10/2026 LINEGEAR INC.

City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 10
10 of 51
017611960 2/28/2026 February Public Notices 3,342.10 0.00 3,342.10 Check # 23011952 Total: 3,342.10
Check # 23011952 Date 4/10/2026 LOS ANGELES TIMES COMMUNICATIONS 59250 3/16/2026 2250039 TP_089 - PAED Documents for LCR Improvements 3,292.58 0.00 3,292.58
Check # 23011953 Total: 3,292.58
Check # 23011953 Date 4/10/2026 MARK THOMAS & COMPANY, INC. 10699 3/12/2026 Facial Recognition software April 2026- April 2027 5,100.00 0.00 5,100.00
Check # 23011954 Total: 5,100.00
Check # 23011954 Date 4/10/2026 DBA AFR ENGINE MARLOW INNOVATIONS, INC W72026AndrewM 4/1/2026 March final payment 4,246.29 0.00 4,246.29 SP12026AndrewM 4/1/2026 Spring Break Installment 1,850.80 0.00 1,850.80 Check # 23011955 Total: 6,097.09
Check # 23011955 Date 4/10/2026 ANDREW MATELJAN
Gardner.3.30.26 4/1/2026 March 2026 payment 104.00 0.00 104.00 Check # 23011956 Total: 104.00
Check # 23011956 Date 4/10/2026 MICHAELA R. GARDNER
W72026USK8 3/31/2026 Winter Audit 35.00 0.00 35.00
SP12026USK8 4/1/2026 April 70% installment 441.00 0.00 441.00 Check # 23011957 Total: 476.00
Check # 23011957 Date 4/10/2026 ERIC MICKELSON
W52026PBMF 3/30/2026 Winter Audit 1,174.50 0.00 1,174.50 SP12026PBMF 3/30/2026 70% Spring installment 909.57 0.00 909.57 Check # 23011958 Total: 2,084.07
Check # 23011958 Date 4/10/2026 MSTAR, LLC
26-4061 1/29/2026 MT - Emergency Repair - broken sewer
main cover 3,850.00 0.00 3,850.00
Check # 23011959 Total: 3,850.00
Check # 23011959 Date 4/10/2026 MUNICIPAL UNDERGROUND SERVICES, INC 869181 3/17/2026 (RJ) 766.1 gallons propane @
$766.1/gal 1,197.54 0.00 1,197.54
867869 3/10/2026 (RJ) 1,450 gallons propane @ $1.59/gal 2,312.36 0.00 2,312.36 870356 3/24/2026 (RJ) 638.8 gallons propane @ $1.46/gal 933.53 0.00 933.53 Check # 23011960 Total: 4,443.43
Check # 23011960 Date 4/10/2026 MUTUAL PROPANE MUTUAL LIQUID GAS & EQUIPMENT CO City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 11
11 of 51
INV-1400 12/11/2025 2260221 Production services for City Council meetings 2,025.00 0.00 2,025.00
INV-1473 3/30/2026 2260221 Production services for City Council meetings 3,337.50 0.00 3,337.50
Check # 23011961 Total: 5,362.50
Check # 23011961 Date 4/10/2026 NETWORK TELEVISION TIME, INC 2665 3/31/2026 2260349 TP_CIP 21-9972 Promenade on Forest Conversion 70,285.00 0.00 70,285.00
Check # 23011962 Total: 70,285.00
Check # 23011962 Date 4/10/2026 NEXGEN DESIGN BUILDERS INC Ramirez.3.31.26 4/1/2026 Audit Winter 2026 303.87 0.00 303.87 Check # 23011963 Total: 303.87
Check # 23011963 Date 4/10/2026 NICOLAS RAMIREZ
Lashley.auditW26 4/1/2026 Audit winter 2026 104.00 0.00 104.00 Check # 23011964 Total: 104.00
Check # 23011964 Date 4/10/2026 NOEL LASHLEY
462431448001 3/11/2026 RJ-Office Supplies -Fleet toner, bankers boxes etc 641.84 17.88 632.90
Check # 23011965 Total: 632.90
Check # 23011965 Date 4/10/2026 ODP BUSINESS SOLUTIONS, LLC 110718 1/31/2026 2260214 (RJ) FY 25-26 Landscape Maintenance 2,064.00 0.00 2,064.00 110717 1/31/2026 2260214 (RJ) FY 25-26 Landscape Maintenance 13,633.00 0.00 13,633.00 110962 3/31/2026 2260214 (RJ) FY 25-26 Landscape MaintenanceMarch 2026 13,633.00 0.00 13,633.00 Check # 23011966 Total: 29,330.00
Check # 23011966 Date 4/10/2026 PARKWOOD LANDSCAPE MAINTENANCE INC.

WI26#2 3/31/2026 Winter tai chi audit 1,157.65 0.00 1,157.65 Check # 23011967 Total: 1,157.65
Check # 23011967 Date 4/10/2026 VALARIE PRINCE-GABEL
63082998 3/19/2026 Towel Cleaning Services 277.09 0.00 277.09 63084744 3/26/2026 Towel Cleaning Services 277.09 0.00 277.09 Check # 23011968 Total: 554.18
Check # 23011968 Date 4/10/2026 PRUDENTIAL OVERALL SUPPLY W52026IgnitePB 3/30/2026 Winter 26 Audit 357.00 0.00 357.00 Check # 23011970 Total: 357.00
Check # 23011970 Date 4/10/2026 NICOLAS RADISAY
City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 12
12 of 51
72809 3/12/2026 2260095 Irvine Bowl Noice Policy Study (February 2026) 1,728.75 0.00 1,728.75
Check # 23011971 Total: 1,728.75
Check # 23011971 Date 4/10/2026 RINCON CONSULTANTS, INC CM377470 2/9/2026 RJ - CREDIT - CORE RETURN (209.47) 0.00 (209.47) 377470 2/9/2026 RJ - Parts for Fire F05.03 1,159.15 0.00 1,159.15 378037 3/16/2026 (AB) Transit #218 9,993.08 0.00 9,993.08 375176 3/17/2026 RJ - Fleet Shop Stock 36.76 0.00 36.76 378508 3/24/2026 AB - Transit Vehicle Repair Supplies
(Hose) 132.30 0.00 132.30
378584 3/27/2026 RJ - Sidewalk sweeper A9 253.21 0.00 253.21 378730 4/1/2026 AB - Transit Supplies 29.56 0.00 29.56
Check # 23011972 Total: 11,394.59
Check # 23011972 Date 4/10/2026 RINCON TRUCK CENTER INC Daas.3.31.26 4/1/2026 Finial Winter 2026 payment 58.50 0.00 58.50 Check # 23011973 Total: 58.50
Check # 23011973 Date 4/10/2026 RUBA DAAS ZEITAWI
1056117 2/24/2026 2260379 Dyrnaes Litigation- Jan 2026 3,437.50 0.00 3,437.50 1057930 3/12/2026 2260379 Drynaes Litigation- Feb 2026 10,537.50 0.00 10,537.50 Check # 23011974 Total: 13,975.00
Check # 23011974 Date 4/10/2026 RUTAN & TUCKER, LLP
Schmidt.3.31.26 4/1/2026 March 2026 payment 837.20 0.00 837.20 Check # 23011975 Total: 837.20
Check # 23011975 Date 4/10/2026 MARY SCHMIDT
26-0061 3/12/2026 ASO Office flooring 9,950.00 0.00 9,950.00 26-0078 3/29/2026 2260362 RJ_ASL Restroom Floor Replacement 20,000.00 0.00 20,000.00 Check # 23011976 Total: 29,950.00
Check # 23011976 Date 4/10/2026 LAGUNA CONSTRUCTION & BUILDERS SFS 712009 4/1/2026 Jail floor replacement 7,650.00 0.00 7,650.00 Check # 23011977 Total: 7,650.00
Check # 23011977 Date 4/10/2026 FRANK COLLEA
322698 2/4/2026 Cleaning Supplies-All Stations 295.88 0.00 295.88 323080 2/24/2026 Cleaning Supplies-All Stations 780.86 0.00 780.86 323104 2/25/2026 Cleaning Supplies-All Stations 106.56 0.00 106.56 Check # 23011978 Total: 1,183.30
Check # 23011978 Date 4/10/2026 SOUTH COAST DISTRIBUTING CO City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 13
13 of 51
26-201 3/22/2026 2260248 Crime Analysis Consulting Month 3 8,000.00 0.00 8,000.00 Check # 23011979 Total: 8,000.00
Check # 23011979 Date 4/10/2026 LORRAINE VELARDE
375661 4/1/2026 Subscription Services 3,816.18 0.00 3,816.18 Check # 23011980 Total: 3,816.18
Check # 23011980 Date 4/10/2026 SPRING CARE INC
11541 3/20/2026 Replace camshaft sensor on unit 700 146.59 0.00 146.59 11665 3/30/2026 Oil change unit 871 61.65 0.00 61.65
Check # 23011981 Total: 208.24
Check # 23011981 Date 4/10/2026 SUPREME AUTO REPAIRS INC. 31886647 4/1/2026 2260290 Professional Leadership Consultant Srvcs 4,500.00 0.00 4,500.00
Check # 23011982 Total: 4,500.00
Check # 23011982 Date 4/10/2026 TRACY MILLER CONSULTING, INC 366708098 2/27/2026 RJ - Portable AC Units for 479 Ocean 570.50 0.00 570.50 367252183 3/23/2026 (RJ) HVAC service @ Corp Yard (board replacements) 1,176.00 0.00 1,176.00
Check # 23011983 Total: 1,746.50
Check # 23011983 Date 4/10/2026 TRITON AIR, INC
INV-5968123 3/17/2026 RJ - Dog Park portables 308.75 0.00 308.75 Check # 23011984 Total: 308.75
Check # 23011984 Date 4/10/2026 UNITED SITE SERVICES OF CALIFORNIA, INC 64193 3/20/2026 PD badges 1,834.44 0.00 1,834.44
64309 3/30/2026 Plain Book Style ID 98.20 0.00 98.20
Check # 23011985 Total: 1,932.64
Check # 23011985 Date 4/10/2026 V & V MANUFACTURING, INC. 153604 4/1/2026 2260021 Parking Lot Transaction Processing April 2026 3,640.55 0.00 3,640.55
Check # 23011986 Total: 3,640.55
Check # 23011986 Date 4/10/2026 CARACAL ENTERPRISES LLC 8 3/31/2026 2260036 PS_CIP 21-9525 Cleo St Beach Access Improvements 96,892.24 0.00 96,892.24
Check # 23011987 Total: 96,892.24
Check # 23011987 Date 4/10/2026 WRIGHT CONSTRUCTION ENGINEERING CORP Check # 23011988 Date 4/10/2026 ADVANTAGE COLORGRAPHICS City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 14
14 of 51
251892 3/9/2026 2260116 Spring/Summer brochure postage 4,281.47 0.00 4,281.47 Check # 23011988 Total: 4,281.47
26066-IN 2/28/2026 PS_El Toro Road Bike Lane Traffic
Study 8,972.00 0.00 8,972.00
26009-IN 1/31/2026 TT_El Toro Road Bike Lane Traffic
Study 828.00 0.00 828.00
Check # 23011989 Total: 9,800.00
Check # 23011989 Date 4/10/2026 AGA ENGINEERS, INC.
1K4Y-D9M9-HDVF 3/2/2026 2260300 CyberPower Battery Backup and Surge Protector 313.38 0.00 313.38
196L-MG6P-QHD3 2/21/2026 2260326 Waterproof Binoculars and Supplies 3,270.10 0.00 3,270.10 17QQ-F6D9-HRLG 2/3/2026 2260326 Propane Cooking Burner and supplies 1,479.02 0.00 1,479.02 1CGR-1JRG-9CQR 3/17/2026 2260326 Station Supplies-Frames 118.51 0.00 118.51 1PG6-H6X3-13HQ 3/17/2026 2260326 Ambulance Operator Uniform Caps 499.07 0.00 499.07 1RQ1-F3NQ-Y4GD 3/18/2026 2260326 Station Supplies - Desk Chairs 344.76 0.00 344.76 13JC-FK7D-XTXJ 3/17/2026 2260326 Fire Uniform-Tactical Boots 619.97 0.00 619.97 13JC-FK7D-XXFL 3/17/2026 2260326 Station Supplies-Clipboards, Snacks 634.54 0.00 634.54 1N3R-NVPV-CLL3 3/5/2026 2260309 RJ - replacement seat cover dispensers 280.10 0.00 280.10 1G1H-LKPQ-Q3VD 3/16/2026 2260309 RJ - Valve kit for 1000 Steps restrooms 344.67 0.00 344.67 1DG3-YKYV-GXLW 3/21/2026 2260318 Post-It Notes, Correction Tape, Permanent Markers 109.85 0.00 109.85
1T94-K6FX-49C4 3/24/2026 2260310 City Clerk Amazon - Linen Stock Pack 75.06 0.00 75.06 1GHF-3DTL-TCX7 3/21/2026 2260326 Fire Station Bathroom Scale 267.96 0.00 267.96 1Q4G-YGHR-4MTJ 3/24/2026 2260326 Magnetic Table Mount 140.06 0.00 140.06 1X9C-QJFP-3FD7 3/23/2026 2260326 Wire baskets for events 238.43 0.00 238.43 13TK-C6PR-VQR6 3/22/2026 2260306 Easter decorations and office supplies 141.03 0.00 141.03 191F-TKKR-MM1R 3/23/2026 2260306 Coveralls 287.51 0.00 287.51 1374-MFJX-9GDT 3/23/2026 2260306 Cable hider cord covers for wires on wall 109.36 0.00 109.36 1PJJ-QPGK-NQVW 3/25/2026 2260306 Misc. items for Citizen's Academy scenario 78.60 0.00 78.60
1FXY-TK9F-DK9J 3/3/2026 2260306 Holiday decorations and cat food 225.12 0.00 225.12 1C6W-LNRL-N6HL 3/11/2026 2260306 Red paper for Patriot's Day Flyers, 43 inch TV 238.05 0.00 238.05
1HXN-6HYG-HDX4 3/16/2026 2260306 Lysol Wipes for Dispatch 80.65 0.00 80.65 1K7D-TYXW-VKM6 3/16/2026 2260306 Reflective Speed Limit Sign 73.91 0.00 73.91 16LW-HRRN-VTQ7 3/16/2026 2260306 Tru Oak door stoppers 70.39 0.00 70.39 1RY6-MCKF-1G4T 3/26/2026 2260306 Holiday decorations, car wash foam gun, key tags 190.46 0.00 190.46
1MC6-6FCC-6K1Q 3/30/2026 2260306 Kosher ready meals, toner 134.15 0.00 134.15 1QTW-LCDP-GQF3 3/20/2026 2260316 Pool printer ink 684.80 0.00 684.80 Check # 23011990 Date 4/10/2026 AMAZON CAPITAL SERVICES City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 15
15 of 51
1Y4W-7YV7-K3QD 3/31/2026 2260309 AM_ Forest Lane Enclosure & Event Signs 69.24 0.00 69.24
1Y3F-HD6P-YL31 3/26/2026 2260315 Refund for Tablet (731.62) 0.00 (731.62) 1JXC-JFFH-GHG7 3/19/2026 2260318 Box of Blue Cardstock 170.78 0.00 170.78 1QGX-RWWQ-YKRQ 4/1/2026 2260282 MS - CPR Valves 66.70 0.00 66.70 1RQV-LC1T-9VMF 4/2/2026 2260282 MS - Storage Drive 484.86 0.00 484.86 Check # 23011990 Total: 11,109.47
1TWX-LF4D-HDGQ 3/10/2026 2260318 Boxed Water for Boards and Commissions 60.05 0.00 60.05
16C3-N6NT-HVXD 3/11/2026 2260318 Binders, sheet protectors and tabs 32.18 0.00 32.18 1G6D-C1GV-39LM 3/16/2026 2260326 Station Supplies-MOP 30.78 0.00 30.78 1MPJ-VV9N-PYKN 3/16/2026 2260318 Post It Notes and Notebooks 41.16 0.00 41.16 1PMH-DNCX-3G4J 3/18/2026 2260326 Admin Supplies-Ice Buckets & Trays 60.41 0.00 60.41 1RNG-CMY7-QHHP 3/17/2026 2260326 Fire Prevention Supplies-Desk Protector 47.44 0.00 47.44 1RQ1-F3NQ-D7YG 3/17/2026 2260326 Station Supplies-Water Filter 60.28 0.00 60.28 16XK-MRP6-V97T 3/18/2026 2260326 Station Supplies-Storage Box 27.44 0.00 27.44 14RF-NQ7T-3GHN 3/16/2026 2260318 Legal pad and steno books 43.38 0.00 43.38 11CT-17WN-VVQ6 3/18/2026 2260300 Cudy New 30W Gigabit PoE Injector Adapter 63.70 0.00 63.70
1DQY-X331-MKMG 3/18/2026 2260309 RJ - CREDIT - item out of stock, purchase refunded (48.29) 0.00 (48.29)
1H4K-Q3DG-WYKP 3/26/2026 2260306 Heat shrink wire connectors, tubing roll, crimps 35.19 0.00 35.19
1MJL-C3PR-KFLT 3/26/2026 2260316 Parents night out supplies 30.31 0.00 30.31 1M1J-DCK6-HRRV 3/27/2026 2260326 Storage Box Container 43.28 0.00 43.28 1MN6-F6YD-73VW 3/24/2026 2260326 Flashlight Duty Belt 61.35 0.00 61.35 1NK7-MLVC-YVHV 3/20/2026 2260326 New Admin Captain Welcoming Gift 36.17 0.00 36.17 1V6M-7CDJ-YCTW 3/23/2026 2260326 Window Paper Holder 37.70 0.00 37.70 19FH-XXRC-MLYH 3/27/2026 2260282 MS - Amazon - Coffee Creamers 37.89 0.00 37.89 14MW-H1F4-Q7YP 3/16/2026 2260306 Parchment certificate paper and folders 34.82 0.00 34.82 1LL7-HDWY-Q4D7 3/16/2026 2260306 2 badge display cases 42.82 0.00 42.82 13D4-6Q43-QHPW 3/19/2026 2260306 Waterproof connectors & extension cable for vehicl 43.03 0.00 43.03
1NP6-P4H3-DJMD 3/20/2026 2260306 USB flash drives 48.10 0.00 48.10 1G7M-J3X9-6TMH 3/20/2026 2260306 Binder and 2-pack index card holder 49.53 0.00 49.53 1T1L-QDYP-YGW7 3/13/2026 2260306 TV wall mount 30.70 0.00 30.70 11RL-C6R9-DMKF 3/13/2026 2260306 Air filter for Evidence Room 61.34 0.00 61.34 143W-VD7P-7WQD 3/28/2026 2260306 Lens wipes for glasses 30.14 0.00 30.14 1R9J-T1RG-67LD 3/30/2026 2260306 Lysol disinfecting wipes and spray, binders 51.73 0.00 51.73
1VPN-XX7F-7C33 3/30/2026 2260306 Facial Tissue 26.93 0.00 26.93 Check # 23011991 Date 4/10/2026 AMAZON CAPITAL SERVICES City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 16
16 of 51
1YCK-FRQH-FG6J 3/30/2026 2260306 Sanitizing hand wipes, Dell SUB slim DVD drive 55.95 0.00 55.95
16DF-3DHD-GK43 3/30/2026 2260306 Returned water proof connectors (28.00) 0.00 (28.00) 1CMM-PJ34-PCXJ 3/9/2026 2260316 Pool chem test, parade decorations 37.73 0.00 37.73 1FKM-RHQ1-DW34 3/30/2026 2260315 Amazon-Status Door Signs for Office Doors 28.44 0.00 28.44
Check # 23011991 Total: 1,213.68
1HXN-6HYG-X6RL 3/16/2026 2260318 Metal Clip Board 25.58 0.00 25.58 1Q7P-KQ7K-YQLX 3/17/2026 2260326 Admin Supplies-Gift baskets for Interview Panel 24.30 0.00 24.30
1NF3-7GMF-3LCD 3/23/2026 2260318 Permanent Markers 19.82 0.00 19.82 1C4H-KL9R-HNRH 3/25/2026 2260306 Custom Stamp 17.60 0.00 17.60 1PG6-H6X3-PLR6 3/18/2026 2260306 Ford Transit sliding door handle 15.27 0.00 15.27 1CR3-7CMP-6CFL 11/14/2024 MS - Shoe Polish for Uniform Needs 17.23 0.00 17.23 1DLX-X9YP-QF7V 3/24/2026 2260306 Prop items for citizen's academy 7.52 0.00 7.52 1L4X-1VG9-KL9M 10/28/2025 MS - Jeep Maintenance Supplies 22.98 0.00 22.98 1CG6-NJY9-9GJC 3/12/2026 2260306 Zep kitchen degreaser 16.04 0.00 16.04 1GN3-KYQW-DH1Y 3/30/2026 2260306 Ergonomic keyboard for parking division 26.93 0.00 26.93 16DF-3DHD-CVY7 3/30/2026 2260282 MS - Amazon Chargers 18.84 0.00 18.84 Check # 23011992 Total: 212.11
Check # 23011992 Date 4/10/2026 AMAZON CAPITAL SERVICES OF-79715 3/9/2026 RJ - Cold water reroute in PD 2,973.00 0.00 2,973.00 Check # 23011993 Total: 2,973.00
Check # 23011993 Date 4/10/2026 AMERICAN PLUMBING INC.
151402255357 2/16/2026 (RJ) Quarterly Maint. @ Susi Q 3/1/26- 5/31/26 1,225.14 0.00 1,225.14
151402289595 3/16/2026 RJ - Quarterly Maint. Service at CRC 1,487.13 0.00 1,487.13 151402289016 3/16/2026 MS - Elevator Maintenance Service:

4.1.26-6.30.26 787.02 0.00 787.02
Check # 23011994 Total: 3,499.29
Check # 23011994 Date 4/10/2026 AMTECH ELEVATOR SERVICES 0121-198 3/1/2026 March 2026 Monthly Minimum 300.00 0.00 300.00 Check # 23011995 Total: 300.00
Check # 23011995 Date 4/10/2026 ANTAEUS, LLC
182319 3/20/2026 2260067 (TP) Stormwater Master Plan 39,646.30 0.00 39,646.30 Check # 23011996 Total: 39,646.30
Check # 23011996 Date 4/10/2026 ARDURRA GROUP, INC
Check # 23011997 Date 4/10/2026 ARNAZ ENGINEERING CONTRACTORS, INC City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 17
17 of 51
5 3/26/2026 2260294 PS_ Old Top of the World Sewer LS
Rehabilitation 32,233.50 0.00 32,233.50
Check # 23011997 Total: 32,233.50
I500-01352282 3/25/2026 RJ - Waste Oil Disposal 153.00 0.00 153.00 Check # 23011998 Total: 153.00
Check # 23011998 Date 4/10/2026 ASBURY ENVIRONMENTAL SERVICES 9391031548-021326 2/13/2026 FirePhoneSvcs (01.13.26-02.12.26) 195.60 0.00 195.60 9391063999-032026 3/20/2026 Calnet 2/20-3/19/26 533.44 0.00 533.44 Check # 23011999 Total: 729.04
Check # 23011999 Date 4/10/2026 AT&T
287327815261X020826 1/31/2026 MS - Monthly Wireless Charges 445.74 0.00 445.74 Check # 23012000 Total: 445.74
Check # 23012000 Date 4/10/2026 AT&T MOBILITY
317022 3/19/2026 RJ - Parts for Marine Safety MS21.01 198.71 0.00 198.71 Check # 23012001 Total: 198.71
Check # 23012001 Date 4/10/2026 AUTONATION TOYOTA IRVINE 0000341056 9/24/2025 2260058 Compressors for Fire Department hose nozzles 15,235.85 0.00 15,235.85
Check # 23012002 Total: 15,235.85
Check # 23012002 Date 4/10/2026 BAUER COMPRESSORS, INC
22827031 3/3/2026 RJ - Quarterly alarm monitoring @ CRC 1,778.10 0.00 1,778.10 22811710 3/1/2026 RJ - Quarterly alarm monitoring @ CRC 334.11 0.00 334.11 22825034 3/3/2026 RJ - Quarterly Alarm Monitoring @ City Hall 1,314.09 0.00 1,314.09
Check # 23012003 Total: 3,426.30
Check # 23012003 Date 4/10/2026 BAY ALARM COMPANY
86149669 3/27/2026 MS - Medical Supplies 2,430.59 0.00 2,430.59 86149670 3/27/2026 MS - Medical Supplies 255.76 0.00 255.76 Check # 23012004 Total: 2,686.35
Check # 23012004 Date 4/10/2026 BOUND TREE MEDICAL, LLC INV-00004860 3/16/2026 RJ - Street Sweeper #163 6,492.26 0.00 6,492.26 INV-00004951 3/19/2026 RJ - Street Sweeper #153 216.93 0.00 216.93 INV-00004998 3/25/2026 RJ - Street Sweeper #153 215.93 0.00 215.93 Check # 23012005 Total: 6,925.12
Check # 23012005 Date 4/10/2026 BUCHER MUNICIPAL NORTH AMERICA, INC City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 18
18 of 51
39743 4/3/2026 Payroll Run 1 - Warrant 260403 1,459.18 0.00 1,459.18 Check # 23012006 Total: 1,459.18
Check # 23012006 Date 4/10/2026 CA STATE DISBURSEMENT UNIT 0009-Laguna 3/18/2026 2260273 (AM) HD43 Grant Administration Services 1,520.06 0.00 1,520.06
Check # 23012007 Total: 1,520.06
Check # 23012007 Date 4/10/2026 CALIFORNIA PRODUCT STEWARDSHIP COUNCIL 749957 4/1/2026 2260122 (RJ) Custodial Maintenance ServicesApril 20,698.00 0.00 20,698.00 741249 2/1/2026 2260122 (RJ) Custodial Maintenance ServicesFebruary 20,698.00 0.00 20,698.00 Check # 23012008 Total: 41,396.00
Check # 23012008 Date 4/10/2026 CCS FACILITY SERVICES
9516867 2/21/2026 MT - Mystic Air Program 445.36 0.00 445.36 Check # 23012009 Total: 445.36
Check # 23012009 Date 4/10/2026 CHEMSEARCH
260217 2/17/2026 2260377 Circus Bella - 2026 Performance 13,125.00 0.00 13,125.00 Check # 23012010 Total: 13,125.00
Check # 23012010 Date 4/10/2026 CIRCUS BELLA
6004815-670856-0326 3/19/2026 MS - Monthly Vessel Slip Fees: C 29 1,640.38 0.00 1,640.38 Check # 23012011 Total: 1,640.38
Check # 23012011 Date 4/10/2026 ATTN: REVENUE DIVISION CITY OF NEWPORT BEACH 61735 3/16/2026 RJ - Lifeguard Tower Hatch 23.06 0.00 23.06 61734 3/16/2026 RJ - Pearl lighting control 32.30 0.00 32.30 61736 3/17/2026 RJ - Susi Q Railing 59.14 0.00 59.14
61749 3/23/2026 RJ - Sign Division Supplies (Fasteners) 2.20 0.00 2.20 61743 3/19/2026 RJ - Fire Station #1 upstairs shower 15.27 0.00 15.27 61746 3/20/2026 RJ - Broadway stairs lights 48.46 0.00 48.46 61742 3/19/2026 RJ - Fire Station #1 ceiling leak 40.91 0.00 40.91 61752 3/24/2026 RJ - City Hall plumbing repairs 144.32 0.00 144.32 61753 3/24/2026 RJ - Leaking waterline @ Lifeguard HQ 20.45 0.00 20.45 61757 3/26/2026 Staple Gun & Nailer for the Range 53.86 0.00 53.86 61401 10/30/2025 MS - Hose for Department 75.41 0.00 75.41 61425 11/9/2025 MS - Brush for Maintenance 9.89 0.00 9.89 61463 11/25/2025 MS - Maintenance Supplies 8.61 0.00 8.61 61571 1/12/2026 MS - Door Stopper 9.26 0.00 9.26
Check # 23012012 Date 4/10/2026 COAST HARDWARE
City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 19
19 of 51
61722 3/11/2026 Earplugs for the range 24.51 0.00 24.51 61767 4/1/2026 MS - Maintenance Supplies 9.83 0.00 9.83 Check # 23012012 Total: 577.48
210349R 3/23/2026 MS - Crescent Bay Camera 9,048.58 0.00 9,048.58 210387 3/23/2026 MS - Crescent Bay Cam Subscription
Tech 4,845.25 0.00 4,845.25
Check # 23012013 Total: 13,893.83
Check # 23012013 Date 4/10/2026 CONTINENTAL COMPUTERS/WLANMALL.COM STTM003835 3/19/2026 MS - Radio Repairs: 11.1.25-11.30.25 2,219.21 0.00 2,219.21 Check # 23012014 Total: 2,219.21
Check # 23012014 Date 4/10/2026 COUNTY OF ORANGE - TREASURER-TAX COLLECTOR I202600000442 2/28/2026 February Recordings 66.00 0.00 66.00 Check # 23012015 Total: 66.00
Check # 23012015 Date 4/10/2026 COUNTY OF ORANGE
00176010481892030326 3/3/2026 Fire Phone Svcs_Mar 3 - Apr 2, 2026 76.58 0.00 76.58 00176010549747010326 3/21/2026 Internet charges 3/21-4/20/26 657.98 0.00 657.98 00176010546140010326 3/19/2026 Internet charges 3/19-4/18/26 225.00 0.00 225.00 00176010648405010326 3/21/2026 Networking services 3/21-4/20/26 1,721.72 0.00 1,721.72 00176010529400030326 3/19/2026 MS - Trailer Monthly Service Fee 815.90 0.00 815.90 00176010546852010326 3/21/2026 MS - Lifeguard HQ 25.28 0.00 25.28 00276010440029010426 4/1/2026 Internet and Network Services April 2026 10,594.26 0.00 10,594.26 00176010390901020326 4/10/2026 Phone: 3/30/26 to 4/29/26 851.28 0.00 851.28 Check # 23012016 Total: 14,968.00
Check # 23012016 Date 4/10/2026 COX COMMUNICATIONS
526625 10/24/2025 AS pest control at shelter 275.00 0.00 275.00 Check # 23012017 Total: 275.00
Check # 23012017 Date 4/10/2026 BRYNNE VAN PUTTEN
F260139 - Rev. 1 3/2/2026 2260096 Fire Plan Review Services - February 2026 402.00 0.00 402.00
Check # 23012018 Total: 402.00
Check # 23012018 Date 4/10/2026 CSG CONSULTANTS, INC.
07-260347656 3/23/2026 RJ - Software renewal for Fleet Shop 860.00 0.00 860.00 Check # 23012019 Total: 860.00
Check # 23012019 Date 4/10/2026 CUMMINS INC CUMMINS SALES AND SERVICE 191871 3/18/2026 CE Citation Processing - February 2026 360.00 0.00 360.00 Check # 23012020 Date 4/10/2026 DATA TICKET, INC
City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 20
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Check # 23012020 Total: 360.00
4052883 3/1/2026 MT - March Call Forwarding 35.75 0.00 35.75 Check # 23012021 Total: 35.75
Check # 23012021 Date 4/10/2026 DESERT TELECOM, INC DBA; AUTOMATED TELECOM 91915 2/18/2026 MS - RWC Repairs 740.00 0.00 740.00
Check # 23012022 Total: 740.00
Check # 23012022 Date 4/10/2026 DEL AMO MOTORSPORTS OF ORANGE COUNTY BE006994936 4/1/2026 Delta Dental HMO April 2026 1,289.38 0.00 1,289.38 Check # 23012023 Total: 1,289.38
Check # 23012023 Date 4/10/2026 DELTA DENTAL INSURANCE COMPANY INV-20999 3/26/2026 Decals on Park Ranger Trucks R4 & R5 2,114.79 0.00 2,114.79 Check # 23012024 Total: 2,114.79
Check # 23012024 Date 4/10/2026 DIGITAL MAGIC SIGNS INC 01-26-008 2/28/2026 2260180 TP_FY26 On-Call Services - Staff Augmentation 1,325.00 0.00 1,325.00
Check # 23012025 Total: 1,325.00
Check # 23012025 Date 4/10/2026 DMC ENGINEERING
9915S 3/16/2026 Weed Abatement (Shooting Range) 5,137.50 0.00 5,137.50 Check # 23012026 Total: 5,137.50
Check # 23012026 Date 4/10/2026 E. STEWART & ASSOCIATES, INC. 434897 3/19/2026 Biohazardous Waste 69.84 0.00 69.84
Check # 23012027 Total: 69.84
Check # 23012027 Date 4/10/2026 EFFICIENT X-RAY, INC
41525798 3/31/2026 SET Vehicle Lease Feb-March 2026 1,930.98 0.00 1,930.98 Check # 23012028 Total: 1,930.98
Check # 23012028 Date 4/10/2026 ENTERPRISE HOLDINGS, INC ESO-187962 1/14/2026 Fire AUTO CAD System 7,492.69 0.00 7,492.69 Check # 23012029 Total: 7,492.69
Check # 23012029 Date 4/10/2026 ESO SOLUTIONS, INC
29481053 3/19/2026 RJ-valves for Heisler & irrigation boxes for stock 516.59 0.00 516.59
Check # 23012030 Total: 516.59
Check # 23012030 Date 4/10/2026 EWING IRRIGATION PRODUCTS INC.

City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 21
21 of 51
166-196705 3/17/2026 RJ - Wastewater #199 128.22 0.00 128.22 166-196856 3/18/2026 RJ - Motor Oil 97.49 0.00 97.49
166-196802 3/18/2026 RJ - Supplies for Fleet Shop (Streets DEF) 137.70 0.00 137.70
12-7066493 3/19/2026 RJ - Fleet Shop Supplies (filters) 134.11 0.00 134.11 12-7066683 3/19/2026 RJ - Fleet Shop Supplies (Filters) 182.80 0.00 182.80 166-196907 3/19/2026 RJ - Fleet Shop Supplies (Filters) 53.64 0.00 53.64 166-196902 3/19/2026 RJ - Fleet Shop Supplies (filters) 25.17 0.00 25.17 109-1114307 3/20/2026 AB - Transit Supplies (wiper blades) 22.05 0.00 22.05 166-196969 3/20/2026 RJ - Fleet Shop Supplies (Filters) 62.56 0.00 62.56 12-7068081 3/20/2026 RJ - Fleet Shop Supplies (Filters) 182.18 0.00 182.18 12-6929986 12/24/2025 RJ - Fleet Shop Supplies (Wiper Blades) 77.16 0.00 77.16 164-443412 11/21/2025 AB - Transit Stock Headlights 46.25 0.00 46.25 166-189302 11/7/2025 RJ - CREDIT - Battery Core (16.00) 0.00 (16.00) 166-190046 11/20/2025 AB - CREDIT - Transit Core (28.00) 0.00 (28.00) 166-190184 11/24/2025 RJ - Parts for ambulance repair 129.28 0.00 129.28 166-191337 12/16/2025 RJ - CREDIT - Battery Core (34.00) 0.00 (34.00) 166-191954 12/29/2025 RJ - CREDIT - Wiper Blade return (77.16) 0.00 (77.16) 166-192488 1/8/2026 RJ - CREDIT - Part Return (49.28) 0.00 (49.28) 166-192509 1/8/2026 RJ - Fire F24.01 37.23 0.00 37.23
166-192670 1/12/2026 AB - CREDIT - Transit Core (75.00) 0.00 (75.00) 166-193674 1/28/2026 RJ - CREDIT - Radiator return (269.22) 0.00 (269.22) 166-194285 2/6/2026 RJ - CREDIT - Part return (49.28) 0.00 (49.28) 166-194460 2/10/2026 RJ - Battery Credit (111.84) 0.00 (111.84) 166-194946 2/18/2026 RJ - CREDIT - Part Return (39.20) 0.00 (39.20) 166-195439 2/26/2026 RJ - CREDIT - Battery Core (18.00) 0.00 (18.00) 166-197177 3/24/2026 AB - Transit Coolant 77.52 0.00 77.52 166-197148 3/23/2026 AB - Parts for Transit #230 128.22 0.00 128.22 166-197903 4/1/2026 AB - Transit Stock 99.28 0.00 99.28 Check # 23012031 Total: 853.88
Check # 23012031 Date 4/10/2026 BIN 139107 FACTORY MOTOR PARTS 03P6511 3/18/2026 RJ - Parts for Fire F12.01 1,785.84 0.00 1,785.84 Check # 23012032 Total: 1,785.84
Check # 23012032 Date 4/10/2026 KALMIKOV ENTERPRISES, INC. 348039004-00 3/5/2026 RJ - Ceiling tiles for City facilities 728.76 0.00 728.76 Check # 23012033 Total: 728.76
Check # 23012033 Date 4/10/2026 FOUNDATION BUILDING MATERIALS 94949440400714940326 3/20/2026 Phone Charges 3/20-4/19/26 281.24 0.00 281.24 Check # 23012034 Date 4/10/2026 FRONTIER CALIFORNIA INC City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 22
22 of 51
21305315580726150326 3/16/2026 MS - Phone Charges (Special Access Line) 74.44 0.00 74.44
20903397080408150326 3/20/2026 Phone charges 3/20-4/19/26 582.95 0.00 582.95 20903693180423010326 3/20/2026 Phone charges 3/20-4/19/26 399.20 0.00 399.20 94937682730317980326 3/20/2026 Phone charges 3/20-4/19/26 333.73 0.00 333.73 Check # 23012034 Total: 1,671.56
0234650-IN 3/12/2026 RJ - Aliso Lot Concrete Work 660.10 0.00 660.10 Check # 23012035 Total: 660.10
Check # 23012035 Date 4/10/2026 GARY BALE REDI MIX CONCRETE INC 00890748007-040226 4/10/2026 Gas: 03/02/26 to 03/31/26 22.98 0.00 22.98 15330869007-040226 4/10/2026 Gas: 03/02/26 to 03/31/26 79.35 0.00 79.35 13080735007-040326 4/10/2026 Gas: 03/03/26 to 03/31/26 22.49 0.00 22.49 09290776005-040326 4/10/2026 Gas: 03/03/26 to 04/01/26 16.46 0.00 16.46 05720777001-040326 4/10/2026 Gas: 03/03/26 to 04/01/26 74.83 0.00 74.83 02980819003-040326 4/10/2026 Gas: 03/03/26 to 04/01/26 33.75 0.00 33.75 06763349252-040326 4/10/2026 Gas: 03/03/26 to 04/01/26 16.46 0.00 16.46 10140729004-040326 4/10/2026 Gas: 03/03/26 to 04/01/26 4,987.31 0.00 4,987.31 13710736003-040326 4/10/2026 Gas: 03/03/26 to 04/01/26 20.78 0.00 20.78 16430758009-040326 4/10/2026 Gas: 03/03/26 to 04/01/26 20.78 0.00 20.78 18709645974-040326 4/10/2026 Gas: 03/03/26 to 04/01/26 25.11 0.00 25.11 19370757007-040326 4/10/2026 Gas: 03/03/26 to 04/01/26 139.68 0.00 139.68 05200762002-040626 4/10/2026 Gas: 03/04/26 to 04/02/26 20.76 0.00 20.76 17037692161-040626 4/10/2026 Gas: 03/04/26 to 04/02/26 89.74 0.00 89.74 13310720001-040626 4/10/2026 Gas: 03/04/26 to 04/02/26 178.11 0.00 178.11 07830742008-040326 4/10/2026 Gas: 03/03/26 to 04/01/26 180.76 0.00 180.76 09888553691-040626 4/10/2026 Gas: 03/04/26 to 04/02/26 1,126.84 0.00 1,126.84 Check # 23012036 Total: 7,056.19
Check # 23012036 Date 4/10/2026 THE GAS COMPANY
84843 3/13/2026 TP_ Investigation at Skyline Slide 1,561.50 0.00 1,561.50 Check # 23012037 Total: 1,561.50
Check # 23012037 Date 4/10/2026 STONEY-MILLER CONSULTANTS, INC GEOFIRM 24038 3/13/2026 Public Art Restoration - February 2026 2,700.00 0.00 2,700.00 Check # 23012038 Total: 2,700.00
Check # 23012038 Date 4/10/2026 GERARD BASIL STUDIO, INC. 13405 3/23/2026 2260099 DT-000352PL Hydro Review (854 Tia Juana) 510.00 0.00 510.00
Check # 23012039 Total: 510.00
Check # 23012039 Date 4/10/2026 GMU GEOTECHNICAL, INC
City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 23
23 of 51
466254 3/2/2026 Station Supplies_Chain Loop 141.24 0.00 141.24 Check # 23012040 Total: 141.24
Check # 23012040 Date 4/10/2026 GOLDENWEST LAWNMOWERS
9850004616 3/20/2026 RJ - Motor for irrigation pump @ Alta Laguna Park 1,358.10 0.00 1,358.10
9853829522 3/24/2026 MT - Latex gloves for WW crew 459.13 0.00 459.13 Check # 23012041 Total: 1,817.23
Check # 23012041 Date 4/10/2026 GRAINGER
075 3/23/2026 Council Chamber Banner - Griffiths (1 of
2) 450.00 0.00 450.00
Check # 23012042 Total: 450.00
Check # 23012042 Date 4/10/2026 JENNIFER GRIFFITHS
30635 4/1/2026 Replace siren & light controller on ATV 350.00 0.00 350.00 Check # 23012043 Total: 350.00
Check # 23012043 Date 4/10/2026 HI STANDARD AUTOMOTIVE, LLC 1 of 2 3/24/2026 Banner Competition - Schmidt (1 of 2) 2,000.00 0.00 2,000.00 Check # 23012044 Total: 2,000.00
Check # 23012044 Date 4/10/2026 HILARY SCHMIDT
INV13149748 3/12/2026 MT - Chemical Delivery 3/11/26 1,777.64 0.00 1,777.64 INV13149204 3/5/2026 MT - Checmial Delivery 03/04/26 1,755.64 0.00 1,755.64 INV13148754 2/26/2026 MT - Chemical Delivery 2/25/26 1,821.64 0.00 1,821.64 INV13150392 3/20/2026 MT - Chemical Delivery 03/18/26 1,858.34 0.00 1,858.34 Check # 23012045 Total: 7,213.26
Check # 23012045 Date 4/10/2026 HILL BROTHERS CHEMICAL COMPANY 256237148 2/18/2026 AS Animal food 92.06 0.00 92.06
Check # 23012046 Total: 92.06
Check # 23012046 Date 4/10/2026 HILL'S PET NUTRITION SALES SIN060372 2/27/2026 2260153 Audit&Contract Services (Jan-Mar 2026) -Sales Tax 2,469.84 0.00 2,469.84
Check # 23012047 Total: 2,469.84
Check # 23012047 Date 4/10/2026 HINDERLITER DE LLAMAS AND ASSOCIATES 1946 2/23/2026 2260093 Historic Inventory Services (437 Cypress) 4,382.20 0.00 4,382.20
Check # 23012048 Total: 4,382.20
Check # 23012048 Date 4/10/2026 HISTORIC RESOURCES GROUP, LLC City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 24
24 of 51
OC0058 3/13/2026 ReddinetBedCapacityInfoModuleSystem
(Apr26-May27) 1,738.00 0.00 1,738.00
Check # 23012049 Total: 1,738.00
Check # 23012049 Date 4/10/2026 HOSPITAL ASSOCIATION OF SOUTHERN CALIFORNIA 05042026 3/23/2026 Banner Competition - Hynes (1 of 2) 2,000.00 0.00 2,000.00 Check # 23012050 Total: 2,000.00
Check # 23012050 Date 4/10/2026 INDIA HYNES
PS-INV123511 3/18/2026 MS - Annual Fee CAD Distribution 3/12/26-3/11/27 2,750.00 0.00 2,750.00
Check # 23012051 Total: 2,750.00
Check # 23012051 Date 4/10/2026 IMAGETREND, LLC
1101367984 3/9/2026 2260320 Field Response Cellular Coverage and Connectivity 2,856.45 0.00 2,856.45
1101367286 3/6/2026 2260320 Field Response Cellular Coverage and Connectivity 7,960.00 0.00 7,960.00
Check # 23012052 Total: 10,816.45
Check # 23012052 Date 4/10/2026 INSIGHT PUBLIC SECTOR, INC. 2550080D19 3/30/2026 LBPD BAGS W/ BADGE LOGO 543.88 0.00 543.88 2551150D19 3/20/2026 Business Cards (Laz,Gilm,Hill, Cary) 311.50 0.00 311.50 Check # 23012053 Total: 855.38
Check # 23012053 Date 4/10/2026 IPROMOTEU
2026-002 3/12/2026 RJ - backflow testing & repairs 1,080.00 0.00 1,080.00 2026-004 3/25/2026 RJ - Heisler Park backflow repairs 1,200.00 0.00 1,200.00 Check # 23012054 Total: 2,280.00
Check # 23012054 Date 4/10/2026 ITZEL OCAMPO
0004 2/1/2026 2260268 View Preservation Consult Svcs -
September 2025 20,058.00 0.00 20,058.00
0005 2/1/2026 2260268 View Preservation Consult Svcs -
October 2025 18,142.50 0.00 18,142.50
0006 2/1/2026 2260268 View Preservation Consult Svcs -
November 2025 9,218.75 0.00 9,218.75
Check # 23012055 Total: 47,419.25
Check # 23012055 Date 4/10/2026 JONATHAN CIAMPA
WI26#2 3/31/2026 Winter cheer audit 879.06 0.00 879.06
Check # 23012056 Total: 879.06
Check # 23012056 Date 4/10/2026 JULIA MONSON
Check # 23012057 Date 4/10/2026 JWB LAW LLP
City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 25
25 of 51
9999 - SETTLEMENT 3/2/2026 Katrina Eisinger Settlement Check 12,500.00 0.00 12,500.00 Check # 23012057 Total: 12,500.00
60309178 3/27/2026 LBPD Wristbands 623.29 0.00 623.29
Check # 23012058 Total: 623.29
Check # 23012058 Date 4/10/2026 KAESER & BLAIR, INC
1010 3/11/2026 2260382 Public Art - Anita Street Beach Access 10,000.00 0.00 10,000.00 Check # 23012059 Total: 10,000.00
Check # 23012059 Date 4/10/2026 KEVIN A MYERS
26001 3/23/2026 Council Chambers Banner - Kjerrgren (1
of 2) 450.00 0.00 450.00
26002 3/23/2026 Banner Competition - Kjerrgren (1 of 2) 2,000.00 0.00 2,000.00 Check # 23012060 Total: 2,450.00
Check # 23012060 Date 4/10/2026 LOVISA KJERRGREN
INV1051550 3/24/2026 5GallonFireControlConcentrate 3,459.81 0.00 3,459.81 INV1053362 3/30/2026 Walkway High Cycle Spring Clip 137.34 0.00 137.34 Check # 23012061 Total: 3,597.15
Check # 23012061 Date 4/10/2026 CURTIS BLUE LINE
11919-031526 4/10/2026 Water: 01/16/26 to 03/15/26 808.63 0.00 808.63 11790-031526 4/10/2026 Water: 01/16/26 to 03/15/26 48.27 0.00 48.27 26122-031526 4/10/2026 Water: 01/16/26 to 03/15/26 101.28 0.00 101.28 11825-031526 4/10/2026 Water: 01/16/26 to 03/15/26 48.27 0.00 48.27 22024-031526 4/10/2026 Water: 01/16/26 to 03/15/26 147.84 0.00 147.84 26234-031526 4/10/2026 Water: 01/16/26 to 03/15/26 58.38 0.00 58.38 11788-031526 4/10/2026 Water: 01/18/26 to 03/15/26 1,611.61 0.00 1,611.61 26431-031726 4/10/2026 Water: 01/18/26 to 03/17/26 134.28 0.00 134.28 24995-032726 4/10/2026 Water: 01/27/26 to 03/27/26 48.27 0.00 48.27 21112-032726 4/10/2026 Water: 01/27/26 to 03/27/26 74.88 0.00 74.88 Check # 23012062 Total: 3,081.71
Check # 23012062 Date 4/10/2026 LAGUNA BEACH COUNTY WATER DISTRICT 76260312B 3/12/2026 LBHS tennis court maintenance 12,782.95 0.00 12,782.95 Check # 23012063 Total: 12,782.95
Check # 23012063 Date 4/10/2026 LAGUNA BEACH UNIFIED SCHOOL DISTRICT 2019 3/22/2026 Annual Vaccinations 5,190.00 0.00 5,190.00 2020 3/22/2026 Annual Blood Draw 5,175.00 0.00 5,175.00 Check # 23012064 Total: 10,365.00
Check # 23012064 Date 4/10/2026 PRESS HEALTH INC
City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 26
26 of 51
122648 3/20/2026 Jail frozen meals 85.66 0.00 85.66
Check # 23012065 Total: 85.66
Check # 23012065 Date 4/10/2026 LANGLOIS FANCY FROZEN FOODS, INC 37014_020126 2/28/2026 Basic Life February 2026 8,833.62 0.00 8,833.62 194941_120125 12/31/2025 NY Life Voluntary December 2025 9,066.82 0.00 9,066.82 Check # 23012066 Total: 17,900.44
Check # 23012066 Date 4/10/2026 LIFE INSURANCE CO OF NORTH AMERICA 40706 3/31/2026 2260215 Lyons Security for Beach Patrol Mar2026 16,296.40 0.00 16,296.40
Check # 23012067 Total: 16,296.40
Check # 23012067 Date 4/10/2026 LYONS SECURITY SERVICE INC 27652827 3/11/2026 2260154 (RJ) 4,997 gallons fuel @ $4.00/gal 19,983.70 0.00 19,983.70 Check # 23012068 Total: 19,983.70
Check # 23012068 Date 4/10/2026 MANSFIELD OIL COMPANY OF GAINESVILLE, INC Public Art- Cleo 2 2/18/2025 Public Art- Cleo Street Beach Access 2 of 4 9,000.00 0.00 9,000.00
Check # 23012069 Total: 9,000.00
Check # 23012069 Date 4/10/2026 MICHAEL TAUBER
Milne.3.31.26 4/1/2026 Winter 2026 session 2 812.50 0.00 812.50 Check # 23012070 Total: 812.50
Check # 23012070 Date 4/10/2026 PENELOPE MILNE
SP12026KirkM 3/30/2026 Spring Installment 50% 1,554.00 0.00 1,554.00 Check # 23012071 Total: 1,554.00
Check # 23012071 Date 4/10/2026 KIRK MORGAN INCORPORATED 1411240094 3/17/2026 Investigations telephone radios Feb 2026 484.88 0.00 484.88
Check # 23012072 Total: 484.88
Check # 23012072 Date 4/10/2026 MOTOROLA SOLUTIONS, INC. 7946 6/11/2025 MS - Flags for Towers 1,518.64 0.00 1,518.64 Check # 23012073 Total: 1,518.64
Check # 23012073 Date 4/10/2026 SUSAN MONTAPERT
Cer.3.31.26 4/1/2026 Audit Feb, March & Session 2 payment W26 412.75 0.00 412.75
Check # 23012074 Total: 412.75
Check # 23012074 Date 4/10/2026 NOHEMI ELIZABETH CERVANTES City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 27
27 of 51
39746 4/3/2026 Payroll Run 1 - Warrant 260403 1,695.75 0.00 1,695.75 Check # 23012075 Total: 1,695.75
Check # 23012075 Date 4/10/2026 ORANGE COUNTY EMPLOYEES ASSOCIATION 6316 3/12/2026 2260293 PS_CIP C2509 PD Facility Improvement 45,224.81 0.00 45,224.81 Check # 23012076 Total: 45,224.81
Check # 23012076 Date 4/10/2026 OLPIN GROUP INC
8655 3/10/2026 2260131 TP_CIP C2427 Zone 6 Street Slurry Seal & Rehab 3,372.50 0.00 3,372.50
Check # 23012077 Total: 3,372.50
Check # 23012077 Date 4/10/2026 ONWARD ENGINEERING
58018 3/16/2026 AB - Transit #219 1,300.00 0.00 1,300.00 Check # 23012078 Total: 1,300.00
Check # 23012078 Date 4/10/2026 ORANGE COUNTY FIRE PROTECTION 26892 3/9/2026 2260162 (RJ) BB SOCWA & Corp Yard fuel tank testing 1,795.00 0.00 1,795.00
Check # 23012079 Total: 1,795.00
Check # 23012079 Date 4/10/2026 ORANGE COUNTY TANK TESTING,INC R25-0281 3/19/2026 AM C&D Sec Dep Refund - 3058 Nestall Road 500.00 0.00 500.00
Check # 23012080 Total: 500.00
Check # 23012080 Date 4/10/2026 OTP - DEPOSIT
C25-1821 3/25/2026 AM C&D Sec Dep Refund - 265 Laguna
Ave 500.00 0.00 500.00
Check # 23012081 Total: 500.00
Check # 23012081 Date 4/10/2026 OTP - DEPOSIT
R25-1094 3/30/2026 AM C&D Sec Dep Refund - 484 Jasmine
St 250.00 0.00 250.00
Check # 23012082 Total: 250.00
Check # 23012082 Date 4/10/2026 OTP - DEPOSIT
R26-0576 3/31/2026 AM C&D Sec Dep Refund - 1280
Temple Terr 250.00 0.00 250.00
Check # 23012083 Total: 250.00
Check # 23012083 Date 4/10/2026 OTP - DEPOSIT
SULLIVAN - REIMB 12/1/2025 Reimbursement for CERT Supplies 50.84 0.00 50.84 Check # 23012084 Date 4/10/2026 OTP - EMPLOYEES
City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 28
28 of 51
Check # 23012084 Total: 50.84
SULIVAN - REIMB 2 11/17/2025 Reimbursement for CERT Supplies 239.88 0.00 239.88 Check # 23012085 Total: 239.88
Check # 23012085 Date 4/10/2026 OTP - EMPLOYEES
TRACY 04012026 4/1/2026 PD Employee Wellness Snacks
Reimbursement 283.53 0.00 283.53
Check # 23012086 Total: 283.53
Check # 23012086 Date 4/10/2026 OTP - EMPLOYEES
BRICKMAN0 3272026 3/27/2026 Radar/Lidar Course Reimbursment 122.25 0.00 122.25 Check # 23012087 Total: 122.25
Check # 23012087 Date 4/10/2026 OTP - EMPLOYEES
RAYBURN - 031226 3/12/2026 Refund Fees - Brian Rayburn (1860 Carmelita) 9,420.39 0.00 9,420.39
Check # 23012088 Total: 9,420.39
Check # 23012088 Date 4/10/2026 OTP - REFUND
GOLDENAGE - 031226 3/12/2026 Refund REP to Golden Age Builders (31652 Wildwood) 2,606.00 0.00 2,606.00
Check # 23012089 Total: 2,606.00
Check # 23012089 Date 4/10/2026 OTP - REFUND
022626JLRAYCOMPANY 2/26/2026 Refund of ZPC Fee to JL Ray Company (511 Center) 945.00 0.00 945.00
Check # 23012090 Total: 945.00
Check # 23012090 Date 4/10/2026 OTP - REFUND
031126Stevenes 3/11/2026 Refund Fee - James Stevenes (ZPC2025-1295) 567.00 0.00 567.00 Check # 23012091 Total: 567.00
Check # 23012091 Date 4/10/2026 OTP - REFUND
022326JPTConstructio 2/23/2026 Partial Refund Permit Fees(JPT Const)1963 Catalina 53.00 0.00 53.00
Check # 23012092 Total: 53.00
Check # 23012092 Date 4/10/2026 OTP - REFUND
F2502654-Danielian 2/12/2026 F2502654-Refund for Ambulance Transport-Danielian 2,880.00 0.00 2,880.00
Check # 23012093 Total: 2,880.00
Check # 23012093 Date 4/10/2026 OTP - REFUND
City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 29
29 of 51
MCDERMOTT - 022626 2/26/2026 Refund Permit Fees-Michael Gary McDermott-1796 SCH 6,189.00 0.00 6,189.00
Check # 23012094 Total: 6,189.00
Check # 23012094 Date 4/10/2026 OTP - REFUND
3260404-IN 3/1/2026 Rental C-AII DI Tank 40.00 0.00 40.00 Check # 23012095 Total: 40.00
Check # 23012095 Date 4/10/2026 PACIFIC INDUSTRIAL WATER SYSTEMS 35632570 3/27/2026 AS animal food 587.61 0.00 587.61
Check # 23012096 Total: 587.61
Check # 23012096 Date 4/10/2026 PHILLIPS FEED SERVICE, INC 1 3/25/2026 Council Chambers Banner - Phillips (1 of
2) 450.00 0.00 450.00
Check # 23012097 Total: 450.00
Check # 23012097 Date 4/10/2026 MICHAEL PHILLIPS
PD-60893 3/20/2026 MT - Small Tools for Wastewater
Division 3,995.38 0.00 3,995.38
Check # 23012098 Total: 3,995.38
Check # 23012098 Date 4/10/2026 PLUMBERS DEPOT, INC.
886457 3/4/2026 PORAC Member dues 67.50 0.00 67.50
Check # 23012099 Total: 67.50
Check # 23012099 Date 4/10/2026 LEGAL DEFENSE FUND OF THE PEACE OFFICERS RESEARCH 26-0110 3/30/2026 2260292 TP_CIP C2613 Sidewalk Maintenance Services 37,974.62 0.00 37,974.62
Check # 23012100 Total: 37,974.62
Check # 23012100 Date 4/10/2026 PRECISION CONCRETE CUTTING 39-2026 3/3/2026 Year 2 Pryme Infil Plus Tech 3,780.00 0.00 3,780.00 Check # 23012101 Total: 3,780.00
Check # 23012101 Date 4/10/2026 PRYME INFIL, INC
232825 3/23/2026 2250425 TP_ CIP 21-9972 Promenade on Forest 288.75 0.00 288.75 Check # 23012102 Total: 288.75
Check # 23012102 Date 4/10/2026 PSOMAS
1902-104 2/27/2026 2260094 Landscape Consulting Services - February 2026 7,000.00 0.00 7,000.00
1902-105 4/1/2026 2260094 Landscape Consulting Services - March 2026 5,862.50 0.00 5,862.50
Check # 23012103 Date 4/10/2026 RICHARD RAMSEY
City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 30
30 of 51
Check # 23012103 Total: 12,862.50
10342 3/23/2026 RJ - Parts for Fire F25.01 91.05 0.00 91.05 Check # 23012104 Total: 91.05
Check # 23012104 Date 4/10/2026 RENEWELL FLEET SERVICE, LLC R1151413 3/26/2026 AB - Transit Stock 2,498.08 0.00 2,498.08 Check # 23012105 Total: 2,498.08
Check # 23012105 Date 4/10/2026 ROUSH ENTERPRISES, INC. 657978 2/18/2026 2260335 (RJ) Rodent Control Services at City Parks 1,350.00 0.00 1,350.00
Check # 23012106 Total: 1,350.00
Check # 23012106 Date 4/10/2026 RPW SERVICES INC.

EVOC26-03-020 3/27/2026 EVOC Training-Diam,Laz,Saun,Strook 1,040.00 0.00 1,040.00 Check # 23012107 Total: 1,040.00
Check # 23012107 Date 4/10/2026 TRAINING SAN BERNARDINO COUNTY FIRE DISTRICT 741059 3/20/2026 AB - Parts for Transit #219 259.49 0.00 259.49 738568-2 3/30/2026 AB - Transit Stock 34.74 0.00 34.74
Check # 23012108 Total: 294.23
Check # 23012108 Date 4/10/2026 SANTA MARGARITA FORD
Gutierrez.3.30.26 4/1/2026 Audit Feb & March 2026 payment 219.70 0.00 219.70 Check # 23012109 Total: 219.70
Check # 23012109 Date 4/10/2026 SARA GUTIERREZ
1000029542 3/27/2026 TP_Fire Station #4 Existing Pole
Removal 5,682.00 0.00 5,682.00
Check # 23012110 Total: 5,682.00
Check # 23012110 Date 4/10/2026 SAN DIEGO GAS & ELECTRIC Plumley.3.31.26 4/1/2026 Audit Feb and March 2026 812.50 0.00 812.50 Check # 23012111 Total: 812.50
Check # 23012111 Date 4/10/2026 SHARON PLUMLEY
162967239-003 3/16/2026 RJ - Landscape maint. tools: Sprayers for the team 759.37 0.00 759.37
163553971-001 3/19/2026 RJ - Irrigation stock for Landscape maintenance 885.67 0.00 885.67
163417557-001 3/16/2026 RJ - Irrigation repairs at Susi Q 36.86 0.00 36.86 Check # 23012112 Total: 1,681.90
Check # 23012112 Date 4/10/2026 SITEONE LANDSCAPE SUPPLY, LLC City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 31
31 of 51
W32026Skyhawks 3/31/2026 100% SoccerTots payment 450.45 0.00 450.45 Check # 23012113 Total: 450.45
Check # 23012113 Date 4/10/2026 SKYHAWK SPORTS ACADEMY, INC.

ARV/67362232 3/6/2026 RJ - Tools for Fleet Shop 240.66 0.00 240.66 Check # 23012114 Total: 240.66
Check # 23012114 Date 4/10/2026 SNAP-ON INDUSTRIAL
79 1/30/2026 Uniform Cleaning 66.00 0.00 66.00
513 2/27/2026 MT - WW Laundry 90.00 0.00 90.00
75 12/31/2025 FireUniformCleaning-Ernst,Laz,Neira 12.00 0.00 12.00 Check # 23012115 Total: 168.00
Check # 23012115 Date 4/10/2026 SNYDER'S CLEANERS
700386558178-033126 4/10/2026 Electricity: 03/02/26 to 03/30/26 2,242.72 0.00 2,242.72 700198111632-033126 4/10/2026 Electricity: 03/02/26 to 03/30/26 13.57 0.00 13.57 700036288249-033126 4/10/2026 Electricity: 03/02/26 to 03/30/26 61.44 0.00 61.44 700489576323-033126 4/10/2026 Electricity: 03/02/26 to 03/30/26 114.98 0.00 114.98 701033277992-033126 4/10/2026 Electricity: 03/02/26 to 03/30/26 310.76 0.00 310.76 700510643713-040126 4/10/2026 Electricity: 03/01/26 to 03/31/26 15.49 0.00 15.49 700067093530-040126 4/10/2026 Electricity: 03/01/26 to 03/31/26 1,008.80 0.00 1,008.80 700481078517-040126 4/10/2026 Electricity: 03/01/26 to 03/31/26 7,890.54 0.00 7,890.54 700055736143-040126 4/10/2026 Electricity: 02/01/26 to 03/31/26 4,732.64 0.00 4,732.64 700140593864-032526 4/10/2026 Electricity: 02/24/26 to 03/24/26 14.04 0.00 14.04 700207461119-032626 4/10/2026 Electricity: 02/25/26 to 03/25/26 22.53 0.00 22.53 700596357559-032526 4/10/2026 Electricity: 02/24/26 to 03/24/26 48.46 0.00 48.46 700030022958-032526 4/10/2026 Electricity: 02/24/26 to 03/24/26 1,217.70 0.00 1,217.70 700857296249-033026 4/10/2026 Electricity: 02/27/26 to 03/29/26 21.76 0.00 21.76 700275020508-040126 4/10/2026 Electricity: 03/03/26 to 03/31/26 22.73 0.00 22.73 700403867729-040226 4/10/2026 Electricity: 03/04/26 to 04/01/26 26.91 0.00 26.91 700215399860-032526 4/10/2026 Electricity: Multiple Periods 19,912.10 0.00 19,912.10 700203014273-040126 4/10/2026 Electricity: 02/13/26 to 03/31/26 97.60 0.00 97.60 700616081703-040126 4/10/2026 Electricity: 03/03/26 to 03/31/26 46.80 0.00 46.80 Check # 23012116 Total: 37,821.57
Check # 23012116 Date 4/10/2026 SOUTHERN CALIFORNIA EDISON RM135420 3/31/2026 Annual Fire Extinguisher Certification 560.32 0.00 560.32 Check # 23012117 Total: 560.32
Check # 23012117 Date 4/10/2026 SOUTH COAST FIRE PROTECTION 7090063891 3/13/2026 AB - Transit #225 445.20 0.00 445.20 Check # 23012118 Date 4/10/2026 SOUTHERN TIRE MART #709 City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 32
32 of 51
7090064493 3/24/2026 RJ - CREDIT - Tire Return (269.90) 0.00 (269.90) 7090064496 3/24/2026 (RJ) CREDIT - Tire Return (980.02) 0.00 (980.02) 7090064530 3/25/2026 RJ - City vehicle tires 269.90 0.00 269.90 7090064533 3/25/2026 RJ - Street Sweeper Tires 980.02 0.00 980.02 Check # 23012118 Total: 445.20
0000683268 3/25/2026 Oxygen Medical Fill 151.00 0.00 151.00 0000889418 2/28/2026 Medical Fill-Large Cyl 38.70 0.00 38.70 Check # 23012119 Total: 189.70
Check # 23012119 Date 4/10/2026 SPECTRUM GAS PRODUCTS, INC. 185965 3/12/2026 Ink Refills 53.85 0.00 53.85
Check # 23012120 Total: 53.85
Check # 23012120 Date 4/10/2026 STAMP-CONNNECTION.COM
9211668150 2/26/2026 Laryngoscope Battery 478.09 0.00 478.09 Check # 23012121 Total: 478.09
Check # 23012121 Date 4/10/2026 STRYKER SALES LLC
208129 3/16/2026 2260084 TP_ Promenade on Forest Schematic Design 5,222.57 0.00 5,222.57
Check # 23012122 Total: 5,222.57
Check # 23012122 Date 4/10/2026 SWA GROUP INC
974174805-031626 3/16/2026 Cellphone charges 2/16-3/15/26 7,591.80 0.00 7,591.80 961249641-032226 4/10/2026 Phone: 02/21/26 to 03/20/26 1,635.20 0.00 1,635.20 Check # 23012123 Total: 9,227.00
Check # 23012123 Date 4/10/2026 T-MOBILE
002301 3/30/2026 2260126 Backfill Fin - Lindsey L. - 3/23/26 to 3/29/26 1,600.00 0.00 1,600.00
002268 3/23/2026 2260334 Temp Emp Svcs-Erik Diaz T&CS WE 3/16 to 3/22/26 1,500.48 0.00 1,500.48
002302 3/30/2026 2260334 Temp Emp Svcs-Erik Diaz T&CS WE 03/23 to 03/29/26 1,500.48 0.00 1,500.48
002303 3/30/2026 2260328 MM_Temporary Administrative Assistant 1,800.00 0.00 1,800.00 Check # 23012124 Total: 6,400.96
Check # 23012124 Date 4/10/2026 TEMPORARY STAFFING PROFESSIONALS INC PS-LB-02 10/31/2025 2260085 Personnel Svcs (Bldg Inspectors) October 2025 19,698.00 0.00 19,698.00
PS-LB-03 11/30/2025 2260085 Personnel Svcs (Bldg Inspectors) Nov. 2025 19,600.00 0.00 19,600.00
Check # 23012125 Date 4/10/2026 THE CODE GROUP, INC
City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 33
33 of 51
PS-LB-04 12/31/2025 2260085 Personnel Svcs (Bldg Inspectors) December 2025 12,446.00 0.00 12,446.00
PS-LB-06 2/28/2026 2260085 Personnel Svcs (Bldg Inspectors) February 2026 13,524.00 0.00 13,524.00
PS-LB-05 1/31/2026 2260085 Personnel Svcs (Bldg Inspectors) January 2026 14,406.00 0.00 14,406.00
Check # 23012125 Total: 79,674.00
TF-CODE-626120 2/16/2026 2260376 Temporary Artwork Installation - Tom Fruin 17,500.00 0.00 17,500.00
Check # 23012126 Total: 17,500.00
Check # 23012126 Date 4/10/2026 THOMAS FRUIN
98538 3/25/2026 2260359 2601 - MS-2026-1, 4-Runner Truck 50,141.96 0.00 50,141.96 Check # 23012127 Total: 50,141.96
Check # 23012127 Date 4/10/2026 GPI CA-TII, INC
20262358 2/28/2026 2250174 TP_C1705 - Coast Hwy Sidewalk Gap Closure 103.00 0.00 103.00
Check # 23012128 Total: 103.00
Check # 23012128 Date 4/10/2026 TRANSTECH ENGINEERS, INC WI26#2 3/31/2026 Winter gymnastics session 2 2,620.80 0.00 2,620.80 Check # 23012129 Total: 2,620.80
Check # 23012129 Date 4/10/2026 TUMBLE-N-KIDS, INC.
30908 3/12/2026 TurnouShie,Sene,Swet,DeJoh,Adam,Kalsch 654.00 0.00 654.00 Check # 23012130 Total: 654.00
Check # 23012130 Date 4/10/2026 TURNOUT MAINTENANCE COMPANY LLC 2190473023 2/25/2026 (RJ-AB) Uniform & Towel Rental 83.67 0.00 83.67 2190483849 3/18/2026 (RJ-AB) Uniform & Towel Rental 83.67 0.00 83.67 2190484004 3/18/2026 MT - Uniform Rental 113.71 0.00 113.71 2190484002 3/18/2026 RJ - Uniform Rental 261.34 0.00 261.34 2190480555 3/11/2026 (RJ-AB) Uniform & Towel Rental 83.67 0.00 83.67 2190480557 3/11/2026 (MT) Uniform Rental 121.42 0.00 121.42 2190480671 3/11/2026 RJ- Uniform Rental 312.70 0.00 312.70 2190487322 3/25/2026 RJ - Uniform Rental 291.06 0.00 291.06 2190487324 3/25/2026 (RJ-AB) Uniform & Towel Rental 125.56 0.00 125.56 2190487328 3/25/2026 MT - Uniform Rental 59.82 0.00 59.82 Check # 23012131 Total: 1,536.62
Check # 23012131 Date 4/10/2026 UNIFIRST CORPORATION
Check # 23012132 Date 4/10/2026 USA BLUE BOOK
City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 34
34 of 51
INV00968023 2/19/2026 MT - Latex Gloves for WW 501.92 0.00 501.92 Check # 23012132 Total: 501.92
069-50261640 3/18/2026 RJ - Janitorial Supplies - Trash Bags var.location 3,407.32 0.00 3,407.32
069-50227765 1/27/2026 RJ - Janitorial Supplies (Trash Bags) 2,096.82 0.00 2,096.82 069-50261650 3/18/2026 RJ - Janitorial Supplies (paper towels & TP) 4,260.48 0.00 4,260.48
069-50266065 3/25/2026 RJ - Janitorial Supplies (trash bags) 3,939.56 0.00 3,939.56 069-50266075 3/25/2026 RJ - Janitorial Supplies (Soap & Paper Products) 3,461.18 0.00 3,461.18
Check # 23012133 Total: 17,165.36
Check # 23012133 Date 4/10/2026 VERITIV OPERATING COMPANY 631000082936 4/1/2026 ASSET TRACKING SUBSCRIPTION
March26 197.40 0.00 197.40
Check # 23012134 Total: 197.40
Check # 23012134 Date 4/10/2026 VERIZON COMMUNICATIONS, INC. 6139309359-442000334 4/10/2026 Phone: 02/24/26 to 03/23/26 114.03 0.00 114.03 6139521261-760813405 4/10/2026 Phone: 02/26/26 to 03/25/26 6,095.34 0.00 6,095.34 Check # 23012135 Total: 6,209.37
Check # 23012135 Date 4/10/2026 VERIZON WIRELESS
824873069 3/19/2026 VSP Active April 2026 3,760.18 0.00 3,760.18 824876572 3/19/2026 VSP Retirees April 2026 378.39 0.00 378.39 Check # 23012136 Total: 4,138.57
Check # 23012136 Date 4/10/2026 VISION SERVICE PLAN
INV-0001543 11/3/2025 MT - WW tri-pod parts 94.85 0.00 94.85 INV-0001564 11/11/2025 MT - Parts for WW Tri-pod 5.62 0.00 5.62 INV-0001539 11/4/2025 MT - Safety gear for WW 735.72 0.00 735.72 INV-0001533 11/4/2025 RJ - Safety Gear for WW 622.29 0.00 622.29 Check # 23012137 Total: 1,458.48
Check # 23012137 Date 4/10/2026 WEST COAST SAFETY SUPPLY, INC 9121 2/18/2026 MS - Vessel Maintenance and Supplies 166.98 0.00 166.98 4102005 2/18/2026 MS - Vessel Supplies 409.12 0.00 409.12 4102004 2/18/2026 MS - Vessel Supplies 29.22 0.00 29.22 Check # 23012138 Total: 605.32
Check # 23012138 Date 4/10/2026 WEST MARINE PRO
03-2026-LagunaBeach 4/1/2026 March 2026 wildlife intakes 1,000.00 0.00 1,000.00 Check # 23012139 Date 4/10/2026 WETLANDS AND WILDLIFE CARE CENTER City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 35
35 of 51
Check # 23012139 Total: 1,000.00
1763 6/25/2026 MS - Wild Rivers JG Trip 1 - 6/25/26 4,878.78 0.00 4,878.78 1764 7/16/2026 MS - Wild Rivers JG Trip 1 - 7/16/26
DEPOSIT 3,359.16 0.00 3,359.16
Check # 23012140 Total: 8,237.94
Check # 23012140 Date 4/10/2026 WILD RIVERS WATERPARK
37 3/16/2026 2260261 Medical Director - March 2026 Services 2,000.00 0.00 2,000.00 Check # 23012141 Total: 2,000.00
Check # 23012141 Date 4/10/2026 WILLIAM DODGE MD
40330450 3/12/2026 2260041 (TP) NPDES Technical Support FY25-26 6,060.00 0.00 6,060.00 Check # 23012142 Total: 6,060.00
Check # 23012142 Date 4/10/2026 WSP USA INC
41816700 3/27/2026 2260206 Lease 211-0983512-002 - 3/16/26 to 4/15/26 481.02 0.00 481.02
41816699 3/27/2026 2260249 Lease (211-0983512-001) - 3/16/26 to 4/15/26 5,597.89 0.00 5,597.89
Check # 23012143 Total: 6,078.91
Check # 23012143 Date 4/10/2026 XEROX FINANCIAL SERVICES 90006546 3/4/2026 2260083 PS_ FY26 Street Light Maintenance Services 1,251.45 0.00 1,251.45
5610007712 3/4/2026 2260083 PS_ FY26 Street Light Maintenance Services 6,673.78 0.00 6,673.78
Check # 23012144 Total: 7,925.23
Check # 23012144 Date 4/10/2026 YUNEX LLC
TOTAL ACCOUNTS PAYABLE CHECKS 2,225,774.21
I hereby certify and attest that the above listed demands are in accordance with the City's Budget, and, in accordance with Section 37202 of the Government Code, I certify and attest to the accuracy and availability of funds for the payment thereof. ___________________________________________
Michelle Bannigan
Director of Administrative Services
GRAND TOTAL $2,225,774.21
City of Laguna Beach
Check Register
Week Ending 4/10/2026
Invoice # Inv Date PO # Description Gross Discount Net
Attachment 3 36
36 of 51

STAFF REPORT
Meeting Date:

May 12, 2026

CONSENT
7 SUBJECT: MONTHLY TREASURER’S AND INVESTMENT REPORT (MARCH 2026) RECOMMENDATION: It is recommended that the City Council:

1. Receive and file the March 2026 report.

SUMMARY OF THE MATTER
A monthly report from the elected City Treasurer is required by Government Code. That report included the cash and investments by fund and the reports from the City’s banks. It was modified to comply with the Laguna Beach Investment Policy.

The City Council retained investment authority and has hired Meeder to manage a portion of the portfolio.

Their report used other valuation sources and included some of the accounts which are managed by the City Treasurer.

Attached are the two reports for March 2026.
• Cash and investments managed by the City Treasurer totaled $70,460,000 and included most of the funds required for adequate liquidity for the next six months, assessment district, bond funds and Special Investment Accounts. The report provides the receipts and disbursements by fund, balances the funds to the banks, provides discussion and a required statement by the City Treasurer that there is adequate liquidity for the next six months and provided a 2-year cash flow forecast. Valuations are provided by the banks and the City’s accounting system. • Investments managed by Meeder totaled $83,726,000. Their report included a discussion of surplus investments and the general economy. The custodial bank has reported valuations which are different from those reported by Meeder. In the opinion of the treasurer, the differences are not material.

The portfolio includes US treasury securities (35%), government agency instruments (20%), the Local Agency Investment Fund (17%), medium-term corporate notes (14%), and high-yield, fully collateralized bank accounts (14%).

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.
1 of 82
MONTHLY TREASURER’S AND INVESTMENT REPORT (MARCH 2026)
May 12, 2026

Page 2 of 2 ends

ATTACHMENTS

1. Report from City Treasurer Parisi (Pgs. 3-8)

2. Report from Investment Manager (Pgs. 9-31)
Submitted By: Laura Parisi Approved: .David A Kiff
Larua Parisi, CPA, CCMT, City
Treasurer
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Laura Parisi, CPA, CCMT, City Treasurer Laura Parisi, CPA, CCMT, City Treasurer Greg Balls, CFA, Meeder Investments
2 of 82
Attachment 1
3 4
5 6
7 8
Investment
Report
City of Laguna Beach Agg
As of March 31, 2026
Attachment 2
9 9 of 82
2 OBSERVATIONS AND EXPECTATIONS
• Interest rates were higher for March, generally due to increases of energy prices • The Fed Funds futures market has been bouncing around, projecting no 2026 moves
• Economic growth for the fourth quarter of 2026 was revised lower to 0.7% from

1.4%
• Labor market data continue to show there’s not much hiring or firing taking place • The rate of change of inflation has slowed, but cumulative inflation is above average • During most of February, the Fed
Funds futures market was pricing
in over two .25% Fed cuts this
year.
• At the end of March, futures
market data are projecting the
Fed to be on hold this year.
2 SOURCE: BLOOMBERG, FED’S UPPER RATE, SHADED AREAS ARE RECESSIONS -75
-50
-25
0 25
Basis Points
Projected Fed .25% Cuts/Hikes to Dec 2026
10 10 of 82
3 • Monthly nonfarm payrolls have
alternated between negative and
positive the past nine months.
• This is the highest string of
consecutively contrasting job data on
record.
• Many analysts and economists have
stated we are experiencing a “no hire,
no fire” job market.
• The Consumer Price Index’s YoY rate of
change has slowed materially since the
COVID year highs.
• The five-year cumulative change is up over
26%, which is well above a rolling 5-year
average.
• U.S. consumers say their greatest financial
concern right now is affordability, due to the
accumulated inflation since the pandemic.

SOURCE: BLOOMBERG,
SOURCE: BLOOMBERG, *2026 YOY THROUGH FEB
3 5.6%

3.0%
0%
1%
2%
3%
4%
5%
6%
Jan-22
Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
PCE Core Inflation Yoy
PCE Core YoY
Fed's 2% Target
42 67
108
13 -20
64 -70
76 -140
41 -17
126
-92
-200
-150
-100
-50
0 50
100
150
000s
Nonfarm Payrolls - MoM Change
11 11 of 82
4 SOURCES: BLOOMBERG
4 3.20

3.40 3.60

3.80 4.00

4.20 4.40

4.60 4.80

5.00 3M 6M 1Y 2Y 3Yr 5Y 7Y 10Y 20Y 30Y
Percent
U.S. Treasury Yield Curve Change
3/31/26 2/27/26
2 8
18 42 44 44 43
38 36
30 0
10 20
30 40
50 3M 6M 1Y 2Y 3Yr 5Y 7Y 10Y 20Y 30Y
Basis Points
Basis Point Change
SOURCES: BLOOMBERG
12 12 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
5 Portfolio Summary 6
Position Statement 7
Transaction Statement 12
Income/Dividend Received 14
Contribution/Withdrawals and Expenses 16
Projected Income 17
Contents
13 13 of 82
6 Portfolio Summary

CURRENT
MONTH
Beginning 109,806,067.82
Contributions/Withdrawals (6,444,955.64)
Management Fees 0.00
Custodian Fees 0.00
Realized Gains Losses 14,800.00
Purchased Interest (40,901.03)
Interest Received 468,298.08
ENDING 103,803,309.23

3.33 Weighted Average Yield to Maturity

1.18 Weighted Average Maturity (Years)

1.10 Portfolio Effective Duration (Years)

1.18 Weighted Average Life (Years)
AA
Average Credit Rating
Custodial Reconciliation
Sector Allocation
• 1 U.S. Treasuries 34.69%
• 1 U.S. Agencies 20.80%
• 1 LGIP 16.61%
• 1 High-Yield Checking 13.80%
• 1 Corporate Bonds 13.77%
• 1 Negotiable CD's 0.33%
Maturity Distribution
Projected Monthly Income Schedule

CITY OF LAGUNA BEACH AGG
MARCH 31, 2026
14 14 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
7 CUSIP DESCRIPTION

TRADE DATE

SETTLE DATE PAR VALUE

PRINCIPAL COST

PURCHASED

INTEREST TOTAL COST

YIELD TO

MATURITY

MATURITY
DATE

DAYS TO

MATURITY

MARKET PRICE

MARKET VALUE

UNREALIZED

GAIN/LOSS BOOK
VALUE
% OF
MV

MOODY'S
S&P
RATING

OPERATING

ACCOUNT
U.S. TREASURIES
91282CKZ3 US TREASURY 4.375
07/15/27
02/17/2026
02/18/2026 2,000,000.00 2,024,687.508,218.23 2,032,905.73 3.47 07/15/2027 471 100.682,013,600.00 (11,087.50)
2,024,687.50 1.35 Aa1AA+
91282CFZ9 US TREASURY 3.875
11/30/27
07/10/2025
07/14/2025 1,700,000.00 1,700,863.280.00 1,700,863.28 3.85 11/30/2027 609 100.061,701,003.00 139.72
1,700,863.28 1.14 Aa1AA+
91282CGC9 US TREASURY 3.875
12/31/27
07/10/2025
07/14/2025 1,650,000.00 1,651,289.060.00 1,651,289.06 3.84 12/31/2027 640 100.07 1,651,155.00
(134.06)
1,651,289.06 1.11 Aa1AA+
91282CND9 US TREASURY 3.750
05/15/28
07/09/2025
07/11/2025 1,500,000.00 1,497,304.690.00 1,497,304.69 3.82 05/15/2028 776 99.861,497,945.00 640.31
1,497,304.69 1.01 Aa1AA+
91282CNH0 US TREASURY 3.875
06/15/28
07/09/2025
07/11/2025 1,750,000.00 1,752,939.450.00 1,752,939.45 3.81 06/15/2028 807 100.131,752,327.50 (611.95)
1,752,939.45 1.18 Aa1AA+
91282CHQ7 US TREASURY 4.125
07/31/28
02/14/2025
02/19/2025 2,000,000.00 1,991,015.630.00 1,991,015.63 4.27 07/31/2028 853 100.69 2,013,760.00
22,744.37
1,991,015.63 1.35 Aa1AA+
91282CPC9 US TREASURY 3.500
10/15/28
02/17/2026
02/18/2026 2,000,000.00 2,001,718.7524,230.77 2,025,949.52 3.46 10/15/2028 929 99.221,984,460.00 (17,258.75)
2,001,718.75 1.33 Aa1AA+
9128285M8 US TREASURY 3.125
11/15/28
02/17/2026
02/18/2026 1,335,000.00 1,323,266.6010,948.29 1,334,214.89 3.46 11/15/2028 960 98.261,311,744.30 (11,522.30)
1,323,266.60 0.88 Aa1AA+
91282CJR3 US TREASURY 3.750
12/31/28
07/10/2025
07/14/2025 1,905,000.00 1,897,930.660.00 1,897,930.66 3.87 12/31/2028 1,006 99.801,901,209.05 3,278.39
1,897,930.66 1.28 Aa1AA+
91282CKG5 US TREASURY 4.125
03/31/29
01/27/2025
01/29/2025 2,000,000.00 1,985,390.630.00 1,985,390.63 4.32 03/31/2029 1,096 100.83 2,016,640.00
31,249.37
1,985,390.63 1.35 Aa1AA+
9128286T2 US TREASURY 2.375
05/15/29
07/10/2025
07/14/2025 1,300,000.00 1,230,734.38

0.00 1,230,734.38 3.88 05/15/2029 1,141 95.74
1,244,646.00
13,911.62
1,230,734.38 0.84 Aa1AA+
91282CLC3 US TREASURY 4.000
07/31/29
10/28/2024
10/30/2024 1,000,000.00 995,273.440.00 995,273.44 4.11 07/31/2029 1,218 100.451,004,450.00 9,176.56
995,273.44 0.67 Aa1AA+
91282CMA6 US TREASURY 4.125
11/30/29
01/29/2025
01/31/2025 2,000,000.00 1,983,828.130.00 1,983,828.13 4.31 11/30/2029 1,340 100.83 2,016,560.00
32,731.87
1,983,828.13 1.35 Aa1AA+
91282CMG3 US TREASURY 4.250
01/31/30
01/29/2025
01/31/2025 2,000,000.00 1,993,828.120.00 1,993,828.12 4.32 01/31/2030 1,402 101.272,025,320.00 31,491.88
1,993,828.12 1.36 Aa1AA+
91282CNK3 US TREASURY 3.875
06/30/30
07/09/2025
07/11/2025 1,600,000.00 1,597,250.000.00 1,597,250.00 3.91 06/30/2030 1,552 99.851,597,568.00 318.00
1,597,250.00 1.07 Aa1AA+
91282CNX5 US TREASURY 3.625
08/31/30
03/19/2026
03/23/2026 1,500,000.00 1,484,355.473,398.44 1,487,753.91 3.88 08/31/2030 1,614 98.771,481,595.00 (2,760.47)
1,484,355.47 0.99 Aa1
AA+
91282CPD7 US TREASURY 3.625
10/31/30
03/19/2026
03/23/2026 1,500,000.00 1,483,593.75
21,479.63 1,505,073.38 3.89 10/31/2030 1,675 98.71
1,480,605.00
(2,988.75)
1,483,593.75 0.99 Aa1
AA+
91282CJQ5 US TREASURY 3.750
12/31/30
03/19/2026
03/23/2026 1,500,000.00 1,490,390.63
12,741.71 1,503,132.34 3.90 12/31/2030 1,736 99.15
1,487,175.00
(3,215.63)
1,490,390.63 1.00 Aa1
AA+
91282CQD6 US TREASURY 3.500
02/28/31
03/19/2026
03/23/2026 1,500,000.00 1,474,101.563,281.25 1,477,382.81 3.89 02/28/2031 1,795 98.061,470,945.00 (3,156.56)
1,474,101.56 0.99 Aa1AA+
U.S. TREASURIES
TOTAL 31,740,000.00 31,559,761.7384,298.32 31,644,060.05 3.92 1,116 99.7431,652,707.85 92,946.12
31,559,761.73 21.24 AA+
U.S. AGENCIES
Position Statement
15 15 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
8 CUSIP DESCRIPTION

TRADE DATE

SETTLE DATE PAR VALUE

PRINCIPAL COST

PURCHASED

INTEREST TOTAL COST

YIELD TO

MATURITY

MATURITY
DATE

DAYS TO

MATURITY

MARKET PRICE

MARKET VALUE

UNREALIZED

GAIN/LOSS BOOK
VALUE
% OF
MV

MOODY'S
S&P
RATING
3130ALXJ8 FHLBANKS 1.150
04/29/26 '25
04/12/2021
04/29/2021 1,420,000.00 1,420,000.000.00 1,420,000.00 1.15 04/29/2026 29 99.801,417,145.80 (2,854.20)
1,420,000.00 0.95 Aa1AA+
31422XFP2 FARMER MAC 0.950
05/04/26 '23 MTN
04/26/2021
05/04/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 0.95 05/04/2026 34 99.74997,420.00 (2,580.00)
1,000,000.00 0.67 NANA
31422XHF2 FARMER MAC 0.925
06/10/26 MTN
05/27/2021
06/10/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 0.93 06/10/2026 71 99.45994,460.00 (5,540.00)
1,000,000.00 0.67 NANA
31422XJM5 FARMER MAC 0.940
06/29/26 MTN
12/23/2021
12/27/2021 1,000,000.00 983,410.00

0.00 983,410.00 1.32 06/29/2026 90 99.32993,210.00
9,800.00
983,410.00 0.67 NANA
3133EMP63 FED FARM CR BNKS

0.980 06/30/26 '25
07/07/2021
07/08/2021 1,000,000.00 999,250.000.00 999,250.00 1.00 06/30/2026 91 99.31993,130.00 (6,120.00)
999,250.00 0.67 Aa1
AA+
3130AMSS2 FHLBANKS 1.050
06/30/26 '25
06/03/2021
06/30/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 1.05 06/30/2026 91 99.34993,360.00 (6,640.00)
1,000,000.00 0.67 Aa1AA+
3130AQS79 FHLBANKS 2.250
08/07/26
01/27/2022
02/07/2022 1,000,000.00 1,000,000.000.00 1,000,000.00 1.76 08/07/2026 129 99.46994,610.00 (5,390.00)
1,000,000.00 0.67 Aa1AA+
3130ANNP1 FHLBANKS 1.100
08/24/26 '25
08/10/2021
08/31/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 1.10 08/24/2026 146 98.97989,660.00 (10,340.00)
1,000,000.00 0.66 Aa1AA+
3130ANRR3 FHLBANKS 1.000
09/17/26 '25
08/24/2021
09/17/2021 2,000,000.00 2,000,000.000.00 2,000,000.00 1.00 09/17/2026 170 98.721,974,320.00 (25,680.00)
2,000,000.00 1.32 Aa1
AA+
3130ANYN4 FHLBANKS 1.000
09/30/26 '25
09/14/2021
09/30/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 1.00 09/30/2026 183 98.66986,550.00 (13,450.00)
1,000,000.00 0.66 Aa1AA+
3130ANYN4 FHLBANKS 1.000
09/30/26 '25
09/14/2021
09/30/2021 1,000,000.00 1,000,000.00

0.00 1,000,000.00 1.00 09/30/2026 183 98.66986,550.00
(13,450.00)
1,000,000.00 0.66 Aa1AA+
3130AP4X0 FHLBANKS 1.000
09/30/26 '25
09/16/2021
09/30/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 1.00 09/30/2026 183 98.65986,500.00 (13,500.00)
1,000,000.00 0.66 Aa1AA+
3133ENBK5 FED FARM CR BNKS 1.140
10/20/26 '25
10/14/2021
10/20/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 1.14 10/20/2026 203 98.56985,560.00 (14,440.00)
1,000,000.00 0.66 Aa1AA+
3130APL37 FHLBANKS 1.400 11/16/26
'25
10/18/2021
11/16/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 1.40 11/16/2026 230 98.52985,150.00 (14,850.00)
1,000,000.00 0.66 Aa1AA+
3133ENEM8 FED FARM CR BNKS

1.430 11/23/26 '25
11/16/2021
11/23/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 1.43 11/23/2026 237 98.52985,200.00 (14,800.00)
1,000,000.00 0.66 Aa1AA+
31422XPE6 FARMER MAC 1.300
11/23/26 '26 MTN
10/18/2021
11/23/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 1.30 11/23/2026 237 98.39983,850.00 (16,150.00)
1,000,000.00 0.66 NANA
3130APQW8 FHLBANKS 1.500
11/24/26 '25
10/28/2021
11/24/2021 1,000,000.00 1,000,000.00

0.00 1,000,000.00 1.50 11/24/2026 238 98.52
985,230.00
(14,770.00)
1,000,000.00 0.66 Aa1AA+
3130APU78 FHLBANKS 1.300
11/24/26 '25
11/09/2021
11/24/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 1.30 11/24/2026 238 98.40 983,970.00
(16,030.00)
1,000,000.00 0.66 Aa1
AA+
3133ENFN5 FED FARM CR BNKS

1.540 11/30/26 '25
11/23/2021
11/30/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 1.54 11/30/2026 244 98.53985,310.00 (14,690.00)
1,000,000.00 0.66 Aa1AA+
3130APV77 FHLBANKS 1.500
12/10/26 '25
11/10/2021
12/13/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 1.50 12/10/2026 254 98.44984,390.00 (15,610.00)
1,000,000.00 0.66 Aa1
AA+
3130APV77 FHLBANKS 1.500
12/10/26 '25
11/10/2021
12/10/2021 1,000,000.00 1,000,000.000.00 1,000,000.00 1.50 12/10/2026 254 98.44984,390.00 (15,610.00)
1,000,000.00 0.66 Aa1AA+
3133ENHC7 FED FARM CR BNKS

1.600 12/14/26 '25
12/08/2021
12/14/2021 2,000,000.00 2,000,000.000.00 2,000,000.00 1.60 12/14/2026 258 98.481,969,540.00 (30,460.00)
2,000,000.00 1.32 Aa1AA+
3130APXD2 FHLBANKS 1.550 12/17/26
'25
11/15/2021
12/17/2021 1,000,000.00 1,000,000.00

0.00 1,000,000.00 1.55 12/17/2026 261 98.43
984,250.00
(15,750.00)
1,000,000.00 0.66 Aa1
AA+
Position Statement
16 16 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
9 CUSIP DESCRIPTION

TRADE DATE

SETTLE DATE PAR VALUE

PRINCIPAL COST

PURCHASED

INTEREST TOTAL COST

YIELD TO

MATURITY

MATURITY
DATE

DAYS TO

MATURITY

MARKET PRICE

MARKET VALUE

UNREALIZED

GAIN/LOSS BOOK
VALUE
% OF
MV

MOODY'S
S&P
RATING
3130AQEW9 FHLBANKS 1.500
01/14/27 '25
12/21/2021
01/14/2022 1,000,000.00 1,000,000.000.00 1,000,000.00 1.50 01/14/2027 289 98.20982,000.00 (18,000.00)
1,000,000.00 0.66 Aa1AA+
3130AQJH7 FHLBANKS 1.750
01/28/27 '25
01/04/2022
01/28/2022 500,000.00 500,000.000.00 500,000.00 1.75 01/28/2027 303 98.35491,740.00 (8,260.00)
500,000.00 0.33 Aa1AA+
3130AQHC0 FHLBANKS 1.650
01/28/27 '25
12/30/2021
01/28/2022 1,000,000.00 1,000,000.000.00 1,000,000.00 1.65 01/28/2027 303 98.27982,680.00 (17,320.00)
1,000,000.00 0.66 Aa1AA+
3130AQSM6 FHLBANKS 2.050
02/25/27 '25
01/31/2022
02/25/2022 1,000,000.00 1,000,000.00

0.00 1,000,000.00 2.05 02/25/2027 331 98.47984,680.00
(15,320.00)
1,000,000.00 0.66 Aa1AA+
742651DY5 PEFCO 1.400 07/15/28 07/09/2025
07/11/2025 1,250,000.00 1,161,612.500.00 1,161,612.50 3.91 07/15/2028 837 94.531,181,650.00 20,037.50
1,161,612.50 0.79 Aa1
NA
3133ETKN6 FED FARM CR BNKS

4.000 10/09/29
07/10/2025
07/14/2025 1,250,000.00 1,252,525.000.00 1,252,525.00 3.95 10/09/2029 1,288 100.241,253,050.00 525.00
1,252,525.00 0.84 Aa1AA+
U.S. AGENCIES
TOTAL 31,420,000.00 31,316,797.500.00 31,316,797.50 1.52 261 98.6730,999,555.80 (317,241.70)
31,316,797.50 20.80 AA+

NEGOTIABLE CD'S
38149MA94 GOLDMAN BANK USA

1.050 09/29/26
09/22/2021
09/29/2021 250,000.00 250,000.000.00 250,000.00 1.05 09/29/2026 182 98.39245,971.60 (4,028.40)
250,000.00 0.17 NANA
39573LBZ0 GREENSTATE 1.050
10/15/26
10/07/2021
10/15/2021 250,000.00 250,000.00

0.00 250,000.00 1.05 10/15/2026 198 98.24245,599.27
(4,400.73)
250,000.00 0.16 NANA

NEGOTIABLE CD'S
TOTAL 500,000.00 500,000.000.00 500,000.00 1.05 190 98.31491,570.88 (8,429.12)
500,000.00 0.33 NA

CORPORATE
BONDS
88579YAV3 3M 2.250 09/19/26 '26
MTN
03/29/2022
03/31/2022 1,000,000.00 972,940.000.00 972,940.00 2.90 09/19/2026 172 99.13991,300.00 18,360.00
972,940.00 0.67 A3BBB+
74153WCU1 PRICOA GLOBAL 4.400
08/27/27 MTN
02/13/2026
02/17/2026 1,500,000.00 1,516,155.000.00 1,516,155.00 3.67 08/27/2027 514 100.381,505,685.00 (10,470.00)
1,516,155.00 1.01 Aa3AA66815L2T5 NORTHWESTERN MUT

4.110 09/12/27 MTN
02/13/2026
02/17/2026 1,500,000.00 1,509,540.000.00 1,509,540.00 3.69 09/12/2027 530 99.811,497,105.00 (12,435.00)
1,509,540.00 1.00 Aa1AA+
14913UAR1 CTRPLLR FIN SERV

4.400 10/15/27 MTN
07/10/2025
07/14/2025 1,500,000.00 1,507,740.000.00 1,507,740.00 4.16 10/15/2027 563 100.471,507,065.00 (675.00)
1,507,740.00 1.01 A2A
478160CK8 JOHNSON&JOHNSON

2.900 01/15/28 '27
07/09/2025
07/11/2025 1,500,000.00 1,462,710.000.00 1,462,710.00 3.95 01/15/2028 655 98.261,473,915.00 11,205.00
1,462,710.00 0.99 AaaAAA
857477CU5 STATE STREET 4.536
02/28/28 '28
07/09/2025
07/11/2025 1,500,000.00 1,514,265.000.00 1,514,265.00 4.12 02/28/2028 699 100.671,510,050.00 (4,215.00)
1,514,265.00 1.01 Aa3A
24422EVP1 JOHN DEERE CAP 1.500
03/06/28 MTN
07/09/2025
07/11/2025 1,500,000.00 1,403,475.000.00 1,403,475.00 4.08 03/06/2028 706 95.281,429,170.00 25,695.00
1,403,475.00 0.96 A1A
053015AG8 ADP 1.700 05/15/28 '28 07/10/2025
07/14/2025 1,500,000.00 1,408,830.00

0.00 1,408,830.00 3.99 05/15/2028 776 95.27
1,428,990.00
20,160.00
1,408,830.00 0.96 Aa3
AA037833EH9 APPLE 1.400 08/05/28
'28
07/09/2025
07/11/2025 1,000,000.00 924,650.00

0.00 924,650.00 4.04 08/05/2028 858 94.47
944,650.00
20,000.00
924,650.00 0.63 Aaa
AA+
931142ES8 WALMART 1.500
09/22/28 '28
07/09/2025
07/11/2025 1,500,000.00 1,387,335.000.00 1,387,335.00 4.03 09/22/2028 906 94.381,415,670.00 28,335.00
1,387,335.00 0.95 Aa2AA
24422EXH7 JOHN DEERE CAP 4.500
01/16/29 MTN
01/29/2025
01/31/2025 1,000,000.00 994,440.00

0.00 994,440.00 4.65 01/16/2029 1,022 100.951,009,530.00 15,090.00
994,440.00 0.68 A1A
Position Statement
17 17 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
10 CUSIP DESCRIPTION

TRADE DATE

SETTLE DATE PAR VALUE

PRINCIPAL COST

PURCHASED

INTEREST TOTAL COST

YIELD TO

MATURITY

MATURITY
DATE

DAYS TO

MATURITY

MARKET PRICE

MARKET VALUE

UNREALIZED

GAIN/LOSS BOOK
VALUE
% OF
MV

MOODY'S
S&P
RATING
437076BY7 HOME DEPOT 2.950
06/15/29 '29
01/29/2025
01/31/2025 1,000,000.00 933,030.000.00 933,030.00 4.66 06/15/2029 1,172 96.21962,100.00 29,070.00
933,030.00 0.65 A2A
30303M8S4 META PLATFORMS 4.300
08/15/29 '29
01/27/2025
01/29/2025 1,000,000.00 988,650.000.00 988,650.00 4.58 08/15/2029 1,233 100.451,004,460.00 15,810.00
988,650.00 0.67 Aa3AA037833DP2 APPLE 2.200 09/11/29 '29 01/27/2025 01/29/2025 1,000,000.00 904,710.000.00 904,710.00 4.51 09/11/2029 1,260 94.28942,840.00 38,130.00
904,710.00 0.63 AaaAA+
713448ES3 PEPSICO 2.750 03/19/30
'29
07/09/2025
07/11/2025 1,500,000.00 1,405,155.00

0.00 1,405,155.00 4.25 03/19/2030 1,449 94.511,417,620.00 12,465.00
1,405,155.00 0.95 A1A+
59217GFU8 METLIFE GBL FDG 4.350
01/12/31 MTN
02/13/2026
02/17/2026 1,500,000.00 1,515,975.006,343.75 1,522,318.75 4.11 01/12/2031 1,748 98.881,483,245.00 (32,730.00)
1,515,975.00 1.00 Aa3
AACORPORATE
BONDS TOTAL 21,000,000.00 20,349,600.006,343.75 20,355,943.75 4.06 880 97.8020,523,395.00 173,795.00
20,349,600.00 13.77 A+

OPERATING
ACCOUNT TOTAL 84,660,000.00 83,726,159.2390,642.07 83,816,801.30 3.05 736 83,667,229.53 (58,929.70)
83,726,159.23 56.14 AA

SHORT TERM

ACCOUNT
LGIP
CALAIF California LAIF 03/31/2026
03/31/2026 24,754,112.49 24,754,112.490.00 24,754,112.49 3.83 1 1.00 24,754,112.49

0.00 24,754,112.49 16.61 NA
LGIP TOTAL 24,754,112.49 24,754,112.49

0.00 24,754,112.49 3.83 1 1.0024,754,112.49

0.00 24,754,112.49 16.61 NA
U.S. TREASURIES
91282CKY6 US TREASURY 4.625
06/30/26
12/16/2025
12/17/2025 5,000,000.00 5,028,550.000.00 5,028,550.00 3.54 06/30/2026 91 100.215,010,742.20 (17,807.80)
5,028,550.00 3.36 Aa1AA+
91282CHU8 US TREASURY 4.375
08/15/26
02/23/2026
02/24/2026 5,000,000.00 5,018,250.005,438.54 5,023,688.54 3.58 08/15/2026 137 100.215,010,546.90 (7,703.10)
5,018,250.00 3.36 Aa1AA+
91282CLH2 US TREASURY 3.750
08/31/26
11/20/2025
11/21/2025 5,000,000.00 5,002,900.000.00 5,002,900.00 3.67 08/31/2026 153 99.994,999,414.05 (3,485.95)
5,002,900.00 3.35 Aa1AA+
91282CHY0 US TREASURY 4.625
09/15/26
02/23/2026
02/24/2026 5,000,000.00 5,027,450.000.00 5,027,450.00 3.60 09/15/2026 168 100.395,019,726.55 (7,723.45)
5,027,450.00 3.37 Aa1AA+
U.S. TREASURIES
TOTAL 20,000,000.00 20,077,150.005,438.54 20,082,588.54 3.60 137 100.2020,040,429.70 (36,720.30)
20,077,150.00 13.45 AA+

HIGH-YIELD

CHECKING
325159737996 BofA PF Interest Checking 01/30/2026
01/30/2026 11,213,696.26 11,213,696.260.00 11,213,696.26 3.64 03/31/2026 0 1.0011,213,696.26

0.00 11,213,696.26 7.52 NANA
325159738005 BofA Interest Checking –
Restricted Bond Proceeds 9,350,018.42 9,350,018.42

0.00 9,350,018.42 3.64 03/31/2026 0 1.00
9,350,018.42

0.00 9,350,018.42 6.27 NA
NA

HIGH-YIELD
CHECKING TOTAL 20,563,714.68 20,563,714.68

0.00 20,563,714.68 3.64 0 1.0020,563,714.68

0.00 20,563,714.68 13.80 NA

SHORT TERM
ACCOUNT TOTAL 65,317,827.17 65,394,977.17
5,438.54 65,400,415.71 3.70 42 65,358,256.87
(36,720.30)
65,394,977.17 43.86 AA+
Position Statement
18 18 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
11 CUSIP DESCRIPTION

TRADE DATE

SETTLE DATE PAR VALUE

PRINCIPAL COST

PURCHASED

INTEREST TOTAL COST

YIELD TO

MATURITY

MATURITY
DATE

DAYS TO

MATURITY

MARKET PRICE

MARKET VALUE

UNREALIZED

GAIN/LOSS BOOK
VALUE
% OF
MV

MOODY'S
S&P
RATING
GRAND TOTAL 149,977,827.17 149,121,136.40
96,080.61 149,217,217.01 3.33 432 149,025,486.40
(95,650.00)
149,121,136.40 100.00 AA
Position Statement
19 19 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
12 Transaction Statement

SHORT TERM

ACCOUNT

TRADE DATE SETTLE DATE CUSIP DESCRIPTION PAR VALUE PRINCIPAL COST

PURCHASED

INTEREST TOTAL

PURCHASE
YIELD
BUY
03/31/2026 03/31/2026 325159738005 BofA Interest Checking – Restricted Bond Proceeds 1,155,392.65 (1,155,392.65) BUY TOTAL 1,155,392.65 (1,155,392.65)

TRADE DATE SETTLE DATE CUSIP DESCRIPTION PAR VALUE BOOK VALUE TOTAL NET

REALIZED

GAIN/LOSS
SELL
03/31/2026 03/31/2026 325159737996 BofA PF Interest Checking (2,267,802.62) 2,267,802.62 SELL TOTAL (2,267,802.62) 2,267,802.62

OPERATING

ACCOUNT

TRADE DATE SETTLE DATE CUSIP DESCRIPTION PAR VALUE PRINCIPAL COST

PURCHASED

INTEREST TOTAL

PURCHASE
YIELD
BUY
03/19/2026 03/23/2026 91282CQD6 US TREASURY 3.500 02/28/31 1,500,000.00 1,474,101.56 3,281.25 (1,477,382.81) 3.89 03/19/2026 03/23/2026 91282CNX5 US TREASURY 3.625 08/31/30 1,500,000.00 1,484,355.47 3,398.44 (1,487,753.91) 3.88 03/19/2026 03/23/2026 91282CJQ5 US TREASURY 3.750 12/31/30 1,500,000.00 1,490,390.63 12,741.71 (1,503,132.34) 3.90 03/19/2026 03/23/2026 91282CPD7 US TREASURY 3.625 10/31/30 1,500,000.00 1,483,593.75 21,479.63 (1,505,073.38) 3.89 BUY TOTAL 6,000,000.00 5,932,441.41 40,901.03 (5,973,342.44) 3.89

TRADE DATE SETTLE DATE CUSIP DESCRIPTION PAR VALUE BOOK VALUE TOTAL NET

REALIZED

GAIN/LOSS

MATURITY
03/03/2026 03/03/2026 3133EMSH6 FEDERAL FARM CREDIT BANKS FUNDING CORP

0.79 03/03/2026 (1,000,000.00) 1,000,000.00 1,000,000.00 0.00 03/09/2026 03/09/2026 3133EMSU7 FEDERAL FARM CREDIT BANKS FUNDING CORP

0.8 03/09/2026 (1,000,000.00) 1,000,000.00 1,000,000.00 0.00 03/10/2026 03/10/2026 06048WL65 BANK OF AMERICA CORP 1.05 03/10/2026 (1,000,000.00) 985,200.00 1,000,000.00 14,800.00 03/10/2026 03/10/2026 3130ALFS8 FEDERAL HOME LOAN BANKS 0.8 03/10/2026 (2,000,000.00) 2,000,000.00 2,000,000.00 0.00 20 20 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
13 Transaction Statement
03/16/2026 03/16/2026 3130ALDN1 FEDERAL HOME LOAN BANKS 0.8 03/16/2026 (2,000,000.00) 2,000,000.00 2,000,000.00 0.00 03/18/2026 03/18/2026 3133ENSD3 FEDERAL FARM CREDIT BANKS FUNDING CORP

2.15 03/18/2026 (1,000,000.00) 1,000,000.00 1,000,000.00 0.00 03/23/2026 03/23/2026 3130ALGJ7 FEDERAL HOME LOAN BANKS 1.0 03/23/2026 (1,950,000.00) 1,950,000.00 1,950,000.00 0.00 03/23/2026 03/23/2026 3130ALGC2 FEDERAL HOME LOAN BANKS 0.875 03/23/2026 (2,000,000.00) 2,000,000.00 2,000,000.00 0.00 MATURITY TOTAL (11,950,000.00) 11,935,200.00 11,950,000.00 14,800.00 21 21 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
14 Income/Dividend Received

IDENTIFIER DESCRIPTION PAYMENT DATE POST DATE

INTEREST/DIVIDENDS

RECEIVED

OUTSIDE HOLDINGS
325159737996 BofA PF Interest Checking 03/31/2026 03/31/2026 44,906.62 325159738005 BofA Interest Checking – Restricted Bond Proceeds 03/31/2026 03/31/2026 25,137.84

OUTSIDE HOLDINGS -
TOTAL 70,044.46

IDENTIFIER DESCRIPTION PAYMENT DATE POST DATE

INTEREST/DIVIDENDS

RECEIVED

US BANK
91282CLH2 US TREASURY 3.750 08/31/26 02/28/2026 03/02/2026 93,750.00 857477CU5 STATE STREET 4.536 02/28/28 '28 02/28/2026 03/02/2026 34,020.00 39573LBZ0 GREENSTATE 1.050 10/15/26 03/01/2026 03/02/2026 201.37 3133EMSH6 FEDERAL FARM CREDIT BANKS FUNDING CORP 0.79
03/03/2026 03/03/2026 03/03/2026 3,950.00
24422EVP1 JOHN DEERE CAP 1.500 03/06/28 MTN 03/06/2026 03/06/2026 11,250.00 3133EMSU7 FEDERAL FARM CREDIT BANKS FUNDING CORP 0.8
03/09/2026 03/09/2026 03/09/2026 4,000.00
3130ALFS8 FEDERAL HOME LOAN BANKS 0.8 03/10/2026 03/10/2026 03/10/2026 8,000.00 3130APV77 FHLBANKS 1.500 12/10/26 '25 03/10/2026 03/10/2026 2,500.00 06048WL65 BANK OF AMERICA CORP 1.05 03/10/2026 03/10/2026 03/10/2026 5,250.00 037833DP2 APPLE 2.200 09/11/29 '29 03/11/2026 03/11/2026 11,000.00 66815L2T5 NORTHWESTERN MUT 4.110 09/12/27 MTN 03/12/2026 03/12/2026 30,825.00 3130ALDN1 FEDERAL HOME LOAN BANKS 0.8 03/16/2026 03/16/2026 03/16/2026 8,000.00 91282CHY0 US TREASURY 4.625 09/15/26 03/15/2026 03/16/2026 115,625.00 3130ANRR3 FHLBANKS 1.000 09/17/26 '25 03/17/2026 03/17/2026 10,000.00 3133ENSD3 FEDERAL FARM CREDIT BANKS FUNDING CORP 2.15
03/18/2026 03/18/2026 03/18/2026 10,750.00
88579YAV3 3M 2.250 09/19/26 '26 MTN 03/19/2026 03/19/2026 11,250.00 713448ES3 PEPSICO 2.750 03/19/30 '29 03/19/2026 03/19/2026 20,625.00 3130ALGJ7 FEDERAL HOME LOAN BANKS 1.0 03/23/2026 03/23/2026 03/23/2026 9,750.00 931142ES8 WALMART 1.500 09/22/28 '28 03/22/2026 03/23/2026 11,250.00 3130ALGC2 FEDERAL HOME LOAN BANKS 0.875 03/23/2026 03/23/2026 03/23/2026 8,750.00 3130AP4X0 FHLBANKS 1.000 09/30/26 '25 03/30/2026 03/30/2026 5,000.00 3130ANYN4 FHLBANKS 1.000 09/30/26 '25 03/30/2026 03/30/2026 10,000.00 22 22 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
15 Income/Dividend Received
38149MA94 GOLDMAN BANK USA 1.050 09/29/26 03/29/2026 03/30/2026 1,301.71 91282CKG5 US TREASURY 4.125 03/31/29 03/31/2026 03/31/2026 41,250.00 US BANK - TOTAL 468,298.08
TOTAL 538,342.54
23 23 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
16 Contribution/Withdrawals and Expenses

POST DATE PAR VALUE TOTAL

SHORT TERM ACCOUNT

WITHDRAWAL
03/02/2026 (93,750.00) (93,750.00)
03/16/2026 (115,625.00) (115,625.00)
WITHDRAWAL TOTAL (209,375.00) (209,375.00)

OPERATING ACCOUNT

WITHDRAWAL
03/02/2026 (34,221.37) (34,221.37)
03/03/2026 (1,003,950.00) (1,003,950.00)
03/06/2026 (11,250.00) (11,250.00)
03/09/2026 (1,004,000.00) (1,004,000.00)
03/10/2026 (3,015,750.00) (3,015,750.00)
03/11/2026 (11,000.00) (11,000.00)
03/12/2026 (30,825.00) (30,825.00)
03/16/2026 (2,008,000.00) (2,008,000.00)
03/17/2026 (10,000.00) (10,000.00)
03/18/2026 (1,010,750.00) (1,010,750.00)
03/19/2026 (31,875.00) (31,875.00)
03/24/2026 (3,980,407.56) (3,980,407.56)
03/30/2026 (16,301.71) (16,301.71)
03/31/2026 (41,250.00) (41,250.00)
WITHDRAWAL TOTAL (12,209,580.64) (12,209,580.64)

CONTRIBUTION
03/23/2026 5,974,000.00 5,974,000.00
CONTRIBUTION TOTAL 5,974,000.00 5,974,000.00
24 24 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
17 CUSIP DESCRIPTION POST DATE AMOUNT
39573LBZ0 GREENSTATE 1.050 10/15/26 04/01/2026 222.95
3133ETKN6 FED FARM CR BNKS 4.000 10/09/29 04/09/2026 25,000.00 3130APV77 FHLBANKS 1.500 12/10/26 '25 04/10/2026 2,500.00 14913UAR1 CTRPLLR FIN SERV 4.400 10/15/27 MTN 04/15/2026 33,000.00 91282CPC9 US TREASURY 3.500 10/15/28 04/15/2026 35,000.00 3133ENBK5 FED FARM CR BNKS 1.140 10/20/26 '25 04/20/2026 5,700.00 3130ALXJ8 FHLBANKS 1.150 04/29/26 '25 04/29/2026 8,165.00 91282CPD7 US TREASURY 3.625 10/31/30 04/30/2026 27,187.50 APR 2026 TOTAL 136,775.45
39573LBZ0 GREENSTATE 1.050 10/15/26 05/01/2026 215.75
31422XFP2 FARMER MAC 0.950 05/04/26 '23 MTN 05/04/2026 4,750.00 3130APV77 FHLBANKS 1.500 12/10/26 '25 05/11/2026 2,500.00 91282CND9 US TREASURY 3.750 05/15/28 05/15/2026 28,125.00 9128285M8 US TREASURY 3.125 11/15/28 05/15/2026 20,859.38 9128286T2 US TREASURY 2.375 05/15/29 05/15/2026 15,437.50 053015AG8 ADP 1.700 05/15/28 '28 05/15/2026 12,750.00
3130APL37 FHLBANKS 1.400 11/16/26 '25 05/18/2026 7,000.00 3130APQW8 FHLBANKS 1.500 11/24/26 '25 05/26/2026 7,500.00 3130APU78 FHLBANKS 1.300 11/24/26 '25 05/26/2026 6,500.00 3133ENEM8 FED FARM CR BNKS 1.430 11/23/26 '25 05/26/2026 7,150.00 31422XPE6 FARMER MAC 1.300 11/23/26 '26 MTN 05/26/2026 6,500.00 MAY 2026 TOTAL 119,287.63
3133ENFN5 FED FARM CR BNKS 1.540 11/30/26 '25 06/01/2026 7,700.00 39573LBZ0 GREENSTATE 1.050 10/15/26 06/01/2026 222.95
91282CFZ9 US TREASURY 3.875 11/30/27 06/01/2026 32,937.50 91282CMA6 US TREASURY 4.125 11/30/29 06/01/2026 41,250.00 3130APV77 FHLBANKS 1.500 12/10/26 '25 06/10/2026 2,500.00 31422XHF2 FARMER MAC 0.925 06/10/26 MTN 06/10/2026 4,625.00 Projected Income
For the Period April 01, 2026 to March 31, 2027
25 25 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
18 CUSIP DESCRIPTION POST DATE AMOUNT
437076BY7 HOME DEPOT 2.950 06/15/29 '29 06/15/2026 14,750.00 91282CNH0 US TREASURY 3.875 06/15/28 06/15/2026 33,906.25 3133ENHC7 FED FARM CR BNKS 1.600 12/14/26 '25 06/15/2026 16,000.00 3130APXD2 FHLBANKS 1.550 12/17/26 '25 06/17/2026 7,750.00 31422XJM5 FARMER MAC 0.940 06/29/26 MTN 06/29/2026 16,590.00 31422XJM5 FARMER MAC 0.940 06/29/26 MTN 06/29/2026 4,700.00 91282CJQ5 US TREASURY 3.750 12/31/30 06/30/2026 28,125.00 91282CJR3 US TREASURY 3.750 12/31/28 06/30/2026 35,718.75 3130AMSS2 FHLBANKS 1.050 06/30/26 '25 06/30/2026 5,250.00 3133EMP63 FED FARM CR BNKS 0.980 06/30/26 '25 06/30/2026 4,900.00 91282CNK3 US TREASURY 3.875 06/30/30 06/30/2026 31,000.00 3133EMP63 FED FARM CR BNKS 0.980 06/30/26 '25 06/30/2026 750.00 91282CGC9 US TREASURY 3.875 12/31/27 06/30/2026 31,968.75 JUN 2026 TOTAL 320,644.20
39573LBZ0 GREENSTATE 1.050 10/15/26 07/01/2026 215.75
3130APV77 FHLBANKS 1.500 12/10/26 '25 07/10/2026 2,500.00 59217GFU8 METLIFE GBL FDG 4.350 01/12/31 MTN 07/13/2026 32,625.00 3130AQEW9 FHLBANKS 1.500 01/14/27 '25 07/14/2026 7,500.00 742651DY5 PEFCO 1.400 07/15/28 07/15/2026 8,750.00
91282CKZ3 US TREASURY 4.375 07/15/27 07/15/2026 43,750.00 478160CK8 JOHNSON&JOHNSON 2.900 01/15/28 '27 07/15/2026 21,750.00 24422EXH7 JOHN DEERE CAP 4.500 01/16/29 MTN 07/16/2026 22,500.00 3130AQHC0 FHLBANKS 1.650 01/28/27 '25 07/28/2026 8,250.00 3130AQJH7 FHLBANKS 1.750 01/28/27 '25 07/28/2026 4,375.00 91282CLC3 US TREASURY 4.000 07/31/29 07/31/2026 20,000.00 91282CHQ7 US TREASURY 4.125 07/31/28 07/31/2026 41,250.00 91282CMG3 US TREASURY 4.250 01/31/30 07/31/2026 42,500.00 JUL 2026 TOTAL 255,965.75
Projected Income
For the Period April 01, 2026 to March 31, 2027
26 26 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
19 CUSIP DESCRIPTION POST DATE AMOUNT
39573LBZ0 GREENSTATE 1.050 10/15/26 08/03/2026 222.95
037833EH9 APPLE 1.400 08/05/28 '28 08/05/2026 7,000.00
3130AQS79 FHLBANKS 2.250 08/07/26 08/07/2026 11,250.00
3130APV77 FHLBANKS 1.500 12/10/26 '25 08/10/2026 2,500.00 30303M8S4 META PLATFORMS 4.300 08/15/29 '29 08/17/2026 21,500.00 3130ANNP1 FHLBANKS 1.100 08/24/26 '25 08/24/2026 5,500.00 3130AQSM6 FHLBANKS 2.050 02/25/27 '25 08/25/2026 10,250.00 74153WCU1 PRICOA GLOBAL 4.400 08/27/27 MTN 08/27/2026 33,000.00 857477CU5 STATE STREET 4.536 02/28/28 '28 08/28/2026 34,020.00 91282CNX5 US TREASURY 3.625 08/31/30 08/31/2026 27,187.50 91282CQD6 US TREASURY 3.500 02/28/31 08/31/2026 26,250.00 AUG 2026 TOTAL 178,680.45
39573LBZ0 GREENSTATE 1.050 10/15/26 09/01/2026 222.95
24422EVP1 JOHN DEERE CAP 1.500 03/06/28 MTN 09/08/2026 11,250.00 3130APV77 FHLBANKS 1.500 12/10/26 '25 09/10/2026 2,500.00 037833DP2 APPLE 2.200 09/11/29 '29 09/11/2026 11,000.00 66815L2T5 NORTHWESTERN MUT 4.110 09/12/27 MTN 09/14/2026 30,825.00 3130ANRR3 FHLBANKS 1.000 09/17/26 '25 09/17/2026 10,000.00 88579YAV3 3M 2.250 09/19/26 '26 MTN 09/19/2026 27,060.00 713448ES3 PEPSICO 2.750 03/19/30 '29 09/21/2026 20,625.00 88579YAV3 3M 2.250 09/19/26 '26 MTN 09/21/2026 11,250.00 931142ES8 WALMART 1.500 09/22/28 '28 09/22/2026 11,250.00 38149MA94 GOLDMAN BANK USA 1.050 09/29/26 09/29/2026 1,323.29 91282CKG5 US TREASURY 4.125 03/31/29 09/30/2026 41,250.00 3130ANYN4 FHLBANKS 1.000 09/30/26 '25 09/30/2026 10,000.00 3130AP4X0 FHLBANKS 1.000 09/30/26 '25 09/30/2026 5,000.00 SEP 2026 TOTAL 193,556.23
3133ETKN6 FED FARM CR BNKS 4.000 10/09/29 10/09/2026 25,000.00 Projected Income
For the Period April 01, 2026 to March 31, 2027
27 27 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
20 CUSIP DESCRIPTION POST DATE AMOUNT
3130APV77 FHLBANKS 1.500 12/10/26 '25 10/13/2026 2,500.00 14913UAR1 CTRPLLR FIN SERV 4.400 10/15/27 MTN 10/15/2026 33,000.00 39573LBZ0 GREENSTATE 1.050 10/15/26 10/15/2026 316.44
91282CPC9 US TREASURY 3.500 10/15/28 10/15/2026 35,000.00 3133ENBK5 FED FARM CR BNKS 1.140 10/20/26 '25 10/20/2026 5,700.00 OCT 2026 TOTAL 101,516.44
91282CPD7 US TREASURY 3.625 10/31/30 11/02/2026 27,187.50 3130APV77 FHLBANKS 1.500 12/10/26 '25 11/10/2026 2,500.00 9128286T2 US TREASURY 2.375 05/15/29 11/16/2026 15,437.50 053015AG8 ADP 1.700 05/15/28 '28 11/16/2026 12,750.00
91282CND9 US TREASURY 3.750 05/15/28 11/16/2026 28,125.00 3130APL37 FHLBANKS 1.400 11/16/26 '25 11/16/2026 7,000.00 9128285M8 US TREASURY 3.125 11/15/28 11/16/2026 20,859.38 31422XPE6 FARMER MAC 1.300 11/23/26 '26 MTN 11/23/2026 6,500.00 3133ENEM8 FED FARM CR BNKS 1.430 11/23/26 '25 11/23/2026 7,150.00 3130APQW8 FHLBANKS 1.500 11/24/26 '25 11/24/2026 7,500.00 3130APU78 FHLBANKS 1.300 11/24/26 '25 11/24/2026 6,500.00 91282CFZ9 US TREASURY 3.875 11/30/27 11/30/2026 32,937.50 91282CMA6 US TREASURY 4.125 11/30/29 11/30/2026 41,250.00 3133ENFN5 FED FARM CR BNKS 1.540 11/30/26 '25 11/30/2026 7,700.00 NOV 2026 TOTAL 223,396.88
3130APV77 FHLBANKS 1.500 12/10/26 '25 12/10/2026 2,500.00 3133ENHC7 FED FARM CR BNKS 1.600 12/14/26 '25 12/14/2026 16,000.00 437076BY7 HOME DEPOT 2.950 06/15/29 '29 12/15/2026 14,750.00 91282CNH0 US TREASURY 3.875 06/15/28 12/15/2026 33,906.25 3130APXD2 FHLBANKS 1.550 12/17/26 '25 12/17/2026 7,750.00 91282CGC9 US TREASURY 3.875 12/31/27 12/31/2026 31,968.75 91282CJQ5 US TREASURY 3.750 12/31/30 12/31/2026 28,125.00 Projected Income
For the Period April 01, 2026 to March 31, 2027
28 28 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
21 CUSIP DESCRIPTION POST DATE AMOUNT
91282CJR3 US TREASURY 3.750 12/31/28 12/31/2026 35,718.75 91282CNK3 US TREASURY 3.875 06/30/30 12/31/2026 31,000.00 DEC 2026 TOTAL 201,718.75
59217GFU8 METLIFE GBL FDG 4.350 01/12/31 MTN 01/12/2027 32,625.00 3130AQEW9 FHLBANKS 1.500 01/14/27 '25 01/14/2027 7,500.00 742651DY5 PEFCO 1.400 07/15/28 01/15/2027 8,750.00
91282CKZ3 US TREASURY 4.375 07/15/27 01/15/2027 43,750.00 478160CK8 JOHNSON&JOHNSON 2.900 01/15/28 '27 01/15/2027 21,750.00 24422EXH7 JOHN DEERE CAP 4.500 01/16/29 MTN 01/19/2027 22,500.00 3130AQHC0 FHLBANKS 1.650 01/28/27 '25 01/28/2027 8,250.00 3130AQJH7 FHLBANKS 1.750 01/28/27 '25 01/28/2027 4,375.00 JAN 2027 TOTAL 149,500.00
91282CLC3 US TREASURY 4.000 07/31/29 02/01/2027 20,000.00 91282CHQ7 US TREASURY 4.125 07/31/28 02/01/2027 41,250.00 91282CMG3 US TREASURY 4.250 01/31/30 02/01/2027 42,500.00 037833EH9 APPLE 1.400 08/05/28 '28 02/05/2027 7,000.00
30303M8S4 META PLATFORMS 4.300 08/15/29 '29 02/16/2027 21,500.00 3130AQSM6 FHLBANKS 2.050 02/25/27 '25 02/25/2027 10,250.00 FEB 2027 TOTAL 142,500.00
91282CNX5 US TREASURY 3.625 08/31/30 03/01/2027 27,187.50 857477CU5 STATE STREET 4.536 02/28/28 '28 03/01/2027 34,020.00 91282CQD6 US TREASURY 3.500 02/28/31 03/01/2027 26,250.00 74153WCU1 PRICOA GLOBAL 4.400 08/27/27 MTN 03/01/2027 33,000.00 24422EVP1 JOHN DEERE CAP 1.500 03/06/28 MTN 03/08/2027 11,250.00 037833DP2 APPLE 2.200 09/11/29 '29 03/11/2027 11,000.00 66815L2T5 NORTHWESTERN MUT 4.110 09/12/27 MTN 03/12/2027 30,825.00 713448ES3 PEPSICO 2.750 03/19/30 '29 03/19/2027 20,625.00 931142ES8 WALMART 1.500 09/22/28 '28 03/22/2027 11,250.00 Projected Income
For the Period April 01, 2026 to March 31, 2027
29 29 of 82
CITY OF LAGUNA BEACH AGG | MARCH 31, 2026
22 CUSIP DESCRIPTION POST DATE AMOUNT
91282CKG5 US TREASURY 4.125 03/31/29 03/31/2027 41,250.00 MAR 2027 TOTAL 246,657.50
91282CKY6 US TREASURY 4.625 06/30/26 06/30/2026 115,625.00 91282CKY6 US TREASURY 4.625 06/30/26 06/30/2026 (28,550.00) JUN 2026 TOTAL 87,075.00
91282CHU8 US TREASURY 4.375 08/15/26 08/15/2026 (18,250.00) 91282CHU8 US TREASURY 4.375 08/15/26 08/17/2026 109,375.00 91282CLH2 US TREASURY 3.750 08/31/26 08/31/2026 93,750.00 91282CLH2 US TREASURY 3.750 08/31/26 08/31/2026 (2,900.00) AUG 2026 TOTAL 181,975.00
91282CHY0 US TREASURY 4.625 09/15/26 09/15/2026 (27,450.00) 91282CHY0 US TREASURY 4.625 09/15/26 09/15/2026 115,625.00 SEP 2026 TOTAL 88,175.00
GRAND TOTAL 2,627,424.27
Projected Income
For the Period April 01, 2026 to March 31, 2027
30 30 of 82
Meeder provides monthly statements for its investment management clients to provide information about the investment portfolio. The information should not be used for audit or confirmation purposes. Please review your custodial statements and report any inaccuracies or discrepancies.

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Disclosure
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STAFF REPORT
Meeting Date:

May 12, 2026

CONSENT
8 SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR FIRE STATION

COMMUNICATION SYSTEM UPGRADES
RECOMMENDATION: It is recommended that the City Council:

1. Award and authorize the City Manager to execute a contract with Intelinet, Inc., in the amount of $197,422, for construction of Fire Station Communication System Upgrades project;

2. Authorize the City Manager to approve project-related expenses and contract change orders for unforeseen circumstances in an amount not to exceed $30,000; and

3. Find that the award of contract is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301.

SUMMARY OF THE MATTER
This report recommends that the City Council award a construction contract to Intelinet, Inc. in the amount of $197,422 for the Fire Station Communication System Upgrades project. The scope of work includes upgrades to the technology infrastructure at Fire Stations 1 through 4, including the installation of new structured cabling systems to support voice, data, wireless access, security systems, and station alerting systems. The work also includes upgrading telecommunication rooms, installing conduits and pathways, and restoring all affected surfaces to match existing conditions upon completion.

The total estimated project cost is $197,422, which is within the available budget of $432,400. The project has been reviewed under CEQA and is categorically exempt pursuant to Section 15301 of the CEQA guidelines.

DISCUSSION
The Fire Station Communication System Upgrades project includes improvements at Fire Stations 1 through 4 as follows:
Upgrades to telecommunications rooms and necessary configuration Installation of new structured cabling systems for voice, data, and wireless communication Installation of new structured cabling systems to support security and access control systems Installation of low-voltage infrastructure to support the new station alerting system Installation of conduits, pathways, and firestopping for new cabling Removal of existing telecommunications cabling
These improvements will modernize the Fire Department’s communication infrastructure, enhance reliability and operational efficiency, and support current and future technology needs for emergency response services. The improvements at Fire Station 4 were minimized to avoid throw-away costs, but the project ensures that the station communication will be current and reliable until the new station is opened. 1 of 89

AWARD OF CONSTRUCTION CONTRACT FOR FIRE STATION COMMUNICATION

SYSTEM UPGRADES
May 12, 2026

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Bid Process and Contractor Selection
Staff completed a public bid process for the project in accordance with California Public Contract Code requirements. On April 28, 2026, one bid was received by Intelinet, Inc. in the amount of $197,422. Staff reviewed the bid submitted by Intelinet, Inc., and determined that the contractor is properly licensed, is responsive, and responsible. Therefore, staff recommend that the City Council award and authorize the City Manager to execute a contract with Intelinet, Inc. in the amount of $197,422 (Attachment 1). It is also recommended that funding be provided to cover change orders due to unforeseen conditions. These costs are not to exceed $30,000; therefore, it is recommended that the City Manager be authorized to approve change orders for unforeseen circumstances in the amount not-to-exceed $30,000. Construction is anticipated to begin in May 2026 and be completed by September 2026.

FINANCIAL ANALYSIS
There is an available project budget in the Capital Improvement Fund (C2605) of $432,400 for the Fire Station Communication System Upgrades project. No additional appropriation is required at this time.

ENVIRONMENTAL ANALYSIS
Environmental Quality Act under CEQA Guidelines Section 15301 because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Here, the recommended action meets the exemption because the project consists of minor alterations to existing public facilities involving installation of communication infrastructure with no expansion of use. Upon taking the recommended action, City staff will cause to be filed within five calendar days a notice of exemption with the County and State Clearinghouse.

ATTACHMENTS

1. Construction Contact with Intelinet, Inc. (Pgs. 3-7) Submitted By:

Mark McAvoy Approved: .David A Kiff
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Christian Sanford, Project Manager Thomas Perez, City Engineer Pierre Sawaya, Capital Program Manager
Jerry Soto, IT Manager
Matt Squires, Senior IT Analyst
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D-1 Ageement No.

CONSTRUCTION CONTRACT
FOR

CONSTRUCTION OF
FIRE STATION COMMUNICATION SYSTEM UPGRADES (C2605)

CITY OF LAGUNA BEACH
THIS Agreement, made and entered into this day of ,2026, by and between CITY OF LAGUNA BEACH, a municipal corporation of the State of California, hereinafter referred to as "CITY" and Intelinet, Inc., Contractor's License No. 852670, hereinafter referred to as "CONTRACTOR,"
WITNESSETH:

That the CITY and the CONTRACTOR, for the consideration hereinafter stated, mutually agree as follows:

1. The complete Agreement includes all of the contract documents, which are incorporated herein by this reference, to wit: Notice Inviting Bids, Instructions to Bidders, Bid Form and Proposal to the City of Laguna Beach, Standard Provisions, General Provisions, Special Provisions, Drawings, Plans, Performance Bond, Labor and Material Bond, Certificate of Insurance, this Agreement and all modifications and amendments thereto. The Agreement documents are complementary, and that which is required by one shall be as binding as if required by all. In the event of any discrepancy among Agreement documents, precedence shall be determined as specified in Section 2-5.2 of the Standard Specifications for Public Works Construction.

2. In the performance of the services under the Agreement, CONTRACTOR shall be, and is, an independent contractor, and is not an agent or employee of the CITY. The CITY shall not in any way or for any purpose become, or be deemed to be, a partner of CONTRACTOR in its business or otherwise, or a joint venturer, or a member of any joint enterprise with CONTRACTOR.

CONTRACTOR shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of the CITY. The CONTRACTOR has and shall retain the right to exercise full control and supervision of the services, and full control over the employment, direction, compensation and discharge of all persons assisting CONTRACTOR in the performance of required services. CONTRACTOR shall be solely responsible and hold the CITY harmless for all matters relating to the payment of CONTRACTOR’s employees, including compliance with Social Security, withholding and all other regulations governing such matters.

Neither CONTRACTOR nor any of CONTRACTOR’s employees shall, at any time, or in any way, be entitled to any sick leave, vacation, retirement or other fringe benefits from the CITY; and neither the CITY nor any of its employees shall be paid by the CITY at the rate of time and one-half for working in excess of forty hours in any one week or more than eight hours in any one day. Neither CONTRACTOR nor any of CONTRACTOR’s employees shall be included in the competitive service, have any property right to any position, or any of the rights an employee may have in the event of termination of this Agreement.

3. CONTRACTOR shall perform everything required to be performed, shall provide and furnish all the labor, materials, necessary tools, expendable equipment, and all utility and transportation Attachment 1
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D-2 Ageement No.
services required for the following work of improvements: FIRE STATION COMMUNICATION SYSTEM UPGRADES all in accordance with bidders proposal dated April 28, 2026, and the Agreement documents.

4. CONTRACTOR agrees to perform all the said work and furnish all the said materials at its own cost and expense, such as are set forth in the specifications to be furnished by the CITY, necessary to construct and complete in a good workmanlike and substantial manner and to the satisfaction of the City Engineer of the CITY, the work hereinafter set forth in accordance with the plans and the specifications therefor adopted by the CITY and as prepared by the following: Mark G.

Anderson Consultants, Inc. (MGAC).

In compliance with Public Contracts Code, Chapter 4, Section 12169 and Section 12213, CITY requires the CONTRACTOR to provide, prior to final payment by CITY, a certification in writing of the minimum, or the exact, percentage of recycled content in the products used in the performance of the work of improvement.

5. CITY agrees to pay and CONTRACTOR agrees to accept in full payment for this work of improvement above agreed to be performed, the stipulated sum of One Hundred Ninety-Seven Thousand, Four Hundred Twenty-Two and 00/100 Dollars ($198,422).

CITY agrees to make monthly payments and final payment in accordance with the method set forth in the specifications and other Agreement documents.

CONTRACTOR acknowledges and agrees that if this Agreement involves a project specified in Section 9203 of the California Public Contract Code with a Contract price that exceeds five thousand dollars ($5,000), City will withhold five percent (5%) of the Contract price until the Notice of Completion is issued and recorded.

6. CONTRACTOR agrees to commence construction of the work provided for herein within TEN (10) working days after the date of Notice to Proceed, and to continue in a diligent and workmanlike manner without interruption, and to complete the construction thereof within FIFTY (50) consecutive working days from the date of Notice to Proceed.

7. Time is of the essence of this Agreement, and it is agreed that it would be impracticable or extremely difficult to ascertain the extent of actual loss or damage, which the CITY will sustain by reason of any delay in the performance of this Agreement. It is, therefore, agreed that CONTRACTOR will pay as liquidated damages to the CITY the following sum: One Thousand Dollars ($1,000.00) for each day's delay beyond the time herein prescribed for finishing work.

If liquidated damages are not paid, as designated by the CITY, the CITY may deduct the amount thereof from any money due or that may become due the CONTRACTOR under this agreement in addition to any other remedy available to CITY. The CONTRACTOR shall not be assessed liquidated damages for any delay caused by the failure of a public utility to relocate or remove an existing utility required for the performance of this Agreement so long as such failure is not caused by CONTRACTOR’S breach of its obligations hereunder.

8. CONTRACTOR shall pay, and will require all of its subcontractors to pay, all employees on said work a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations and wage standards applicable to this work, a copy of which is on file in the Public Works office. Travel and subsistence pay shall be paid in accordance with 4 4 of 89
D-3 Ageement No.

Labor Code Section 1773.8. Pursuant to Labor Code section 1771.1, no subcontractor may be listed on a bid proposal for any work related to the Project unless registered with the California Department of Industrial Relations (“DIR”). Furthermore, Contractor is hereby notified that no subcontractor may be awarded a contract for any work related to the Project unless registered with the DIR. Pursuant to Labor Code section 1771.4, Contractor is hereby notified that the Project is subject to compliance monitoring and enforcement by the DIR. Contractor will maintain and will require all subcontractors to maintain valid and current DIR Public Works Contractor registration during the term of this Construction Services Agreement. Contractor shall notify the City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contractor’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed.

9. CONTRACTOR will forfeit to the CITY, as a penalty, Two Hundred Dollars ($200) for each calendar day or portion thereof for each worker paid (either by him or any subcontractors under him) less than the prevailing rate described above on the work provided for in this Agreement, all in accordance with Section 1775 of the Labor Code of the State of California.

10. In the performance of this Agreement, not more than eight (8) hours shall constitute a day's work and not more than forty (40) hours constitute any one calendar week, and the CONTRACTOR will not require more than eight (8) hours of labor in a day or more than forty (40) hours of labor in a week from any person employed by CONTRACTOR hereunder, except as provided in the Labor Code of the State of California. CONTRACTOR will conform to Article 3, Chapter 1, Part 7 (Sections 1810, et. seq.) of the Labor Code of the State of California, and it is agreed that the CONTRACTOR will forfeit to the CITY as a penalty the sum of Two Hundred Dollars ($200) for each worker employed in the execution of this Contract by the CONTRACTOR or any subcontractor for each calendar day or calendar week during which any worker is required or permitted to labor more than eight (8) and forty (40) hours, respectively, in violation of said article.

11. CONTRACTOR, by executing this Agreement, hereby certifies: "I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this AGREEMENT."
CONTRACTOR further agrees to require all subcontractors to carry Workers’ Compensation Insurance as required by the Labor Code of the State of California.

12. CONTRACTOR will, prior to the execution of this Agreement, furnish two bonds approved by the CITY, one in the amount of One Hundred Percent (100%) of the Contract price, to guarantee the faithful performance of the work, and one in the amount of One Hundred Percent (100%) of the Contract price to guarantee payment of all claims for labor and materials furnished. This Agreement shall not become effective until such bonds are supplied to and approved by the CITY.

13. If any action or arbitration is filed by either party to enforce or determine rights under this Agreement or any other Agreement document, the prevailing party shall be entitled to recover its reasonable attorneys' fees in addition to any other relief stated by the Court or arbitrator. 5 5 of 89
D-4 Ageement No.

14. CONTRACTOR certifies that each and every one of its employees, and every employee of its subcontractors, is not “ineligible” as the term is defined in Labor Code section 1777.1.

15. In entering into this Agreement, the Contractor or subcontractor to supply goods, services or materials pursuant to this Agreement offers and agrees to assign to the City all rights, title and interest in and to all causes of action it may have under section 4 of the Clayton Act (15 U.S.C.

Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with section 16700) of Part 2 of Division 7 of the Business and Professional Code), arising from purchases of goods, services or materials pursuant to the Contract or subcontracts. This assignment shall be made and become effective at the time CITY tenders final payment to CONTRACTOR, without further acknowledgment by the parties.

16. CONTRACTOR acknowledges and agrees that if this Agreement involves a dollar amount greater than or a number of working days greater than that specified in Labor Code Section 1777.5, then the provisions of Labor Code Section 1777.5 govern this Agreement. It shall be CONTRACTOR’S responsibility to become fully acquainted and ensure compliance with Labor Code Section 1777.5 for all apprenticeable occupations.

17. CONTRACTOR acknowledges the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including but not limited to disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with Section 5200) of Part 5 of Division 9 of the Family Code. CONTRACTOR further acknowledges that, to the best of its knowledge, it has fully complied with the earnings assignment order of all employees and has provided the names of all new employees to the New Hire Registry maintained by the Employment Development Department.

IN WITNESS WHEREOF, the said Contractor, the City Manager and City Clerk of the City have executed this AGREEMENT pursuant to the City Council action of the day and year first above written.

Signature:

Name:

Title:

Company:

ATTEST:
_________________________
Ann Marie McKay, City Clerk CITY OF LAGUNA BEACH
A Municipal Corporation
Dave Kiff, City Manager
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D-5 Ageement No.

CORPORATE CERTIFICATE
I, , certify that I am
the of the corporation named as CONTRACTOR
in the foregoing Agreement; that , who signed said
Contract on behalf of the CONTRACTOR was then the of
said corporation; and that said Agreement was duly signed for and in behalf of said corporation by authority of its governing body and is within the scope of its corporate powers. (Corporate Seal)
7 7 of 89

STAFF REPORT
Meeting Date:

May 12, 2026

CONSENT
9 SUBJECT: FISCAL YEAR 2024/25 AUDIT REPORTS
RECOMMENDATION: It is recommended that the City Council:

1. Receive and file the Fiscal Year 2024/25 audit reports.

SUMMARY OF THE MATTER
The City’s Annual Comprehensive Financial Report (ACFR) for fiscal year ended June 30, 2025, was approved by Audit Committee on April 21, 2026, where auditors from the City’s audit firm LSL, LLP, presented the audit report that is included in the ACFR to the Audit Committee.

Each year the City issues an ACFR, which summarizes the financial activity of a local government for a given fiscal year, in accordance with financial statement presentation requirements prescribed by government accounting standards (Attachment 1). The ACFR is accompanied by an opinion from the City’s audit firm. The auditors expressed an unmodified opinion on the City’s fiscal year ended June 30, 2025, ACFR. The audit firm also issued other reports in relation to the City’s audit (Attachment 2, 3 and 4.) In addition, the audit firm issued a separate report for the Laguna Beach Public Financing Authority’s fiscal year ended June 30, 2025 (Attachment 5).

Lastly, a single audit was not required as the City did not expend over $750,000 in federal grant awards for fiscal year ended June 30, 2025.

DISCUSSION
Staff are pleased to present the ACFR for the fiscal year ended June 30, 2025. The ACFR is a set of financial statements for a government entity with the accounting requirements established by the Governmental Accounting Standards Board (GASB). An ACFR consists of three sections: the introductory section, the financial section, and the statistical section. The introductory section includes a letter of transmittal that provides an overview of the City. The financial section includes the audit opinion, management’s discussion and analysis, government-wide financial statements, fund financial statements, notes to the financial statements, and supplementary schedules. Management’s discussion and analysis provides narrative information as well as an overview and analysis of the City’s financial statements. The statistical section provides operational and demographic statistics and ten years of selected financial data.

Government-wide Financial Statements
The government-wide financial statements that are included in the ACFR provide the reader with an opportunity to ascertain the financial status of all funds and activities of the City in a single consolidated presentation. As of June 30, 2025, the City held $612 million in assets (Attachment 1, page 41). Those assets consisted of cash and investments ($171.8 million), capital assets ($419.2 million), receivables ($14.5 million) and prepaid expenses ($4.6 million). The government-wide financial statements also display the obligations of the City that represent claims against those assets. As of June 30, 2025, the City owed $155.7 million consisting of short-term obligations ($20.3 million), long-term obligations ($44.5 million), other 1 of 316
FISCAL YEAR 2024/25 AUDIT REPORTS
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post-employment benefit plan liability for $5.6 million, and the City’s unfunded pension liability for employee service rendered to date ($85.4 million). The government-wide financial statements also report a consolidation of all revenues and expenses of the City. On a consolidated basis, City expenses exceeded revenues by $7.2 million (Attachment 1, page 43-44). Fiduciary funds are funds held on behalf of other parties. These funds (Assessment District Bond Funds) are excluded from the government-wide financial statements.

Fund Financial Statements
Local governments typically receive funding from multiple sources, some of which are restricted to specific uses and some of which are unrestricted. As a result, local governments establish separate funds to segregate the resources that are restricted for specific programs and activities. The fund financial statements that are contained in the ACFR display the financial activity of major funds in separate columns so that the reader can ascertain the revenues, expenditures, and remaining unspent fund balance of each of those major funds.

One of the City’s major funds is the General Fund. The General Fund is the primary operating fund of the City that pays for much of the City’s day-to-day operating expenditures. The General Fund accounts for the unrestricted resources of the City, the spending of which can be directed by City Council toward any lawful public use. The General Fund on Attachment 1 page 48 and 50 consists of the General Fund (fund 110 and 112), Measure LL (fund 113), Open Space (fund 114), Capital Improvement (fund 116 and 616), Parking Authority (fund 118), Parking In-Lieu (fund 120), Park In-Lieu (fund 122), Art In-Lieu (fund 123), Drainage (fund 124), Housing In-Lieu (fund 127), Transportation Infrastructure (fund 119), South Laguna (fund 136 and 636), Deposits (fund 510), Disaster Contingency (fund 140), Wildfire Mitigation and Fire Safety (fund 141 and 641), and Library Impact Fee (fund 111). Funds other than 110 and 112 are included in the presentation of the General Fund in the fund financial statements for reporting purposes, in accordance with government accounting standards. As of June 30, 2025, the General Fund’s spendable fund balance was $105.5 million.

Other Related Audit Reports
In addition to the audit firm’s opinion on the fair presentation of the City’s financial statements, audit firms are required to provide other related audit communications whenever they perform an audit of local government financial statements. Those related audit communications are included as Attachments 2, 3 and 4 to this agenda report. The content of these required audit communications is described below:

Report on Internal Control over Financial Reporting and on Compliance (Attachment 2) – This report summarizes the auditors’ evaluation of the City’s internal controls over financial reporting and its compliance with applicable laws, regulations, contracts, and grant requirements. While the auditors do not express an opinion on internal controls or compliance, they are required to report any identified material weaknesses, significant deficiencies, or instances of noncompliance encountered during the audit.

For fiscal year 2024-25, the City had one significant deficiency. The finding relates to internal controls over capital asset accounting. Management identified and corrected capital asset acquisitions from prior years that had not been capitalized or depreciated in the appropriate periods for both governmental and businesstype activities. The issue was primarily the result of staff turnover and a lack of consistent staffing in prior years, which contributed to ineffective controls over the identification and depreciation of capitalizable 2 of 316
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assets. Management agrees with the finding and acknowledges that internal controls over capital asset accounting were not operating effectively in prior fiscal years. With the hiring of a new Accounting Manager in late October 2025, the City has strengthened oversight and review procedures, which resulted in the identification of these corrections. Management will continue to implement and formalize internal controls within the Administrative Services Department to ensure the City has accurate and timely financial data.

Required Communications with Those Charged with Governance (Attachment 3) – This letter outlines significant matters related to the conduct and results of the annual financial statement audit that are required to be communicated to the City Council. These communications include the auditors’ responsibilities, the planned scope and timing of the audit, significant accounting policies and estimates, any difficulties encountered during the audit, any corrected or uncorrected misstatements, and other relevant findings or observations. The purpose of this communication is to ensure transparency and keep the City Council informed of key audit-related matters and the overall quality of the City’s financial reporting. No significant difficulties or disagreements with management were reported.

Agreed-Upon Procedures Report on Procedures Applied to Appropriations Limit Worksheets (Attachment 4) – This report communicates the audit firm’s testing of the City’s computation of the statutory appropriation limit (Gann Limit). No findings are identified in this report.

Laguna Beach Public Financing Authority’s Audited Financial Statements The auditors gave an unmodified opinion on this report and no findings were identified. The Laguna Beach Public Financing Authority (the Authority) provides financing for the City to purchase or construct various facilities or improvements through the issuance of debt. This is a stand-alone report for the Authority’s activities. The only debt it has issued on the City’s behalf is the $11,660,000 bonds for the purchase of 30516 Coast Highway. The Authority transferred the bond proceeds to the City to purchase the property, and the Authority leased back the right to use the property to the City in return for an amount equal to the bond proceeds. The principal and interest owed on the lease-back of property by the City, cover the principal and interest debt service payments on the Authority’s bonds payable. Balance outstanding on the bond at June 30, 2025, was $11,240,000 and interest expense was $443,980 for the fiscal year.

FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.

ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.

ATTACHMENTS

1. Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025 (Pgs. 5-202)

2. Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards (Pgs. 203-206)

3. Required Communications with Those Charged with Governance (Pgs. 207-209) 3 of 316
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4. Agreed-Upon Procedures Report on Procedures Applied to Appropriations Limit Worksheets (Pgs. 210- 212)

5. Laguna Beach Public Financing Authority’s Audited Financial Statements (Pgs. 213-227) Submitted By: .Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Director of
Administrative Services
Dave Kiff, City Manager
Report Prepared By:

Tiffany Fung, Accounting Manager
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Attachment 1
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CITY OF LAGUNA BEACH

LAGUNA BEACH, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Prepared by Finance Division
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CITY OF LAGUNA BEACH, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
INTRODUCTORY SECTION........................................................................................................................................ I Letter of Transmittal........................................................................................................................................................ iii Organizational Structure................................................................................................................................................ viii GFOA Certificate of Achievement................................................................................................................................ x FINANCIAL SECTION .................................................................................................................................................. 1 Independent Auditor’s Report....................................................................................................................................... 3 Management’s Discussion and Analysis..................................................................................................................... 7 Basic Financial Statements........................................................................................................................................... 20 Government-Wide Financial Statements............................................................................................................. 21 Statement of Net Position............................................................................................................................. 22 Statement of Activities ................................................................................................................................... 24 Governmental Fund Financial Statements.......................................................................................................... 28 Balance Sheet................................................................................................................................................. 29 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position............ 30 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................. 31 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities.................................................................................. 32 Statement of Net Position - Proprietary Funds .......................................................................................... 34 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds ...................... 35 Statement of Cash Flows - Proprietary Funds........................................................................................... 36 Fiduciary Fund Financial Statements................................................................................................................... 38 Statement of Fiduciary Net Position - Fiduciary Funds ............................................................................ 39 Statement of Changes in Fiduciary Net Position - Fiduciary Funds....................................................... 40 Notes To Financial Statements.............................................................................................................................. 41 Required Supplementary Information.......................................................................................................................... 83 Schedule of Proportionate Share of the Net Pension Liability - Safety Plan................................................. 84 Schedule of Contributions - Safety Plan.............................................................................................................. 85 Schedule of Contributions - Miscellaneous Plan................................................................................................ 85 Schedule of Changes in Total Pension Liability and Related Ratios - Miscellaneous Plan......................... 86 Schedule of Changes in the Total OPEB Liability and Related Ratios - Other Postemployment Benefit Plan.................................................................................................................... 88 Page
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CITY OF LAGUNA BEACH, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Consolidating Balance Sheet by Sub - Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Consolidating Schedule of Revenues, Expenditures and Changes in Fund Balances by Sub - Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual . . . . . . . . . . 108 General Sub Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Measure LL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Open Space . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 Capital Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Parking Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Park In-Lieu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Art In-Lieu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Housing In-Lieu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Transportation Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 South Laguna . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Disaster Contingency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 Wildfire Mitigation and Fire Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Library Impact Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 Major Capital Projects Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Assessment Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 Non-Major Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Combining Statement of Revenues, Expenditures and Changes in Fund Balance . . . . . . . . . . . . . . 129 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual . . . . . . . 132 Gas Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Street Lighting District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 Federal Asset Forfeiture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 State Asset Forfeiture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Housing Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 National Opioid Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 AQMD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Animal Shelter Donations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 10 10 of 316

CITY OF LAGUNA BEACH, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Combining Statement of Net Position - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Combining Statement of Cash Flows - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 STATISTICAL SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 Financial Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Net Position by Component, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Changes in Net Position, Last Ten Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 Fund Balances of Governmental Funds, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Changes in Fund Balances of Governmental Funds, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . 156 Revenue Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Assessed Value and Estimated Actual Value of Taxable Property, Last Ten Fiscal Years . . . . . . . . . . . . . 159 Direct and Overlapping Property Tax Rates, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 Principal Property Tax Payers, Last Fiscal Year and Nine Years Ago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 Property Tax Levies and Collections, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Debt Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Ratios of Outstanding Debt by Type, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Direct and Overlapping Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Pledged-Revenue Coverage, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Legal Debt Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Demographic and Economic Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 Demographic and Economic Statistics, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 Principal Employers, Last Fiscal Year and Nine Years Ago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 Operating Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 Full-time City Employees by Function, Last ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 Operating Indicators, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 Capital Asset Statistics by Function, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 11 11 of 316
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INTRODUCTORY SECTION
i
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ii
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Letter of Transmittal
iii
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iv
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v
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vi
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vii
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Organizational Structure
viii
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ix
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GFOA Certificate of Achievement
x
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FINANCIAL SECTION
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Independent Auditors’ Report
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
City of Laguna Beach, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, discreetly presented component unit, each major fund, and the aggregate remaining fund information of the City of Laguna Beach (hereafter, the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, discreetly presented component unit, each major fund, and the aggregate remaining fund information of the City as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
As described in Note 1 to the financial statements, in 2025, the City adopted new accounting guidance, GASB Statement No. 101, Compensated Absences. Our opinion is not modified with respect to this matter.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
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Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards, will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules, and the required pension and other post-employment benefits schedules as listed on the table of contents, presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

To the Honorable Mayor and Members of the City Council
City of Laguna Beach, California
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Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules (“supplementary information”) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon.

Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Irvine, California
March 30, 2026
To the Honorable Mayor and Members of the City Council
City of Laguna Beach, California
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Management’s Discussion and Analysis
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Basic Financial Statements
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Government-Wide Financial Statements
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Statement of Net Position
ASSETS
Cash and investments $ 159,335,166 $ 12,477,027 $ 171,812,193 $ 15,489,816 Receivables (net of uncollectibles):

Accounts receivable 1,641,499 857,669 2,499,168 2,115,649 Taxes receivable 7,459,269 250,197 7,709,466 80,559
Accrued interest receivable 479,245 333,840 813,085 139,373 Due from other governments 555,050 8,999 564,049 —
Notes and loans receivable 1,800,145 — 1,800,145 —
Lease receivables 1,157,591 — 1,157,591 5,457,704
Restricted assets:

I-Bank installment agreements — 1,405,675 1,405,675 —
Property for housing program 797,500 — 797,500 —
Inventories 100,372 — 100,372 485,619
Prepaid costs 4,608,077 — 4,608,077 311,300
Capital assets (not being depreciated/amortized) 160,664,181 5,012,015 165,676,196 9,907,757 Capital assets (net of accumulated depreciation/amortization) 204,102,106 49,394,510 253,496,616 54,462,030 Total assets 542,700,201 69,739,932 612,440,133 88,449,807

DEFERRED OUTFLOWS OF RESOURCES
Deferred amounts related to pension plans 26,129,567 325,355 26,454,922 3,021,824 Deferred amounts related to OPEB 2,341,212 97,551 2,438,763 60,827 Total deferred outflows of resources 28,470,779 422,906 28,893,685 3,082,651

LIABILITIES
Accounts payable 10,152,649 1,814,250 11,966,899 1,306,951 Accrued liabilities 2,717,065 56,862 2,773,927 155,091
Retainage payable 560,891 17,483 578,374 —
Accrued interest payable — 157,213 157,213 69,217
Deposits payable 4,708,125 — 4,708,125 72,670
Unearned revenues 89,724 — 89,724 —
Noncurrent liabilities:

Due within one year:

Direct borrowings, leases, SBITA, claims, and compensated absences 6,043,787 684,682 6,728,469 205,870 Total OPEB Liability 332,751 13,864 346,615 —
Due in more than one year:

Net Pension Liability 84,173,875 1,220,436 85,394,311 9,278,682 Total OPEB Liability 5,052,064 210,503 5,262,567 627,422 Direct borrowings, leases, SBITA, claims, and compensated absences 24,725,222 13,001,844 37,727,066 10,689,899 Total liabilities 138,556,153 17,177,137 155,733,290 22,405,802

DEFERRED INFLOWS OF RESOURCES
Deferred amounts related to pension plans 931,967 — 931,967 107,565 Deferred amounts related to OPEB 650,708 27,113 677,821 336,797 Deferred amounts related to leases 1,070,287 — 1,070,287 5,103,943 Total deferred inflows of resources 2,652,962 27,113 2,680,075 5,548,305

NET POSITION
Net investment in capital assets 347,952,327 40,850,099 388,802,426 57,445,071 Restricted:

South Laguna maintenance 15,399,858 — 15,399,858 —
Street lighting maintenance and projects 6,482,856 — 6,482,856 — Streets and roads maintenance and projects 3,148,908 — 3,148,908 — Public safety programs 188,650 — 188,650 —
Affordable housing 1,766,700 — 1,766,700 —
Opioid remediation activities 76,819 — 76,819 —
Assessment district improvements 6,659,729 — 6,659,729 — Animal shelter activities 1,497,850 — 1,497,850 —
Cultural and environmental stewardship activities 260,000 — 260,000 — Pollution remediation projects 84,038 — 84,038 —
Unrestricted 46,444,130 12,108,489 58,552,619 6,133,280 Total net position $ 429,961,865 $ 52,958,588 $ 482,920,453 $ 63,578,351 Component
Primary Government Unit
Governmental
Activities
Business-Type
Activities Total Water District

CITY OF LAGUNA BEACH
Statement Of Net Position
June 30, 2025
See accompanying Notes to the Basic Financial Statements 22 45 45 of 316
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Statement of Activities
Program Revenues
Expenses
Charges for
Services
Operating
Contributions
and Grants
Capital
Contributions
and Grants
Functions/Programs:

Primary government:

Governmental activities:

General Government $ 26,121,782 $ 132 $ 260,000 $ —
Public safety 62,859,451 4,699,808 1,419,382 —
Community development 9,740,785 6,250,157 309,071 —
Transit and community services 6,587,567 2,323,806 41,193 — Public works 30,287,121 11,559,658 996,170 3,955,161
Interest on long-term debt 296,717 — — —
Total governmental activities 135,893,423 24,833,561 3,025,816 3,955,161 Business-type activities:

Sewer Service 8,273,044 11,086,076 — —
Municipal Transit 5,614,599 225,195 2,424,801 —
Total business-type activities 13,887,643 11,311,271 2,424,801 — Total primary government $ 149,781,066 $ 36,144,832 $ 5,450,617 $ 3,955,161 Component Units:

Water District $ 21,342,290 $ 13,722,666 $ — $ 136,991
General revenues and transfers:

General revenues:

Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Business license taxes
Business improvement assessments
Use of money and property
Miscellaneous
Gain on sale of capital asset
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning, as originally reported
Change within financial reporting entity
Restatement - change in accounting principle
Restatement - correction of error
Net position-beginning, restated
Net position-ending

CITY OF LAGUNA BEACH
Statement Of Activities
For The Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 24 47 47 of 316
Net (Expenses) Revenues and Changes in Net Position
Primary Government Component
Governmental
Activities
Business-Type
Activities Total Water District
$ (25,861,650) $ — $ (25,861,650) $ —
(56,740,261) — (56,740,261) —
(3,181,557) — (3,181,557) —
(4,222,568) — (4,222,568) —
(13,776,132) — (13,776,132) —
(296,717) — (296,717) —
(104,078,885) — (104,078,885) —
— 2,813,032 2,813,032 —
— (2,964,603) (2,964,603) —
— (151,571) (151,571) —
(104,078,885) (151,571) (104,230,456) —
(7,482,633)
56,447,392 — 56,447,392 4,337,807
7,372,476 — 7,372,476 —
17,315,618 — 17,315,618 —
1,689,087 — 1,689,087 —
1,179,995 — 1,179,995 —
2,784,149 — 2,784,149 —
8,292,269 551,731 8,844,000 714,037
155,518 711,222 866,740 202,791
526,704 — 526,704 —
(3,673,480) 3,673,480 — —
92,089,728 4,936,433 97,026,161 5,254,635
(11,989,157) 4,784,862 (7,204,295) (2,227,998)
439,891,213 47,241,552 487,132,765 66,060,730
984,938 (984,938)
(557,944) (6,469) (564,413) (254,381)
1,632,815 1,923,581 3,556,396 —
441,951,022 48,173,726 490,124,748 65,806,349
$ 429,961,865 $ 52,958,588 $ 482,920,453 $ 63,578,351
See accompanying Notes to the Basic Financial Statements 25 48 48 of 316
Major Governmental Funds
General Fund
The General fund is used to account for resources which are dedicated to governmental operations of the City, and not required to be accounted for in another fund.

Capital Projects Funds
Capital Projects Funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds.

The City of Laguna Beach has the following major Capital Projects Fund:

Assessment Districts Fund – The Assessment District Fund is used to account for assessment district utility undergrounding projects which are funded by property owners.

Non-Major Governmental Funds
These funds constitute all other governmental funds that do not meet the qualitative or quantitative criteria to be a major fund, which are the 10% test of assets and deferred outflows, liabilities and deferred inflows, revenues or expenditures for the governmental funds and the 5% test of total assets and deferred outflows, liabilities and deferred inflows, revenues or expenditures for the total governmental and enterprise funds combined. These funds include other Special Revenue Funds of the City.
26 49
49 of 316
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27 50
50 of 316
Governmental Fund Financial Statements
28 51
51 of 316
Balance Sheet
Capital Projects
Fund
General Fund
Assessment
Districts
Total Total
Nonmajor Governmental
Funds Funds
ASSETS
Cash and investments $ 111,327,616 $ 8,730,019 $ 13,986,599 $ 134,044,234 Receivables (net of allowance for uncollectible):

Taxes 7,406,839 — 52,430 7,459,269
Accounts 987,997 — 604,194 1,592,191
Interest 479,245 — — 479,245
Intergovernmental 189,027 — 366,023 555,050
Leases 1,157,591 — — 1,157,591
Prepaid expenses 2,219,900 — 2,388,177 4,608,077
Inventory 100,372 — — 100,372
Total assets $ 123,868,587 $ 8,730,019 $ 17,397,423 $ 149,996,029

LIABILITIES
Accounts payable $ 7,207,092 $ 1,731,904 $ 847,005 $ 9,786,001 Retainage payable 78,364 268,871 213,656 560,891
Accrued liabilities 2,717,065 — 2,764 2,719,829
Deposits 4,638,610 69,515 — 4,708,125
Unearned revenues 89,724 — — 89,724
Total liabilities 14,730,855 2,070,290 1,063,425 17,864,570

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 287,398 — 440,000 727,398
Leases 1,070,287 — — 1,070,287
Total deferred inflows of resources 1,357,685 — 440,000 1,797,685

FUND BALANCES (DEFICITS)
Non-spendable 2,320,272 — 2,388,177 4,708,449
Restricted 15,399,858 6,659,729 13,505,821 35,565,408
Committed 17,201,320 — — 17,201,320
Assigned 72,874,848 — — 72,874,848
Unassigned (16,251) — — (16,251)
Total fund balances (deficits) 107,780,047 6,659,729 15,893,998 130,333,774 Total liabilities, deferred inflows of resources, and
fund balances (deficits) $ 123,868,587 $ 8,730,019 $ 17,397,423 $ 149,996,029

CITY OF LAGUNA BEACH
Balance Sheet
June 30, 2025
See accompanying Notes to the Basic Financial Statements 29 52 52 of 316
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Amounts reported for governmental activities in the Statement of Net Position are different because:

Total fund balances - governmental funds $ 130,333,774
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds. 358,143,908 Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.

Deferred outflows-pension related $ 26,129,567
Deferred outflows-OPEB related 2,341,212
Deferred inflows-pension related (931,967)
Deferred inflows-OPEB related (650,708)
Total deferred outflows and inflows related to postemployment benefits 26,888,104 Internal service funds provide services to other funds on a cost-reimbursement basis. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities. 16,894,058 Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.

Lease financing agreements (11,240,000)
Leases and subscription payable (2,226,687)
Net pension liability (84,173,875)
Total OPEB liability (5,384,815)
Total long-term liabilities (103,025,377)
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 727,398
Net position of governmental activities $ 429,961,865

CITY OF LAGUNA BEACH
Reconciliation Of The Governmental Funds Balance Sheet To The Statement Of Net Position June 30, 2025
See accompanying Notes to the Basic Financial Statements 30 53 53 of 316
Statement of Revenues, Expenditures and Changes in Fund Balances Capital Project
Fund
Assessment
Districts
Total Total
Nonmajor Governmental
General Fund Funds Funds

REVENUES
Taxes $ 84,266,667 $ — $ 2,485,805 $ 86,752,472
License, fees and permits 3,369,833 — — 3,369,833
Fines and forfeitures 1,252,961 — — 1,252,961
Investment income (loss), net 8,285,195 290,611 313,009 8,888,815 Rental 735,917 — — 735,917
Intergovernmental 3,439,239 — 1,930,636 5,369,875
Charges for services 7,496,149 — — 7,496,149
Parking meters, lots and permits 11,431,086 — — 11,431,086 Development fees 228,898 — — 228,898
Other 517,337 — 273,227 790,564
Total revenues 121,023,282 290,611 5,002,677 126,316,570

EXPENDITURES
Current:

General Government 19,562,292 — 25,684 19,587,976
Community development 9,118,545 — — 9,118,545
Public safety 57,402,991 — — 57,402,991
Public works 15,406,905 6,184,512 1,034,677 22,626,094
Transit and community services 5,760,016 — — 5,760,016
Capital outlay 13,568,975 — 4,071,279 17,640,254
Debt service:

Principal retirement 1,057,417 — — 1,057,417
Interest expense and fiscal charges 296,717 — — 296,717 Total expenditures 122,173,858 6,184,512 5,131,640 133,490,010 Excess (deficiency) of revenues
over (under) expenditures (1,150,576) (5,893,901) (128,963) (7,173,440)

OTHER FINANCING SOURCES (USES)
Transfers in 1,000,000 — 2,982,327 3,982,327
Transfers out (7,905,368) — (1,050,439) (8,955,807)
Gain on disposal of capital assets 3,469,439 — — 3,469,439 Issuance of lease and SBITA liability 2,320,683 — — 2,320,683 Total other financing sources (uses) (1,115,246) — 1,931,888 816,642 Net change in fund balances (2,265,822) (5,893,901) 1,802,925 (6,356,798) Fund balances-beginning, as originally reported 110,812,043 12,553,630 14,091,073 137,456,746 Restatements - correction of error (766,174) — — (766,174) Fund balances (deficit)-beginning, restated 110,045,869 12,553,630 14,091,073 136,690,572 Fund balances (deficit)-ending $ 107,780,047 $ 6,659,729 $ 15,893,998 $ 130,333,774

CITY OF LAGUNA BEACH
Statement Of Revenues, Expenditures And Changes In Fund Balances For The Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 31 54 54 of 316
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Amounts reported for governmental activities in the Statement of Activities are different because:

Net change in fund balances - total governmental funds: $ (6,356,798) Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.

Capital outlay $ 17,089,497
Depreciation/amortization expense (10,021,254)
Total adjustment 7,068,243
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase/(decrease) net position.

Loss/(gain) on disposal of capital assets (3,411,193)
Total adjustment (3,411,193)
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.

Principal payments on subscriptions and leases 1,057,417 Initiation of new subscriptions and leases (2,320,683)
Total adjustment (1,263,266)
Internal service funds provide services to other funds on a cost-reimbursement basis. The net revenue of certain activities of internal service funds is reported with governmental activities. (1,669,979) Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

Changes in pension liabilities and related deferred outflows and inflows of resources (6,593,889) Changes in OPEB liabilities and related deferred outflows and inflows of resources (489,673) Total adjustment (7,083,562)
Change in net position of governmental activities $ (11,989,157)

CITY OF LAGUNA BEACH
Reconciliation Of The Statement Of Revenues, Expenditures And Changes In Fund Balances Of Governmental Funds To The Statement Of Activities
For The Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 32 55 55 of 316
Major Enterprise Funds
The Enterprise Funds are used to report activity for which a fee is charged to external users for goods or services.

In addition, activities are required to be reported as enterprise funds if the activity is financed with debt that is secured solely by a pledge of the net revenues from fees and charges of the activity.

The City of Laguna Beach has the following major Enterprise Funds:

Municipal Transit Fund – The fund is used to account for the operations of the City's transit system. All activities necessary to provide such services are accounted for in this fund, including but not limited to, administration, operations, and maintenance.

Sewer Service Fund – The fund is used to account for the operations of the City's sewer system. All activities necessary to provide such services are accounted for in this fund, including but not limited to, administration, operations, and maintenance.

Internal Service Funds
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency of a government to other departments or agencies on a cost reimbursement basis.

See accompanying Notes to the Basic Financial Statements 33 56 56 of 316
Statement of Net Position - Proprietary Funds
Business-Type Activities
Governmental
Activities
Sewer Service Municipal Transit
Total
Enterprise
Funds
Internal
Service Funds
ASSETS
Current assets:

Cash and investments $ 10,545,852 $ 1,931,175 $ 12,477,027 $ 25,290,932 Receivables (net of uncollectibles):

Taxes 136,168 114,029 250,197 49,308
Accounts 21,117 836,552 857,669 —
Interest 333,840 — 333,840 —
Intergovernmental — 8,999 8,999 —
Total current assets 11,036,977 2,890,755 13,927,732 25,340,240 Noncurrent:

I-Bank installment agreements 1,405,675 — 1,405,675 —
Notes receivable — — — 1,800,145
Property for housing program — — — 797,500
Capital assets, not being depreciated/amortized 4,815,909 196,106 5,012,015 — Capital assets, being depreciated/amortized, net 48,445,261 949,249 49,394,510 6,622,379 Total noncurrent assets 54,666,845 1,145,355 55,812,200 9,220,024 Total assets 65,703,822 4,036,110 69,739,932 34,560,264

DEFERRED OUTFLOWS OF RESOURCES
Deferred amounts related to pensions 244,016 81,339 325,355 — Deferred amounts related to OPEB 73,163 24,388 97,551 — Total deferred outflows of resources 317,179 105,727 422,906 —

LIABILITIES
Current liabilities:

Accounts payable 958,421 855,829 1,814,250 314,030
Accrued liabilities 37,232 19,630 56,862 49,854
Retainage payable 17,483 — 17,483 —
Interest payable 157,202 11 157,213 —
Compensated absences, due within one year 60,417 867 61,284 2,054,166 Inusrance claims payable, due within one year — — — 3,049,186 Lease liabilities, due within one year — 38,306 38,306 — Subscription IT liabilities, due within one year 3,970 1,324 5,294 — I-Bank installement agreements, due within one year 579,798 — 579,798 — Total OPEB liability, due within one year 10,398 3,466 13,864 — Total current liabilities 1,824,921 919,433 2,744,354 5,467,236 Noncurrent liabilities:

Compensated absences 43,665 42,634 86,299 5,084,203
Insurance claims payable — — — 7,114,767
I-Bank installment agreements 12,915,545 — 12,915,545 — Total OPEB liability 157,877 52,626 210,503 —
Net pension liability 915,327 305,109 1,220,436 —
Total noncurrent liabilities 14,032,414 400,369 14,432,783 12,198,970 Total liabilities 15,857,335 1,319,802 17,177,137 17,666,206

DEFERRED INFLOWS OF RESOURCES
Deferred amounts related to OPEB 20,335 6,778 27,113 —
Total deferred inflows of resources 20,335 6,778 27,113 —

NET POSITION
Net investment in capital assets 39,744,374 1,105,725 40,850,099 6,571,569 Unrestricted 10,398,957 1,709,532 12,108,489 10,322,489 Total net position $ 50,143,331 $ 2,815,257 $ 52,958,588 $ 16,894,058

CITY OF LAGUNA BEACH
Statement Of Net Position
Proprietary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 34 57 57 of 316
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds Business-Type Activities
Governmental
Activities
Sewer Service Municipal Transit
Total
Enterprise Funds
Internal
Service Funds

OPERATING REVENUES
Passenger revenues $ — $ 225,195 $ 225,195 $ —
Rental — — — 2,535,200
Employee benefits charges — — — 1,322,000
Insurance charges — — — 13,509,609
Planning and zoning fees 11,086,076 — 11,086,076 —
Total operating revenues 11,086,076 225,195 11,311,271 17,366,809

OPERATING EXPENSES
Personnel services 376,353 343,649 720,002 130,068
Contractual services 3,522,672 3,804,451 7,327,123 —
Materials and supples 463,673 921,155 1,384,828 159,609 General and administrative 1,896,024 149,685 2,045,709 381,249 Employee benefits — — — 1,788,501
Insurance premiums and claim payments — — — 17,282,040
Depreciation/amortization 1,635,541 392,494 2,028,035 1,158,053 Total operating expenses 7,894,263 5,611,434 13,505,697 20,899,520 Operating income (loss) 3,191,813 (5,386,239) (2,194,426) (3,532,711)

NONOPERATING REVENUES (EXPENSES)
Investment income 536,183 15,548 551,731 7,074
Intergovernmental — 2,424,801 2,424,801 —
Interest expense and fiscal charges (378,781) (3,165) (381,946) — Miscellaneous — — — 47,346
Gain on disposal of capital assets — — — 468,458
Other revenue 710,806 416 711,222 —
Total nonoperating revenues (expenses) 868,208 2,437,600 3,305,808 522,878 Income (loss) before transfers 4,060,021 (2,948,639) 1,111,382 (3,009,833) Capital contributions — — — 39,854
Transfers in — 3,673,480 3,673,480 1,300,000
Change in net position 4,060,021 724,841 4,784,862 (1,669,979) Net position-beginning, as originally stated 44,244,411 2,997,141 47,241,552 17,882,690 Restatements - change within financial reporting entity (71,308) (913,630) (984,938) 984,938 Restatements - change in accounting principle (12,807) 6,338 (6,469) (557,944) Restatements - correction of error 1,923,014 567 1,923,581 254,353 Net position-beginning, as restated 46,083,310 2,090,416 48,173,726 18,564,037 Net position-ending $ 50,143,331 $ 2,815,257 $ 52,958,588 $ 16,894,058

CITY OF LAGUNA BEACH
Statement Of Revenues, Expenses And Changes In Net Position Proprietary Funds
For The Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 35 58 58 of 316
Statement of Cash Flows - Proprietary Funds
Business-Type Activities
Governmental
Activities
Sewer Service Municipal Transit Totals
Internal
Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 11,093,891 $ 213,958 $ 11,307,849 $ 17,363,459 Payments to suppliers and service providers (5,858,870) (4,294,331) (10,153,201) (17,218,274) Payments to employees for salaries and benefits (3,763,143) (674,276) (4,437,419) (2,721,654) Other receipts (payments) — (3,953) (3,953) —
Net cash provided by (used for)
operating activities 1,471,878 (4,758,602) (3,286,724) (2,576,469)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds — 3,673,480 3,673,480 1,300,000 Principal paid on non-capital debt (562,812) — (562,812) — Issuance of notes receivable to housing program — — — (569,638) Taxes 2,716 — 2,716 —
Operating grants and contributions 6,805,131 2,424,514 9,229,645 — Net cash provided by (used for)
noncapital financing activities 6,245,035 6,097,994 12,343,029 730,362

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Proceeds from capital debt 9,191 3,064 12,255 —
Capital contributions — — — 39,854
Acquisition and construction of capital assets (2,777,792) — (2,777,792) (1,602,391) Principal paid on capital debt (13,791) (307,003) (320,794) — Interest paid on capital debt (378,781) (5,131) (383,912) — Proceeds from sales of assets — — — 1,011,120
Net cash provided by (used for)
capital and related financing activities (3,161,173) (309,070) (3,470,243) (551,417)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 609,101 4,922 614,023 54,420
Net cash provided by (used for)
investing activities 609,101 4,922 614,023 54,420
Net increase (decrease) in
cash and cash equivalents 5,164,841 1,035,244 6,200,085 (2,343,104) Cash and cash equivalents-beginning 5,381,011 895,931 6,276,942 27,634,036 Cash and cash equivalents-ending $ 10,545,852 $ 1,931,175 $ 12,477,027 $ 25,290,932

CITY OF LAGUNA BEACH
Statement Of Cash Flows
Proprietary Funds
For The Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 36 59 59 of 316

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) $ 3,191,813 $ (5,386,239) $ (2,194,426) $ (3,532,711) Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 1,635,541 392,494 2,028,035 1,158,053 (Increase) decrease in accounts receivable 7,815 (15,190) (7,375) (3,350) (Increase) decrease in notes and loans receivable — — — (940,590) (Increase) decrease in prepaid items 1,603 534 2,137 —
Increase (decrease) in accounts payable (1,759,911) 425,824 (1,334,087) 49,506 Increase (decrease) in accrued liabilities (121,569) 4,917 (116,652) (55,543) Increase (decrease) in compensated absences 27,649 4,173 31,822 518,754 Increase (decrease) in claims and judgments — — — 229,412 Increase (decrease) in net pension liability (1,510,570) (212,606) (1,723,176) — Increase (decrease) in net OPEB liability (493) 27,491 26,998 — Total adjustments (1,719,935) 627,637 (1,092,298) 956,242 Net cash provided by (used for)
operating activities $ 1,471,878 $ (4,758,602) $ (3,286,724) $ (2,576,469)

SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,

AND INVESTING ACTIVITIES
Capital assets acquired through leasing/software arrangements $ 9,191 $ 3,064 $ 12,255 $ —

CITY OF LAGUNA BEACH
Statement Of Cash Flows (Continued)
Proprietary Funds
For The Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 37 60 60 of 316
Fiduciary Fund Financial Statements
See accompanying Notes to the Basic Financial Statements 38 61 61 of 316
Statement of Fiduciary Net Position - Fiduciary Funds
Custodial
Funds
ASSETS
Cash and investments $ 809,455
Investments with fiscal agent 1,008,712
Receivables:

Taxes 24,060
Total assets 1,842,227

LIABILITIES
Accounts payable 4,080
Deferred revenue 47,403
Total liabilities 51,483

NET POSITION
Restricted for:

Individuals, organizations, and other governments 1,790,744 Total net position $ 1,790,744

CITY OF LAGUNA BEACH
Statement Of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 39 62 62 of 316
Statement of Changes in Fiduciary Net Position - Fiduciary Funds Custodial
Funds

ADDITIONS
Special assessments $ 1,201,508
Investment income 57,267
Total additions 1,258,775

DEDUCTIONS
General and administrative 17,285
Debt service 1,118,294
Total deductions 1,135,579
Net increase (decrease) in fiduciary net position 123,196 Net position-beginning 1,667,548
Net position-ending $ 1,790,744

CITY OF LAGUNA BEACH
Statement Of Changes In Fiduciary Net Position
Fiduciary Funds
For The Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 40 63 63 of 316
Notes To Financial Statements
41 64
64 of 316
The financial statements of the City of Laguna Beach, California have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the significant policies:

A. The Reporting Entity
The City of Laguna Beach was incorporated in 1927 under the General Laws of the State of California. The City operates under a Council – Manager form of government governed by a five – member council and provides the following services public safety (police, fire, paramedic, and marine safety), highway and streets, parks and recreation, public improvements, planning and zoning and general administrative service.

1. Discretely Presented Component Unit
The Laguna Beach County Water District (the District) was incorporated in 1925, under the County Water District Act of the State Water Code, and is the second oldest operating district of its type in California. The District is governed by the publicly elected Laguna Beach City Council members, serving as the District's Board of Directors. In 1998, the Local Agency Formation Commission of the County of Orange, California approved the District's application to become a subsidiary district of the City of Laguna Beach, effective November 1, 2000. The District has a separately issued report that can be obtained from Laguna Beach County Water District, 306 Third Street, Laguna Beach, California, 92652.

The District is considered a component unit because the City Council also serves as its Board of Directors, and the City Council (District's Board of Directors) is considered to be financially accountable. There is no financial benefit or burden relationship between the City and the District, as the City does not have access to District resources, nor is the City legally obligated to assume debt of the District. Further management of the City does not have operating responsibilities for the District. Therefore, the District is presented as a discretely presented component unit.

2. Blended Component Unit
The Laguna Beach Financing Authority (Financing Authority) was established pursuant to a Joint Exercise of Powers Agreement dated October 1, 2022, between the City and the California Statewide Communities Development Authority. The purpose of the Authority is to provide the financing necessary for the purchase or construction of various facilities or improvements through the issuance of debt. Although the Financing Authority is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Financing Authority and the management of the City has operational responsibility for the Financing Authority. The activities of the Financing Authority are recorded in the debt service fund. Separate Financial Statements of the Financing Authority are prepared and can be obtained at City Hall.

B. Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
• Government – wide financial statements
• Fund financial statements
• Notes to basic financial statements
Financial reporting is based upon all GASB pronouncements required to be adopted and implemented by the end of the fiscal year.

1. Government - Wide Financial Statements
Government – wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. The effect of interfund activity has been removed from these statements. These statements include separate columns for the governmental and business – type activities of the primary government.

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 42 65
65 of 316
Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City.

Government – wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long – term) economic resources and obligations of the reporting government are reported in the government – wide financial statements. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets liabilities, and deferred inflows/outflows of resources resulting from exchange and exchange – like transactions are recognized when the exchange takes place.

Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.

Amounts paid to acquire capital assets are capitalized as assets in the government – wide financial statements, rather than reported as an expenditure. Proceeds of long – term debt are recorded as a liability in the government – wide financial statements, rather than as another financing source. Amounts paid to reduce long – term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

As discussed earlier, the City also presents the Water District as a discretely presented component unit on the government – wide statements.

2. Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self – balancing accounts that comprise its assets liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds are presented after the government – wide financial statements. These statements display information about the major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for fiduciary funds. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.

3. Governmental Funds
In the fund financial statements, governmental funds are presented using the current financial resources measurement focus and the modified – accrual basis of accounting. The revenues are recognized when they become measurable and available. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days for most of its material revenues including property taxes and uses an availability per od of 180 days for grants.

SaIes taxes, property taxes, franchise taxes, gas taxes, transient occupancy taxes, grants and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period, as defined above. All other revenue items are considered to be measurable and available when cash is received by the government.

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For The Year Ended June 30, 2025
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Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place.

Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met.

As stated above, in the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources. "Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period.

Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect fund balance, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuance are reported as other financing uses. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

4. Proprietary and Fiduciary Funds
The City's enterprise and internal service funds are proprietary funds. In the fund financial statements, the proprietary funds and fiduciary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary and fiduciary funds are presented using the economic resources measurement focus. Th s means that all assets, liabilities (whether current or noncurrent), and deferred inflows/outflows of resources associated with their activity are included. Proprietary fund-type operating statements present increases (revenues) and decreases (expenses) in total net position.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the enterprise fund financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the enterprise fund financial statements, rather than as another financing source.

Amounts paid to reduce long-term indebtedness of the enterprise fund are reported as a reduction of the related liability, rather than as an expenditure.

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For The Year Ended June 30, 2025
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C. Fund Classifications
The City of Laguna Beach reports the following major governmental funds:

1. General Fund
This is the primary operating fund of the City. It accounts for all activities of the general government, except those required to be accounted for in another fund.

2. Assessment Districts Capital Projects Fund
This fund is used to account for assessment district utility undergrounding projects which are funded by property owners of the assessment district. Revenues include contributions from property owners restricted for projects within the Assessment District and interest earned on such funds. The City has designated this fund as a major fund.

The City of Laguna Beach reports the following major enterprise funds:

3. Municipal Transit Fund
This fund is used to account for the operations of the City's transit system. All activities necessary to provide such service are accounted for in this fund, including, but not limited to, administration, operations, and maintenance.

The City has designated this fund as a major fund.

4. Sewer Service Fund
This fund is used to account for the operations of the City's sewer services. All activities necessary to provide such service are accounted for in this fund.

The City's fund structure also includes the following fund types:

5. Special Revenue Funds
The Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt services or capital projects.

6. Debt Service Fund
This fund accounts for the servicing of long-term debt.

7. Internal Service Funds
The Internal Service Funds are used to account for the City's cost of providing employe benefits and various forms of insurance provided to the City departments, and the cost of maintaining and replacing the City's vehicles.

8. Custodial Fund
The Fiduciary fund is used to account for assets held by the City as an agent for improvement district bond holders and property owners.

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Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 45 68
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D. Encumbrances
The City utilizes an encumbrance system as a management control technique to assist in controlling expenditures. Under this system, encumbrances are recorded in the general, special revenue, and capital projects fund store present purchase orders, contracts and other commitments. Encumbrances at year-end are reported with in the restricted, committed, or assigned fund balance depending on the resources that have been identified to fund the applicable encumbrance. The total encumbrances outstanding as of June 30, 2025 were as follows:

General Fund $ 6,184,399
Assessment Districts Capital Projects Fund 50,207
Nonmajor Governmental Funds 707,161
Enterprise Funds 2,024,739
Total Encumbrances $ 8,966,506
E. Cash and Investments
All cash and investments other than that held by fiscal agents are either held in certificates of deposits in IocaI banks or in a City-wide investment pool. Accordingly, all cash and investments in the proprietary fund types are considered cash and cash equivalents.

Investments are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains and looses realized upon the liquidation, maturity, or sale of investments.

F. Lease Receivables
Lease receivables are recorded by the City as the present value of future lease payments expected to be received from the lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of future lease payments to be received are discounted based on the interest rate the City charges the lessee.

G. Advances to Other Funds
Long-term interfund advances are recorded as a receivable and as non-spendable fund balance by the advancing governmental fund, when reported in the General Fund or with in restricted fund balance for other governmental funds.

H. Inventory
Inventories are valued at cost and are consumed using the first-in/first-out (FIFO) method. The costs of governmental fund type inventories are recorded as expenditures when consumed rather than when purchased.

I. Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased (consumption method).

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For The Year Ended June 30, 2025
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J. Investments with Fiscal Agent
Certain proceeds from the issuance of debt, as well as certain resources set aside for the payment of debt, are classified as investments with fiscal agent because they are held by an agent and their use is limited by applicable debt agreements. These funds are held in custodial funds only.

K. Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at their estimated acquisition value at the date of the contribution. Generally, capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of three years or more.

Capital assets include public domain (infrastructure) consisting of certain improvements other than buildings, including storm drains, beach stairways, streets, sidewalks, sewer line relining, sewer lines, and nuisance water diversification units.

Capital assets used in operations are depreciated over their estimated useful lives. The City uses the straight – line method in the government – wide financial statements and the proprietary fund financial statements for depreciating storm drains, beach stairways, streets, sidewalks, sewer line relining, sewer lines, nuisance water diversification units, buildings and improvements, office equipment and machines, furniture and fixtures, equipment, machinery and tools, and automotive equipment. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective statement of net position.

Right to use leased assets are recognized at the lease commencement date and represent the City's right to use an underlying asset for the lease term. Right to use leased assets are measured at the initial value of the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term, plus any initial direct costs necessary to place the leased asset into service. Right to use leased assets are amortized over the shorter of the lease term or useful life of the underlying asset using the straight – line method.

Right to use subscription IT assets are recognized at the subscription commencement date and represent the City's right to use the underlying IT asset for the subscription term. Right to use subscription IT assets are measured at the initial value of the subscription liability plus any payments made to the vendor at the commencement of the subscription term, less any subscription incentives received from the vendor at or before the commencement of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription asset into service. Right to use subscription IT assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight – line method.

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Notes To Financial Statements
For The Year Ended June 30, 2025
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The ranges of lives used for depreciation/amortization for each fixed asset class are as follows:

Asset Years
Storm Drains 40 years
Beach Stairways 30 years
Streets 50 years
Sidewalks 50 years
Sewer Line Relining 40 years
Sewer Lines 50 years
Nuisance Water Diversification Units 30 years
Buildings and Improvements 30 years
Office Equipment and Machines 5 years
Furniture and Fixtures 3 to 8 years
Equipment, Machinery, and Tools 3 to 8 years
Automotive Equipment 2 to 20 years
Right to Use Asset Shorter of useful life or lease term/subscription term L. Property Taxes
Property taxes attach as an enforceable lien on property as of January1. Taxes are levied on July 1 and are payable in two installments on December 10 and April 10. The County bills and collects the property taxes and remits them to the City in installments during the year. City property tax revenues are recognized when levied to the extent that they result in current receivables. The County is permitted by state law (Proposition 13) to levy taxes at 1% of full market value (at time of purchase) and can increase the property tax value base no more than 2% per year.

M. Compensated Absences
Accumulated unpaid vacation and sick leave amounts are currently funded and recorded as expenditures in the individual funds. These amounts are recorded as employee benefit charges and are accrued when incurred in the Municipal Transit and Sewer Service Enterprise Fund, and the Insurance and Employee Benefits Internal Service Fund. The majority of sick leave is paid out at a rate of one hour for every two hours banked and, therefore, is recorded at 50% of the total leave balance. Vacation accruals have no such limitations and are recorded at 10% of the total leave balance.

N. Lease Liabilities
Lease liabilities represent the City's obligation to make lease payments arising from leases. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments expected to be made during the lease term. The present value of lease payments are discounted based on a borrowing rate determined by the City.

O. Subscription Liabilities
Subscription liabilities represent the City's obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscription term. The present value of subscription payments are discounted based on a borrowing rate determined by the City.

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For The Year Ended June 30, 2025
NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 48 71
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P. Net Position
Net position is the excess of all the City's assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net position is divided into three categories. These categories apply only to net position, which is determined only at the government – wide level, proprietary funds, and fiduciary funds and are described below.

Net Investment in Capital Assets – describes the portion of net position which is represented by the current net book value of the City's capital assets, lest the outstanding balance of any debt issued to finance these assets and capital – related payables.

Restricted – describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter.

Unrestricted – describes the portion of net position which is not restricted as to use.

Q. Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government – wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.

It is the City's practice to consider restricted – net position to have been depleted before unrestricted – net position is applied, however it is at the Council's discretion.

R. Fund Balances
Fund balances are reported in the fund statements in the following classifications:

1. Nonspendable Fund Balance
Nonspendable Fund Balance – This includes amounts that cannot be spent because they are either not spendable in form (such as prepaid amounts and inventory) or legally or contractually required to be maintained intact (such as endowments).

2. Spendable Fund Balances
Restricted Fund Balance – This includes amounts that can be spent only for specific purposes stipulated by legal requirements imposed by other governments, external resource providers, enabling legislation, or creditors.

Restrictions may effectively be changed or lifted only with the consent of resource providers.

Committed Fund Balance – This includes amounts that can only be used for specific purposes pursuant to constraints imposed by the highest level of formal action of the City Council. Those committed amounts cannot be used for any other purpose unless City Council removes or changes the specified use by taking the same type of action. The constraints are imposed by Resolution of the City Council, the highest level of approval.

Assigned Fund Balance – This includes amounts that are intended to be used for specific purposes as indicated by City Council or by persons to whom City Council has delegated the authority to assign amounts for specific purposes. City Council has not delegated such authority.

Unassigned Fund Balance – This includes the remaining spendable amounts which are not included none of the other classifications. The use of this classification is limited to the General Fund or other governmental funds with a deficit fund balance.

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For The Year Ended June 30, 2025
NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 49 72
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It is the City's policy that restricted resources will be applied first, followed by (in order of application) restricted, committed, assigned, and unassigned resources, in the absence of a formal policy adopted by the Council.

S. General Fund Balance Policy
It is the policy of the City to maintain a minimum reserve in unassigned fund balance for unforeseen emergencies or catastrophic impacts upon the City, and whenever fiscally possible and financially prudent, to maintain a greater target reserve. The minimum reserve of the General Fund is 10% of General Fund operating expenditures (single fund, not combined General Fund) per the City's municipal code. However, the City Council has established a policy of a higher reserve target of 20%. Total expenditures were $98,142,962 and the minimum reserve requirement was $19,628,592. The City's General Fund (single fund, not combined) reported $16,665,455 in reserves in committed and assigned fund balance as of June 30, 2025.

T. Deficit Fund Balance
The City had the following funds with deficit fund balance as of June 30, 2025:

Fund Name Fund Type Deficit
Deposits General Fund Subfund $ 16,251
Insurance and Employee Benefits Internal Service Fund $ 4,896,903 U. Grant and Allocations
The City is a recipient of state and federal grants, which are governed by laws and regulations established by the granting agencies. Costs charged to the respective grant programs are subject to review and adjustment by the granting agencies. Certain requests relating to this funding are pending approval by the funding agency. The amount of disallowed cost, if any, that might be associated with this funding, cannot be reasonably estimated.

V. Deferred Outflows and Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources.

This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/ expenditure) until that time. The City has the following items that qualify for reporting in this category:
• Deferred outflows related to pensions equal to employer contributions made after the measurement date of the net pension liability.
• Deferred outflows related to pensions for differences between expected and actual experience, changes of assumptions, and differences between actual contributions and proportionate share of contributions and changes in proportion. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans. • Deferred outflows related to OPEB for differences between expected and actual experience and changes in assumptions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with retiree healthcare benefits through the plans.

In addition to liabilities, the statement of net position and governmental funds balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has the following item that qualifies for reporting in this category:

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• Deferred inflows related to pensions for differences between expected and actual experience, changes of assumptions, and differences between actual contributions and proportionate share of contributions and changes in proportion. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans. • Deferred inflows related to pensions resulting from the net differences between projected and actual earnings on investments of the pension plans fiduciary net position. These amounts are amortized over 5 years. • Deferred inflows related to OPEB for differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with retiree healthcare benefits through the plans. • Deferred inflows related to leases where the City is the lessor, which may be reported in the governmental funds statement of net position. These amounts are recognized on a straight-line basis over the term of the lease.

W. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employees Retirement System (CalPERS) plans and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.

Investments are reported at fair value.

X. Use of Estimates
The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources, at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Y. New Accounting Pronouncements
GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. The City has evaluated the impact of this statement and made adjustments as noted in footnote 18.

GASB Statement No. 102 – In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures.

The objective of this Statement is to provide users of government financial statements with essential information about risks related to a state or local government’s vulnerabilities due to the variety of risks they face. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024. The City has evaluated the impact of this statement and determined that no additional disclosures are necessary at this time.

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For The Year Ended June 30, 2025
NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 51 74
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A. Cash and Investments
Cash and investments of the primary government as of June 30, 2025 are classified in the accompanying financial statements as follows:

Statement of Net Position
Cash and investments - Governmental Activities $ 159,335,166 Cash and investments - Business-type Activities 12,477,027 Statement of Fiduciary Net Position
Cash and cash equivalents 809,455
Investments with fiscal agent 1,008,712
Total cash and investments $ 173,630,360
Cash and investments as of June 30, 2025 consisted of the following:

Cash on hand $ 10,070
Deposits with financial institutions 34,137,150
Investments 139,483,140
Total cash and investments $ 173,630,360
B. Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by the bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Authorized by Maximum Maximum
Investment Types Investment Maximum Percentage Investment Authorized by State Law Policy Maturity * of Portfolio * in One Issuer * U.S. Treasury obligations Yes 5 years None None
Federal agency securities Yes 5 years None None
Bankers acceptances Yes 180 days 25% None
Supranational Securities Yes 5 years 5% None
Commercial paper Yes 270 days 25% 3%
Certificates of deposit (nonnegotiable) Yes 5 years None None Certificates of deposit (negotiable) Yes 5 years 25% None Medium-term notes Yes 5 years 25% 3%
Municipal bonds** Yes 5 years 25% 5%
Money market mutual funds Yes N/A 20% 20%
Local Agency Investment Fund Yes N/A None $75 million
*Based on state law requirements or investment policy requirement, whichever is more restrictive. **Includes City of Laguna Beach debt/bonds and may be authorized by City Council in excess of five years.

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Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS
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C. Investment Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The debt agreements permit the investments held by bond trustee to be invested in investment types that are permitted by California Government Code Section 53601 as directed by the City Treasurer.

D. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations are provided by the following tables that show the distribution of the City’s investments by maturity as of June 30, 2025.

Remaining Maturity (in Months)
12 Months 13 to 36 37 to 60
Investment Type Total or Less Months Months
Federal Agency Securities $ 75,070,499 $ 52,332,234 $ 22,738,265 $ — Municipal Bonds 2,542,326 2,542,326 — —
Local Agency Investment Fund 26,691,519 26,691,519 — —
Medium-Term Notes 7,608,474 2,727,614 2,943,330 1,937,530 Supranational 1,965,490 1,965,490 — —
City Bonds* 529,000 — — 529,000
United States Treasury Bill 23,089,840 13,960,480 9,129,360 — Certificates of Deposit (negotiable) 977,280 251,020 726,260 — Held by Fiscal Agent:

Local Agency Investment Fund 310,209 310,209 — —
Money market mutual funds 698,503 698,503 — —
Total investments $ 139,483,140 $ 101,479,395 $ 35,537,215 $ 2,466,530 *City Council has approved the investment in the debt/bonds of Assessment Districts 13-6, 14-1 and 15-2 in the amount of $529,000 which have maturities in excess of five years and are nonnegotiable.

E. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the Standard & Poor's (S&P) actual rating as of yearend for each investment type.

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Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
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Moody's Rating as of Fiscal Year End
Minimum Exempt or
Investment Type Total Legal Rating AAA AA A BBB Not Rated Federal Agency Securities $ 75,070,499 N/A $ — $ 75,070,499 $ — $ — $ — Municipal Bonds 2,542,326 A* 498,456 2,043,870 — — —
Local Agency Investment Fund 26,691,519 N/A — — — — 26,691,519 Medium-Term Notes 7,608,474 A — 3,693,644 2,939,350 975,480 — Supranational 1,965,490 AA 1,965,490 — — — —
City Bonds* 529,000 N/A — — — — 529,000
United States Treasury Bill 23,089,840 N/A — — — — 23,089,840 Certificates of Deposit (negotiable) 977,280 N/A — — — — 977,280 Held by Fiscal Agent:

Local Agency Investment Fund 310,209 — — — — 310,209
Money market mutual funds 698,503 698,503 — — — —
Total investments $ 139,483,140 $ 3,162,449 $ 80,808,013 $ 2,939,350 $ 975,480 $ 51,597,848 *City of Laguna Beach debt/bonds in the amount of $529,000 are exempt from the minimum legal rating.

F. Concentration of Credit Risk
Concentration credit risk is the heightened risk of potential loss when investments are concentrated none issuer.

The investment policy of the City contains a 3% limitation on the amount that can be invested in anyone issuer of Commercial Paper or Medium-Term Notes and a 5% limitation on the amount that can be invested in anyone issuer of Municipal Bonds. The City has no investments in excess of these limitations.

Investments in anyone issuer (other than external investment pools) that represent 5% or more of total City investments are as follows:

Issuer Investment Type Amount
United States Treasury U.S. Treasury obligations $ 23,089,840 Federal Home Loan Bank Federal Agency Securities 45,691,079 Federal Home Loan Mortgage Corporation Federal Agency Securities 12,815,470 Federal Farm Credit Bank Federal Agency Securities 10,722,410 G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The City’s investment policy requires that all investment transactions be conducted on a delivery-versus-payment (DVP) basis. The City’s investment policy also requires that an independent, third-party custodian designated by the Treasurer hold all securities. For all executed transactions, the third-party custodian is required to issue a safe keeping receipt to the City that lists the specific instrument, rate, maturity and other information pertinent to the transaction.

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For The Year Ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
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The California Government Code and the City’s Investment Policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities In the collateral pool must equal at least 10% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2025, all of the City’s funds are held in accordance with these provisions.

For investments identified herein as held by the fiscal agent, the City Treasurers elects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.

H. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code under the oversight of the Treasurer of the state of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis and is limited to the account balance. The California Local Agency Investment Fund is not insured or collateralized. The Fund is subject to regulatory oversight by the state of California Treasurer, although it is not registered with the Securities and Exchange Commission. Deposits and withdrawals to and from LAIF are made on the basis of $1 and not at fair value. According, under the fair value hierarchy, the investment with LAIF is uncategorized.

I. Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the assets.

Level 1 inputs are quoted prices inactive markets for identical assets, Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the assets and liabilities through corroboration with market data (the market approach), and Level 3 inputs are significant unobservable inputs. Federal agency securities, municipal bonds, medium term notes, and supranational, classified in Level 2 of the fair value hierarchy, are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices.

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
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The City has the following recurring fair value measurements as of June 30, 2025:

Fair Value
Observable
Inputs Level 2
Investment Type (Subject to Hierarchy)
Federal Agency Securities $ 75,070,499 $ 75,070,499
Municipal Bonds 2,542,326 2,542,326
Medium-Term Notes 7,608,474 7,608,474
Supranational 1,965,490 1,965,490
City Bonds 529,000 529,000
United States Treasury Bill 23,089,840 23,089,840
Certificate of Deposit (negotiable) 977,280 977,280
Total Subject to Hierarchy 111,782,909 $ 111,782,909
Uncategorized (Not Subject to Hierarchy)
Local Agency Investment Fund 27,001,728
Money Market Mutual Funds 698,503
Total Investment Portfolio $ 139,483,140
NOTE 3 - INTERFUND ACTIVITY
Interfund transfers at June 30, 2025 consisted of the following:

Transfer Out
Transfer In General Fund
Nonmajor
Governmental
Funds Total
General Fund $ — $ 1,000,000 $ 1,000,000
Non-Major Governmental Funds 2,931,888 50,439 2,982,327 Municipal Transit Enterprise Fund 3,673,480 — 3,673,480 Internal Service Funds 1,300,000 — 1,300,000
Total $ 7,905,368 $ 1,050,439 $ 8,955,807
Transfers were used to:

1. Transfer from the General Fund to various Non-Major Governmental Funds totaling $2,931,888 to support various City activities and projects.Transfer from the General Fund (Parking) to the Municipal Transit Fund in the amount of $3,673,480 to cover the balance of operating and capital expenditures not funded from grants or other revenues.

2. Transfer from the General Fund to the Vehicle Replacement Fund in the amount of $1,000,000 for the repayment of internal loan for sale of 31729 and 31735 Coast Highway. Transfer from the General Fund (Parking) to the Vehicle Replacement Fund in the amount of $300,000 to fund replacement of transit trolleys.

3. Transfer from the Street Lighting District Fund to the General Fund (Wildfire Mitigation and Fire Safety) in the amount of $1,000,000 to fund wildfire mitigation and undergrounding.

4. Transfer from the Asset Forfeiture Fund to the State Asset Forfeiture Fund in the amount of $50,439 to establish a separate State Asset Forfeiture Fund.

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
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Capital asset activity for the fiscal year ended June 30, 2025 were as follows:

Capital assets, not being depreciated/amortized
Land $ 114,407,234 $ — $ (2,700,001) $ 111,707,233
Works of Art — — 1,507,913 1,507,913
Construction-in-progress 45,029,639 12,664,615 (10,245,219) 47,449,035 Total capital assets, not being depreciated/amortized 159,436,873 12,664,615 (11,437,307) 160,664,181 Capital assets, being depreciated/amortized
Buildings and Improvements 84,905,556 — 930,449 85,836,005 Office Equipment and Machinery 5,853,189 — — 5,853,189
Furniture and Fixtures 2,987,035 — (1,507,913) 1,479,122 Equipment, Machinery, and Tools 8,620,320 944,832 235,442 9,800,594 Automotive Equipment 17,963,095 1,606,067 (872,418) 18,696,744 Software — 94,520 — 94,520
Lease Assets
Building 212,112 — — 212,112
Office Equipment and Machinery 250,329 914,394 (69,755) 1,094,968 Automotive Equipment 485,394 — — 485,394
Software as a Service 1,024,434 2,401,730 (15,760) 3,410,404 Infrastructure 256,979,121 69,406 8,238,183 265,286,710 Total capital assets, being depreciated/amortized 379,280,585 6,030,949 6,938,228 392,249,762 Less accumulated depreciation/amortization for
Buildings (41,012,604) (2,338,728) — (43,351,332)
Office Equipment and Machinery (5,513,028) (131,947) — (5,644,975) Furniture and Fixtures (827,524) (72,952) — (900,476)
Equipment, Machinery, and Tools (5,670,560) (489,681) 129,953 (6,030,288) Automotive Equipment (11,786,892) (1,158,053) 870,580 (12,074,365) Software — (13,419) — (13,419)
Lease Assets
Building (83,912) (27,971) — (111,883)
Office Equipment and Machinery (87,687) (257,558) 69,755 (275,490) Automotive Equipment (152,360) (60,674) — (213,034)
Software as a Service (544,967) (1,199,334) 15,760 (1,728,541) Infrastructure (112,374,863) (5,428,990) — (117,803,853) Total accumulated depreciation/amortization (178,054,397) (11,179,307) 1,086,048 (188,147,656) Total capital assets, being depreciated/amortized, net 201,226,188 (5,148,358) 8,024,276 204,102,106 Governmental activities capital assets, net $ 360,663,061 $ 7,516,257 $ (3,413,031) $ 364,766,287 Balance
Governmental Activities
June 30, 2024,
as Restated Additions
Deletions/
Transfers
Balance
June 30, 2025

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 4 - CAPITAL ASSETS
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Balance
Total Business-Type Activities
June 30, 2024,
as Restated Additions
Deletions/
Transfers
Balance
June 30, 2025
Capital assets, not being depreciated/amortized
Land $ 196,106 $ — $ — $ 196,106
Construction-in-progress 3,731,174 2,670,564 (1,585,829) 4,815,909 Total capital assets, not being depreciated/amortized 3,927,280 2,670,564 (1,585,829) 5,012,015 Capital assets, being depreciated/amortized
Buildings and Improvements 1,916,298 — — 1,916,298
Office Equipment and Machinery 725,014 — — 725,014
Furniture and Fixtures 38,605 — — 38,605
Equipment, Machinery, and Tools 1,686,209 74,101 — 1,760,310 Automotive Equipment — — — —
Sewer Plant and Lines 62,290,056 — 585,825 62,875,881
Lease Assets
Automotive Equipment 1,232,715 — (299,543) 933,172
Software as a Service 34,191 44,169 — 78,360
Capacity Rights 40,385,424 — 1,000,004 41,385,428
Total capital assets, being depreciated/amortized 108,308,512 118,270 1,286,286 109,713,068 Less accumulated depreciation/amortization
Buildings and Improvements (1,036,365) (62,866) — (1,099,231) Office Equipment and Machinery (586,587) (19,816) — (606,403) Furniture and Fixtures (31,928) (1,722) — (33,650)
Equipment, Machinery, and Tools (736,583) (86,705) — (823,288) Automotive Equipment — — — —
Sewer Plant and Lines (27,918,094) (1,162,910) — (29,081,004) Lease Assets
Automotive Equipment (896,541) (298,848) 299,543 (895,846) Software as a Service (18,994) (35,490) — (54,484)
Capacity Rights (27,364,974) (359,678) — (27,724,652)
Total accumulated depreciation/amortization (58,590,066) (2,028,035) 299,543 (60,318,558) Total capital assets, being depreciated/amortized, net 49,718,446 (1,909,765) 1,585,829 49,394,510 Business-Type Activities Capital Assets, Net $ 53,645,726 $ 760,799 $ — $ 54,406,525 Depreciation and amortization expense was charged to the following functions of governmental activities in the statement of activities:

General government $ 2,276,863
Community Development 5,969
Public Safety 666,554
Public Works 6,385,279
Transit and Community Services 686,589
Internal Service Funds 1,158,053
Total $ 11,179,307

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 4 - CAPITAL ASSETS (CONTINUED)
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Depreciation and amortization expense was charged to the following functions of business-type activities in the statement of activities:

Municipal Trust $ 392,494
Sewer Service 1,635,541
Total $ 2,028,035
NOTE 5 - CONSTRUCTION COMMITMENTS
As of June 30, 2025, contract commitments for major capital projects included the following:

Project Expenditures Unexpended
Description Contract to Date Balance
AD 2014-2 Woods Cove Undergrounding $ 9,247,568 $ 3,616,201 $ 5,631,367 Anita St Sewer LS & Beach Access 5,311,250 — 5,311,250
PAED Documents for Laguna Canyon Road
Improvements 2,706,412 780,881 1,925,531
Upgrade Computer Aided Dispatch system 1,373,861 137,386 1,236,475 North Coast Interceptor Intertie 3,500,000 2,487,968 1,012,032 Zones 5 & 11A Slurry Rehab 1,538,559 666,881 871,678
Anita St Sewer LS & Beach Access 764,150 — 764,150
Main Beach Park Renovation 1,480,944 864,263 616,681
Fuel Modification 1,386,000 789,043 596,957
AD 2014-2 Woods Cove Undergrounding 827,642 299,305 528,337 Total $ 28,136,386 $ 9,641,928 $ 18,494,458
NOTE 6 - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets, errors and omissions, injuries to employees, and natural disasters.

The City retains the risk of loss for general/auto liability claims of up to $400,000 per occurrence and workers' compensation claims of up to $300,000 per person per occurrence. Additionally, the City has retained risk of loss for employee PPO dental insurance claims. The City is fully insured for medical claims. The City has established the Insurance and Employee Benefits Internal Service Fund to account for and finance these uninsured risks of loss, and liabilities are accrued when incurred, including estimates for incurred but not reported (IBNR) loss, in this fund. An estimate for incurred but not reported claims for PPO dental coverage has not been accrued because management believes the liability for incurred but not recorded claims would be immaterial to the financial statements.

The City is also a member of the California Insurance Pool Authority (CIPA), a public entity risk pool consisting of 14 member cities in Southern California, which was established to pool resources, share risks, purchase excess insurance, and share costs for professional risk management and claims administration. The coverage for general and auto liability extends to $3,000,000 self-insured retention with a $43,000,000 annual aggregate. The coverage for workers' compensation extends to a limit of $2,000,000. Member cities' CIPA premiums are based on actuarial reports and underwriting estimates and are calculated based on the member cities' individual experience and exposure for a particular program. Members may be charged assessments if losses exceed the amount of premium collected.

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 4 - CAPITAL ASSETS (CONTINUED)
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All funds of the City participate in the risk management program and make payments to the Insurance and Employee Benefits Internal Service Fund based on estimates of the amounts needed to pay prior-year and current year claims. A claims liability of $10,163,953 is reported in the Insurance and Employee Benefits Internal Service Fund, at June 30, 2025. Changes in the Insurance and Employee Benefits Internal Service Fund's claims liability amounts in fiscal years 2025 and 2024 were as follows:
2025 2024
Beginning of Year Liability $ 9,934,541 $ 9,486,010
Current Year Claims as Changes in Estimates 6,450,571 3,712,278 Claims Payments (6,221,159) (3,263,747)
Insurance Claims Payable $ 10,163,953 $ 9,934,541
Current Portion of Claims Payable
General Liabilities Claims $ 683,513
Workers' Compensation Claims 2,365,673
Total Current Portion of Claims Payable $ 3,049,186
For the past three fiscal years, claims paid did not exceed the amount of applicable insurance coverage and there have been no significant changes in insurance policies or coverage amounts.

NOTE 7 - IMPROVEMENT DISTRICTS
Bonds issued for improvement districts are liabilities of the property owners and are secured by liens against the assessed property. The City is not liable for repayment and is only acting as an agent to expend the project funds on behalf of the property owners and to collect principal and interest payments from property owners and remit such monies to the bond holders. As of June 30, 2025, special assessment debt outstanding was:

District
Principal
Outstanding
June 30, 2025
AD 09-1 $ 2,130,000
AD 13-1 207,318
AD 13-6 105,000
RAD 14-3 85,550
AD 15-2 62,000
AD 13-2 1,360,000
AD 14-1 362,000
AD 14-2 8,820,000
Total $ 13,131,868

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 6 - RISK MANAGEMENT (CONTINUED)
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A. Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Federal legislation requires that the Section 457 plan assets be held in trust for employes. This change, which was implemented in the 1999 fiscal year, means that employee assets held in Section 457 plans are no longer the property of the City and are no longer subject to claims of the City's general creditors. The City makes no contributions to the plan and has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. At June 30, 2025, the deferred compensation assets are not reflected in the City's financial statements.

B. Defined Contribution Plan
The City has established a defined contribution plan administered through a private administrator known as Public Agency Retirement System ("PARS") for all of its part-time employees, pursuant to the requirements of section 132 of the Social Security Act. All part-time employees are eligible to participate from the date of employment. Federal legislation requires contributions of at least 7.5% to a retirement plan. The City contributes

3.75%, 4.75%, or 8.5% of employee compensation depending on the employee’s classification. The City's contributions for each employee are fully vested immediately. For the year ended June 30, 2025, the City contributed $213,396 to the plan.

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 8 - OTHER EMPLOYEE BENEFITS
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The following is a summary of the changes in the principal balance of long-term liabilities for the year ended June 30, 2025:

Balance Balance Due Within Due in More
June 30, 2024,
as Restated* Additions Deletions June 30, 2025 One Year Than One Year Governmental activities
Lease Liabilities $ 662,560 $ 810,237 $ (268,083) $ 1,204,714 $ 274,315 $ 930,399 SBITA Liabilities 300,861 1,510,446 (789,334) 1,021,973 229,120 792,853 Lease Financing Arrangement 11,240,000 — — 11,240,000 437,000 10,803,000 Compensated Absences* 6,619,615 518,754 — 7,138,369 2,054,166 5,084,203 Insurance Claims Payable 9,934,541 6,450,571 (6,221,159) 10,163,953 3,049,186 7,114,767 Total governmental activities 28,757,577 9,290,008 (7,278,576) 30,769,009 6,043,787 24,725,222 Business-type activities
Municipal Transit Fund
Lease Liabilities 340,710 — (302,404) 38,306 38,306 —
SBITA Liabilities 2,857 3,064 (4,597) 1,324 1,324 —
Compensated Absences* 39,330 4,171 — 43,501 867 42,634
Total Municipal Transit Fund 382,897 7,235 (307,001) 83,131 40,497 42,634 Sewer Service Fund
Compensated Absences* 76,433 27,649 — 104,082 60,417 43,665 SBITA Liabilities 8,570 9,191 (13,791) 3,970 3,970 —
Direct Borrowings
I-Bank Installment Agreement 3,179,913 — (181,120) 2,998,793 187,278 2,811,515 I-Bank Installment Agreement 3,740,489 — (194,568) 3,545,921 201,280 3,344,641 I-Bank Installment Agreement 7,137,753 — (187,124) 6,950,629 191,240 6,759,389 Total Sewer Service Fund 14,143,158 36,840 (576,603) 13,603,395 644,185 12,959,210 Total long-term liabilities $ 43,283,632 $ 9,334,083 $ (8,162,180) $ 44,455,535 $ 6,728,469 $ 37,727,066 *Compensated absences changes are presented as net on the additions line, balance as of June 30, 2024 is as restated by GASB 101.

For long-term liabilities, such as insurance claims payable and compensated absences, the general fund, municipal transit enterprise fund, sewer service enterprise fund, and internal service funds have been used in prior years to liquidate such amounts. A description of the City's lease activity is described in Note 10. A description of the City's SBITA liabilities is described in Note 11.

A. Lease Financing Arrangement
In November 2022, the Authority entered into a lease financing arrangement in the amount of $11,660,000 in order to secure funding for the purchase of property. Proceeds of the lease financing received by the Authority totaled $11,660,000 and were transferred to the general fund as payment for the right to use the property. The Authority has leased back the property to the City for an amount of $17,092,755, which will cover future principal and interest debt service payments of the Authority. The finance charge of the lease financing arrangement, including all fees and charges paid to third parties totaled $160,000.

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 9 - LONG-TERM LIABILITIES
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Interest on the Authority's debt is payable semiannually on July 1 and January 1 at a rate of 3.95%. Principal is payable in annual installments on July 1 ranging from $420,000 to $855,000. The debt matures on July 1, 2042.

The annual debt service requirement for the lease financing arrangement outstanding as of June 30, 2025, are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 437,000 $ 435,349 $ 872,349
2027 455,000 417,732 872,732
2028 473,000 399,404 872,404
2029 492,000 380,346 872,346
2030 512,000 360,517 872,517
2031-2035 2,887,000 1,475,937 4,362,937
2036-2040 3,516,000 845,577 4,361,577
2041-2043 2,468,000 148,757 2,616,757
Total 11,240,000 4,463,619 15,703,619
B. I-Bank Installment Sale Agreement
The City entered into a 20-year loan on June 1, 2018 from the I-Bank Installment Sale Agreement with the California Infrastructure and Economic Development Bank (CIEDB). The maximum loan amount is $4,000,000 and will be utilized for the City's Sewer System Collection and Treatment Facility Rehabilitation and Replacements project. The loan is secured by revenues generated by the Sewer Service Fund and bears interest at a rate of

3.40% per annum, including amounts that have not yet been disbursed. Additionally, there is an annual life due on August 1 of each year equal to 0.30% of the outstanding principal. Repayment of the loan is payable solely from Sewer Service user charges. The revenues are pledged for the total debt service until the year 2038. As of June 30, 2025, $4,000,000 of the Ioan proceeds were disbursed under the Ioan agreement. Interest is due semiannually on February 1 and August 1 and principal is due annually on August 1, which commenced on August 1, 2019.

The City is not permitted prepay all or a portion of the outstanding principal until June 1, 2028, which is 10 years after the effective date. After the 10-year period, the prepayment amount is 102%, 101%, and 100% for the tenth year, eleventh year, and remaining years, respectively.

As of June 30, 2025, the outstanding principal amount was $2,998,793. Total revenue available from the Sewer Service Fund for debt service is $11,086,076 and total debt service, including interest, was $286,157.

The annual payment amounts required to retire the SaIes Agreement as of June 30, 2025 are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 187,278 $ 98,774 $ 286,052
2027 193,645 92,299 285,944
2028 200,229 85,604 285,833
2029 207,037 78,680 285,717
2030 214,076 71,521 285,597
2031-2035 1,184,639 241,407 1,426,046
2036-2038 811,889 42,021 853,910
Total $ 2,998,793 $ 710,306 $ 3,709,099

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 9 - LONG-TERM LIABILITIES (CONTINUED)
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The City entered in to a 20-year Ioan on June 5, 2019 from the I-Bank Installment Sale Agreement with the California Infrastructure and Economic Development Bank (CIEDB). The maximum loan amount is $4,456,000 and will be utilized for the City's Coastal Treatment Plan Facility Improvements Project. The loan is secured by revenues generated by the Sewer Service Fund and bears interest at a rate of 3.45% per annum, including amounts that have not yet been disbursed. Additionally, there is an annual fee due on August 1 of each year equal to 0.30% of the outstanding principal. Repayment of the Ioan is payable solely from Sewer Service user charges.

The revenues are pledged for the total debt service until the year 2039. As of June 30, 2025, $4,456,000 of the Ioan proceeds were disbursed under the loan agreement. Interest is due semiannually on February 1 and August 1 and principal is due annually on August 1, which commenced on August 1, 2020.

The City is not permitted prepay all or a portion of the outstanding principal until June 5, 2029, which is 10 years after the effective date. After the 10-year period, the prepayment amount is 102%, 101%, and100% for the 10th year, 11th year, and remaining years, respectively.

As of June 30, 2025, the outstanding principal amount was $3,545,921. Total revenue available from the Sewer Service Fund for debt service is $11,086,076 and total debt service, including interest, was $320,259.

The annual payment amounts required to retire the SaIes Agreement as of June 30, 2025 are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 201,280 $ 118,862 $ 320,142
2027 208,224 111,798 320,022
2028 215,408 104,491 319,899
2029 222,840 96,931 319,771
2030 230,528 89,110 319,638
2031-2035 1,277,568 318,466 1,596,034
2036-2039 1,190,073 83,855 1,273,928
Total $ 3,545,921 $ 923,513 $ 4,469,434
The City entered into a 30-year Ioan on June 1, 2022 from the I-Bank Installment Sale Agreement with the California Infrastructure and Economic Development Bank (CIEDB). The maximum loan amount is $7,500,000 and will be utilized for the South Orange County Wastewater Authority Coastal Treatment Plant upgrades. The Ioan is secured by revenues generated by the Sewer Service Fund and bears interest at a rate of 2.20% per annum, including amounts that have not yet been disbursed. Additionally, there is an annual fee due on August 1 of each year equal to 0.30% of the outstanding principal. Repayment of the loan is payable solely from Sewer Service user charges. The revenues are pledged for the total debt service until the year 2051. As of June 30, 2025, $6,094,325 of the loan proceeds were disbursed under the Ioan agreement, and accordingly, a receivable in the amount of $1,405,675 is recorded in the Sewer Service Enterprise Fund. Interest is due semiannually on February 1 and August 1 and principal is due annually on August 1, which will commence on August 1, 2022.

The City is not permitted prepay all or a portion of the outstanding principal until June 1, 2032, which is 10 years after the effective date.

As of June 30, 2025, the outstanding principal amount was $6,950,629. Total revenue available from the Sewer Service Fund for debt service is $11,086,076 and total debt service, including interest, was $342,095.

The annual payment amounts required to retire the SaIes Agreement as of June 30, 2025 are as follows:

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 9 - LONG-TERM LIABILITIES (CONTINUED)
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Year Ending
June 30, Principal Interest Total
2026 $ 191,240 $ 150,810 $ 342,050
2027 195,447 146,557 342,004
2028 199,747 142,210 341,957
2029 204,141 137,767 341,908
2030 208,632 133,226 341,858
2031-2035 1,114,064 594,449 1,708,513
2036-2040 1,242,122 464,982 1,707,104
2041-2045 1,384,902 320,632 1,705,534
2046-2050 1,544,093 159,690 1,703,783
2051-2052 666,241 14,737 680,978
Total $ 6,950,629 $ 2,265,060 $ 9,215,689
NOTE 10 - LEASES
A. Lessee Activities
As of June 30, 2025, the City had entered into various lease agreements as the lessee for the use of land, a building, various automotive equipment, and equipment, for terms ranging from four to seven years. The City is required to make principal and interest payments through December 2033. The various lease agreements have an interest rate ranging from 2.33% to 2.99% based on the City’s estimated incremental borrowing rate at the inception of the lease or the stated interest rate. As of June 30, 2025, the total combined value of right to use assets, and the related accumulated amortization on right to use assets, was $2,725,646 and $1,496,252, respectively. The total combined value of the lease liability was $1,243,020. The current year amortization and interest expense associated with the right to use assets were $645,051 and $21,670.

Remaining principal and interest payments on the leases are as follows:

Governmental
Activities
Fiscal Year
Ending
June 30, Principal Interest Total
2026 $ 274,315 $ 30,008 $ 304,323
2027 265,416 22,911 288,327
2028 235,137 16,591 251,728
2029 170,664 10,365 181,029
2030 58,662 6,044 64,706
2031-2034 200,520 9,551 210,071
Totals $ 1,204,714 $ 95,470 $ 1,300,184
Business Activities
Year Ending June 30, Principal Interest Total
2026 $ 38,306 $ 118 $ 38,424

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 9 - LONG-TERM LIABILITIES (CONTINUED)
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B. Lessor Activities
As of June 30, 2025, the City had had 7 active leases. The leases have receipts that range from $6,648 to $108,000 and interest rates that range from 0.6820% to 3.0700%. As of June 30, 2025, the total combined value of the lease receivable is $1,157,591, the total combined value of the short-term lease receivable is $293,497, and the combined value of the deferred inflow of resources is $1,070,287.

NOTE 11 - SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAS) As of June 30, 2025, the City has entered into various contracts for the use of software subscription services. As of June 30, 2025, the combined value of the subscription liability was $1,027,267. The City is required to make principal and interest payments through 2034. The SBITA liabilities were valued using a discount rate ranging from 0.33% to 3.23% based on the City's incremental borrowing rate at the inception of the SBITAs. The total combined value of subscription assets, and the related accumulated amortization on subscription assets was $33,488,764 and $1,783,025 as of June 30, 2025, respectively. Remaining principal and interest on SBITAs are as follows:

Governmental
Activities
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2026 $ 229,120 $ 25,292 $ 254,412
2027 104,732 20,614 125,346
2028 107,455 17,891 125,346
2029 110,249 15,097 125,346
2030 113,116 12,231 125,347
2031-2034 357,301 18,739 376,040
Totals $ 1,021,973 $ 109,864 $ 1,131,837
Business-type
activities
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2026 $ 5,294 $ 84 $ 5,378
NOTE 12 - OTHER POST EMPLOYMENT BENEFIT PLAN
A. Plan Description
The City administers a single-employer defined benefit plan which provides medical and dental insurance benefits to eligible retirees and their dependents in accordance with various labor agreements. The City does not pay any of the cost of retiree health benefits however, eligible retirees and their dependents are permitted to participate in the City's medical insurance plan until eligible for Medicare, typically at age 65. Once eligible, coverage under the City plan ceases. The medical plans consist of two Cigna options (HMO and PPO) and the dental benefits are provided through Delta Care HMO and a self-insured Delta Dental PPO.

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 10 - LEASES (CONTINUED)
66 89
89 of 316
Employees who have completed at least three years of service with the City and have coverage immediately prior to retirement are eligible to retire and participate in the City's healthcare plans by paying premiums identical to those charged for the City's active employees. For employees hired on or after July 1, 2013 (January 1, 2014 for Police), the three year service requirement has been increased to ten years. Spouses and eligible dependent children of retirees may also be covered at the retiree's expense. All of the City's Memoranda of Understanding (MOU) specify the ability to elect self-paid retiree medical coverage, and this benefit has been extended to selfpaid dental coverage as well.

While the City does not directly contribute toward the cost of premiums for retirees, the ability to obtain coverage at an active employee rate constitutes a significant economic benefit to the retirees, called an "implicit subsidy” under GASB 75. The inclusion of the retirees increases the City's overall health insurance rates.

The benefits and contribution requirements of the City and plan members are established and may be amended by City Council. The City has not established an irrevocable trust for the purpose of holding assets accumulated for plan benefits and funds the plan on a pay-as-you-go basis (i.e., as medical insurance premiums become due).

For fiscal year 2024-2045, age-adjusted premium benefits paid by the City totaled $365,754.

B. Employees Covered
As of the June 30, 2025 measurement date, membership consisted of the following:

Inactive members currently receiving benefits 33
Active members 320
Total 353
C. Total OPEB Liability
The City's total OPEB liability of $5,609,182 was measured as of June 30, 2025, was determined by an actuarial valuation as of July 1, 2024 rolled forward to June 30, 2025 using standard update procedures, and is included in the government-wide financial statements as follows:

Governmental
Activities
Business-Type
Activities Total
Deferred Outflows - OPEB $ 2,341,212 $ 97,551 $ 2,438,763 Total OPEB Liability $ 5,384,815 $ 224,367 $ 5,609,182
Deferred Inflows - OPEB $ 650,708 $ 27,113 $ 677,821
The general fund, municipal transit enterprise fund, and sewer service enterprise fund have been used in prior years to liquidate the total OPEB liability.

D. Actuarial Assumptions and Other Inputs
The total OPEB liability as of the July 1, 2024, actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 12 - OTHER POST EMPLOYMENT BENEFIT PLAN (CONTINUED) 67 90
90 of 316
Valuation Date Jun 30, 2024
Measurement Date Jun 30, 2025
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions
Discount Rate 4.71%
Inflation 2.30%
Projected Salary Increases 2.80%
Healthcare Cost Trend Rates 4.90% for 2024 through 2074; 4.04% for 2075 and later years Mortality (1)
(1) Mortality rates were based on the CalPERS mortality rates, in the most recent experience study, for CalPERS members. The actuarial assumptiond used in the July 1, 2022 valuation were based on the results of the most recent applicable experience study and a review of plan experience during the period July 1, 2020 to June 30, 2022.

The discount rate utilized is based on whether the plan assets are projected to be sufficient to make future payments. Since there are no plan assets held in trust, the discount rate was based on a high-quality 20-year taxexempt general obligation municipal bond yield or index rate. "High quality" is defined as being rated AA or higher (or an equivalent rating). The municipal bond rate utilized was 4.71% and was determined using the Fidelity AA Municipal Bond 20-Year High Grade rate index as of June 30, 2025.

E. Change in Total OPEB Liability
Increase
(Decrease)
Total OPEB
Liability
Balance at June 30, 2024 $ 5,815,435
Changes recognized for the
measurement period:

Service cost 290,465
Interest on total OPEB liability 235,144
Changes of assumptions (366,108)
Implicit subsidy credit (365,754)
Net Changes (206,253)
Balance at June 30, 2025 (Measurement Date) $ 5,609,182 F. Change of Assumptions
The discount rate was raised from 3.97% to 4.71% from June 30, 2024, to June 30, 2025, respectively.

G. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, calculated using the discount rate for the Plan, as well as what the City's total OPEB liability would be fit were calculated using a discount rate that is one-percentage point lower or one-percentage point higher than the current rate:

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 12 - OTHER POST EMPLOYMENT BENEFIT PLAN (CONTINUED) 68 91
91 of 316
1% Discount Rate 1%
Decrease (3.71%) (4.71%) Increase (5.71%)
Total OPEB Liability $ 6,111,225 $ 5,609,182 $ 5,160,040 H. Sensitivity of the Total OPEB Liability to Changes in Medical Trend Rates Healthcare Cost
1% Trend Rates 1%
Decrease (5.50%) (6.50%) Increase (7.50%)
Decreasing to Decreasing to Decreasing to

3.04 4.04% 5.04%
Total OPEB Liability $ 4,969,249 $ 5,609,182 $ 6,372,812 I. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2025, the City recognized OPEB expense of $882,425. At June 30, 2025, the City reported deferred outflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual experience $ 2,084,163 $ —
Changes of assumptions 354,600 677,821
Total $ 2,438,763 $ 677,821
The above amounts reported as deferred outflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended
June 30, Amount
2026 $ 338,387
2027 251,489
2028 213,773
2029 134,339
2030 178,165
Thereafter 644,789
Total $ 1,760,942

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 12 - OTHER POST EMPLOYMENT BENEFIT PLAN (CONTINUED) 69 92
92 of 316
Fund balances are classified as follows:

Inventories $ 100,372 $ — $ — $ 100,372
Prepaids 2,219,900 — 2,388,177 4,608,077
Total nonspendable 2,320,272 — 2,388,177 4,708,449
Restricted for:

South Laguna maintenance 15,399,858 — — 15,399,858
Assessment district improvements — 6,659,729 — 6,659,729 Street lighting maintenance and projects — — 6,482,856 6,482,856 Streets and roads maintenance and projects — — 3,148,908 3,148,908 Public safety programs — — 188,650 188,650
Affordable housing — — 1,766,700 1,766,700
Animal shelter activities — — 1,497,850 1,497,850
Cultural and environmental stewardship activities — — 260,000 260,000 Pollution remediation projects — — 84,038 84,038
Opioid remediation activities — — 76,819 76,819
Total restricted 15,399,858 6,659,729 13,505,821 35,565,408 Committed for:

Drainage improvements 85,497 — — 85,497
Affordable housing 801,612 — — 801,612
Parking 1,038 — — 1,038
Park and recreation facilities 47,058 — — 47,058
Art in public places 502,809 — — 502,809
Library operations and improvements 83,680 — — 83,680
Disaster contingency 7,129,626 — — 7,129,626
Reserves (10%) 8,550,000 — — 8,550,000
Total committed 17,201,320 — — 17,201,320
Assigned for:

Measure LL programs 1,789,692 — — 1,789,692
Open space 1,086,044 — — 1,086,044
Parking 14,733,919 — — 14,733,919
Transportation infrastructure projects 1,919,989 — — 1,919,989 Wildfire mitigation and fire safety 4,072,493 — — 4,072,493 Laguna Beach Marketing and Tourism 1,053,900 — — 1,053,900 CAD/RMS implementation 948,900 — — 948,900
Recycling and solid waste programs 1,801,900 — — 1,801,900 Community development programs 542,150 — — 542,150
Citywide Classification & Compensation Study 121,800 — — 121,800 Fire Hazard Mitigation Contracts 331,000 — — 331,000
EOC Design 225,000 — — 225,000
Other programs 60,100 — — 60,100
Other capital improvement projects 36,072,506 — — 36,072,506 Reserves (10%) 8,115,455 — — 8,115,455
Total assigned 72,874,848 — — 72,874,848
Unassigned** (16,251) — — (16,251)
Total fund balances (deficits) $ 107,780,047 $ 6,659,729 $ 15,893,998 $ 130,333,774 General Fund*
Assessment
Districts Capital
Projects Fund
Nonmajor
Governmental
Funds Total
Fund Balances
Nonspendable for:
*For financial statement reporting the City has included the following sub-funds in the General Fund: General Fund, Parking In-Lieu, Park InLieu, Drainage, Housing In-Lieu, Transportation Infrastructure, South Laguna, Deposits, Disaster Contingency, Open Space Parking Authority, Capital Improvement, Measure LL, and Library Impact Fees. **See footnote 1 for the General Fund Balance Reserve Policy.

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 13 - FUND BALANCES
70 93
93 of 316
In March 1972, the City, five water districts, and one sanitation district entered into a joint exercise of powers agreement to form the Aliso Water Management Agency, which ultimately joined other agencies and created the South Orange County Wastewater Authority (SOCWA), a public corporation. SOCWA currently includes ten member agencies, including the City. SOCWA was formed to develop a total water management program for its members' consolidated service areas. Specifically, SOCWA is to provide for construction, maintenance and operation of a regional wastewater transmission, treatment and disposal system. This system consists of an interceptor system, pumping stations, wastewater treatment plants and an ocean outfall.

The governing board is comprised of one member from each participating agency and is responsible for the selection of management and for the budgeting and financial management of the Agency. As of June 30, 2025, (the most recent information available), SOCWA had total assets and deferred outflows of resources of $159,075,275, total liabilities and deferred inflows or resources of $40,990,792, and total net position of $118,084,483. A separate financial report may be obtained from the South Orange County Wastewater Authority, 34156 Del Obispo Street, Dana Point, California 92629.

The City's share of ownership varies by year depending upon the purchased capacities of each subsystem. Each member is responsible for its share of maintenance and operations costs proportional to its purchased capacity which is billed to each member by SOCWA. Sewer service charges are assessed to fund these and other operating costs. The City paid $2,242,691 and $1,000,004 for its share of operating and capital costs, respectively, during the fiscal year.

Working in partnership with SOCWA, in prior years the City expanded capacity in certain treatment plants and constructed a pumping station. The City's participation in these projects has been capitalized through sewer plant and Iines and capacity rights in the City's sewer funds.

NOTE 15 - DEFINED BENEFIT PENSION PLANS
The City of Laguna Beach participates in the California Public Employees Retirement System (CalPERS), a pension plan available to all qualified employees. The Safety Plan is a cost-sharing multiple employer defined benefit pension plan. The Miscellaneous Plan is an agent multiple employer defined benefit pension plan. A summary of pension amounts for the City's plans at June 30, 2025 is presented below:

Safety Plan
Miscellaneous
Plan Total
Deferred Outflows - Pensions $ 18,321,046 $ 8,133,876 $ 26,454,922 Net Pension Liability (54,883,395) (30,510,916) (85,394,311) Deferred Inflows - Pensions (931,967) — (931,967)
Pension Expense 12,028,372 6,027,898 18,056,270
Pension amounts are reported in the financial statements as follows:

Governmental
Activities
Business-Type
Activities Total
Deferred Outflows - Pensions $ 26,129,567 $ 325,355 $ 26,454,922 Net Pension Liability (84,173,875) (1,220,436) (85,394,311) Deferred Inflows - Pensions (931,967) — (931,967)
Pension Expense 19,929,374 241,116 20,170,490

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 14 - SEWAGE TREATMENT FACILITIES
71 94
94 of 316
A. General Information about the Pension Plans

1. Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City's Safety (Police, Fire, and Lifeguard) Employee Pension Plan (Safety Plan), a cost sharing multiple employer defined benefit pension plan, or the City's Miscellaneous Plan, an agent multiple employer defined benefit pension plan, both administered by CalPERS. The CalPERS Safety Plan consists of safety pools (referred to as "risk pools"), which are comprised of individual employer safety rate plans. The risk pools are included within the Public Employees' Retirement Fund C (PERF C). For the Miscellaneous Plan, CalPERS acts as a common investment and administrative agent for its participating member employers, and are included with in Public Employees' Retirement Fund A (PERF A). Benefit provisions under the Plans are established by state statute and may be amended by City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information. These reports can be found on the CalPERS website.

2. Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least five years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five years of service. The death benefit is one of the following the Basic Death Benefit, the 1957 Survivor Benefit or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement law.

The Public Employee's Pension Reform Act of 2013 (PEPRA) requires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. These PEPRA members in pooled plans are reflected in the new Miscellaneous and Safety risk pools created by the CalPERS Board in response to the passage of PEPRA, beginning with the June 30, 2013, risk-pool valuations.

The Plans' provisions and benefits in effect at the measurement date June 30, 2024, are summarized as follows:

Safety - Police
Tier 1 Tier 2 Tier 3
Formula 3.0% @ 50 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 55 57
Monthly benefits, as a % of eligible
compensation 3.0 % 3.0 % 2.7 %
Required employee contribution rates 9.00 % 9.00 % 13.75 % Required employer contribution rates
normal cost rates 27.32 % 24.33 % 13.76 %

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 15 - DEFINED BENEFIT PENSION PLANS (CONTINUED)
72 95
95 of 316
Safety - Fire
Tier 1 Tier 2 Tier 3
Formula 3.0% @ 50 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 55 57
Monthly benefits, as a % of eligible
compensation 3.0 % 3.0 % 2.7 %
Required employee contribution rates 9.00 % 9.00 % 13.75 % Required employer contribution rates
normal cost rate 27.32 % 24.33 % 13.76 %
Safety - Lifeguard
Tier 1 Tier 2 Tier 3
Formula 3.0% @ 55 N/A 2.7% @ 57
Benefit vesting schedule 5 years service N/A 5 years service Benefit payments Monthly for life N/A Monthly for life
Retirement age 55 N/A 57
Monthly benefits, as a % of eligible
compensation 3.0 % N/A 2.7 %
Required employee contribution rates 9.00 % N/A 13.75 % Required employer contribution rates
normal cost rate 24.15 % N/A 13.54 %
Tier 1 Tier 2 Tier 3
Applies to: Police Safety
employees hired on
or before April 2,
2012, Fire Safety
employees hired on
or before October 3,
2011, and Lifeguard
Safety employees
hired before
January 1, 2013
Police Safety
employees hired on
or before April 2,
2012, Fire Safety
employees hired on
or before October 3,
2011, (or laterals
from other CalPERS
agencies who meet
certain requirements)
New CalPERS
covered employees
hired after
January 1, 2013
(mandated by AB
340, the Public
Employees Pension
Reform Act
(PEPRA))
Miscellaneous
Hire Date
Prior to
January 1, 2013
On or After
January 1, 2013
Formula 2.5% @ 55 2.5% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 55 62
Monthly benefits, as a % of eligible
compensation 2.5 % 2.5 %
Required employee contribution rates 8.00 % 7.75 %
Required employer contribution rates
normal cost rate 12.13 % 12.13 %

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 15 - DEFINED BENEFIT PENSION PLANS (CONTINUED)
73 96
96 of 316

3. Employees Covered
As of the June 30, 2024, measurement date, the following employees were covered by the benefit term for the Miscellaneous Plan:

Miscellaneous
Inactive members currently receiving benefits 275
Inactive members entitled to but not yet receiving benefits 250 Active members 210
Total 735

4. Contributions
Section 20814(c) of the California Public Employees' Retirement law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in rate. The total plan contributions are determined through CalPERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rates of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions.

Contributions to the pension plans totaled $7,720,548 for the Safety Plan and $5,496,935 for the Miscellaneous Plan.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

1. Proportionate Share of Net Pension Liability-Safety Plan As of June 30, 2025, the City reported a net pension liability for its proportionate share of the collective net pension liability of the Safety Plan as follows:

Proportionate
Share of
Net Pension
Liability
Safety Plan $ 54,883,395
The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability.

The net pension liability of each of the Plans is measured as of June 30, 2024, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023.

The City's proportionate share of the net pension liability was based on a project on of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 15 - DEFINED BENEFIT PENSION PLANS (CONTINUED)
74 97
97 of 316
The City's proportionate share of the net pension liability for each Plan as of the measurement date ended June 30, 2023, and 2024, was as follows:

Safety
Proportion - June 30, 2023 0.7458 %
Proportion - June 30, 2024 0.7528 %
Change - Increase(Decrease) 0.0070 %

2. Actuarial Assumptions
The total pension liability was based on the following actuarial assumptions:

Safety
Police Fire Lifeguard
Valuation Date Jun 30, 2023 Jun 30, 2023 Jun 30, 2023
Measurement Date Jun 30, 2024 Jun 30, 2024 Jun 30, 2024 Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.90% 6.90% 6.90%
Inflation 2.30% 2.30% 2.30%
Salary Increases (1) (1) (1)
Mortality Rate Table (2) (2) (2)
Mortality (3) (3) (3)
(1) Varies by entry age and services.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website. (3) The less of contract COLA or 2.30% until Purchasing Power Protection of Allowance Floor on purchasing power applies, 2.30% thereafter.

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 15 - DEFINED BENEFIT PENSION PLANS (CONTINUED)
75 98
98 of 316
Miscellaneous
Valuation Date Jun 30, 2023
Measurement Date Jun 30, 2024
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.30%
Salary Increases (1)
Mortality Rate Table (2)
Mortality (3)
(1) Varies by entry age and services.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website. (3) The less of contract COLA or 2.3% until Purchasing Power Protection of Allowance Floor on purchasing power applies, 2.30% thereafter.

3. Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 15 - DEFINED BENEFIT PENSION PLANS (CONTINUED)
76 99
99 of 316
The expected real rates of return by asset class are as follows:

Asset Class(a)
New Strategic
Allocation
Real Return
Years 1 - 10(b)
Global Equity - cap-weighted 30.00 % 4.45 %
Global Equity - non-cap-weighted 12.00 % 3.84 %
Private Equity 13.00 % 7.28 %
Treasury 5.00 % 0.27 %
Mortgage-backed Securities 5.00 % 0.50 %
Investment Grade Corporates 10.00 % 1.56 %
High Yield 5.00 % 2.27 %
Emerging Market Debt 5.00 % 2.48 %
Private Debt 5.00 % 3.57 %
Real Estate 15.00 % 3.21 %
Leverage (5.00) % (0.59) %
Total 100.00 %
(a) An expected price inflation of 2.30% used for this period. (b) Figures are based on the 2021-22 Asset Liability Management Study

4. Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

5. Changes in Net Pension Liability Miscellaneous Plan
The City's net pension liability for the Miscellaneous Plan was measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of the Miscellaneous Plan was measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023. A summary of principal assumptions and methods used to determine the net pension liability is shown under the section Actuarial Assumptions within this note.

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 15 - DEFINED BENEFIT PENSION PLANS (CONTINUED)
77 100
100 of 316
The total Net Pension Liability for the City's Miscellaneous Plan, using the measurement date of June 30, 2024, was $30,510,916. The changes in the Net Pension Liability for the Miscellaneous Plan follows:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability (Asset)
Balance at June 30, 2023
(Measurement Date) $ 146,726,437 $ 113,884,578 $ 32,841,859 Changes in the Year
Service Cost 3,685,262 — 3,685,262
Interest on the Total Pension Liability 10,059,168 — 10,059,168 Diffferences Between Actual and
Expected Experience 1,183,732 — 1,183,732
Net Plan to Plan Resourse Movement — 2,773 (2,773)
Contribution - Employer — 4,819,761 (4,819,761)
Contribution - Employee — 1,623,543 (1,623,543)
Net Investment Income — 10,905,696 (10,905,696)
Administrative Expenses — (92,668) 92,668
Benefit Payments, Including Refunds
of Employee Contributions (7,935,524) (7,935,524) —
Net Changes 6,992,638 9,323,581 (2,330,943)
Balance at June 30, 2024
(Measurement Date) $ 153,719,075 $ 123,208,159 $ 30,510,916

6. Pension Expense and Deferred Outflows and Inflows of Resources Safety Plan
For the year ended June 30, 2025, the City recognized pension expense of $12,028,372 for the Safety Plan. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for the Safety Plan:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date $ 7,720,548 $ — Difference between actual contributions and propotionate share of contributions and changes in proportions 1,125,285 639,877 Change in employer's proportion 991,213 146,459
Net difference between projected and actual earnings
on plan investments 2,652,813 —
Changes in assumptions 1,352,214 —
Differences between expected and actual experience 4,478,973 145,631 Total $ 18,321,046 $ 931,967

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 15 - DEFINED BENEFIT PENSION PLANS (CONTINUED)
78 101
101 of 316
The amount of $7,720,548, reported as deferred outflows of resources related to contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ending June 30, 2026.

Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending
June 30: Amount
2026 $ 3,947,172
2027 6,488,172
2028 140,860
2029 (907,673)
Total 9,668,531
Miscellaneous Plan
For the year ended June 30, 2025, the City recognized pension expense of $6,027,898 for the Miscellaneous Plan. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for the Miscellaneous Plan:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date $ 5,496,935 $ — Differences between expected and actual experience 871,440 — Net difference between projected and actual earnings
on plan investments 1,765,501 —
Total $ 8,133,876 $ —
The amount of $5,496,935, reported as deferred outflows of resources related to contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ending June 30, 2025.

Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service, lives of all members that are provided with benefits. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending
June 30: Amount
2026 $ 377,305
2027 3,353,631
2028 (472,261)
2029 (621,734)
Total 2,636,941

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 15 - DEFINED BENEFIT PENSION PLANS (CONTINUED)
79 102
102 of 316

7. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City's net pension liability would be if it were calculated using a discount rate that is one-percentage point lower or one-percentage point higher than the current rate:
1% Decrease Current Discount Rate 1% Increase
(5.90)% (6.90)% (7.90)%
Safety Plan's Proportionate Share of
Collective Net Pension Liability $ 83,430,534 $ 54,883,395 $ 31,535,850 Miscellaneous Plan's Net Pension Liability 50,262,571 30,510,916 14,202,185

8. Pension Plan Fiduciary Net Position
Detailed information about each pension plans’ fiduciary net position is available in the separately issued CalPERS financial reports.

9. Payable to the Pension Plan
The City had $822,841 of outstanding contributions to the Safety and Miscellaneous pension plans required for the year ended June 30, 2025.

NOTE 16 - TRANSPORTATION DEVELOPMENT ACT
In accordance with the requirement of the Transportation Development Act (TDA), the following information is presented.

TDA 50% Limitation
Total Operating Costs $ 5,614,595
Less:Depreciation (460,362)
Net Operating Costs 5,154,233
50% Limitation 2,577,117
TDA Allocation $ 1,433,700
Under (Over) Allocation $ 1,143,417
For the year ended June 30, 2025, the City recognized $1,433,700 of revenues pursuant to the TDA requirements. This amount, along with $991,101 of other grant revenues, is reflected within Intergovernmental revenues in the Municipal Transit Enterprise Fund.

NOTE 17 - RELATED PARTIES
A. Housing Program to Enhance Emergency Response
In order to enhance the ability of key personnel to respond to emergency situations within the community, the City provides assistance for those employes to reside in close proximity to the response area. The accompanying financial statements reflect the City's purchase of one such property in the amount of $797,500 and one loan to an employee. The outstanding balance of the loan was $270,145 for the year ended June 30, 2025. The balance of the loan is reported as part of Notes Receivables in the Vehicle Replacement Internal Service Fund.

CITY OF LAGUNA BEACH
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 15 - DEFINED BENEFIT PENSION PLANS (CONTINUED)
80 103
103 of 316
B. City Manager Housing Agreement
On August 13, 2024 the City Council approved The City Manager’s amendment #1 to the City Manager’s Employment agreement extending a loan to the City Manager in the form of a Promissory Note of $1,530,000 in which interest accrues at the LAIF Quarterly Apportionment Rate as published by the California State Treasurer plus .50%. Monthly interest payments are due on the first of each month beginning October 1, 2024 and all outstanding amounts under the loan are due upon the earlier of within one year of the City Manager’s departure from the City and payable upon sale of the City Manager’s home or if the City Manager determines not to sell the home due, and payable within one year of the City Manager’s departure from the City. At June 30, 2025, the outstanding balance of the was $1,530,000 and is reported as part of Notes Receivables in the Insurance and Employee Benefits Internal Service Fund for $940,590 and Vehicle Replacement Internal Service Fund for $589,410.

NOTE 18 - RESTATEMENTS
During fiscal year 2025, changes to or within the financial reporting entity, an error correction, and the change in accounting principle resulted in adjustments to and restatements of beginning net position and fund balance, as follows:

June 30, 2024
As Previously
Reported
Changes to or
within the
Reporting Entity Error Correction
Changes in
Accounting
Principle
June 30, 2024
As Restated
Government-wide
Governmental activities $ 439,891,213 $ 984,938 $ 1,632,815 $ (557,944) $ 441,951,022 Business-type activities 47,241,552 (984,938) 1,923,581 (6,469) 48,173,726 Total government-wide $ 487,132,765 $ — $ 3,556,396 $ (564,413) $ 490,124,748 Governmental funds
Major funds
General Fund $ 110,812,043 $ — $ (766,174) $ — $ 110,045,869 Assessment Districts 12,553,630 — — — 12,553,630
Nonmajor funds 14,091,073 — — — 14,091,073
Total governmental funds $ 137,456,746 $ — $ (766,174) $ — $ 136,690,572 Proprietary funds
Major funds
Sewer Service $ 44,244,411 $ (71,308) $ 1,923,014 $ (12,807) $ 46,083,310 Municipal Transit 2,997,141 (913,630) 567 6,338 2,090,416 Total proprietary funds $ 47,241,552 $ (984,938) $ 1,923,581 $ (6,469) $ 48,173,726 Internal service funds
Insurance and employee benefits $ 15,199 $ — $ — $ (557,944) $ (542,745) Vehicle replacement fund 17,867,491 984,938 254,353 — 19,106,782 Total internal service funds $ 17,882,690 $ 984,938 $ 254,353 $ (557,944) $ 18,564,037 City Of Laguna Beach
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 17 - RELATED PARTIES(CONTINUED)
81 104
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The City evaluated subsequent events for recognition and disclosure through March 30, 2026, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025, that required recognition or disclosure in these financial statements.

City Of Laguna Beach
Notes To Financial Statements
For The Year Ended June 30, 2025
NOTE 19 - SUBSEQUENT EVENTS
82 105
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Required Supplementary Information
83 106
106 of 316
Schedule of Proportionate Share of the Net Pension Liability - Safety Plan Proportionate
Share Plan's Fiduciary
Proportion of the Proportionate of the Net Pension Net Position as a Reporting Date 1 Net Pension Share of Net Liability as a % of % of the Total as of June 30, Liability Pension Liability Covered Payroll Covered Payroll Pension Liability Safety Plan
2025 0.7528% $ 54,883,395 $ 15,600,558 351.8% 76.66%
2024 0.7458% 55,748,455 14,724,579 378.6% 74.87%
2023 0.7472% 51,344,026 13,769,103 372.9% 72.54%
2022 0.7059% 24,774,703 12,449,028 199.0% 77.73%
2021 0.6526% 43,480,563 12,906,341 336.9% 74.43%
2020 0.6287% 39,247,379 12,246,434 320.5% 75.26%
2019 0.6522% 36,684,879 11,419,674 321.2% 75.26%
2018 0.6243% 37,303,403 10,671,505 349.6% 73.31%
2017 0.6468% 33,497,317 9,912,852 337.9% 74.06%
2016 0.6492% 26,748,099 9,480,126 282.1% 78.4%
Notes to Schedule of Proportionate Share of the Net Pension Liability:

Benefit Changes: None
Changes of Assumptions: None
1 The proportions and proportionate share of the net pension liability are measured as of one year behind the reporting date. Refer to notes to basic financial statements.

CITY OF LAGUNA BEACH
Schedules Of Proportationate Share Of Net Pension Liability As of June 30, for the Last Ten Fiscal Years
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Schedule of Contributions - Safety Plan
Fiscal Year Actuarially Actual Contribution Contribution as a Ending Determined Employer Deficiency Covered % of Covered June 30 Contribution Contributions (Excess) Payroll Payroll Miscellaneous Agent, Multiple-Employer Pension Plan
2025 $ 5,496,935 $ 5,496,935 $ — $ 22,584,444 24.3%
2024 4,847,035 4,847,035 — 20,379,805 23.8%
2023 4,552,455 4,552,455 — 17,527,334 26.0%
2022 4,271,997 4,271,997 — 15,311,611 27.9%
2021 3,905,847 3,905,847 — 15,473,063 25.2%
2020 3,565,431 3,565,431 — 14,762,620 24.2%
2019 3,217,470 3,907,470 (690,000) 14,419,732 27.1%
2018 2,767,304 3,767,304 (1,000,000) 12,558,017 30.0%
2017 2,665,941 3,865,941 (1,200,000) 13,297,509 29.1%
2016 2,337,304 3,737,304 (1,400,000) 12,379,800 30.2%
Safety Cost-Sharing, Multiple-Employer Pension Plan
2025 $ 7,720,548 $ 7,720,548 $ — $ 16,702,035 46.2%
2024 6,820,414 6,820,414 — 15,600,558 43.7%
2023 6,287,267 6,287,267 — 14,724,579 42.7%
2022 5,798,019 5,798,019 — 13,769,103 42.1%
2021 5,338,630 5,338,630 — 12,449,028 42.9%
2020 5,013,694 5,013,694 — 12,906,341 38.8%
2019 4,386,904 5,107,904 (721,000) 12,246,434 41.7%
2018 3,597,721 4,639,721 (1,042,000) 11,419,674 40.6%
2017 3,244,259 4,445,511 (1,201,252) 10,671,505 41.7%
2016 1,575,636 4,132,300 (2,556,664) 9,912,852 41.7%
Schedule of Contributions - Miscellaneous Plan

CITY OF LAGUNA BEACH
Schedule Of Plan Contributions
As of June 30, for the Last Ten Fiscal Years
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Schedule of Changes in Total Pension Liability and Related Ratios - Miscellaneous Plan 2025 2024 2023 2022
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021

TOTAL PENSION LIABILITY
Service cost $ 3,685,262 $ 3,179,003 $ 2,968,921 $ 2,826,929 Interest on total pension liability 10,059,168 9,606,469 9,223,908 9,006,005 Changes of benefit terms — 172,608 — —
Changes of assumptions — — 4,094,768 —
Difference between expected and actual experience 1,183,732 246,857 (1,607,276) (1,051,010) Benefit payments, including refunds of employee contributions (7,935,524) (7,387,421) (6,958,539) (6,380,886) Net change in total pension liability 6,992,638 5,817,516 7,721,782 4,401,038 Total pension liability-beginning 146,726,437 140,908,921 133,187,139 128,786,101 Total pension liability-ending (a) 153,719,075 146,726,437 140,908,921 133,187,139

PLAN FIDUCIARY NET POSITION
Contributions-employer 4,819,761 4,572,455 4,272,660 3,905,728 Contributions-employee 1,623,543 1,340,545 1,235,119 1,165,079 Net investment income 10,905,696 6,695,310 (8,988,181) 22,268,683 Benefit payments, including refunds of employee contributions (7,935,524) (7,387,421) (6,958,539) (6,380,886) Net plan to plan resource movement 2,773 1,269 2,598 154 Administrative expense (92,668) (79,964) (74,288) (98,288) Net change in fiduciary net position 9,323,581 5,142,194 (10,510,631) 20,860,470 Plan fiduciary net position-beginning 113,884,578 108,742,384 119,253,015 98,392,545 Plan fiduciary net position-ending (b) 123,208,159 113,884,578 108,742,384 119,253,015 Net pension liability/(asset) (a) - (b) $ 30,510,916 $ 32,841,859 $ 32,166,537 $ 13,934,124 Plan fiduciary net position as a percentage of the total pension liability 80.2% 77.6% 77.2% 89.5%
Covered-employee payroll $ 20,379,805 $ 17,527,334 $ 15,311,611 $ 15,473,063 Plan net pension liability/(asset) as a percentage of coveredemployee payroll 149.7% 187.0% 210.1% 90.1% Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:

Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the measurement date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: None in 2020-2022. In 2019, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2018, the discount rate was reduced from 7.65% to 7.15%. In 2017, there were no changes. In 2016, amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2015, amounts reported were based on the 7.50% discount rate.

CITY OF LAGUNA BEACH
Schedule Of Changes In Total Pension Liability And Related Ratios Miscellaneous Plan
As of June 30, for the Last Ten Fiscal Years
86 109
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2021 2020 2019 2018 2017 2016
6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 $ 2,691,515 $ 2,730,589 $ 2,510,806 $ 2,418,551 $ 2,020,384 $ 1,936,830 8,699,994 8,297,037 7,862,058 7,557,389 7,292,385 6,979,652 — — — — — —
— — (690,837) 6,050,977 — (1,636,454)
376,773 1,028,702 118,415 (323,188) (439,090) 61,932
(5,875,794) (5,622,361) (5,233,328) (5,143,766) (4,590,588) (4,271,862) 5,892,488 6,433,967 4,567,114 10,559,963 4,283,091 3,070,098 122,893,613 116,459,646 111,892,532 101,332,569 97,049,478 93,979,380 128,786,101 122,893,613 116,459,646 111,892,532 101,332,569 97,049,478 3,565,155 3,916,164 3,774,012 3,865,941 3,733,571 3,457,700 1,135,925 1,259,992 1,091,222 1,011,086 1,051,923 943,694 4,696,099 5,900,000 7,082,777 8,459,926 405,106 1,666,511 (5,875,794) (5,622,361) (5,233,328) (5,143,766) (4,590,588) (4,271,862) — — — — — —
(133,934) (63,743) (376,408) (111,020) (45,489) (84,037) 3,387,451 5,390,052 6,338,275 8,082,167 554,523 1,712,006 95,005,094 89,615,042 83,276,767 75,194,600 74,640,077 72,928,071 98,392,545 95,005,094 89,615,042 83,276,767 75,194,600 74,640,077 $ 30,393,556 $ 27,888,519 $ 26,844,604 $ 28,615,765 $ 26,137,969 $ 22,409,401

76.4% 77.3% 76.9% 74.4% 74.2% 76.9%
$ 14,548,732 $ 14,781,511 $ 13,802,462 $ 13,297,509 $ 12,379,800 $ 11,499,996 208.9% 188.7% 194.5% 215.2% 211.1% 194.9%
87 110
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Schedule of Changes in the Total OPEB Liability and Related Ratios - Other Postemployment Benefit Plan
2025 2024 2023 2022
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021

TOTAL OPEB LIABILITY
Service cost $ 290,465 $ 233,452 $ 226,653 $ 212,278
Interest on total pension liability 235,144 156,382 152,258 78,800 Changes of assumptions (366,108) (137,870) 143,260 (482,124) Difference between expected and actual experience — 1,949,792 383,765 — Benefit payments, including refunds of employee contributions (365,754) (408,454) (413,506) (340,693) Net change in total OPEB liability (206,253) 1,793,302 492,430 (531,739) Total OPEB liability-beginning 5,815,435 4,022,133 3,529,703 4,061,442 Total OPEB liability-ending (a) $ 5,609,182 $ 5,815,435 $ 4,022,133 $ 3,529,703 Covered-employee payroll $ 35,980,363 $ 36,997,408 $ 33,364,200 $ 30,734,420 Plan net OPEB liability/(asset) as a percentage of coveredemployee payroll 15.6% 15.7% 12.1% 11.5% Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios:

Benefit Changes: None
Changes of Assumptions: None
1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only eight years are shown.

CITY OF LAGUNA BEACH
Schedule of Changes in Total OPEB Liability and Related Ratios As Of June 30, For The Last Ten Fiscal Years1
88 111
111 of 316
2021 2020 2019 2018
6/30/2020 6/30/2019 6/30/2018 6/30/2017
$ 189,348 $ 132,120 $ 121,627 $ 72,904
97,113 91,200 93,555 72,208
539,085 197,388 169,739 —
418,569 — 549,200 —
(305,136) (158,527) (133,701) (158,500)
938,979 262,181 800,420 (13,388)
3,122,463 2,860,282 2,059,862 2,073,250
$ 4,061,442 $ 3,122,463 $ 2,860,282 2,059,862
$ 30,826,492 $ 32,214,300 $ 31,151,981 $ 29,131,464

13.2% 9.7% 9.2% 7.1%
89 112
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Notes to Required Supplementary Information
NOTE 1: BUDGET INFORMATION
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general, special revenue, and capital projects funds except for the Cultural & Environmental Stewardship nonmajor fund and the following General Fund sub-funds: Parking In-Lieu, Drainage, and Deposits. Appropriations lapse at fiscal year-end, except for encumbered amounts and capital expenditures which are re-appropriated in the next year's budget until such time as the project is completed or terminated.

The City is required to adopt an annual budget on or before June 30 of each year. From the effective date of the budget, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget through a vote of a majority of the Council during the fiscal year. The City Manager may transfer funds from one objector purpose to another within the same department, excluding capital outlay. Actual expenditures may not exceed budgeted appropriations at the department level within the General Fund and at the fund level for special revenue, and capital projects funds therefore, the legal level of budgetary control is at the department level for the General Fund and the fund level for special revenue and capital projects funds.

Budget information is presented for the general and certain special revenue and capital project fund types.

Budgeted revenue amounts represent the original budget modified by Council authorized adjustments during the year which were contingent upon new or additional revenue sources. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year. Supplemental appropriations include carryover appropriations from the prior year. Supplemental budgetary appropriations of $32,956,781 were made in the General Fund.

The following funds had expenditures in excess of appropriations for the year ended June 30, 2025 as follows:

Final Actual
Budget Amounts Variance
General Fund
General Government
Police protection $ 24,535,550 $ 24,829,026 $ (293,476) Principal Retirement — 1,057,417 (1,057,417)

CITY OF LAGUNA BEACH
Notes To Required Supplementary Information
For The Year Ended June 30, 2025
90 113
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Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General Fund
91 114
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Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund

REVENUES
Taxes
Property taxes $ 53,109,000 $ 54,432,000 $ 54,006,979 $ (425,021) Sales and use taxes 7,690,000 6,972,000 7,372,476 400,476 Business improvement assessment — — 2,784,149 2,784,149 Transient occupancy taxes 25,375,500 21,625,500 17,233,981 (4,391,519) Franchise taxes 1,330,000 1,330,000 1,689,087 359,087
Business license taxes 1,100,000 1,100,000 1,179,995 79,995 Total taxes 88,604,500 85,459,500 84,266,667 (1,192,833) License, fees and permits
Construction permits 2,641,000 2,641,000 3,257,915 616,915 Other 110,000 110,000 111,918 1,918
Total licenses, fees and permits 2,751,000 2,751,000 3,369,833 618,833 Fines and forfeitures 906,000 906,000 1,252,961 346,961 Investment income (loss), net 3,660,000 4,035,000 8,285,195 4,250,195 Rental 504,500 504,500 735,917 231,417
Intergovernmental 1,980,000 3,754,450 3,439,239 (315,211) Charges for services
Planning and zoning fees 3,163,500 3,163,500 2,367,773 (795,727) Building department fees 713,000 713,000 406,085 (306,915) Refuse service charges — — 45,194 45,194
Parks and recreation fees 1,411,000 1,456,000 1,475,610 19,610 Other 2,134,400 2,015,500 3,201,487 1,185,987
Total charges for services 7,421,900 7,348,000 7,496,149 148,149 Parking meters, lots, and permits 11,003,001 11,003,001 11,431,086 428,085 Development tax 100,000 100,000 228,898 128,898
Other
Reimbursed expenditures 488,000 449,996 399,261 (50,735) Miscellaneous 844,900 421,000 118,076 (302,924)
Total other 1,332,900 870,996 517,337 (353,659)
Total revenues 118,263,801 116,732,447 121,023,282 4,290,835 Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual General Fund
For The Year Ended June 30, 2025
92 115
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EXPENDITURES
Current:

General government
City Council 130,100 342,224 124,983 217,241
City Manager 6,893,900 13,874,450 11,608,579 2,265,871
City Clerk 550,500 588,264 568,424 19,840
City Treasurer 303,500 303,500 259,879 43,621
City Attorney 1,500,000 2,000,000 2,393,679 (393,679)
Administrative services 5,694,200 6,017,136 4,606,748 1,410,388 Total general government 15,072,200 23,125,574 19,562,292 3,563,282 Public safety
Police protection 23,260,700 24,535,550 24,829,026 (293,476) Fire protection 27,098,600 31,205,400 28,232,061 2,973,339 Marine safety 4,414,700 4,439,700 4,341,904 97,796
Total public safety 54,774,000 60,180,650 57,402,991 2,777,659 Community development 10,035,200 10,811,149 9,118,545 1,692,604 Public works 17,085,100 21,433,420 15,406,905 6,026,515 Transit and community services 9,924,600 8,050,150 5,760,016 2,290,134 Capital outlay 12,554,076 53,944,575 13,568,975 40,375,600 Debt service:

Principal retirement — — 1,057,417 (1,057,417)
Interest and fiscal charges 880,600 880,600 296,717 583,883 Total expenditures 120,325,776 178,426,118 122,173,858 56,252,260 Excess (deficiency) of revenues over (under)
expenditures (2,061,975) (61,693,671) (1,150,576) 60,543,095

OTHER FINANCING SOURCES (USES)
Transfers in 611,600 7,271,780 1,000,000 (6,271,780)
Transfers out (4,715,500) (14,177,148) (7,905,368) 6,271,780 Gain on disposal of capital assets 1,000 3,551,000 3,469,439 (81,561) Debt issuance proceeds — — 2,320,683 2,320,683
Total other financing sources (uses) (4,102,900) (3,354,368) (1,115,246) 2,239,122 Net change in fund balance $ (6,164,875) $ (65,048,039) (2,265,822) $ 62,782,217 Fund balance-beginning, as restated 110,045,869
Fund balance-ending $ 107,780,047
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual (Continued) General Fund
For The Year Ended June 30, 2025
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Supplementary Information
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General Fund
The General Fund is used to account for all financial sources except those required to be accounted for in another fund. The following funds conform to this definition:

General Fund
This fund is the main operating fund of the City and is used to account for all financial resources except those required to be accounted for in another fund.

Measure LL Fund
This fund is used to account for the additional transient occupancy taxes received when residents approved Ballot Measure LL in November 2016, which increased the City’s transient occupancy tax rate from 10% to 12%.

Open Space Fund
This fund is used to account for funds set aside by the City Council for the purposes of acquiring or preserving Open Space within the City.

Capital Improvement Fund
This fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and bond proceeds). This fund is primarily funded by transfers from other City funds.

Parking Authority Fund
This fund is used to account for the accumulation of those costs related to providing and maintaining public parking and subsidizing public transit in the City. These costs are currently funded by parking revenues.

Parking In-Lieu Fund
This fund is used to account for the parking in-lieu certification development fees collected in accordance with Laguna Beach Municipal Code Section 25.52.006 (E) to fund central or common parking facilities and/or improving public transit.

Park In-Lieu Fund
This fund is used to account for the park and recreation in-lieu development fees collected under Ordinance No 1352 to fund park and recreation facilities.

Art In-Lieu Fund
This fund is used to account for the proceeds of art in-lieu development fees collected under Ordinance No. 1119, which requires certain development projects either provide artwork or pay an in-lieu fee that will be used to provide sites for and works of art in public places.

Drainage Fund
This fund is used to account for the proceeds collected under Ordinance No. 1027, which requires certain development projects to pay a fee to provide for improving and expanding drainage facilities located within the City.

Housing In-Lieu Fund
This fund is used to account for proceeds of housing in-lieu development fees collected under Laguna Beach Municipal Code Section 25.96.070 to fund expenditures directly related to the production or preservation of affordable housing in the City.

Library Impact Fee Fund
The City Council adopted Ordinance No. 1351 in 1999 (Laguna Beach Municipal Code Chapter 25.85 to provide for acquiring, building, improving, maintaining, and operating public libraries located within the City, including, but not limited to the purchase of books, reference materials, equipment, furnishings, and other necessary supplies.

The demand and need for such facilities and services results directly from the increase in density in the City by the development of land that was previously vacant or by the construction of additional residential units on land that is already developed.
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Transportation Infrastructure Fund
This fund is used to account for financial resources to be used for the acquisition or construction of transportation infrastructure related projects. This fund is primarily funded by transfers from other City funds.

South Laguna Fund
This fund is used to account for the accumulation of those costs related to maintaining the beaches located in the South Laguna area that were acquired from the County of Orange on March 1, maintaining public parking and subsidizing public transit in the City. These costs are currently funded by parking revenues located at the beaches and a one-time payment received from the County of Orange of $22,000,000.

Deposits Fund
This fund is used to hold developer and miscellaneous deposits associated with private development projects that will be reimbursed by benefitted parties.

Disaster Contingency Fund
This fund is used to account for funds set aside by the City Council through the adoption of Resolution No. 05.107 to fund the repair of public facilities and the emergency protection of public and private property and lives during natural or manmade disasters. This fund is primarily funded by transfers from other City funds.

Wildfire Mitigation and Safety Fund
This fund is used to account for funs set aside by the City Council to fund wildfire mitigation and fire safety initiatives. This fund is primarily funded by transfers from other City funds. 96 119
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Consolidating Balance Sheet by Sub - Fund
General Fund Measure LL Open Space
Capital
Improvement
ASSETS
Cash and investments $ 23,243,193 $ 1,199,054 $ 1,097,594 $ 35,660,173 Receivables (net of allowance for uncollectible):

Taxes 5,146,901 755,351 — 1,504,587
Accounts 685,086 — — 243,464
Interest 479,245 — — —
Intergovernmental 154,060 — — —
Leases 1,079,365 — — —
Prepaid expenses 104,065 338,620 — —
Inventory 100,372 — — —
Total assets $ 30,992,287 $ 2,293,025 $ 1,097,594 $ 37,408,224

LIABILITIES
Accounts payable $ 5,001,008 $ 135,563 $ 11,550 $ 1,171,552 Retainage payable — — — 78,364
Accrued liabilities 2,435,733 24,596 — 1,929
Deposits 366,084 — — —
Unearned revenue 75,000 — — —
Total liabilities 7,877,825 160,159 11,550 1,251,845

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 164,004 4,554 — 83,873
Leases 995,816 — — —
Total deferred inflows of resources 1,159,820 4,554 — 83,873

FUND BALANCES (DEFICITS)
Non-spendable 204,437 338,620 — —
Restricted — — — —
Committed 8,550,000 — — —
Assigned 13,200,205 1,789,692 1,086,044 36,072,506
Unassigned — — — —
Total fund balances (deficits) 21,954,642 2,128,312 1,086,044 36,072,506 Total Liabilities, Deferred Inflows of Resources, and Fund Balance $ 30,992,287 $ 2,293,025 $ 1,097,594 $ 37,408,224

CITY OF LAGUNA BEACH
Combining Balance Sheet By Sub - Fund
General Fund
June 30, 2025
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Parking
Authority Parking In-Lieu Park In-Lieu Art In-Lieu
ASSETS
Cash and investments $ 15,213,172 $ 1,038 $ 47,058 $ 504,809 Receivables (net of allowance for uncollectible):

Taxes — — — —
Accounts 59,447 — — —
Interest — — — —
Intergovernmental — — — —
Leases — — — —
Prepaid expenses — — — —
Inventory — — — —
Total assets $ 15,272,619 $ 1,038 $ 47,058 $ 504,809

LIABILITIES
Accounts payable $ 475,401 $ — $ — $ 2,000
Retainage payable — — — —
Accrued liabilities 63,299 — — —
Deposits — — — —
Unearned revenue — — — —
Total liabilities 538,700 — — 2,000

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues — — — —
Leases — — — —
Total deferred inflows of resources — — — —

FUND BALANCES (DEFICITS)
Non-spendable — — — —
Restricted — — — —
Committed — 1,038 47,058 502,809
Assigned 14,733,919 — — —
Unassigned — — — —
Total fund balances (deficits) 14,733,919 1,038 47,058 502,809 Total Liabilities, Deferred Inflows of Resources,
and Fund Balance $ 15,272,619 $ 1,038 $ 47,058 $ 504,809

CITY OF LAGUNA BEACH
Combining Balance Sheet By Sub - Fund (Continued)
General Fund
June 30, 2025
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121 of 316
Drainage Housing In-Lieu
Transportation
Infrastructure South Laguna
ASSETS
Cash and investments $ 85,497 $ 801,612 $ 1,919,989 $ 15,633,327 Receivables (net of allowance for uncollectible):

Taxes — — — —
Accounts — — — —
Interest — — — —
Intergovernmental — — — —
Leases — — — 78,226
Prepaid expenses — — — —
Inventory — — — —
Total assets $ 85,497 $ 801,612 $ 1,919,989 $ 15,711,553

LIABILITIES
Accounts payable $ — $ — $ — $ 151,187
Retainage payable — — — —
Accrued liabilities — — — 86,037
Deposits — — — —
Unearned revenue — — — —
Total liabilities — — — 237,224

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues — — — —
Leases — — — 74,471
Total deferred inflows of resources — — — 74,471

FUND BALANCES (DEFICITS)
Non-spendable — — — —
Restricted — — — 15,399,858
Committed 85,497 801,612 — —
Assigned — — 1,919,989 —
Unassigned — — — —
Total fund balances (deficits) 85,497 801,612 1,919,989 15,399,858 Total Liabilities, Deferred Inflows of Resources,
and Fund Balance $ 85,497 $ 801,612 $ 1,919,989 $ 15,711,553

CITY OF LAGUNA BEACH
Combining Balance Sheet By Sub - Fund (Continued)
General Fund
June 30, 2025
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Deposits
Disaster
Contingency
Wildfire
Mitigation and
Fire Safety
(WMFS)
ASSETS
Cash and investments $ 4,503,320 $ 7,129,626 $ 4,204,474 Receivables (net of allowance for uncollectible):

Taxes — — —
Accounts — — —
Interest — — —
Intergovernmental — — 34,967
Leases — — —
Prepaid expenses — — 1,777,215
Inventory — — —
Total assets $ 4,503,320 $ 7,129,626 $ 6,016,656

LIABILITIES
Accounts payable $ 129,699 $ — $ 129,132
Retainage payable — — —
Accrued liabilities 102,622 — 2,849
Deposits 4,272,526 — —
Unearned revenue 14,724 — —
Total liabilities 4,519,571 — 131,981

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues — — 34,967
Leases — — —
Total deferred inflows of resources — — 34,967

FUND BALANCES (DEFICITS)
Non-spendable — — 1,777,215
Restricted — — —
Committed — 7,129,626 —
Assigned — — 4,072,493
Unassigned (16,251) — —
Total fund balances (deficits) (16,251) 7,129,626 5,849,708 Total Liabilities, Deferred Inflows of Resources,
and Fund Balance $ 4,503,320 $ 7,129,626 $ 6,016,656

CITY OF LAGUNA BEACH
Combining Balance Sheet By Sub - Fund (Continued)
General Fund
June 30, 2025
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Library
Improvement
District
Total General
Fund
ASSETS
Cash and investments $ 83,680 $ 111,327,616
Receivables (net of allowance for uncollectible):

Taxes — 7,406,839
Accounts — 987,997
Interest — 479,245
Intergovernmental — 189,027
Leases — 1,157,591
Prepaid expenses — 2,219,900
Inventory — 100,372
Total assets $ 83,680 $ 123,868,587

LIABILITIES
Accounts payable $ — $ 7,207,092
Retainage payable — 78,364
Accrued liabilities — 2,717,065
Deposits — 4,638,610
Unearned revenue — 89,724
Total liabilities — 14,730,855

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues — 287,398
Leases — 1,070,287
Total deferred inflows of resources — 1,357,685

FUND BALANCES (DEFICITS)
Non-spendable — 2,320,272
Restricted — 15,399,858
Committed 83,680 17,201,320
Assigned — 72,874,848
Unassigned — (16,251)
Total fund balances (deficits) 83,680 107,780,047
Total Liabilities, Deferred Inflows of Resources,
and Fund Balance $ 83,680 $ 123,868,587

CITY OF LAGUNA BEACH
Combining Balance Sheet By Sub - Fund (Continued)
General Fund
June 30, 2025
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Consolidating Schedule of Revenues, Expenditures and Changes in Fund Balances by Sub - Fund
Measure LL Open Space
Capital
General Fund Improvement

REVENUES
Taxes $ 73,729,955 $ 2,887,093 $ — $ 7,649,619
License, fees, and permits 3,369,833 — — —
Fines and forfeitures 3,472 — — 1,249,489
Investment income (loss), net 7,493,460 43,778 — 1,981
Rental 466,949 — — —
Intergovernmental 1,900,412 — — 1,538,827
Charges for services 7,492,036 — — 2,605
Parking meters, lots and permits — — — —
Development fees — — — 124,395
Other 477,668 — — —
Total revenues 94,933,785 2,930,871 — 10,566,916

EXPENDITURES
Current:

General Government 19,310,441 227,539 — —
Community development 9,118,545 — — —
Public safety 49,439,773 2,647,404 — —
Public works 13,580,166 349,065 — 3,639
Transit and community services 2,497,285 — — —
Capital outlay 2,842,618 69,773 79,465 7,907,978
Debt service:

Principal retirement 1,057,417 — — —
Interest expense and fiscal charges 296,717 — — —
Total expenditures 98,142,962 3,293,781 79,465 7,911,617 Excess (deficiency) of revenues
over (under) expenditures (3,209,177) (362,910) (79,465) 2,655,299

OTHER FINANCING SOURCES (USES)
Transfers in 3,387,500 — — 2,636,600
Transfers out (5,715,568) — — (3,726,500)
Gain on disposal of capital assets 3,469,439 — — —
Debt issuance proceeds 2,320,683 — — —
Total other financing sources (uses) 3,462,054 — — (1,089,900) Net change in fund balances 252,877 (362,910) (79,465) 1,565,399 Fund balances-beginning, as originally stated 22,555,765 2,491,222 1,165,509 35,273,281 Restatements - change in reporting entity (854,000) — — — Restatements - correction of error — — — (766,174)
Fund balances-beginning, as restated 21,701,765 2,491,222 1,165,509 34,507,107 Fund balances (deficit)-ending $ 21,954,642 $ 2,128,312 $ 1,086,044 $ 36,072,506

CITY OF LAGUNA BEACH
Combining Statement Of Revenues, Expenditures, And Changes In Fund Balances By Sub - Fund General Fund
For The Year Ended June 30, 2025
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Parking
Authority Parking In-Lieu Park In-Lieu Art In-Lieu

REVENUES
Taxes $ — $ — $ — $ —
License, fees, and permits — — — —
Fines and forfeitures — — — —
Investment income (loss), net — 28 2,887 12,827
Rental 216,290 — — —
Intergovernmental — — — —
Charges for services — — — —
Parking meters, lots and permits 10,650,293 — — —
Development fees — — — 104,503
Other 39,669 — — —
Total revenues 10,906,252 28 2,887 117,330

EXPENDITURES
Current:

General Government — — — 24,312
Community development — — — —
Public safety 1,958,101 — — —
Public works 489,557 — — —
Transit and community services 3,178,179 — — —
Capital outlay 2,003,863 — — —
Debt service:

Principal retirement — — — —
Interest expense and fiscal charges — — — —
Total expenditures 7,629,700 — — 24,312
Excess (deficiency) of revenues
over (under) expenditures 3,276,552 28 2,887 93,018

OTHER FINANCING SOURCES (USES)
Transfers in — — — 14,000
Transfers out (4,498,480) — (86,600) —
Gain on disposal of capital assets — — — —
Debt issuance proceeds — — — —
Total other financing sources (uses) (4,498,480) — (86,600) 14,000 Net change in fund balances (1,221,928) 28 (83,713) 107,018 Fund balances-beginning, as originally stated 15,955,847 1,010 130,771 395,791 Restatements - change in reporting entity — — — —
Restatements - correction of error — — — —
Fund balances-beginning, as restated 15,955,847 1,010 130,771 395,791 Fund balances (deficit)-ending $ 14,733,919 $ 1,038 $ 47,058 $ 502,809

CITY OF LAGUNA BEACH
Combining Statement Of Revenues, Expenditures, And Changes In Fund Balances By Sub - Fund (Continued)
General Fund
For The Year Ended June 30, 2025
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126
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Drainage Housing In-Lieu
Transportation
Infrastructure South Laguna

REVENUES
Taxes $ — $ — $ — $ —
License, fees, and permits — — — —
Fines and forfeitures — — — —
Investment income (loss), net 2,306 21,622 51,788 462,209 Rental — — — 52,678
Intergovernmental — — — —
Charges for services — — — —
Parking meters, lots and permits — — — 780,793
Development fees — — — —
Other — — — —
Total revenues 2,306 21,622 51,788 1,295,680

EXPENDITURES
Current:

General Government — — — —
Community development — — — —
Public safety — — — 2,735,754
Public works — — — 919,869
Transit and community services — — — 84,552
Capital outlay — — — 665,278
Debt service:

Principal retirement — — — —
Interest expense and fiscal charges — — — —
Total expenditures — — — 4,405,453
Excess (deficiency) of revenues
over (under) expenditures 2,306 21,622 51,788 (3,109,773)

OTHER FINANCING SOURCES (USES)
Transfers in — — — —
Transfers out — — — —
Gain on disposal of capital assets — — — —
Debt issuance proceeds — — — —
Total other financing sources (uses) — — — —
Net change in fund balances 2,306 21,622 51,788 (3,109,773) Fund balances-beginning, as originally stated 83,191 779,990 1,868,201 18,509,631 Restatements - change in reporting entity — — — —
Restatements - correction of error — — — —
Fund balances-beginning, as restated 83,191 779,990 1,868,201 18,509,631 Fund balances (deficit)-ending $ 85,497 $ 801,612 $ 1,919,989 $ 15,399,858

CITY OF LAGUNA BEACH
Combining Statement Of Revenues, Expenditures, And Changes In Fund Balances By Sub - Fund (Continued)
General Fund
For The Year Ended June 30, 2025
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Deposits
Disaster
Contingency
Wildfire
Mitigation and
Fire Safety
(WMFS)

REVENUES
Taxes $ — $ — $ —
License, fees, and permits — — —
Fines and forfeitures — — —
Investment income (loss), net — 192,309 —
Rental — — —
Intergovernmental — — —
Charges for services 1,508 — —
Parking meters, lots and permits — — —
Development fees — — —
Other — — —
Total revenues 1,508 192,309 —

EXPENDITURES
Current:

General Government — — —
Community development — — —
Public safety — — 621,959
Public works — — 64,609
Transit and community services — — —
Capital outlay — — —
Debt service:

Principal retirement — — —
Interest expense and fiscal charges — — —
Total expenditures — — 686,568
Excess (deficiency) of revenues
over (under) expenditures 1,508 192,309 (686,568)

OTHER FINANCING SOURCES (USES)
Transfers in — — 1,000,000
Transfers out — — —
Gain on disposal of capital assets — — —
Debt issuance proceeds — — —
Total other financing sources (uses) — — 1,000,000
Net change in fund balances 1,508 192,309 313,432
Fund balances-beginning, as originally stated (17,759) 6,937,317 4,682,276 Restatements - change in reporting entity — — 854,000
Restatements - correction of error — — —
Fund balances-beginning, as restated (17,759) 6,937,317 5,536,276 Fund balances (deficit)-ending $ (16,251) $ 7,129,626 $ 5,849,708

CITY OF LAGUNA BEACH
Combining Statement Of Revenues, Expenditures, And Changes In Fund Balances By Sub - Fund (Continued)
General Fund
For The Year Ended June 30, 2025
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128
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Library
Improvement
District Eliminations
Total General
Fund

REVENUES
Taxes $ — $ — $ 84,266,667
License, fees, and permits — — 3,369,833
Fines and forfeitures — — 1,252,961
Investment income (loss), net — — 8,285,195
Rental — — 735,917
Intergovernmental — — 3,439,239
Charges for services — — 7,496,149
Parking meters, lots and permits — — 11,431,086
Development fees — — 228,898
Other — — 517,337
Total revenues — — 121,023,282

EXPENDITURES
Current:

General Government — — 19,562,292
Community development — — 9,118,545
Public safety — — 57,402,991
Public works — — 15,406,905
Transit and community services — — 5,760,016
Capital outlay — — 13,568,975
Debt service:

Principal retirement — — 1,057,417
Interest expense and fiscal charges — — 296,717
Total expenditures — — 122,173,858
Excess (deficiency) of revenues
over (under) expenditures — — (1,150,576)

OTHER FINANCING SOURCES (USES)
Transfers in 83,680 (6,121,780) 1,000,000
Transfers out — 6,121,780 (7,905,368)
Gain on disposal of capital assets — — 3,469,439
Debt issuance proceeds — — 2,320,683
Total other financing sources (uses) 83,680 — (1,115,246) Net change in fund balances 83,680 — (2,265,822)
Fund balances-beginning, as originally stated — — 110,812,043 Restatements - change in reporting entity — — —
Restatements - correction of error — — (766,174)
Fund balances-beginning, as restated — — 110,045,869
Fund balances (deficit)-ending $ 83,680 $ — $ 107,780,047

CITY OF LAGUNA BEACH
Combining Statement Of Revenues, Expenditures, And Changes In Fund Balances By Sub - Fund (Continued)
General Fund
For The Year Ended June 30, 2025
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129
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THIS PAGE LEFT INTENTIONALLY BLANK.
107
130
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 108
131
131 of 316
General Sub Fund

REVENUES
Taxes
Property taxes $ 52,459,000 $ 53,782,000 $ 53,289,542 $ (492,458) Sales and use taxes 7,690,000 6,972,000 7,372,476 400,476 Business improvement assessments — — 2,784,149 2,784,149 Transient occupancy taxes 14,426,000 11,226,000 7,414,706 (3,811,294) Franchise taxes 1,330,000 1,330,000 1,689,087 359,087
Business license taxes 1,100,000 1,100,000 1,179,995 79,995 Total taxes 77,005,000 74,410,000 73,729,955 (680,045)
License, fees and permits
Construction permits 2,641,000 2,641,000 3,257,915 616,915 Other 110,000 110,000 111,918 1,918
Total licenses, fees and permits 2,751,000 2,751,000 3,369,833 618,833 Fines and forfeitures 11,000 11,000 3,472 (7,528)
Investment income (loss), net 2,800,000 3,175,000 7,493,460 4,318,460 Rental 504,500 504,500 466,949 (37,551)
Intergovernmental 1,980,000 2,660,200 1,900,412 (759,788) Charges for services
Planning and zoning fees 3,163,500 3,163,500 2,367,773 (795,727) Building department fees 713,000 713,000 406,085 (306,915) Refuse service charges — — 45,194 45,194
Parks and recreation fees 1,411,000 1,456,000 1,475,610 19,610 Other 2,133,400 2,014,500 3,197,374 1,182,874
Total charges for services 7,420,900 7,347,000 7,492,036 145,036 Parking meters, lots, and permits 1,000 1,000 — (1,000) Other
Reimbursed expenditures 488,000 488,000 359,592 (128,408) Miscellaneous 794,900 371,000 118,076 (252,924)
Total other 1,282,900 859,000 477,668 (381,332)
Total revenues 93,756,300 91,718,700 94,933,785 3,215,085 Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual General Sub Fund
For The Year Ended June 30, 2025
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132
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EXPENDITURES
Current:

General government
City Council $ 130,100 $ 342,224 $ 124,983 $ 217,241
City Manager 6,893,900 13,874,450 11,608,579 2,265,871
City Clerk 550,500 588,264 568,424 19,840
City Treasurer 303,500 303,500 259,879 43,621
City Attorney 1,500,000 2,000,000 2,393,679 (393,679)
Administrative services 5,308,500 5,500,936 4,354,897 1,146,039 Total general government 14,686,500 22,609,374 19,310,441 3,298,933 Public safety
Police protection 23,260,700 24,535,550 24,829,026 (293,476) Fire protection 18,807,600 20,059,400 20,268,843 (209,443) Marine safety 4,414,700 4,439,700 4,341,904 97,796
Total public safety 46,483,000 49,034,650 49,439,773 (405,123) Community development 10,034,200 10,810,149 9,118,545 1,691,604 Public works 14,912,200 16,075,000 13,580,166 2,494,834 Transit and community services 6,385,400 4,121,050 2,497,285 1,623,765 Capital outlay 1,236,000 1,351,536 2,842,618 (1,491,082) Debt service:

Principal retirement — — 1,057,417 (1,057,417)
Interest and fiscal charges 880,600 880,600 296,717 583,883 Total expenditures 94,617,900 104,882,359 98,142,962 6,739,397 Excess (deficiency) of revenues over
(under) expenditures (861,600) (13,163,659) (3,209,177) 9,954,482

OTHER FINANCING SOURCES (USES)
Transfers in 525,000 3,387,500 3,387,500 —
Transfers out — (5,715,568) (5,715,568) —
Gain on disposal of capital assets 1,000 3,551,000 3,469,439 (81,561) Debt issuance proceeds — — 2,320,683 2,320,683
Total other financing sources (uses) 526,000 1,222,932 3,462,054 2,239,122 Net change in fund balance $ (335,600) $ (11,940,727) 252,877 $ 12,193,604 Fund balance-beginning, as restated 21,701,765
Fund balance-ending $ 21,954,642
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual (Continued) General Sub Fund
For The Year Ended June 30, 2025
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133
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Measure LL
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ 3,610,000 $ 3,060,000 $ 2,887,093 $ (172,907)
Investment income (loss), net 50,000 50,000 43,778 (6,222) Total revenues 3,660,000 3,110,000 2,930,871 (179,129)
EXPENDITURES:

Current:

General Government 385,700 385,700 227,539 158,161
Public safety 3,057,500 3,278,800 2,647,404 631,396
Public works 422,700 422,700 349,065 73,635
Capital outlay — 117,376 69,773 47,603
Total expenditures 3,865,900 4,204,576 3,293,781 910,795 Excess (deficiency) of revenues
over (under) expenditures (205,900) (1,094,576) (362,910) 731,666 Net change in fund balance $ (205,900) $ (1,094,576) (362,910) $ 731,666 Fund balance-beginning 2,491,222
Fund balance-ending $ 2,128,312
City Of Laguna Beach
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Measure LL
For The Year Ended June 30, 2025
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134
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Open Space
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

EXPENDITURES
Capital outlay $ 20,000 $ 167,152 $ 79,465 $ 87,687
Total expenditures 20,000 167,152 79,465 87,687
Net change in fund balance $ (20,000) $ (167,152) (79,465) $ 87,687 Fund balance-beginning 1,165,509
Fund balance-ending $ 1,086,044

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Open Space
For The Year Ended June 30, 2025
112
135
135 of 316
Capital Improvement
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Property taxes $ 650,000 $ 650,000 $ 717,437 $ 67,437
Fines and penalties 895,000 895,000 1,249,489 354,489
Transient lodging taxes 7,339,500 7,339,500 6,932,182 (407,318) Investment income (loss), net — — 1,981 1,981
Development fees 100,000 100,000 124,395 24,395
Intergovernmental — — 1,538,827 1,538,827
Charges for services 1,000 1,000 2,605 1,605
Total revenues 8,985,500 8,985,500 10,566,916 1,581,416

EXPENDITURES
Current:

Public works — 42,700 3,639 39,061
Capital outlay 8,358,076 42,382,145 7,907,978 34,474,167 Total expenditures 8,358,076 42,424,845 7,911,617 34,513,228 Excess (deficiency) of revenues
over (under) expenditures 627,424 (33,439,345) 2,655,299 36,094,644

OTHER FINANCING SOURCES (USES)
Transfers in 86,600 2,636,600 2,636,600 —
Transfers out (700,000) (3,726,500) (3,726,500) —
Total other financing sources (uses) (613,400) (1,089,900) (1,089,900) — Net change in fund balance $ 14,024 $ (34,529,245) 1,565,399 $ 36,094,644 Fund balance-beginning, as restated 34,507,107
Fund balance-ending $ 36,072,506

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Capital Improvement
For The Year Ended June 30, 2025
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136
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Parking Authority
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Rental $ — $ — $ 216,290 $ 216,290
Parking meters, lots and permits 10,302,001 10,302,001 10,650,293 348,292 Other — 38,004 39,669 1,665
Total revenues 10,302,001 10,340,005 10,906,252 566,247

EXPENDITURES
Current:

Community development 1,000 1,000 — 1,000
Public safety 2,360,000 2,360,000 1,958,101 401,899
Public works 805,300 805,300 489,557 315,743
Transit and community services 3,431,500 3,780,500 3,178,179 602,321 Capital outlay 2,400,000 8,337,370 2,003,863 6,333,507
Total expenditures 8,997,800 15,284,170 7,629,700 7,654,470 Excess (deficiency) of revenues
over (under) expenditures 1,304,201 (4,944,165) 3,276,552 8,220,717

OTHER FINANCING SOURCES (USES)
Transfers out (3,928,900) (4,498,480) (4,498,480) —
Total other financing sources (uses) (3,928,900) (4,498,480) (4,498,480) — Net change in fund balance $ (2,624,699) $ (9,442,645) (1,221,928) $ 8,220,717 Fund balance-beginning 15,955,847
Fund balance-ending $ 14,733,919

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Parking Authority
For The Year Ended June 30, 2025
114
137
137 of 316
Park In-Lieu
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Investment income (loss), net $ — $ — $ 2,887 $ 2,887
Total revenues — — 2,887 2,887

OTHER FINANCING SOURCES (USES)
Transfers out (86,600) (86,600) (86,600) —
Total other financing sources (uses) (86,600) (86,600) (86,600) — Net change in fund balance $ (86,600) $ (86,600) (83,713) $ 2,887 Fund balance-beginning 130,771
Fund balance-ending $ 47,058

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Park In-lieu
For The Year Ended June 30, 2025
115
138
138 of 316
Art In-Lieu
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Investment income (loss), net $ — $ — $ 12,827 $ 12,827 Development fees — — 104,503 104,503
Total revenues — — 117,330 117,330

EXPENDITURES
Current:

General Government — 130,500 24,312 106,188
Transit and community services — 17,000 — 17,000
Capital outlay — 10,800 — 10,800
Total expenditures — 158,300 24,312 133,988
Excess (deficiency) of revenues
over (under) expenditures — (158,300) 93,018 251,318

OTHER FINANCING SOURCES (USES)
Transfers in — 14,000 14,000 —
Total other financing sources (uses) — 14,000 14,000 —
Net change in fund balance $ — $ (144,300) 107,018 $ 251,318 Fund balance-beginning 395,791
Fund balance-ending $ 502,809

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Art In-lieu
For The Year Ended June 30, 2025
116
139
139 of 316
Housing In-Lieu
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Investment income (loss), net $ — $ — $ 21,622 $ 21,622 Total revenues — — 21,622 21,622

EXPENDITURES
Current:

Transit and community services — 23,900 — 23,900
Total expenditures — 23,900 — 23,900
Net change in fund balance $ — $ (23,900) 21,622 $ 45,522 Fund balance-beginning 779,990
Fund balance-ending $ 801,612

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Housing In-lieu
For The Year Ended June 30, 2025
117
140
140 of 316
Transportation Infrastructure
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Investment income (loss), net $ 10,000 $ 10,000 $ 51,788 $ 41,788 Total revenues 10,000 10,000 51,788 41,788
Net change in fund balance $ 10,000 $ 10,000 51,788 $ 41,788 Fund balance-beginning 1,868,201
Fund balance-ending $ 1,919,989

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Transportation Infrastructure
For The Year Ended June 30, 2025
118
141
141 of 316
South Laguna
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Investment income (loss), net $ 700,000 $ 700,000 $ 462,209 $ (237,791) Rental — — 52,678 52,678
Parking meters, lots and permits 700,000 700,000 780,793 80,793 Total revenues 1,400,000 1,400,000 1,295,680 (104,320)

EXPENDITURES
Current:

Public safety 2,873,500 2,873,500 2,735,754 137,746
Public works 944,900 944,900 919,869 25,031
Transit and community services 107,700 107,700 84,552 23,148 Capital outlay 540,000 1,330,196 665,278 664,918
Total expenditures 4,466,100 5,256,296 4,405,453 850,843 Net change in fund balance $ (3,066,100) $ (3,856,296) (3,109,773) $ 746,523 Fund balance-beginning 18,509,631
Fund balance-ending $ 15,399,858

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual South Laguna
For The Year Ended June 30, 2025
119
142
142 of 316
Disaster Contingency
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Investment income (loss), net $ 100,000 $ 100,000 $ 192,309 $ 92,309 Total revenues 100,000 100,000 192,309 92,309
Net change in fund balance $ 100,000 $ 100,000 192,309 $ 92,309 Fund balance-beginning 6,937,317
Fund balance-ending $ 7,129,626

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Disaster Contingency
For The Year Ended June 30, 2025
120
143
143 of 316
Wildfire Mitigation and Fire Safety
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ — $ 1,094,250 $ — $ (1,094,250)
Total revenues — 1,094,250 — (1,094,250)

EXPENDITURES
Current:

Public safety 158,800 2,633,700 621,959 2,011,741
Public works 900,000 3,142,820 64,609 3,078,211
Capital outlay — 248,000 — 248,000
Total expenditures 1,058,800 6,024,520 686,568 5,337,952 Excess (deficiency) of revenues
over (under) expenditures (1,058,800) (4,930,270) (686,568) 4,243,702

OTHER FINANCING SOURCES (USES)
Transfers in 1,000,000 1,000,000 1,000,000 —
Total other financing sources (uses) 1,000,000 1,000,000 1,000,000 — Net change in fund balance $ (58,800) $ (3,930,270) 313,432 $ 4,243,702 Fund balance-beginning, as restated 5,536,276
Fund balance-ending $ 5,849,708

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Wildfire Mitigation And Fire Safety
For The Year Ended June 30, 2025
121
144
144 of 316
Library Impact Fees
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

OTHER FINANCING SOURCES (USES)
Transfers in $ — $ 83,680 $ 83,680 $ —
Total other financing sources (uses) — 83,680 83,680 —
Net change in fund balance $ — $ 83,680 83,680 $ —
Fund balance-beginning —
Fund balance-ending $ 83,680

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Library Impact Fees
For The Year Ended June 30, 2025
122
145
145 of 316
Major Capital Projects Fund
Capital Projects Funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds.

The City of Laguna Beach has the following Capital Project Fund Assessment District
The fund is used to account for assessment district utility undergrounding projects which are funded by property owners.
123
146
146 of 316
Assessment Districts
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Investment income (loss), net $ — $ — $ 290,611 $ 290,611 Total revenues — — 290,611 290,611

EXPENDITURES
Current:

Public works — 29,814,652 6,184,512 23,630,140
Total expenditures — 29,814,652 6,184,512 23,630,140
Net change in fund balance $ — $ (29,814,652) (5,893,901) $ 23,920,751 Fund balance-beginning 12,553,630
Fund balance-ending $ 6,659,729

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Assessment Districts
For The Year Ended June 30, 2025
124
147
147 of 316
Non-Major Governmental Funds
Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt services or capital projects.

The City of Laguna Beach has the following nonmajor Special Revenue Funds:

Gas Tax Fund
This fund is used to account for the restricted gasoline tax revenues and Measure M2 sales taxes which are used for maintenance and improvements of City streets.

Street Lighting District Fund
This fund is used to account for restricted revenue and expenditures associated with maintenance and use of the City's street lighting system.

Federal Asset Forfeiture Fund
This fund is used to account for restricted money received under federal programs distributing property confiscated from illegal activities.

State Asset Forfeiture Fund
This fund is used to account for restricted money received under state programs distributing property confiscated from illegal activities.

Housing Fund
This fund is used to account for revenue and expenditures committed to affordable housing programs.

National Opioid Settlement Fund
This fund is used to account for the City’s allocated share of multistate settlement agreements with opioid manufacturers, distributors, and pharmacies that resolved lawsuits alleging their role in the opioid crisis, which must be used for opioid abatement activities.

AQMD Fund
This fund is used to account for funds generated by AB 2766, received from the state (passed through South Coast Air Quality Management District, which added a surcharge to vehicle registration fees. The fees are used for mobile source emission reduction projects.

Animal Shelter Donations Fund
This fund is used to account for donations received that are donor-restricted to fund Animal Shelter activities.

Cultural Environmental Stewardship Fund
This fund is used to account for contributions from Visit Laguna Beach pursuant to Amendment No. 1, dated June 10, 2025, which requires the contributions from Visit Laguna Beach are recorded in a separate fund to be used exclusively for City improvements and services that support “Cultural and Environmental Stewardship” as outlined in the 2025 Laguna Beach Tourism Marketing District (LBTMD) Management District Plan. 125
148
148 of 316
Combining Balance Sheet
Special Revenue Funds
Gas Tax
Street
Lighting
District
Federal
Asset
Forfeiture
State Asset
Forfeiture
ASSETS
Cash and investments $ 3,793,152 $ 6,597,336 $ 138,211 $ 50,439 Receivables (net of allowance for uncollectible):

Taxes — 25,484 — —
Accounts 104,194 — — —
Intergovernmental 366,023 — — —
Prepaid expenses — 2,388,177 — —
Total assets $ 4,263,369 $ 9,010,997 $ 138,211 $ 50,439

LIABILITIES
Accounts payable $ 761,248 $ 76,757 $ — $ —
Retainage payable 153,213 60,443 — —
Accrued liabilities — 2,764 — —
Total liabilities 914,461 139,964 — —

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Unavailable Revenues 200,000 — — —
Total deferred inflows of resources 200,000 — — —

FUND BALANCES
Non-spendable — 2,388,177 — —
Restricted 3,148,908 6,482,856 138,211 50,439
Total fund balances 3,148,908 8,871,033 138,211 50,439
Total liabilities, deferred inflows, and fund
balances $ 4,263,369 $ 9,010,997 $ 138,211 $ 50,439

CITY OF LAGUNA BEACH
Combining Balance Sheet
Nonmajor Governmental Funds
For The Year Ended June 30, 2025
126
149
149 of 316
Special Revenue Funds
Housing
Fund
National
Opioid
Settlement AQMD
Animal
Shelter
Donations
ASSETS
Cash and investments $ 1,748,754 $ 76,819 $ 84,038 $ 1,497,850 Receivables (net of allowance for uncollectible):

Taxes 26,946 — — —
Accounts — — — —
Intergovernmental — — — —
Prepaid expenses — — — —
Total assets $ 1,775,700 $ 76,819 $ 84,038 $ 1,497,850

LIABILITIES
Accounts payable $ 9,000 $ — $ — $ —
Retainage payable — — — —
Accrued liabilities — — — —
Total liabilities 9,000 — — —

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Unavailable Revenues — — — —
Total deferred inflows of resources — — — —

FUND BALANCES
Non-spendable — — — —
Restricted 1,766,700 76,819 84,038 1,497,850
Total fund balances 1,766,700 76,819 84,038 1,497,850
Total liabilities, deferred inflows, and fund
balances $ 1,775,700 $ 76,819 $ 84,038 $ 1,497,850

CITY OF LAGUNA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
For The Year Ended June 30, 2025
127
150
150 of 316
Special
Revenue
Funds
Cultural &
Environmental
Stewardship
Fund
Total
Nonmajor
Funds
ASSETS
Cash and investments $ — $ 13,986,599
Receivables (net of allowance for uncollectible):

Taxes — 52,430
Accounts 500,000 604,194
Intergovernmental — 366,023
Prepaid expenses — 2,388,177
Total assets $ 500,000 $ 17,397,423

LIABILITIES
Accounts payable $ — $ 847,005
Retainage payable — 213,656
Accrued liabilities — 2,764
Total liabilities — 1,063,425

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Unavailable Revenues 240,000 440,000 Total deferred inflows of resources 240,000 440,000

FUND BALANCES
Non-spendable — 2,388,177
Restricted 260,000 13,505,821
Total fund balances 260,000 15,893,998
Total liabilities, deferred inflows, and fund
balances $ 500,000 $ 17,397,423

CITY OF LAGUNA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
For The Year Ended June 30, 2025
128
151
151 of 316
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Special Revenue Funds
Gas Tax
Street
Lighting
District
Federal
Asset
Forfeiture
State Asset
Forfeiture

REVENUES
Taxes $ — $ 2,404,168 $ — $ —
Investment income (loss), net 117,955 190,015 5,039 —
Intergovernmental 1,867,414 — 6,308 —
Other 13,227 — — —
Total revenues 1,998,596 2,594,183 11,347 —

EXPENDITURES
Current:

General Government — — — —
Public works — 1,034,677 — —
Capital outlay 3,343,603 727,676 — —
Total expenditures 3,343,603 1,762,353 — —
Excess (deficiency) of revenues
over (under) expenditures (1,345,007) 831,830 11,347 —

OTHER FINANCING SOURCES (USES)
Transfers in 850,000 — — 50,439
Transfers out — (1,000,000) (50,439) —
Total other financing sources (uses) 850,000 (1,000,000) (50,439) 50,439 Net change in fund balances (495,007) (168,170) (39,092) 50,439 Fund balances-beginning 3,643,915 9,039,203 177,303 —
Fund balances-ending $ 3,148,908 $ 8,871,033 $ 138,211 $ 50,439

CITY OF LAGUNA BEACH
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For The Year Ended June 30, 2025
129
152
152 of 316
Special Revenue Funds
Housing
Fund
National
Opioid
Settlement AQMD
Animal
Shelter
Donations

REVENUES
Taxes $ 81,637 $ — $ — $ —
Investment income (loss), net — — — —
Intergovernmental — 56,914 — —
Other — — — —
Total revenues 81,637 56,914 — —

EXPENDITURES
Current:

General Government 25,684 — — —
Public works — — — —
Capital outlay — — — —
Total expenditures 25,684 — — —
Excess (deficiency) of revenues
over (under) expenditures 55,953 56,914 — —

OTHER FINANCING SOURCES (USES)
Transfers in 500,000 — 84,038 1,497,850
Transfers out — — — —
Total other financing sources (uses) 500,000 — 84,038 1,497,850 Net change in fund balances 555,953 56,914 84,038 1,497,850 Fund balances-beginning 1,210,747 19,905 — —
Fund balances-ending $ 1,766,700 $ 76,819 $ 84,038 $ 1,497,850

CITY OF LAGUNA BEACH
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For The Year Ended June 30, 2025
130
153
153 of 316
Special
Revenue
Funds
Cultural &
Environmental
Stewardship
Fund
Total
Nonmajor
Funds

REVENUES
Taxes $ — $ 2,485,805
Investment income (loss), net — 313,009
Intergovernmental — 1,930,636
Other 260,000 273,227
Total revenues 260,000 5,002,677

EXPENDITURES
Current:

General Government — 25,684
Public works — 1,034,677
Capital outlay — 4,071,279
Total expenditures — 5,131,640
Excess (deficiency) of revenues
over (under) expenditures 260,000 (128,963)

OTHER FINANCING SOURCES (USES)
Transfers in — 2,982,327
Transfers out — (1,050,439)
Total other financing sources (uses) — 1,931,888
Net change in fund balances 260,000 1,802,925
Fund balances-beginning — 14,091,073
Fund balances-ending $ 260,000 $ 15,893,998

CITY OF LAGUNA BEACH
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For The Year Ended June 30, 2025
131
154
154 of 316
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 132
155
155 of 316
Gas Tax
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Investment income (loss), net $ 10,000 $ 10,000 $ 117,955 $ 107,955 Intergovernmental 1,287,600 1,287,600 1,867,414 579,814 Other — — 13,227 13,227
Total revenues 1,297,600 1,297,600 1,998,596 700,996

EXPENDITURES
Capital outlay 2,500,000 6,511,322 3,343,603 3,167,719
Total expenditures 2,500,000 6,511,322 3,343,603 3,167,719 Excess (deficiency) of revenues
over (under) expenditures (1,202,400) (5,213,722) (1,345,007) 3,868,715

OTHER FINANCING SOURCES (USES)
Transfers in 700,000 850,000 850,000 —
Total other financing sources (uses) 700,000 850,000 850,000 — Net change in fund balance $ (502,400) $ (4,363,722) (495,007) $ 3,868,715 Fund balance-beginning 3,643,915
Fund balance-ending $ 3,148,908

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Gas Tax
For The Year Ended June 30, 2025
133
156
156 of 316
Street Lighting District
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 2,294,000 $ 2,294,000 $ 2,404,168 $ 110,168
Investment income (loss), net 50,000 50,000 190,015 140,015 Total revenues 2,344,000 2,344,000 2,594,183 250,183

EXPENDITURES
Current:

Public works 1,085,100 1,110,100 1,034,677 75,423
Capital outlay 6,000 6,372,833 727,676 5,645,157
Total expenditures 1,091,100 7,482,933 1,762,353 5,720,580 Excess (deficiency) of revenues
over (under) expenditures 1,252,900 (5,138,933) 831,830 5,970,763

OTHER FINANCING SOURCES (USES)
Transfers out (1,000,000) (1,000,000) (1,000,000) —
Total other financing sources (uses) (1,000,000) (1,000,000) (1,000,000) — Net change in fund balance $ 252,900 $ (6,138,933) (168,170) $ 5,970,763 Fund balance-beginning 9,039,203
Fund balance-ending $ 8,871,033

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Street Lighting District
For The Year Ended June 30, 2025
134
157
157 of 316
Federal Asset Forfeiture
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Investment income (loss), net $ — $ — $ 5,039 $ 5,039
Intergovernmental — — 6,308 6,308
Total revenues — — 11,347 11,347

EXPENDITURES
Capital outlay — 82,398 — 82,398
Total expenditures — 82,398 — 82,398
Excess (deficiency) of revenues
over (under) expenditures — (82,398) 11,347 93,745

OTHER FINANCING SOURCES (USES)
Transfers out — (50,439) (50,439) —
Total other financing sources (uses) — (50,439) (50,439) — Net change in fund balance $ — $ (132,837) (39,092) $ 93,745 Fund balance-beginning 177,303
Fund balance-ending $ 138,211

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Federal Asset Forfeiture
For The Year Ended June 30, 2025
135
158
158 of 316
State Asset Forfeiture
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

EXPENDITURES
Capital outlay $ — $ 50,439 $ — $ 50,439
Total expenditures — 50,439 — 50,439

OTHER FINANCING SOURCES (USES)
Transfers in — 50,439 50,439 —
Total other financing sources (uses) — 50,439 50,439 —
Net change in fund balance $ — $ — 50,439 $ 50,439
Fund balance-beginning —
Fund balance-ending $ 50,439

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual State Asset Forfeiture
For The Year Ended June 30, 2025
136
159
159 of 316
Housing Fund
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 80,000 $ 80,000 $ 81,637 $ 1,637
Total revenues 80,000 80,000 81,637 1,637

EXPENDITURES
Current:

General Government — 288,000 25,684 262,316
Community development — 16,100 — 16,100
Total expenditures — 304,100 25,684 278,416
Excess (deficiency) of revenues
over (under) expenditures 80,000 (224,100) 55,953 280,053

OTHER FINANCING SOURCES (USES)
Transfers in — 500,000 500,000 —
Total other financing sources (uses) — 500,000 500,000 — Net change in fund balance $ 80,000 $ 275,900 555,953 $ 280,053 Fund balance-beginning 1,210,747
Fund balance-ending $ 1,766,700

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Housing Fund
For The Year Ended June 30, 2025
137
160
160 of 316
National Opioid Settlement
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental — 55,000 56,914 1,914
Total revenues — 55,000 56,914 1,914

EXPENDITURES
Current:

Public safety — 55,000 — 55,000
Total expenditures — 55,000 — 55,000
Total other financing sources (uses) — — — —
Net change in fund balance $ — $ — 56,914 $ 56,914
Fund balance-beginning 19,905
Fund balance-ending $ 76,819

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual National Opioid Settlement
For The Year Ended June 30, 2025
138
161
161 of 316
AQMD
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

OTHER FINANCING SOURCES (USES)
Transfers in — 84,038 84,038 —
Total other financing sources (uses) — 84,038 84,038 —
Net change in fund balance $ — $ 84,038 84,038 $ —
Fund balance-beginning —
Fund balance-ending $ 84,038

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual AQMD
For The Year Ended June 30, 2025
139
162
162 of 316
Animal Shelter Donations
Budget Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)

EXPENDITURES
Current:

Community development $ — $ 1,497,850 $ — $ 1,497,850
Total expenditures — 1,497,850 — 1,497,850
Excess (deficiency) of revenues
over (under) expenditures — (1,497,850) — 1,497,850

OTHER FINANCING SOURCES (USES)
Transfers in — 1,497,850 1,497,850 —
Total other financing sources (uses) — 1,497,850 1,497,850 — Net change in fund balance $ — $ — 1,497,850 $ 1,497,850 Fund balance-beginning —
Fund balance-ending $ 1,497,850

CITY OF LAGUNA BEACH
Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual Animal Shelter Donations
For The Year Ended June 30, 2025
140
163
163 of 316
Internal Service Funds
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency of a government to other departments or agencies on a cost reimbursement basis.

The City of Laguna Beach has the following Internal Service Funds:

Insurance and Employee Benefits Fund
This fund is used to account for the cost of providing employee benefits and various forms of insurance (general liability, workers' compensation, and all other forms of employee group insurance) provided to the various City departments.

Vehicle Replacement Fund
This fund was created to acquire vehicles and other significant equipment for rental to the operating departments. 141
164
164 of 316
Combining Statement of Net Position - Internal Service Funds Insurance and
Employee
Benefits
Vehicle
Replacement
Total Internal
Service
Funds
ASSETS
Current assets:

Cash and investments $ 10,931,095 $ 14,359,837 $ 25,290,932 Receivables (net of uncollectibles):

Accounts 49,308 — 49,308
Total current assets 10,980,403 14,359,837 25,340,240
Noncurrent:

Notes receivable 940,590 859,555 1,800,145
Property for housing program 797,500 — 797,500
Capital assets, net of depreciation — 6,622,379 6,622,379 Total noncurrent assets 1,738,090 7,481,934 9,220,024
Total assets 12,718,493 21,841,771 34,560,264

LIABILITIES
Current liabilities:

Accounts payable 263,220 50,810 314,030
Accrued liabilities 49,854 — 49,854
Compensated absences, due within one year 2,054,166 — 2,054,166 Insurance claims payable, due within one year 3,049,186 — 3,049,186 Total current liabilities 5,416,426 50,810 5,467,236
Noncurrent liabilities:

Compensated absences 5,084,203 — 5,084,203
Insurance claims payable 7,114,767 — 7,114,767
Total noncurrent liabilities 12,198,970 — 12,198,970
Total liabilities 17,615,396 50,810 17,666,206

NET POSITION
Net investment in capital assets — 6,571,569 6,571,569
Unrestricted (4,896,903) 15,219,392 10,322,489
Total net position $ (4,896,903) $ 21,790,961 $ 16,894,058

CITY OF LAGUNA BEACH
Combining Statement Of Net Position
Internal Service Funds
June 30, 2025
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Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds Insurance and
Employee
Benefits
Vehicle
Replacement
Total Internal
Service
Funds

OPERATING REVENUES
Rental $ — $ 2,535,200 $ 2,535,200
Employee benefits charges 1,322,000 — 1,322,000
Insurance charges 13,509,609 — 13,509,609
Total operating revenues 14,831,609 2,535,200 17,366,809

OPERATING EXPENSES
General and administrative 381,249 — 381,249
Personnel services 130,068 — 130,068
Employee benefits 1,788,501 — 1,788,501
Materials and supples — 159,609 159,609
Insurance premiums and claim payments 17,282,040 — 17,282,040 Depreciation — 1,158,053 1,158,053
Total operating expenses 19,581,858 1,317,662 20,899,520 Operating income (loss) (4,750,249) 1,217,538 (3,532,711)

NONOPERATING REVENUES (EXPENSES)
Investment income — 7,074 7,074
Miscellaneous — 47,346 47,346
Gain on disposal of capital assets 396,091 72,367 468,458 Total nonoperating revenues (expenses) 396,091 126,787 522,878 Income (loss) before transfers and capital contributions (4,354,158) 1,344,325 (3,009,833) Capital contributions — 39,854 39,854
Transfers in — 1,300,000 1,300,000
Change in net position (4,354,158) 2,684,179 (1,669,979) Net position-beginning, as restated (542,745) 19,106,782 18,564,037 Net position-ending $ (4,896,903) $ 21,790,961 $ 16,894,058

CITY OF LAGUNA BEACH
Combining Statement Of Revenues, Expenses And Changes In Net Position Internal Service Funds
For The Year Ended June 30, 2025
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Combining Statement of Cash Flows - Internal Service Funds Insurance and
Employee
Benefits
Vehicle
Replacement Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 14,828,259 $ 2,535,200 $ 17,363,459 Payments to suppliers and service providers (17,005,360) (212,914) (17,218,274) Payments to employees for salaries and benefits (2,721,654) — (2,721,654) Net cash provided by (used for)
operating activities (4,898,755) 2,322,286 (2,576,469)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds — 1,300,000 1,300,000
Issuance of notes receivable to housing program — (569,638) (569,638) Net cash provided by (used for)
noncapital financing activities — 730,362 730,362

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Capital grants and contributions — 39,854 39,854
Acquisition and construction of capital assets — (1,602,391) (1,602,391) Proceeds from sales of assets 940,591 70,529 1,011,120
Net cash provided by (used for)
capital and related financing activities 940,591 (1,492,008) (551,417)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments — 54,420 54,420
Net cash provided by (used for)
investing activities — 54,420 54,420
Net increase (decrease) in
cash and cash equivalents (3,958,164) 1,615,060 (2,343,104) Cash and cash equivalents-beginning 14,889,259 12,744,777 27,634,036 Cash and cash equivalents-ending $ 10,931,095 $ 14,359,837 $ 25,290,932

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) $ (4,750,249) $ 1,217,538 $ (3,532,711) Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense — 1,158,053 1,158,053 (Increase) decrease in accounts receivable (3,350) — (3,350) (Increase) decrease in notes and loans receivable (940,590) — (940,590) Increase (decrease) in accounts payable 102,811 (53,305) 49,506 Increase (decrease) in accrued liabilities (55,543) — (55,543) Increase (decrease) in compensated absences 518,754 — 518,754 Increase (decrease) in claims and judgments 229,412 — 229,412 Total adjustments (148,506) 1,104,748 956,242
Net cash provided by (used for)
operating activities $ (4,898,755) $ 2,322,286 $ (2,576,469)

CITY OF LAGUNA BEACH
Combining Statement Of Cash Flows
Internal Service Funds
For The Year Ended June 30, 2025
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STATISTICAL SECTION
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Financial Trends
This section of the City of Laguna Beach's Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. The statistical information presented herein is un-audited.

The following schedules contain trend information illustrating how the City's financial performance and well-being has changed over time:
• Net Position by Component
• Changes in Net Position
• Fund Balances of Governmental Funds
• Changes in Fund Balance of Governmental Funds
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports and underlying accounting records for the relevant year. 147
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Net Position by Component, Last Ten Fiscal Years
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Changes in Net Position, Last Ten Years
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Fund Balances of Governmental Funds, Last Ten Fiscal Years 154
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Changes in Fund Balances of Governmental Funds, Last Ten Fiscal Years 156
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Revenue Capacity
This section of the City of Laguna Beach's Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. The statistical information presented herein is un-audited.

The following schedules present factor affecting the City's ability to generate its own revenue and its most significant local revenue source, the property tax:
• Assessed Value and Estimated Actual Value of Taxable Property • Direct and Overlapping Property Tax Rates
• Principal Property Tax Payers
• Property Tax Levies and Collections
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports and underlying accounting records for the relevant year. 158
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Assessed Value and Estimated Actual Value of Taxable Property, Last Ten Fiscal Years 159
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Direct and Overlapping Property Tax Rates, Last Ten Fiscal Years 160
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Principal Property Tax Payers, Last Fiscal Year and Nine Years Ago 162
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Property Tax Levies and Collections, Last Ten Fiscal Years 163
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Debt Capacity
This section of the City of Laguna Beach's Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. The statistical information presented herein is un-audited.

The following schedules exhibit the City's levels of outstanding debt over time, to help readers assess the affordability of the current level of outstanding debt, and the City's ability to issue additional debt:
• Ratios of Outstanding Debt by Type
• Direct and Overlapping Debt
• Pledged Revenue Coverage
• Legal Debt Margin Information
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports and underlying accounting records for the relevant year. 164
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Ratios of Outstanding Debt by Type, Last Ten Fiscal Years 165
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Direct and Overlapping Debt
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Pledged-Revenue Coverage, Last Ten Fiscal Years
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Legal Debt Margin
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Demographic and Economic Information
This section of the City of Laguna Beach's Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. The statistical information presented herein is un-audited.

The following schedules depict demographic and economic indicators to assist the reader in understanding the socio-economic, environment in which the City's financial activities take place:
• Demographic and Economic statistics
• Principal Employers
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports and underlying accounting records for the relevant year. 170
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Demographic and Economic Statistics, Last Ten Fiscal Years 171
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Principal Employers, Last Fiscal Year and Nine Years Ago 172
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Operating Information
This section of the City of Laguna Beach's Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. The statistical information presented herein is un-audited.

The following schedules present information on the City's operations and resources including service and infrastructure data to facilitate the readers understanding of how financial statement information relates to the services the City provides and the activities it performs:
• Capital Asset Statistics by Function
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports and underlying accounting records for the relevant year. 173
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Full-time City Employees by Function, Last ten Fiscal Years 174
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Operating Indicators, Last Ten Fiscal Years
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Capital Asset Statistics by Function, Last Ten Fiscal Years 178
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LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of Laguna Beach, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Laguna Beach, California (hereafter, the City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 30, 2026.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and responses as item 2025-001 that we consider to be significant deficiencies.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.

Attachment 2
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To the Honorable Members of the City Council
City of Laguna Beach, California
City of Laguna Beach, California’s Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Irvine, California
March 30, 2026
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To the Honorable Members of the City Council
City of Laguna Beach, California

SCHEDULE OF FINDINGS AND RESPONSES
Reference Number: 2025-001
Finding
Condition
During our audit of the financial statements for the fiscal year ended June 30, 2025, management identified and corrected prior-year capital asset acquisitions related to both governmental activities and business-type activities that had not been capitalized in the appropriate periods.

These omissions were identified during the current fiscal year as a result of management’s implementation of updated internal control procedures. Identified assets were subsequently capitalized along with related accumulated depreciation through prior-period correction entries.

Criteria
GASB Statement No. 34 requires that capital assets be reported in the government-wide financial statements for governmental activities and depreciated over their estimated useful lives. Additionally, business-type activities capital assets are required to be reported in the fund level financial statements and government-wide financial statements and depreciated over their estimated useful lives. As defined by GASB statement No. 34, capital assets are capitalized when placed into service.

Cause
The condition resulted from ineffective controls over capital asset identification and capitalization in previous fiscal years. This includes controls over the identification of capital assets and oversight of management to ensure all capital assets are identified and captured for capitalization and when applicable, depreciated. For the fiscal year ended June 30, 2025, management of the City implemented new control, which led to the identification and correction of the prior-year omissions.

Effect or Potential Effect
Due to a deficiency in internal controls over capital asset accounting in prior fiscal years, the City did not properly capitalize certain assets or record related depreciation. As a result, capital assets and net position for governmental activities and business-type activities were understated in prior periods, and depreciation expense and accumulated depreciation were not recorded in the appropriate fiscal years.

Recommendation
We recommend that management continue to maintain and document the enhanced internal controls over capital asset identification and capitalization that led to the identification of this prior-period error. These controls should include performing regular reconciliations between capital acquisition activity and capital asset subsidiary records for both governmental activities and business-type activities, ensuring timely review and approval of capital asset additions and disposals and related supporting documentation, and periodically evaluating the effectiveness of the updated controls to confirm that capital assets are consistently identified, capitalized, and recorded in the appropriate accounting period.
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To the Honorable Members of the City Council
City of Laguna Beach, California
Management’s Response
Management agrees with the finding and acknowledges that internal controls over capital asset identification and capitalization were not operating effectively in prior fiscal years. As noted, enhanced procedures implemented for fiscal year 2024–25 reporting resulted in the identification and correction of prior-period omissions. With the hiring of a new Accounting Manager in late October 2025, the City has strengthened oversight and review procedures within the Finance Department. Management has implemented, and will continue to formalize, internal controls to ensure capital asset activity is properly identified, recorded, and reconciled on a timely basis. These controls include:
• Reviewing City Council minutes, capital project activity, and general ledger accounts to ensure completeness of capital asset additions and disposals.
• Recording capital asset activity in the appropriate accounting period when assets are placed into service. • Maintaining an accurate and up-to-date detailed capital asset listing. • Performing regular reconciliations between the general ledger and the capital asset subsidiary records. • Reviewing depreciation calculations for accuracy and completeness.

Management believes these enhanced procedures will ensure capital assets are consistently identified, capitalized, and recorded in the appropriate fiscal year going forward. 206
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March 30, 2026
To the Honorable Mayor and Members of the City Council
City of Laguna Beach, California
We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Laguna Beach, California (hereafter, the City) for the year ended June 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit.

We have communicated such information in our letter to you dated May 5, 2025. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 1 to the financial statements, the City changed accounting policies related to compensated absences by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 101, Compensated Absences, in fiscal year 2025.

Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the Statement of Activities. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events.

Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Management’s estimates of the net pension liability, net other post-employment benefits liability, and claims and judgments liability is are based on actuarial valuations. We evaluated the methods, assumptions, and data used to develop the net pension liability, net other post-employment benefits liability, and claims and judgments liability in determining that they are reasonable in relation to the financial statements taken as a whole.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Attachment 3
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To the Honorable Members of the City Council
City of Laguna Beach, California
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.

Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated March 30, 2026.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to management’s discussion and analysis, the budgetary comparison schedules for the General Fund and major special revenue funds, and the required pension and other postemployment benefits schedules, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the combining and individual fund statements and schedules which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. 208
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To the Honorable Members of the City Council
City of Laguna Beach, California
We were not engaged to report on the introductory and statistical sections of the Annual Comprehensive Financial Report, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Future GASB Pronouncements
The following Government Accounting Standards Board (GASB) pronouncements will be effective for the following fiscal years’ audits and should be reviewed for proper implementation by management:

Fiscal Year 2025-2026
GASB Statement No. 103, Financial Reporting Model Improvements.

GASB Statement No. 104, Disclosure of Certain Capital Assets.

Future Projects
GASB Statement No. 105, Subsequent Events.

Comprehensive Project, Revenue and Expense Recognition.

Major Project, Going Concern Uncertainties and Severe Financial Stress.

Major Project, Infrastructure Assets.

Practice Issue, Subsequent Events.

Restriction on Use
This information is intended solely for the information and use of City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
Irvine, California
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INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON

PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
To the Honorable Mayor and Members of the City Council
City of Laguna Beach, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Worksheet No. 6 (or other alternative computation) of the City of Laguna Beach, California, for the year ended June 30, 2025.

These procedures are the responsibility of the City, which were agreed to by the City of Laguna Beach and the League of California Cities (as presented in the publication entitled Agreed-Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution), were performed solely to assist the City of Laguna Beach in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The City of Laguna Beach's management is responsible for the Appropriations Limit Worksheet No. 6 (or other alternative computation).

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of recomputing the Appropriations Limit Worksheet No. 6 (or other alternative computation). This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures performed and our findings were as follows:

1. We obtained the completed Worksheets No. 1 through No. 7 (or other alternative computations) and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Worksheet No. 6, we multiplied line A, last year's limit, by line D, ratio of change and compared the resulting amount to line E, this year's limit.

Finding: No exceptions were noted as a result of our procedures.

3. We compared the current year information presented in the accompanying Appropriations Limit Worksheet No. 6 to the other worksheets described in No. 1 above.

Finding: No exceptions were noted as a result of our procedures.

4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year.

Finding: No exceptions were noted as a result of our procedures.

Attachment 4
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To the Honorable Mayor and Members of the City Council
City of Laguna Beach, California
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Worksheet No. 6 (or other alternative computation). Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information of the City Council and management of the City of Laguna Beach and is not intended to be, and should not be, used by anyone other than these specified parties.

Irvine, California
August 20, 2025
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To the Honorable Mayor and Members of the City Council
City of Laguna Beach, California

CITY OF LAGUNA BEACH
2024-2025

APPROPRIATIONS LIMIT CALCULATION
A. 2023-2024 APPROPRIATIONS LIMIT: $ 76,537,074
B. 2024-2025 CHANGE IN PER CAPITA PERSONAL
INCOME: 1.0362%
C. 2024-2025 CHANGE IN POPULATION: 1.0031%
D. RATIO OF CHANGE (1.0362 x 1.0031) x 1.0394
E. 2024-2025 APPROPRIATIONS LIMIT: $ 79,552,635
($76,537,074 x 1.0394)
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LAGUNA BEACH PUBLIC FINANCING AUTHORITY,

A COMPONENT UNIT OF THE CITY OF LAGUNA BEACH
FOR THE YEAR ENDED JUNE 30, 2025 FINANCIAL STATEMENTS
Attachment 5
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LAGUNA BEACH PUBLIC FINANCING AUTHORITY,

A COMPONENT UNIT OF THE CITY OF LAGUNA BEACH
Financial Statements
For the Year Ended June 30, 2025
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LAGUNA BEACH PUBLIC FINANCING AUTHORITY,

A COMPONENT UNIT OF THE CITY OF LAGUNA BEACH
Financial Statements
For the Year Ended June 30, 2025
Table of Contents
Page
Independent Auditors’ Report ................................................................................................................................. 1 Financial Statements
Statement of Net Position ................................................................................................................................ 4 Statement of Revenues, Expenses, and Changes in Net Position ................................................................ 5 Statement of Cash Flows ................................................................................................................................. 6 Notes to Financial Statements ......................................................................................................................... 7 Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .............................................................................................................................. 11 215
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Members of the City Council
Laguna Beach Public Financing Authority
Laguna Beach, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Laguna Beach Public Financing Authority, (hereafter, the Authority) a component unit of the City of Laguna Beach, California (hereafter, the City) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Authority as of June 30, 2025, and the changes in financial position, and cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the Authority and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2025, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 216
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To the Honorable Members of the City Council
Laguna Beach Public Financing Authority
Laguna Beach, California
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Required Supplementary Information
Management has omitted Management Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. 2 217
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To the Honorable Members of the City Council
Laguna Beach Public Financing Authority
Laguna Beach, California
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2026, on our consideration of the City’s internal control over Authority’s financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of the City’s internal control over Authority’s financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over the Authority’s financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Authority’s internal control over financial reporting and compliance.

Irvine, California
March 30, 2026
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LAGUNA BEACH PUBLIC FINANCING AUTHORITY
Statement of Net Position
June 30, 2025
ASSETS
Current:

Interest receivable $ 221,990
Lease receivable 437,000
Total Current Assets 658,990
Noncurrent:

Lease receivable 10,803,000
Total assets 11,461,990

LIABILITIES
Current:

Interest payable 221,990
Bond payable 437,000
Total Current Liabilities 658,990
Noncurrent:

Bond payable 10,803,000
Total liabilities 11,461,990

NET POSITION
Unrestricted -
Total net position $ -
See Notes to Financial Statements.
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LAGUNA BEACH PUBLIC FINANCING AUTHORITY
Statement of Revenues, Expenses, and
Changes in Net Position
For the Year Ended June 30, 2025

NONOPERATING REVENUES (EXPENSES)
Contribution from the City of Laguna Beach 443,980 $
Interest expense (443,980)
Total nonoperating revenues (expenses) -
Change in net position -
Net position-beginning -
Net position-ending $ -
See Notes to Financial Statements.
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LAGUNA BEACH PUBLIC FINANCING AUTHORITY
Statement of Cash Flows
For the Year Ended June 30, 2025

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Interest paid on capital debt $ (221,990)
Proceeds from lease receivable with the City of Laguna Beach 221,990 Net cash provided by (used for)
capital and related financing activities -
Cash and cash equivalents-beginning -
Cash and cash equivalents-ending $ -
See Notes to Financial Statements.
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LAGUNA BEACH PUBLIC FINANCING AUTHORITY,

A COMPONENT UNIT OF CITY OF LAGUNA BEACH
Notes to the Financial Statements
For the Year June 30, 2025
NOTE 1: REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Laguna Beach Public Financing Authority (Authority), a blended component unit of the City of Laguna Beach, California (City), have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting policies.

A. Reporting Entity
The Authority was established pursuant to a Joint Exercise of Powers Agreement (the “Joint Powers Agreement”) dated October 1, 2022, between the City and the California Statewide Communities Development Authority.

Pursuant to the Joint Powers Agreement, the Authority is authorized to provide the financing necessary for the purchase or construction of various facilities or improvements through the issuance of debt.

A five-member governing board, of which are all also members of the City Council, governs the Authority.

Management of the City has operational responsibility for the Authority. The Authority is a blended component unit of the City; the activities of the Authority are recorded in the debt service fund within the City’s financial statements. In accordance with GASB, the Authority is reported a proprietary fund in its stand-alone report. Only the activities of the Authority are included herein, therefore, these financial statements do not purport to represent the financial position or results of operations of the City. The Authority has the same fiscal year as the City. The Annual Comprehensive Financial Report of the City can be obtained from the Finance Department of the City.

B. Basis of Accounting and Measurement Focus
The financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows.

The Authority distinguishes operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services in connection with the enterprise fund’s principal operations. All revenues and expenditures not meeting this definition are reported as non-operating revenues and expenses.

The accompanying financial statements of the Authority have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB), the accepted standard setting body for establishing governmental accounting and financial reporting principles.

C. Cash and Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments with an initial maturity of three months or less at the time of purchase. See the City’s Annual Comprehensive Financial Report for disclosures related to custodial credit risk for deposits.

D. Components of Net Position
Net position is reported in one of three categories:

Net Investment in Capital Assets – describes the portion of net position which is represented by the current net book value of the Authority’s capital assets, less the outstanding balance of any debt issued to finance these assets. As of June 30, 2025, there was no net investment in capital assets.

LAGUNA BEACH PUBLIC FINANCING AUTHORITY,

A COMPONENT UNIT OF CITY OF LAGUNA BEACH
Notes to the Financial Statements
For the Year June 30, 2025
NOTE 1: REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Unrestricted – describes the portion of net position which is not restricted as to use.

When both restricted and unrestricted resources are available for use, it is the Authority’s policy to use restricted resources first, then unrestricted resources as they are needed.

NOTE 2: BOND PAYABLE
The following is a summary of the changes in the principal balance of the bonds payable for the year ended June 30, 2025:

In November 2022, the Authority issued bonds in the amount of $11,660,000 in order to secure funding for the purchase of property located at 30516 Coast Highway. Debt issuance fees and charges paid to third parties totaled $160,000 and were the responsibility of the City’s general fund.

Interest is payable semiannually on July 1 and January 1 at a rate of 3.95%. Principal is payable in annual installments on July 1 ranging from $420,000 to $855,000. The debt matures on July 1, 2042. Principal and Interest are secured by the lease-leaseback receipts from the City. The annual debt service requirements as of June 30, 2025, are as follows:

NOTE 3: LEASE - LEASEBACK ARRANGEMENT
In November 2022, the Authority transferred bond proceeds in the amount of $11,660,000 to the City as a pre-payment for the right to use City property, which includes the City Yard and Fire Station No. 3 (leased property) through 2043. The Authority then leased back the right to use the lease property to the City for an amount equal to $11,660,000 plus interest of 3.95%. The principal and interest owed on the lease-back of property by the City, will cover future principal and interest debt service payments on the bonds payable. The lease payments, which will service as the debt service payments on the Authority’s bond payable, are pledged from the City general fund.

Balance at
July 1, 2024 Additions
Deletions/
Transfers
Balance at
June 30, 2025
Due Within
One Year
Due in More
Than One Year
Bond Payable 11,240,000 $ - $ $ - $ 11,240,000 $ 437,000 $ 10,803,000 Year Ending
June 30, Principal Interest Total Payment
2026 437,000 $ 435,349 $ $ 872,349
2027 455,000 417,732 872,732
2028 473,000 399,404 872,404
2029 492,000 380,346 872,346
2030 512,000 360,517 872,517
2031-2035 2,887,000 1,475,937 4,362,937
2036-2040 3,516,000 845,577 4,361,577
2041-2043 2,468,000 148,757 2,616,757
Total 11,240,000 $ $ 4,463,619 $ 15,703,619
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LAGUNA BEACH PUBLIC FINANCING AUTHORITY,

A COMPONENT UNIT OF CITY OF LAGUNA BEACH
Notes to the Financial Statements
For the Year June 30, 2025
NOTE 3: LEASE - LEASEBACK ARRANGEMENT (CONTINUED)
Interest is payable semiannually on July 1 and January 1. Principal is payable in annual installments on July 1 ranging from $420,000 to $855,000. The remaining lease receivable as June 30, 2025, will be received as follows:

NOTE 4: CONTINGENCIES
See the City’s Annual Comprehensive Financial Report for disclosures related to contingencies including those relating to various legal actions, administrative proceedings or claims in the ordinary course of operations.

NOTE 5: SUBSEQUENT EVENTS
Management has evaluated subsequent events through March 30, 2026, which is the date the financial statements were available to be issued.

Year Ending
June 30, Principal Interest Total Payment
2026 437,000 $ 435,349 $ $ 872,349
2027 455,000 417,732 872,732
2028 473,000 399,404 872,404
2029 492,000 380,346 872,346
2030 512,000 360,517 872,517
2031-2035 2,887,000 1,475,937 4,362,937
2036-2040 3,516,000 845,577 4,361,577
2041-2043 2,468,000 148,757 2,616,757
Total 11,240,000 $ $ 4,463,619 $ 15,703,619
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OTHER REPORT
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LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
Laguna Beach Public Financing Authority
Laguna Beach, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Laguna Beach Public Financing Authority (the Authority), a component unit of the City of Laguna Beach, California (hereafter, the City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements, and have issued our report thereon dated March 30, 2026.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over the Authority’s financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.

However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 226
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To the Honorable Members of the City Council
Laguna Beach Public Financing Authority
Laguna Beach, California
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Irvine, California
March 30, 2026
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STAFF REPORT
Meeting Date:

May 12, 2026

CONSENT
10 SUBJECT: RECEIVE AND FILE THE CLASSIFICATION AND COMPENSATION STUDY

PREPARED BY BAKER TILLY
RECOMMENDATION: It is recommended that the City Council:

1. Receive and file the Classification and Compensation Study prepared by Baker Tilly, US, LLP; and

2. Find that the recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378, as it does not constitute a project.

SUMMARY OF THE MATTER
.This report transmits the final Classification and Compensation Study prepared by Baker Tilly US, LLP (Attachment 1) for City Council receipt and filing. The study provides a comprehensive evaluation of the City’s classification structure, compensation framework, and market competitiveness.

At this time, no action is requested of the City Council. The report is being provided for informational purposes and to support ongoing discussions regarding potential future implementation.

There is no immediate fiscal impact associated with receiving and filing this report. Any potential changes to compensation, classifications, or related policies must be reviewed and addressed through the meet-andconfer process with the City’s bargaining units, to the extent such changes impact any respective represented employees, and will be brought forward to the City Council at a future date for consideration.

DISCUSSION
Background
The City retained Baker Tilly US, LLP to conduct a comprehensive Classification and Compensation Study to evaluate internal equity, external market competitiveness, and the overall structure of the City’s compensation system. On January 13, 2026, the City Council received a Study Session presentation on the preliminary findings and recommendations of the Classification and Compensation Study prepared by Baker Tilly (Attachment 2). That presentation provided an overview of the study’s methodology, key findings, and potential recommendations. No formal action was taken at that time, consistent with the purpose of a study session. The final report summarizes the consultant’s methodology, findings, and recommendations, including position evaluation, market benchmarking, and proposed pay plan design.

Purpose of Agenda Item
The purpose of this agenda item is to formally transmit the final report to the City Council and to ensure transparency in the completion of the study. This item is limited to the receipt and filing of the report. No policy direction, approval, or implementation actions are being requested at this time.

Next Steps
While the study provides recommendations from the consultant related to classification structure, compensation ranges, and pay plan design, any changes affecting represented employee compensation or 1 of 370

RECEIVE AND FILE THE CLASSIFICATION AND COMPENSATION STUDY PREPARED BY

BAKER TILLY
May 12, 2026

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Laguna Beach City CouncilMay 12, 2026

Laguna Beach City Council
May 12, 2026