Agenda packet — Laguna Hills City Council, December 9, 2025 (part 1 of 11)

City of Laguna Hills
City Council / Planning Agency
Regular Meeting Agenda
Tuesday, December 9, 2025 - 6:00 PM
(Closed Session at 5:00 p.m. when scheduled)
City Council Chamber
24035 El Toro Road
Laguna Hills, CA 92653
Joshua Sweeney
Mayor
Don Caskey
Mayor Pro Tempore
Jared Mathis
Council Member
Erica Pezold
Council Member
Dave Wheeler
Council Member
In Person Public Comments: Any person wishing to address the City Council/Planning Agency on any matter, whether or not it appears on this Agenda, is asked to complete a pink “Request to Speak” form available on the table at the back of the Chamber and submit the form to the City Clerk. The Request to Speak form assists the Mayor in ensuring that all persons wishing to address the City Council are recognized and ensures accurate identification of meeting participants in the City Council/Planning Agency Minutes. Completion of the form is voluntary. It is City policy to limit public testimony to up to three minutes per person, as determined by the Mayor, and a total time limit of thirty minutes for Public Comments. If you are commenting on an Agenda item, your comments will be heard at the time that item is scheduled on the Agenda. If you are addressing the City Council on an item not listed on the Agenda, the City Council is prohibited by law from discussing or taking any action on that item.

Submission of Electronic Public Comments: Those wishing to make electronic public comments may submit their comments by email to the City Clerk no later than 2 hours prior to the meeting on Tuesday, December 9, 2025. In the subject line of the email, please state your name and the item number you are commenting on. Any public comment received that does not specify a particular agenda item number will be announced during the general public comment portion of the agenda.

All comments received by the deadline on the date of the meeting will be provided to the City Council and will be provided for public inspection at the meeting. During the applicable agenda item, the City Clerk will announce the name of the sender and subject matter of all electronic comments received by the deadline on Tuesday, December 9, 2025. Email comments will NOT be read by the City Clerk during the meeting. Electronic public comments may only be submitted via email and comments via text and social media (Facebook, X (formerly Twitter), etc.) will not be accepted.

For questions or assistance, please contact the City Clerk’s Office at (949) 707-2635 or via email.

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City Council/Planning Agency Regular Meeting Agenda
Tuesday, December 9, 2025
2 General Business Convening at 6:00 PM
Call to Order
Resolution No. 96-04-09-1 established rules of decorum for public meetings held by the City of Laguna Hills. Resolution No. 96-04-09-1 is available on the table at the back of the City Council Chamber.

Invocation: Council Member Wheeler
Pledge of Allegiance: Council Member Wheeler
Roll Call of City Council Members
City Council Reorganization
Remarks from Outgoing Mayor
Election of Mayor
Recommendation: That the City Council nominate and elect a Mayor to serve until December 8, 2026.

Recognition of Outgoing Mayor
Recognition of Outgoing Mayor and Resolution of Commendation, Joshua Sweeney
That the City Council adopt a Resolution entitled: "A Resolution of the City Council of the City of Laguna Hills, California, commending Joshua Sweeney as Mayor" and that the City Council present the Resolution and a plaque to Joshua Sweeney recognizing his service to the City.

Remarks of Mayor Sweeney's Service to the City
Remarks from Newly Elected Mayor
Election of Mayor Pro Tempore
Recommendation: That the City Council nominate and elect a Mayor Pro Tempore to serve until December 8, 2026.

Recess and Reconvene

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City Council/Planning Agency Regular Meeting Agenda
Tuesday, December 9, 2025
3 1. Presentations and Proclamations

1.1 Laguna Hills High School Student Liaison Report
Recommendation: That the City Council receive a report from Laguna Hills High School Student Liaison Ethan Keschner.

1.2 Certificate of Recognition for Laguna Hills High School Student Liaison Ethan Keschner
Recommendation: That the Mayor present a Certificate of Recognition to Ethan Keschner recognizing his service as a Laguna Hills Student Liaison.

2. Schedule of Future Events

2.1 Schedule of Future Events
Recommendation: That the Deputy City Clerk announce the upcoming meetings and events.

3. Public Comments
This is the time to address the City Council on any matter not listed on this Agenda that is within the subject matter jurisdiction of the City Council. Public Comments are limited to three minutes per person, as determined by the Mayor, and a total time limit of thirty minutes.

4. Consent Calendar
All matters listed under “CONSENT CALENDAR” are considered to be routine and will be enacted by one motion approving the recommendation listed on the Agenda. There will be no separate discussion unless Members of the City Council or City staff request specific items be removed from the Consent Calendar.

4.1 Waive Reading in Full of all Ordinances and Resolutions on the Agenda Recommendation: That the City Council waive reading in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

4.2 Approval of Minutes for October 28, 2025, Regular Meeting Recommendation: That the City Council approve the City Council/Planning Agency Minutes for the October 28, 2025, Regular Meeting.

4.3 Approval of Minutes for November 7, 2025, Special Meeting Recommendation: That the City Council approve the City Council Minutes for the November 7, 2025, Special Meeting.

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City Council/Planning Agency Regular Meeting Agenda
Tuesday, December 9, 2025
4 4.4 Approval of Minutes for November 18, 2025, Special Meeting Recommendation: That the City Council approve the City Council/Planning Agency Minutes for the November 18, 2025 Regular Meeting.

4.5 Ratification of December 9, 2025 Warrant Register
Recommendation: That the City Council ratify the accompanying Warrant Register for the period from November 9, 2025, to November 27, 2025, in the amount of $744,397.14.

4.6 Financial Statements for Fiscal Year Ending June 30, 2025 Recommendation: That the City Council receive and file the Annual Comprehensive Financial Report and other audit reports for fiscal year 2024/2025.

4.7 2026 City Council Meetings and Holidays Calendar
Recommendation: That the City Council adopt the 2026 City Council Meetings and Holidays Calendar.

4.8 Affirmation of Local Appointments List for City Boards, Commission, and Committees
Recommendation: That the City Council affirm the Local Appointments List and direct that it be posted on the City's website, at City Hall, and in the Laguna Hills Branch Technology Library in accordance with Government Code Section 54972, the Maddy Act.

4.9 Approval of Parking Citation and Parking Permit Processing Agency Services Agreement with Data Ticket, Inc.

Recommendation: That the City Council: 1. Waive formal competitive bidding in accordance with Laguna Hills Municipal Code (LHMC) Section 3-08.090 with regard to approval of the proposed Parking Citation and Parking Permit Processing Agency Services Agreement with Data Ticket, Inc., as it is hereby found and determined, pursuant to LHMC Sections 3-08.110.G, I, and J, that the decision to use and rely on the 2020 County of Orange competitive selection process is appropriate; 2.

Approve the Parking Citation and Parking Permit Processing Agency Services Agreement with Data Ticket, Inc.; and 3. Authorize the City Manager to execute the agreement.

4.10 First Amendment to Agreement with CR&R Incorporated, a California corporation, for the Collection, Transportation, Processing and Diversion of Recylcable Materials, Food Scraps, Yard Trimmings, Construction and Demolition Debris and Other Materials and for the Collection, Transportation and Disposal of Municipal Solid Waste

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City Council/Planning Agency Regular Meeting Agenda
Tuesday, December 9, 2025
5 Recommendation: That the City Council: 1. Approve the First Amendment to Agreement with CR&R Incorporated, a California corporation, for the Collection, Transportation, Processing and Diversion of Recylcable Materials, Food Scraps, Yard Trimmings, Construction and Demolition Debris and Other Materials and for the Collection, Transportation and Disposal of Municipal Solid Waste, and 2.

Authorize the Mayor to sign the First Amendment to Agreement.

Items Removed from the Consent Calendar

5. Planning Agency
The Planning Agency is called to order only if there are items scheduled to be presented to the Planning Agency.

6. City Council Public Hearings
Public Hearing Item No. 6.1 will start promptly at 6:30p.m.

6.1 Fifth Public Hearing and Second Reading and Adoption of Ordinance No.2025-7 Adding Sections 2-04.090 and 2-04.100 to Chapter 2-04 (City Council) of Title 2 (Administration and Personnel) of the Laguna Hills Municipal Code Implementing By-District Elections of Council Members from Five Council Districts
Recommendation: That the City Council:

1. Receive staff presentation and report;

2. Conduct the fifth public hearing necessary for continuing the process to transition to by-district elections;

3. Close the public hearing;

4. Discuss and deliberate;

5. Approve Second Reading and Adopt Ordinance No.2025-7, entitled: “An Ordinance of the City Council of the City of Laguna Hills, California, Adding Sections 2-04.090 and 2-04.100 to Chapter 2-04 (City Council) of Title 2 (Administration and Personnel) of the Laguna Hills Municipal Code Implementing By-District Elections of Council Members from Five Council Districts.”; and

6. Direct City staff and City’s retained demographer, National Demographics Corporation, to issue and post the Elections Code Section 21130(f) report, attached hereto, within 21-days of Council adoption of the final election district boundaries.

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City Council/Planning Agency Regular Meeting Agenda
Tuesday, December 9, 2025
6 7. Administrative Reports

7.1 City Manager

7.2 City Clerk

7.2.1 City Council Representatives to Other Boards, Committees, and Agencies
Recommendation: That the City Council take the following actions:

1. Review the City of Laguna Hills City Council Representatives to Other Boards, Committees, and Agencies List, provide directions to staff regarding any necessary changes for appointments to the list, and by motion, approve the City Council Representatives to Other Committees/Agencies List, as revised by the City Council; and

2. Approve and direct the City Clerk to prepare and post an updated FPPC Disclosure Form 806 to reflect all paid city representative appointments to outside agency boards, committees, and/or commissions in accordance with state law.

8. Matters Agendized and Presented by City Council Members

9. City Council Member Committee Reports

9.1 Committee Assignment Report
Recommendation: That the City Council receive reports from the City Council Members on the City Council Committee Assignments listed on the staff report.

10. City Council Member Comments
Adjournment
The next Regular Meeting of the City Council/Planning Agency will be January 13, 2026, at 6:00p.m., in the City Council Chamber, located at 24035 El Toro Road, Laguna Hills, California.

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City Council/Planning Agency Regular Meeting Agenda
Tuesday, December 9, 2025
7 CERTIFICATION
I, JENNIFER LEE, City Clerk of the City of Laguna Hills, do hereby certify that a copy of the foregoing Agenda was posted at Laguna Hills City Hall, Laguna Hills Community Center, and the Courtyard at La Paz Center by December 5, 2025, at 5:00p.m.

It is the intention of the City of Laguna Hills to comply with the Americans with Disabilities Act in all respects. If as an attendee or a participant at this meeting you will need special assistance beyond what is normally provided, the City of Laguna Hills will attempt to accommodate you in every reasonable manner. Please contact the office of the City Clerk at (949) 707 2635. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.

Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at 24035 El Toro Road, Laguna Hills, California, during normal business hours. In addition, such writings or documents will be made available for public review on the Agenda and Minutes public portal website and at the respective public meeting.

City Council Members receive no additional compensation or stipend as a result of simultaneously convening meetings of the Laguna Hills Planning Agency.

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City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: December 9, 2025
To: Mayor and Council Members
From: Jennifer Lee, City Clerk
Issue: Recognition of Outgoing Mayor and Resolution of Commendation, Joshua Sweeney
Recommendation: That the City Council adopt a Resolution entitled: "A Resolution of the City Council of the City of Laguna Hills, California, commending Joshua Sweeney as Mayor" and that the City Council present the Resolution and a plaque to Joshua Sweeney recognizing his service to the City.

Background:

Mayor Joshua Sweeney served his first term as Mayor of the City of Laguna Hills from December 10, 2024, through December 9, 2025. It is now in order to recognize Mayor Sweeney for his service to the City as Mayor.

Attachments:

1. Resolution of Commendation - Joshua Sweeney, Mayor

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RESOLUTION NO. 2025-12-09-X

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, COMMENDING JOSHUA
SWEENEY AS MAYOR" AND THAT THE CITY COUNCIL

PRESENT THE RESOLUTION AND A PLAQUE TO

JOSHUA SWEENEY RECOGNIZING HIS SERVICE TO THE
CITY
The City Council of the City of Laguna Hills, California, hereby finds, determines, declares, and resolves as follows:

WHEREAS, Joshua Sweeney, was elected to the City Council on November 8, 2022; took his Oath of Office on December 13, 2022; and served as Mayor of the City of Laguna Hills from December 10, 2024, through December 9, 2025; and WHEREAS, in addition to his role as Mayor, serving on the City’s Audit Committee, and Community Garden Ad Hoc Committee, and faithfully fulfilling his duties and responsibilities, Joshua Sweeney has ably represented the City, serving on various boards including as the City’s delegate to the Orange County Fire Authority Board of Directors and the Association of California Cities – Orange County. Mayor Sweeney also served as the City’s voting delegate at the California Joint Powers Insurance Agency Board of Directors annual Meeting and the League of California Cities General Assembly annual meeting; and
WHEREAS, during the year that Joshua Sweeney has presided as Mayor, the City Council: appointed a new City Manager; conducted the process to switch to bydistrict elections; adopted the City’s Biennial Budget for the 2025/2026 & 2026/2027 fiscal years; adopted six Ordinances authorizing electronic and digital signatures, prohibiting unauthorized use of the City Seal, establishing a speed limit on Del Lago Drive, adopting the Fire Hazard Severity Zones Map, and adopting new Building and Fire Codes; and approved by Resolution an updated Comprehensive Fee Schedule, the City’s Local Hazard Mitigation Plan, a four-year MOU with the Laguna Hills City Employee Association and a Business Recognition Program; and
WHEREAS, the performance of his duties and responsibilities as Mayor have been characterized by excellent and constructive contributions to the lasting development of our City, and with detailed attention to financials and enhanced transparency, earning the respect and admiration of his colleagues.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA
HILLS, CALIFORNIA, on behalf of all our citizens, does hereby express its appreciation and thanks to Joshua Sweeney, for his service to the community as Laguna Hills Mayor for 2025.

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Resolution No. 2025-12-09-X

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PASSED, APPROVED AND ADOPTED this 9th day of December 2025. ____________________________________

DON CASKEY, MAYOR PRO TEMPORE
ATTEST:
______________________________________

JENNIFER LEE, CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF LAGUNA HILLS )
I, Jennifer Lee, City Clerk of the City of Laguna Hills, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 2025-12-09-X adopted by the City Council of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 9th day of December 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(SEAL)
_____________________________________

JENNIFER LEE, CITY CLERK

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Item No. 1.2
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: December 9, 2025
To: Mayor and Council Members
From: Jennifer Lee, City Clerk
Issue: Certificate of Recognition for Laguna Hills High School Student Liaison Ethan Keschner
Recommendation: That the Mayor present a Certificate of Recognition to Ethan Keschner recognizing his service as a Laguna Hills Student Liaison.

Background:

The City of Laguna Hills and the Laguna Hills High School PTSA established a Student Liaison Program in 1993. Ethan Keschner has served as a Student Liaison with distinction, and it is in order to recognize his service.

Attachments:

1. Certificate of Recognition - Ethan Keschner

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CITY OF LAGUNA HILLS

CERTIFICATE OF RECOGNITION
EthanKeschner
Laguna Hills High School
Student Liaison
August 26, 2025 through December 9, 2025
WHEREAS, the City of Laguna Hills and Laguna Hills High School established a Student Liaison Program to create a direct link between the School and the City Council; and
WHEREAS, Ethan Keschner was appointed to serve as the Student Liaison to the City Council and took the Oath of Office on August 26, 2025; and WHEREAS, Ethan Keschner has served as the Student Liaison with dedication and distinction, setting a fine example for those students who will serve in thefuture.

NOW, THEREFORE, I, , Mayor, on behalf of the City
Council of the City of Lagu�a Hills, California, do hereby recognize Parsa Kaveh for their service to the City as StudentLiaison to the City Council.

Dated this 9th day of December2025.
, MAYOR

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Item No. 2.1
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: December 9, 2025
To: Mayor and Council Members
From: Kayle McDonald, Deputy City Clerk
Issue: Schedule of Future Events
Recommendation: That the Deputy City Clerk announce the upcoming meetings and events.

Meetings:

City Council/Planning Agency Regular Meetings
Tuesday, January 13th, 6:00 p.m., Laguna Hills Civic Center Council Chamber Tuesday, January 27th, 6:00 p.m., Laguna Hills Civic Center Council Chamber Traffic Commission Regular Meeting
Wednesday, January 21st, 6:00 p.m., Laguna Hills Civic Center Council Chamber City Facility Closures:

Holiday Closure
Wednesday, December 24th – Wednesday, January 1st, Laguna Hills Civic Center Wednesday, December 24th, Thursday, December 25th, January 1st, Laguna Hills Community Center
Holiday Hours – Drop-In Sports
Friday, December 26th – Wednesday, December 31st, 10:00 a.m. – 2:00 p.m., Laguna Hills Community Center
Events:

Let’s Make Workshop
Wednesday, December 10th, 4:00 p.m., Laguna Hills Community Center Heritage Room A Holiday Family Movie Night
Wednesday, December 10th, 6:30 p.m., Laguna Hills Community Center Heritage Room

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Item No. 2.1
Excursion to The Museum of Contemporary Art
Friday, December 12th, 2:00 p.m. – 10:00 p.m., meet at the Laguna Hills Community Center Parent’s Night Out
Friday, December 12th, 6:00 p.m. – 8:30 p.m., Laguna Hills Community Center Gym Breakfast with Santa
Saturday, December 13th, 9:00 a.m. – 11:00 a.m., Laguna Hills Community Center Heritage Room Holiday Movie Matinee
Monday, December 15th, 12:00 p.m., Laguna Hills Community Center Heritage Room Laguna Hills Holiday Lights Tour 12/17
Wednesday, December 17th, 6:00 p.m. – 8:30 p.m., meet at the Laguna Hills Community Center Excursion to Downtown Palm Springs
Thursday, December 18th, 11:30 a.m. – 10:00 p.m., meet at the Laguna Hills Community Center Holiday Musical Dance Extravaganza
Friday, December 19th, 6:30 p.m. – 9:00 p.m., Laguna Hills Community Center Heritage Room Laguna Hills Holiday Lights Tour 12/23
Tuesday, December 23rd, 6:00 p.m. – 8:30 p.m., meet at the Laguna Hills Community Center Excursion to Fullerton Arboretum, Gardens of Muckenthaler Cultural Center Saturday, December 27th, 1:00 p.m. – 8:00 p.m., meet at the Laguna Hills Community Center Excursion to Floatfest and Norton Simon Museum
Friday, January 2nd, 11:30 a.m. – 10:00 p.m., meet at the Laguna Hills Community Center Holiday Activities:

Holiday Light Show
Month of December, 7–10 minute animated performance every 30 minutes, 5:00 p.m. - 9:00 p.m., Laguna Hills Community Center Plaza
Hot Chocolate Station
Tuesdays, Wednesdays, Thursdays in December, 5:00 p.m. - 9:00 p.m., Laguna Hills Community Center Lobby
Wishing Tree
Month of December, Laguna Hills Community Center Facility Hours, Laguna Hills Community Center Lobby

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Item No. 2.1
Attachments:

1. Holiday Hours, Event, and Activities Flyer(s)

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Hop on the van and join us as we head to Downtown Los Angeles for a self-guided tour of the only artist-founded museum in Los Angeles. View one of the most compelling collections of contemporary art in the world at MOCA Grand Avenue. Bring water, snacks and sack lunch or purchase from onsite concession or nearby sit-down restaurants. Participants meet at the Laguna Hills Community Center where City staff will provide transportation. Call (949) 707-2680 for more information. No refunds or transfers for this event.

Class# 1931
12/12 2:00PM-10:00PM Friday
Fee: Resident $20, Non-Resident $25
Like us on at www.facebook.com/lagunahillscc
To register or for more information, please call (949) 707-2680 or visit www.lagunahillsca.gov

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Travel with us to explore this desert oasis situated in the western end of the Coachella Valley. While there we plan on site seeing, including architectural sites, walk the stars, visiting the Agua Caliente Cultural Museum, Palm Springs Art Museum, and Village Fest – an open-air street market. Bring water, snacks, and a sack lunch or purchase from food vendors. Participants meet at the Laguna Hills Community Center where City staff will provide transportation. Call (949) 707-2680 for more information. No refunds or transfers for this event.

Class# 1932
12/18 11:30AM-10:00PM Thursday
Fee: Resident $25, Non-Resident $30
Like us on at www.facebook.com/lagunahillscc
To register or for more information, please call (949) 707-2680 or visit www.lagunahillsca.gov
Excursion to Downtown Palm Springs

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Journey with us as we head to City of Fullerton to explore the CSU Fullerton’s Arboretum and Muckenthaler Cultural Center’s Gardens. The Arboretum provides a 26-acre botanical garden filled with diverse plant collections, scenic trails, and wildlife, while the Muckenthaler offers a historic architectural landmark with its Spanish Colonial Revival house and park-like setting. Bring water, snacks and sack lunch or purchase from onsite concession or nearby sit-down restaurants thereafter. Participants meet at the Laguna Hills Community Center where City staff will provide transportation. No refunds or transfers for this event. *Registration begins November 10, 2025 Class# 1933
12/27 1:00PM-8:00PM Saturday
Fee: Resident $15, Non-Resident $20
Like us on at www.facebook.com/lagunahillscc
To register or for more information, please call (949) 707-2680 or visit www.lagunahillsca.gov
Excursion to Fullerton Arboretum,
Gardens of Muckenthaler Cultural Center

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Join the group on the van to see the floral masterpieces up close the day after the New Year’s Day Rose Parade in Floatfest. A self-guided walking event that stretches 2 miles long to see these intricate and elaborate floats a few feet away. Then, we will break for Downtown Pasadena for a meal or snack and sightseeing. Followed by a visit to a remarkable private art collection that includes European art from the Renaissance to the 20th Century, along with Southeast Asian art spanning 2,000 years. Bring plenty of water, snacks and a sack lunch or purchase at food vendor on site. Participants meet at the Laguna Hills Community Center where City staff will provide transportation. Call (949) 707-2680 for more information.

No refunds or transfers for this event.
*Registration begins November 10, 2025 Class# 1934
1/2 11:30AM-10:00PM Friday
Fee: Resident $40, Non-Resident $45
Like us on at www.facebook.com/lagunahillscc
To register or for more information, please call (949) 707-2680 or visit www.lagunahillsca.gov

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City of Laguna Hills
City Council / Planning Agency
Regular Meeting
Minutes
Tuesday, October 28, 2025
General Business Convening at 6:00 PM
Call to Order
The meeting was called to order at 6:00 p.m. by Mayor Sweeney.

Invocation: Council Member Mathis
Pledge of Allegiance: Council Member Mathis
Roll Call of City Council Members

Present:

Mayor Joshua Sweeney
Mayor Pro Tempore Don Caskey
Council Member Erica Pezold
Council Member Jared Mathis

Absent:

Council Member Dave Wheeler

1. Presentations and Proclamations

1.1 Laguna Hills High School Student Liaison Report
The City Council received a report from Laguna Hills High School Student Liaison Ethan Keschner.

2. Schedule of Future Events

2.1 Schedule of Future Events
Community Services Director Gannon announced the upcoming meetings and events.

3. Public Comments
There were no public comments on non-agendized items.

4. Consent Calendar
A motion to approve the balance of the Consent Calendar with Interim City Manager removing Item No. 4.6 was moved by Mayor Pro Tempore Caskey, seconded by Council Member Mathis.

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City Council/Planning Agency Regular Meeting Minutes
Tuesday, October 28, 2025
Vote Result: Passed
Yes 4, No 0, Abstained 0
Ayes: Mayor Sweeney, Mayor Pro Tempore Caskey, Council Member Pezold, Council Member Mathis
Nays: None
Abstain: None

4.2 Approval of Minutes for October 14, 2025, Regular Meeting Recommendation: That the City Council approve the City Council Minutes for the October 14, 2025, Regular Meeting.

4.3 Ratification of October 28, 2025 Warrant Register
Recommendation: That the City Council ratify the accompanying Warrant Register for the period from October 3, 2025, to October 16, 2025, in the amount of $1,441,039.41.

4.4 Treasurer's Investment Report for September 2025
Recommendation: That the City Council receive and file the Treasurer's Investment Report for the month of September 2025.

4.5 Measure M2 Expenditure Report FY 2024/2025
Recommendation: That the City Council: 1. Approve the M2 Expenditure Report for the fiscal year ended June 30, 2025, for submittal to the Orange County Transportation Authority and 2. Adopt Resolution No. 2025-10-28-1: "A Resolution of the City Council of the City of Laguna Hills, California, Concerning the Measure M2 (M2) Expenditure Report for the City of Laguna Hills for the Fiscal Year Ended June 30, 2025."

4.7 Orange County Transportation Authority Regional Traffic Signal Synchronization Project: Oso Parkway/Pacific Park Drive/Glenwood Drive Corridor
Recommendation: That the City Council adopt Resolution No. 2025-10-18-2: “A Resolution of the City Council of the City of Laguna Hills, California, Approving the Submittal of an Improvement Project to the Orange County Transportation Authority for Funding Under the Competitive Measure M2 Regional Traffic Signal Synchronization Program.”

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City Council/Planning Agency Regular Meeting Minutes
Tuesday, October 28, 2025

4.8 Resolution in Support of Funding Projects in the Federal Transportation Improvement Program
Recommendation: That the City Council adopt Resolution No. 2025-10-28-3: "A Resolution of the City Council of the City of Laguna Hills, California, Which Certifies that the City of Laguna Hills Has the Resources to Fund the Projects in the FFY 2026/2027 - 2031/2032 Transportation Improvement Program and Affirms Its Commitment to Implement All Projects in the Program."

4.9 Award of a Public Works Construction Contract for the FY25-26 Community Development Block Grant Curb Ramp Improvement Project, CIP 170 Recommendation: That the City Council: 1. Award the Public Works Construction Contract for the FY25/26 Community Development Block Grant Curb Ramp Improvement Project, CIP No. 170, to the lowest responsive bidder, Hardy & Harper, Inc. in the amount of $187,410; 2. Find that the Project is Categorically Exempt from the California Environmental Quality Act (CEQA), Class 1 Existing Facilities, pursuant to CEQA Guidelines, Section 15301; 3. Reject all other bids; and

4. Authorize the Interim City Manager to sign the Public Works Construction Contract.

4.10 Informal Bidding Ordinance Use Quarterly Report for Public Works Projects Recommendation: That the City Council receive and file the report.

4.11 Development Application Status Report
Recommendation: That the City Council receive and file the report.

Items Removed from the Consent Calendar

4.6 Approval of Parking Citation and Parking Permit Processing Agency Services Agreement with Data Ticket, Inc.

Recommendation: That the City Council approve the Parking Citation and Parking Permit Processing Agency Services Agreement with Data Ticket, Inc. and authorize the Interim City Manager to execute the agreement.

Interim City Manager Ames removed Item No. 4.6 from the Consent Calendar to table the item to be discussed at a future meeting.

A motion to table the item was moved by Council Member Mathis, seconded by Council Member Pezold.

Vote Result: Passed
Yes 4, No 0, Abstained 0
Ayes: Mayor Sweeney, Mayor Pro Tempore Caskey, Council Member Pezold, Council Member Mathis

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City Council/Planning Agency Regular Meeting Minutes
Tuesday, October 28, 2025
Nays: None
Abstain: None

5. Planning Agency
Mayor Sweeney recessed the City Council Meeting, and acting in capacity as Chair, called the Regular Meeting of the Planning Agency of the City of Laguna Hills, California, to order at 6:11 p.m.

5.1 Roll Call of Planning Agency Members

Present:

Chair Joshua Sweeney
Vice Chair Don Caskey
Agency Member Erica Pezold
Agency Member Jared Mathis

Absent:

Agency Member Dave Wheeler

5.2 Public Comments
There were no public comments for the Planning Agency on non-agendized items.

5.3 Approval of Minutes
The Planning Agency Minutes are approved by the City Council.

5.4 Administrative Reports
There were no Planning Agency administrative reports.

5.5 Planning Agency Public Hearings

5.5.1 Conditional Use Permit (CUP) No. USE-0233-2025, a request by Adrian Freire of Mudd Industries, Inc. on behalf of property owners, Albert Ong and Jaynie Poon, for Approval of a Proposed Roof Deck on a Detached Rear Yard Accessory Structure Located at 25526 Lone Pine Circle Recommendation: That the Planning Agency:

1. Conduct a public hearing;

2. Find and determine that the proposed project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303 (Class 3, New Construction or Conversion of Small Structures); and

3. Adopt Resolution No. PA 2025-10-28-1: “A Resolution of the Planning Agency of the City of Laguna Hills, California, Approving Conditional Use Permit (CUP) No. USE-0233-2025, a Request by Adrian Freire of Mudd Industries, Inc. on Behalf of Property Owners, Albert Ong and Jaynie

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Tuesday, October 28, 2025
Poon, for Approval of a Roof Deck Above a New Detached Rear Yard Accessory Structure with an Attached Patio Cover at 25526 Lone Pine Circle, Including an Exemption from the California Environmental Quality Act (CEQA) per CEQA Guidelines Article 19 Section 15303 (Class 3, New Construction or Conversion of Small Structures).”
Contract Assistant Planner Likins reviewed the information provided in the staff report, provided a visual presentation, and responded to Agency Member requests for additional information.

Chair Sweeney opened the public hearing.

Project applicant Adrian Freire, Mudd Industries, Inc., responded to Agency Member requests for additional information and agreed to abide by the proposed conditions of approval on the project.

Property owner Albert Ong provided information on the project, responded to Agency Member requests for additional information, and agreed to abide by the proposed conditions of approval on the project.

Chair Sweeney closed the public hearing.

A motion to approve staff's recommendation was moved by Agency Member Pezold, seconded by Agency Member Mathis.

Vote Result: Passed
Yes 4, No 0, Abstained 0
Ayes: Chair Sweeney, Vice Chair Caskey, Agency Member Pezold, Agency Member Mathis
Nays: None
Abstain: None

5.6 Planning Agency Adjournment
Chair Sweeney adjourned the Planning Agency Meeting at 6:23 p.m. and reconvened the City Council Meeting.

Mayor Sweeney took Item 7.1.1 out of order on the Agenda in order to not start the City Council public hearing Item No. 6.1 before the scheduled fixed time of 6:30 p.m.

7. Administrative Reports

7.1 Interim City Manager

7.1.1 Agreement with Cityside Fiber to Co-Locate Fiber Optic Cable in the City's Traffic Signal Interconnect Conduits
Recommendation: That the City Council:

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Tuesday, October 28, 2025

1. Approve the License Agreement with Cityside Fiber subject to minor revisions by the Interim City Manager and the City Attorney;

2. Authorize the Interim City Manager to sign the Agreement; and

3. Authorize the use of the official city seal by Cityside Fiber and the Laguna Hills Chamber of Commerce for a ribbon cutting event planned for November 20, 2025.

Interim City Manager Ames reviewed the information provided in the staff report, provided a visual presentation, and responded to Council Member requests for additional information.

A motion to approve staff's recommendation was moved by Council Member Mathis, seconded by Council Member Pezold.

Vote Result: Passed
Yes 4, No 0, Abstained 0
Ayes: Mayor Sweeney, Mayor Pro Tempore Caskey, Council
Member Pezold, Council Member Mathis
Nays: None
Abstain: None

6. City Council Public Hearings

6.1 Third Public Hearing to Consider Composition of Districts for Continuing the Process to Transition to By-District Elections
Recommendation: That the City Council:

1. Receive and file districting public participation presentation prepared by the City’s retained expert demographer National Demographics Corporation and

2. Conduct the Third Public Hearing necessary for continuing the process to transition to by-district elections, review and consider input regarding the composition of districts from interested members of the public, review districting process to date, review draft maps, and provide further direction to City staff.

Council Member Pezold does not have a legal conflict of interest; however, due to a potential ethical conflict of interest arising from her friendship with attorney Michelle R. Jackson, she recused herself from the item.

City Attorney Simonian reviewed the information provided in the staff report and responded to Council Member requests for additional information.

Dr Justin Levitt, Vice-President, National Demographics Corporation (NDC) provided a visual presentation and responded to Council Member requests for additional information.

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Tuesday, October 28, 2025
Mayor Sweeney opened the public hearing.

The following individual(s) submitted an electronic public comment on Item No. 6.1 that was received, forwarded to the City Council prior to the meeting, posted on the City's website, and announced into the record by City Clerk Lee:

Mrs. Kyra & Richard Ytzen
The following individual(s) provided public comments on Item No. 6.1:

David
Karen Litfin
Mayor Sweeney closed the public hearing.

Council Member Pezold rejoined the meeting at 7:17 p.m.

7. Administrative Reports (continued)

7.2 Finance Director

7.2.1 Retired Annuitant Employment Agreement
Recommendation: That the City Council adopt Resolution No. 2025-10-28-4: "A Resolution of the City Council of the City of Laguna Hills, California, Approving and Authorizing the Interim City Manager to Appoint a Retired Annuitant to Serve as Interim Community Services Director During Temporary Absence of Current Community Services Director."
Finance Director Hendrickson reviewed the information provided in the staff report and responded to Council Member request for additional information.

A motion to approve staff's recommendation was moved by Council Member Pezold, seconded by Council Member Mathis.

Vote Result: Passed
Yes 4, No 0, Abstained 0
Ayes: Mayor Sweeney, Mayor Pro Tempore Caskey, Council
Member Pezold, Council Member Mathis
Nays: None
Abstain: None

7.3 Community Development Director

7.3.1 City of Laguna Hills Business Recognition Program Recommendation: That the City Council:

1. Consider and approve a City Council Policy to establish a Business Recognition Program that acknowledges outstanding Laguna Hills businesses that demonstrate leadership, community impact, innovation,

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Tuesday, October 28, 2025
or significant economic contributions, thereby promoting economic vitality and fostering civic pride and

2. Adopt Resolution No. 2025-10-28-5: “A Resolution of the City Council of the City of Laguna Hills, California, Adopting City Council Policy No. 370 Entitled “Business Recognition Program.”
Community Development Director Lowe reviewed the information provided in the staff report, provided a visual presentation, and responded to Council Member requests for additional information.

City Attorney Simonian responded to Council Member requests for additional information.

A motion to approve staff's recommendation was moved by Council Member Mathis, seconded by Mayor Pro Tempore Caskey.

A substitute motion to approve staff's recommendation, including the parameters of three Chamber of Commerce members and three non-members selected per year, was moved by Council Member Pezold and received no second.

A motion to approve staff's recommendation was moved by Council Member Mathis, seconded by Mayor Pro Tempore Caskey.

Vote Result: Passed
Yes 4, No 0, Abstained 0
Ayes: Mayor Sweeney, Mayor Pro Tempore Caskey, Council
Member Pezold, Council Member Mathis
Nays: None
Abstain: None

7.4 Chief of Police Services

7.4.1 Public Safety Update
Chief of Police Services, Captain Burk, provided a public safety update report, including a visual presentation.

8. Matters Agendized and Presented by City Council Members There were no matters agendized by City Council Members.

9. City Council Member Committee Reports

9.1 Committee Assignment Report
The City Council received committee assignment reports from Council Member Pezold.

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Tuesday, October 28, 2025

10. City Council Member Comments
Mayor Sweeney
Mayor Sweeney provided clarifying comments on the United Nations University's Japan-United States Leadership Summit he recently attended.

Mayor Sweeney reported that on October 17, representatives of the Slovakian Olympic Committee visited Laguna Hills High School and expressed interest in making Laguna Hills to prepare for the 2028 Los Angeles Olympic Games.

Mayor Sweeney reported that on October 11, three students from Laguna Hills High School led by Coach Lynch competed at the Manhattan University Cross Country Invitational where all three students medaled and Hannah Nourse took first place in Varsity Girls A. Mayor Sweeney shared a video clip of Hannah Nourse giving an interview after her victory.

Council Member Mathis
Council Member Mathis wished the best for Community Services Director Gannon in her upcoming leave of absence.

Mayor Pro Tempore Caskey
Mayor Pro Tempore Caskey reported on town hall meetings he recently attended at the request of Shela Kaneshiro, CEO, MemorialCare Saddleback Medical Center to provide an update on the Village at Laguna Hills project.

Council Member Pezold
Council Member Pezold requested a discussion on the community input platform and an event funding policy be agendized on the next Events, Communication, and Beautification Committee agenda.

Council Member Pezold requested a discussion on revising City Council Policy 317 in regard to lighting be agendized for a future meeting and received no second.

Interim City Manager Ames provided comments regarding the lighting of fields and the City's adopted fee schedule requirements.

Council Member Pezold requested a discussion on a policy for Council Member travel be agendized for a future meeting and received no second.

Mayor Pro Tempore Caskey
Mayor Pro Tempore Caskey provided comments regarding Council Member travel.

Council Member Pezold
Council Member Pezold requested a discussion on a budget excess disclosure policy be agendized for a future meeting and received no second.

Council Member Pezold requested a discussion on stop sign guidelines be agendized for a future meeting and received no second.

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Tuesday, October 28, 2025
Council Member Pezold requested a discussion on an ethics policy be agendized for a future meeting and received no second.

Council Member Pezold requested a discussion on a slope maintenance policy be agendized for a future meeting a received no second.

City Attorney Simonian provided comments regarding the City's slope maintenance.

Interim City Manager Ames provided comments regarding the City's slope maintenance.

Council Member Pezold requested a discussion on the budget for the LH on the Hill lighting project be agendized for a future meeting and received no second.

Council Member Pezold provided comments on gaps in the planting on La Paz Road near McIntyre Street and requested replanting of the removed hibiscus plant.

Council Member Pezold indicated that the grass on La Paz and roses on Paseo de Valencia need attention and nutrients.

Council Member Pezold requested that staff look into the installation of a lock, computer, phone and purifier for the City Council office.

Council Member Pezold requested a discussion on funding for fixing the banners throughout the city be agendized for a future meeting and received no second.

Council Member Pezold indicated that the new carpet installed on the stairs at the Community Center is falling apart and requested that staff look into the warranty on the carpet.

Adjournment
There being no further business before the City Council at this session, Mayor Sweeney declared the meeting adjourned at 8:25 p.m. to an Adjourned Regular Meeting on November 18, 2025, at 6:00 p.m., in the City Council Chamber, located at 24035 El Toro Road, Laguna Hills, California.
____________________________________
Jennifer Lee, City Clerk
ATTEST:
____________________________________
, Mayor
Approved at meeting of December 9, 2025.

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City of Laguna Hills
City Council
Special Meeting
Minutes
Friday, November 7, 2025
Call to Order
The meeting was called to order at 3:00 p.m. by Mayor Sweeney.

Roll Call of City Council Members (Council Member Erica Pezold and Mayor Pro Tempore Don Caskey, appearance via teleconference)

Present:

Mayor Joshua Sweeney
Mayor Pro Tempore Don Caskey, via teleconference
Council Member Erica Pezold, via teleconference
Council Member Jared Mathis
Council Member Dave Wheeler

Absent:

Announcement of Closed Session Item(s)
A. Conference with Legal Counsel - Anticipated Litigation Pursuant to Government Code Section 54956.9
Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) and paragraph (2) of subdivision (e) of Government Code Section 54956.9: (5 potential cases). Verbal complaints by City employees regarding City executive staff member.

Public Comments
There were no public comments on the closed session item.

Convene into Closed Session
Reconvene
The City Council reconvened in the City Council Chamber at 4:10 p.m.

Closed Session Report
A. Conference with Legal Counsel - Anticipated Litigation Pursuant to Government Code Section 54956.9
Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) and paragraph (2) of subdivision (e) of Government Code Section 54956.9: (5 potential cases). Verbal complaints by City employees regarding City executive staff member.

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City Council Special Meeting Minutes
Friday, November 7, 2025
2 Interim City Manager Ames stated that the City Council convened into Closed Session pursuant to the authorities listed on the Agenda and reported that the City Council authorized an independent investigation and authorized the Interim City Manager to execute a contract for an independent investigation using an attorney in the not to exceed amount of $200,000.

Adjournment
There being no further business before the City Council at this session, Mayor Sweeney declared the meeting adjourned at 4:10 p.m.
____________________________________
Jennifer Lee, City Clerk
ATTEST:
____________________________________
, Mayor
Approved at meeting of December 9, 2025.

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City of Laguna Hills
City Council / Planning Agency
Special Meeting
Minutes
Tuesday, November 18, 2025
General Business
Call to Order
The meeting was called to order at 6:00 p.m. by Mayor Sweeney.

Invocation: Council Member Pezold
Pledge of Allegiance: Boy Scout Troop 12
Roll Call of City Council Members

Present:

Mayor Joshua Sweeney
Mayor Pro Tempore Don Caskey
Council Member Erica Pezold
Council Member Jared Mathis
Council Member Dave Wheeler

Absent:

1. Presentations and Proclamations

1.1 Laguna Hills High School Student Liaison Report
Laguna Hills High School Student Liaison Sophia Kim was not available at the meeting to provide a report.

2. Schedule of Future Events

2.1 Schedule of Future Events
Deputy City Clerk McDonald announced the upcoming meetings and events.

3. Public Comments
Members of the public addressed the City Council only on items listed on the Special Meeting Agenda.

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Tuesday, November 18, 2025
2 4. Consent Calendar
A motion to approve the Consent Calendar was moved by Council Member Pezold, seconded by Council Member Mathis.

Vote Result: Passed
Yes 5, No 0, Abstained 0
Ayes: Mayor Sweeney, Mayor Pro Tempore Caskey, Council Member Pezold, Council Member Mathis, Council Member Wheeler
Nays: None
Abstain: None

4.2 Ratification of November 18, 2025 Warrant Register
Recommendation: That the City Council ratify the accompanying Warrant Register for the period from October 17, 2025, to November 8, 2025, in the amount of $1,821,296.67.

4.3 Treasurer's Investment Report for October 2025
Recommendation: That the City Council receive and file the Treasurer's Investment Report for the month of October 2025.

4.4 Second Amendment to Lease Agreement with Donald C. Lewellen, an individual, for 24031 El Toro Road, Suite 220, Laguna Hills, California Recommendation: That the City Council: 1. Approve the proposed Second Amendment to the lease agreement with Donald C. Lewellen, an individual, for 24031 El Toro Road, Suite 220, Laguna Hills, California; and 2. Authorize the Interim City Manager to make minor modifications, as necessary, to the lease agreement and to execute the amendment.

4.5 Development Application Status Report
Recommendation: That the City Council receive and file the report.

Items Removed from the Consent Calendar
There were no items removed from the Consent Calendar.

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City Council/Planning Agency Special Meeting Minutes
Tuesday, November 18, 2025
3 5. Planning Agency
Mayor Sweeney recessed the City Council Meeting, and acting in capacity as Chair, called the Regular Meeting of the Planning Agency of the City of Laguna Hills, California, to order at 6:09 p.m.

5.1 Roll Call of Planning Agency Members

Present:

Chair Joshua Sweeney
Vice Chair Don Caskey
Agency Member Erica Pezold
Agency Member Jared Mathis
Agency Member Dave Wheeler

Absent:

5.2 Public Comments
Members of the public addressed the Planning Agency only on items listed on the Special Meeting Agenda.

5.3 Approval of Minutes
The Planning Agency Minutes are approved by the City Council.

5.4 Administrative Reports
There were no Planning Agency administrative reports.

5.5 Planning Agency Public Hearings

5.5.1 Site Development Permit (SDP) No. USE-0195-2024, a Request by Abigail Jara, of A&S Engineering, on Behalf of Southland Property Investments, LLC for Approval of a Site Development Permit to Convert the Alicia Auto Spa From a Full-Service to a Self-Service Car Wash, Including SelfService Vacuums and Drying Stations Located at 24795 Alicia Parkway Recommendation: That the Planning Agency:

1. Conduct a public hearing;

2. Find and determine that the proposed Project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301 and 15303 of Title 14, Chapter 3 of the California Code of Regulations (Class 1, Existing Facilities; Class 3, New Construction or Conversations of Small Structures); and

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Tuesday, November 18, 2025
4 3. Adopt Resolution No. PA2025-11-18-1: “A Resolution of the Planning Agency of the City of Laguna Hills, California, Approving Site Development Permit (SDP) No. USE-0195-2024, a Request by Abigail Jara, of A&S Engineering, on Behalf of Southland Property Investments, LLC for Approval of a Site Development Permit to Convert the Alicia Auto Spa From a Full-Service to a Self-Service Car Wash, Including SelfService Vacuums and Drying Stations Located at 24795 Alicia Parkway, Including an Exemption from the California Environmental Quality Act (CEQA) per CEQA Guidelines Sections 15301 and 15303 of Title 14, Chapter 3 of the California Code of Regulations (Class 1, Existing Facilities; Class 3, New Construction or Conversions of Small Structures).”
Mayor Sweeney recessed the meeting at 6:11 p.m. due to technical difficulties and reconvened the meeting at 6:15 p.m.

Senior Planner Jay Wuu reviewed the information provided in the staff report, provided a visual presentation, and responded to Agency Member requests for additional information.

Chair Sweeney opened the public hearing.

Project applicant Ahmad Ghaderi, Principal, A&S Engineering, responded to Agency Member requests for additional information.

Project applicant Ash Delrahim, VP, Bliss Car Wash, agreed to abide by the proposed conditions of approval on the project and responded to Agency Member requests for additional information.

The following individual(s) provided public comments on Item No. 5.5.1:

Lowell Reed
Chair Sweeney closed the public hearing.

Chair Sweeney recessed the Planning Agency meeting and reconvened the City Council meeting at 6:44 p.m. in order to start the City Council public hearing with a scheduled time of 6:30 p.m.

6. City Council Public Hearings
Mayor Sweeney took Item No. 6.1 out of order on the Agenda to start the public hearing at the scheduled fixed time of 6:30p.m.

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Tuesday, November 18, 2025
5 6.1 Fourth Public Hearing to Consider Composition of Districts for Continuing the Process to Transition to By-District Elections
Recommendation: That the City Council:

1. Receive districting public participation presentation prepared by the City’s retained expert demographer National Demographics Corporation;

2. Conduct the fourth public hearing necessary for continuing the process to transition to by-district elections, review and consider input regarding the composition of districts from interested members of the public, review districting process to date, and consider all draft maps timely submitted;

3. Provide direction regarding selection of a final map;

4. Provide direction regarding the sequencing of district elections; and

5. Introduce for first reading, read by title only, and waive further reading of an Ordinance entitled, “An Ordinance of the City Council of the City of Laguna Hills, California, Adding Sections 2-04.090 and 2-04.100 to Chapter 2-04 (City Council) of Title 2 (Administration And Personnel) of the Laguna Hills Municipal Code Implementing By-District Elections of Council Members from Five Council Districts.”
Council Member Pezold does not have a legal conflict of interest; however, due to a potential ethical conflict of interest arising from her friendship with attorney Michelle R. Jackson, she recused herself from the item.

Dr Justin Levitt, Vice-President, National Demographics Corporation (NDC) provided a PowerPoint presentation and responded to Council Member requests for additional information.

Mayor Sweeney opened the public hearing.

The following individuals submitted an electronic public comment on Item No. 6.1 that were received, forwarded to the City Council prior to the meeting, posted on the City's website, and announced into the record by City Clerk Lee:

Bruce & Maureen Terry Roger Gordon Mary Koenig
Kyra Ytzen Phyllis & Frederick Roberts Cathy Udovch
Tony Ignoffo Karen Litfin William Wakefield
Julie Homyak Heidi Prescott Jeff Combs
Allison Alwan TerBush Doug Auer Sandy Combs
Marsha Westropp Lisa Brosseau Will Lennertz

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City Council/Planning Agency Special Meeting Minutes
Tuesday, November 18, 2025
6 The following individuals provided public comments on Item No. 6.1:

Karen Litfin
Randee Lennertz
Heidi Prescott
Scott Miller
Mayor Sweeney closed the public hearing.

A motion to select Map No. 108 as the Final Map for the proposed Ordinance was moved by Council Member Mathis, seconded by Mayor Pro Tempore Caskey.

Roll Call Vote Result: Passed
Yes 3, No 1, Abstained 0
Ayes: Mayor Sweeney, Mayor Pro Tempore Caskey, Council Member Mathis
Nays: Council Member Wheeler
Abstain: Council Member Pezold [Recused]
A motion to select the Sequence of Elections to be Districts 1, 2, & 4 in 2026 and Districts 3 & 5 in 2028 was moved by Council Member Mathis, seconded by Mayor Pro Tempore Caskey.

Roll Call Vote Result: Passed
Yes 3, No 1, Abstained 0
Ayes: Mayor Sweeney, Mayor Pro Tempore Caskey, Council Member Mathis
Nays: Council Member Wheeler
Abstain: Council Member Pezold [Recused]
A motion to introduce for first reading, read by title only, and waiver further reading of an Ordinance entitled: "An Ordinance of the City Council of the City of Laguna Hills, California, Adding Sections 2-04.090 and 2-04.100 to Chapter 2-04 (City Council) of Title 2 (Administration And Personnel) of the Laguna Hills Municipal Code Implementing By-District Elections of Council Members from Five Council Districts” subject to modifying subparagraph B.2 of Laguna Hills Municipal Code Section 2-04.100 as set forth on page 3 of the proposed Ordinance to read: "Council Members shall be elected in Council Districts 1, 2 and 4 at the general municipal election in November 2026 and at the general municipal election every four years thereafter. Council Members shall be elected in Council Districts 3 and 5 at the general municipal election in November 2028 and at the general municipal election every four years thereafter." and adding Map No. 108 to Exhibit A to the proposed

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Tuesday, November 18, 2025
7 Ordinance was moved by Mayor Sweeney, seconded by Mayor Pro Tempore Caskey.

Roll Call Vote Result: Passed
Yes 3, No 1, Abstained 0
Ayes: Mayor Sweeney, Mayor Pro Tempore Caskey, Council Member Mathis
Nays: Council Member Wheeler
Abstain: Council Member Pezold [Recused]
Mayor Sweeney recessed the City Council meeting and, acting in capacity as Chair, reconvened the Planning Agency meeting at 7:49 p.m.

Agency Member Pezold rejoined the meeting at 7:50 p.m.

5.5 Planning Agency Public Hearings (continued)

1. Conduct a public hearing;

3. Adopt Resolution No. PA2025-11-18-1: “A Resolution of the Planning Agency of the City of Laguna Hills, California, Approving Site Development Permit (SDP) No. USE-0195-2024, a Request by Abigail Jara, of A&S Engineering, on Behalf of Southland Property Investments, LLC for Approval of a Site Development Permit to Convert the Alicia Auto Spa From a Full-Service to a Self-Service Car Wash, Including SelfService Vacuums and Drying Stations Located at 24795 Alicia Parkway, Including an Exemption from the California Environmental Quality Act (CEQA) per CEQA Guidelines Sections 15301 and 15303 of Title 14, Chapter 3 of the California Code of Regulations (Class 1, Existing

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City Council/Planning Agency Special Meeting Minutes
Tuesday, November 18, 2025
8 Facilities; Class 3, New Construction or Conversions of Small Structures).”
Chair Sweeney reopened the public hearing.

Project applicant Ahmad Ghaderi, Principal, A&S Engineering, agreed to abide by the additional proposed conditions of approval on the project.

A motion to approve staff's recommendation, subject to modifications to include additional conditions regarding noise levels, screening, and landscaping proposed by Agency Member Pezold, was moved by Agency Member Pezold, seconded by Agency Member Mathis.

Vote Result: Passed
Yes 5, No 0, Abstained 0
Ayes: Chair Sweeney, Vice Chair Caskey, Agency Member
Pezold, Agency Member Mathis, Agency Member Wheeler
Nays: None
Abstain: None

5.6 Planning Agency Adjournment
Chair Sweeney adjourned the Planning Agency Meeting at 7:58 p.m. and reconvened the City Council Meeting.

7. Administrative Reports

7.1 City Manager
The City Manager provided no administrative reports.

8. Matters Agendized and Presented by City Council Members There were no matters agendized by City Council Members.

9. City Council Member Committee Reports

9.1 Committee Assignment Report
Recommendation: That the City Council receive reports from City Council Members on the City Council Committee Assignments listed in the staff report.

The City Council received committee assignment reports.

10. City Council Member Comments
Council Member Mathis and Mayor Sweeney thanked Interim City Manager Ames for his service to the City over the past several months.

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City Council/Planning Agency Special Meeting Minutes
Tuesday, November 18, 2025
9 Adjournment
There being no further business before the City Council at this session, Mayor Sweeney declared the meeting adjourned at 8:01 p.m.
____________________________________
Jennifer Lee, City Clerk
ATTEST:
____________________________________
, , Mayor
Approved at meeting of December 9, 2025.

Page 45 of 1305 ends

Item No. 4.5
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: December 9, 2025
To: Mayor and Council Members
From: Eric Hendrickson, Finance Director
Issue: Ratification of December 9, 2025 Warrant Register Recommendation: That the City Council ratify the accompanying Warrant Register for the period from November 9, 2025, to November 27, 2025, in the amount of $744,397.14.

Background:

The City issues accounts payable disbursements on a regular basis and presents it to the City Council for ratification at its next regularly scheduled City Council Meeting. The attached Warrant Register containing checks and electronic funds transfers for the period from November 9, 2025, to November 27, 2025, is being presented for ratification by the City Council. Payments have been reviewed and approved by the appropriate departmental staff. The Finance Director certifies to the accuracy of the attached register and to the availability of monies for payment thereof.

Fiscal Impact:

Ratification of the accompanying Warrant Register includes disbursements totaling $744,397.14.

Attachments:

1. Warrant Register - December 9, 2025

2. Payables Detail Report - December 9, 2025

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5921 S-2322 SAGECREST PLANNING AND ENVIRONMENTAL 11/20/2025 6,197.50 12/1/2025 6:13:06 PM Page 1 of 4
5919 R-1806 RJM DESIGN GROUP, INC. 11/20/2025 63,940.05 5920 G-0791 RON GORMAN 11/20/2025 300.00
5917 P-1859 POLLY'S INC 11/20/2025 3,141.00
5918 R-1977 RJ ELECTRIC 11/20/2025 3,465.15
5915 N-1487 NUVIS LANDSCAPE ARCHITECTURE 11/20/2025 4,600.00 5916 O-1617 OCY MANAGEMENT, LLC 11/20/2025 5,070.00
5913 K-1126 LORNA ANGELA GAIL KNIGHT 11/20/2025 561.16
5914 M-1302 MOULTON NIGUEL WATER DISTRICT 11/20/2025 564.09 5911 Z-CS-0516 LAILA BERGHEIM 11/20/2025 250.00
5912 L-1400 LONG BEACH ICE INC 11/20/2025 2,762.50
5909 J-1097 JACOB GREEN & ASSOCIATES, INC 11/20/2025 2,250.00 5910 J-1057 JAMEY CLARK, INC. 11/20/2025 11,447.06
5907 H-0960 HR GREEN PACIFIC, INC. 11/20/2025 17,844.50 5908 I-0960 IRV SEAVER MOTORCYCLES 11/20/2025 1,462.13
5905 F-0725 FASTSIGNS OF LAKE FOREST 11/20/2025 914.43
5906 H-0971 H.S.G. PROFESSIONAL WINDOW CLEANERS, LLC 11/20/2025 873.00 5903 D-0583 DMS FACILITY SERVICES, LLC 11/20/2025 1,360.00 5904 D-0523 DUDEK 11/20/2025 17,285.82
5901 D-0461 DATA TICKET, INC. 11/20/2025 432.15
5902 D-0578 DE NOVO PLANNING GROUP 11/20/2025 9,380.50
5899 C-1122 CROSSTOWN ELECTRICAL AND DATA, INC. 11/20/2025 14,026.95 5900 E-0593 DALE BRUCE EISENBERG 11/20/2025 485.10
5897 C-1021 CIVIC SOLUTIONS, INC. 11/20/2025 4,863.50
5898 C-1181 CIVICPLUS, LLC 11/20/2025 18,026.48
5895 C-1144 CHARLES ABBOTT ASSOCIATES, INC 11/20/2025 73,606.60 5896 C-0324 CITY OF MISSION VIEJO 11/20/2025 5,375.83
5893 B-0463 BRAVO PLAYERS GUILD LLC 11/20/2025 490.00
5894 B-0238 BURKE, WILLIAMS & SORENSEN, LLP 11/20/2025 1,260.00 5891 B-0222 BILL'S SOUND AND SECURITY 11/20/2025 65.00
5892 B-0460 BLUETRITON BRANDS INC 11/20/2025 150.36
5889 A-0359 ARDURRA GROUP, INC. 11/20/2025 7,008.00
5890 A-0365 AT&T 11/20/2025 399.47
5887 A-0138 ALL CITY MANAGEMENT, INC. 11/20/2025 9,112.32 5888 A-0392 AQUATICO 11/20/2025 1,590.00
5885 Z-2615 ZIMPRICH ENGINEERING INC 11/13/2025 500.00
5886 A-0388 ABTECH TECHNOLOGIES, INC. 11/20/2025 9,550.00 5883 S-1940 STATE WATER RESOURCES CONTROL BOARD 11/13/2025 18,196.00 5884 R-1801 WOODRUFF & SMART, A PROFESSIONAL CORPORATION 11/13/2025 100,122.24 5881 O-1575 SOUTHERN CALIFORNIA NEWS GROUP 11/13/2025 1,748.56 5882 S-1980 STATE DEPARTMENT OF JUSTICE ACCOUNTING OFFICE 11/13/2025 128.00 5879 S-1904 SOUTHERN CALIFORNIA EDISON 11/13/2025 5,634.75 5880 S-1904 SOUTHERN CALIFORNIA EDISON 11/13/2025 13,628.57 5877 C-1003 ORANGE COUNTY TREASURER-TAX COLLECTOR 11/13/2025 2,037.00 5878 S-1902 SAN DIEGO GAS AND ELECTRIC 11/13/2025 12,492.30 5875 M-1486 MAIN GRAPHICS 11/13/2025 120.75
5876 M-1302 MOULTON NIGUEL WATER DISTRICT 11/13/2025 15,379.32 5873 I-0942 IRVINE RANCH WATER DISTRICT 11/13/2025 274.97 5874 K-1209 KOA CORPORATION 11/13/2025 31,310.00
5871 C-1190 COUNTY OF ORANGE 11/13/2025 908.00
5872 Z-CD-0251 HOYT ROOFS INC 11/13/2025 300.00
Payment Type: Regular
5869 C-1144 CHARLES ABBOTT ASSOCIATES, INC 11/13/2025 33,730.51 5870 C-0324 CITY OF MISSION VIEJO 11/13/2025 87,426.00
Warrant Register - December 9, 2025
City of Laguna Hills, CA By Check Number
Date Range: 11/09/2025 - 11/27/2025
Check Number Vendor Number Vendor Name Payment Date Payment Amount

Page 47 of 1305 ends

Total Regular: 709,238.44
12/1/2025 6:13:06 PM Page 2 of 4
5929 W-2337 WEST COAST ARBORISTS, INC. 11/20/2025 11,407.30 5930 W-2452 WSP USA ENVIRONMENT AND INFRASTRUCTURE INC 11/20/2025 28,956.50 5927 R-1888 THE RITZ COMPANIES 11/20/2025 1,390.00
5928 T-2712 TOTAL SOURCE OFFICEWORKS 11/20/2025 506.05
5925 S-2095 STONE IMAGERY 11/20/2025 80.81
5926 B-0304 THE BEE MAN 11/20/2025 525.00
5923 S-2060 SAN DIEGO NATURAL HISTORY MUSEUM 11/20/2025 4,495.00 5924 S-2332 SANTA MARGARITA PLUMBING AND AIR 11/20/2025 2,395.71 Check Number Vendor Number Vendor Name Payment Date Payment Amount 5922 S-1902 SAN DIEGO GAS AND ELECTRIC 11/20/2025 35,434.45 Warrant Register - December 9, 2025 Date Range: 11/09/2025 - 11/27/2025

Page 48 of 1305 ends

12/1/2025 6:13:06 PM Page 3 of 4
121 64 0.00 744,397.14
Bank Drafts 16 2 0.00 35,158.70
EFT's 0 0 0.00 0.00
Manual Checks 0 0 0.00 0.00
Voided Checks 0 0 0.00 0.00
Total Bank Draft: 35,158.70
Bank Code 1 - General Summary
Payable
Count
Payment
Payment Type Count Discount Payment
Regular Checks 105 62 0.00 709,238.44
Payment Type: Bank Draft
DFT0003257 H-0966 HIGH LEVEL SECURITY SOLUTIONS, INC. 11/20/2025 7,308.00 DFT0003267 U-2170 US BANK CORPORATE PAYMENT SYSTEMS 11/17/2025 27,850.70 Warrant Register - December 9, 2025 Date Range: 11/09/2025 - 11/27/2025 Check Number Vendor Number Vendor Name Payment Date Payment Amount

Page 49 of 1305 ends

998 Pooled Cash & Investments 11/2025 744,397.14
744,397.14
12/1/2025 6:13:06 PM Page 4 of 4
121 64 0.00 744,397.14
Fund Summary
Fund Name Period Amount
Bank Drafts 16 2 0.00 35,158.70
EFT's 0 0 0.00 0.00
Manual Checks 0 0 0.00 0.00
Voided Checks 0 0 0.00 0.00
All Bank Codes Check Summary
Payable
Count
Payment
Payment Type Count Discount Payment
Regular Checks 105 62 0.00 709,238.44
Warrant Register - December 9, 2025 Date Range: 11/09/2025 - 11/27/2025

Page 50 of 1305 ends

Amount
12/1/2025 6:13:45 PM Page 1 of 10
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (0629) 11.06.25 Hobby Lobby, Storytime Adventures Craft Supplies
100-310-695500 35.45
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (0629) 11.06.25 Michael's, Storytime Adventures Craft Supplies
100-310-695500 43.94
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (0629) 11.06.25 Elevate Balloon Bar, Harvest in the Hills
100-310-695500 215.50
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (0629) 11.06.25 Ralphs 100-310-622000 4.79
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (0629) 11.06.25 King's Fish House 100-310-622000 86.73 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (0629) 11.06.25 Patch.com, Winter Events Advertising 100-310-624500 45.50 11/13/2025 COUNTY OF ORANGE SH 72830 Fingerprint ID System Charges, Oct 100-420-720835 908.00 11/13/2025 STATE WATER RESOURCES CONTROL
BOARD
SW-0323454 Annual Permit Fees, Public Works,
7/1/25 - 6/30/26
100-355-696000 18,196.00
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (0629) 11.06.25 Juuno.co Subscription, 10/14/25 - 11/14/25
100-310-610000 10.00
11/13/2025 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
79041 Prof Services, Legal, Sep '25, USE0211-2025100-000-223000 1,252.00 11/13/2025 HOYT ROOFS INC BLDR-0311-2025 BLDR-0311-2025, C&D Refund, REC015553-2025100-000-227001 300.00 11/13/2025 ORANGE COUNTY TREASURER-TAX

COLLECTOR
OCT 25 Parking Fee Surcharge, Oct '25 100-420-720823 2,037.00 11/13/2025 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
79038 Prof Services, Legal, Sep '25, USE0147-2023100-000-223000 42,492.54 11/13/2025 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
79039 Prof Services, Legal, Sep '25, USE0166-2023100-000-223000 1,721.50 11/13/2025 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
79040 Prof Services, Legal, Sep '25, USE0209-2025100-000-223000 1,502.40 11/13/2025 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
79036 Professional Services, Legal, Sep '25 100-155-700010 47,149.20 11/13/2025 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
79036 Professional Services, Legal, Sep '25 100-155-700011 705.60 11/13/2025 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
79037 Prof Services, Legal, Sep '25, USE0239-2025100-000-223000 4,820.20 11/13/2025 CITY OF MISSION VIEJO 21533 Animal Care Services, Oct - Dec '25 100-420-720401 87,426.00 11/13/2025 CHARLES ABBOTT ASSOCIATES, INC 69498 Professional Services, Oct '25 100-225-700000 33,730.51 11/13/2025 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
79036 Prof Services, Legal, Sep '25, USE0221-2025100-000-223000 478.80 11/13/2025 SOUTHERN CALIFORNIA EDISON 110525 - Acct #700162476559 Utilities - Electric, 9/1/25 - 10/31/25 100-356-631400 1,418.20 11/13/2025 SOUTHERN CALIFORNIA EDISON 110525 - Acct #700162476559 Utilities - Electric, 9/1/25 - 9/30/25 100-356-631900 4,167.27 11/13/2025 MAIN GRAPHICS 166194 Business Cards, Nov '25 100-310-623000 120.75 11/13/2025 SOUTHERN CALIFORNIA EDISON 110325 - Acct #700234509668 Utilities - Electric, 9/2/25 - 10/31/25 100-356-631400 14,064.88 11/13/2025 SAN DIEGO GAS AND ELECTRIC 110425 Utilities - Electric, 10/1/25 - 10/31/25 100-356-631400 12,492.30 11/13/2025 SOUTHERN CALIFORNIA EDISON 110525 - Acct #700162476559 Utilities - Electric, 9/1/25 - 10/31/25 100-355-631000 49.28 11/13/2025 MOULTON NIGUEL WATER DISTRICT 103025 Utilities - Water, 9/23/25 - 10/27/25 100-355-635000 15,379.32 11/13/2025 IRVINE RANCH WATER DISTRICT 110325 Utilities - Water, 10/1/25 - 11/1/25 100-355-635000 274.97 11/13/2025 SOUTHERN CALIFORNIA EDISON 110325 - Acct #700234509668 Utilities - Electric, 9/2/25 - 10/31/25 100-355-631000 (436.31) 11/13/2025 SOUTHERN CALIFORNIA NEWS 0011755688 Legal Advertising, Oct '25 100-155-624001 1,402.42 11/13/2025 SOUTHERN CALIFORNIA NEWS 0011759499 Legal Advertising, USE-0233-2025, Oct '25
100-000-223000 346.14
11/13/2025 STATE DEPARTMENT OF JUSTICE

ACCOUNTING OFFICE
002662 Pre-Employment Fingerprinting, Oct
'25
100-195-617000 128.00
Payables Detail Report
City of Laguna Hills, CA By Fund
Payment Dates 11/09/2025 - 11/27/2025
Payment Date Vendor Name Payable Number Description (Item) Account Number Fund: 100 - General Fund
11/13/2025 KOA CORPORATION 000024906 - 2 Citywide Safety Action Plan, 7/26/25 - 8/22/25
100-355-700000 31,310.00

Page 51 of 1305 ends

Amount
12/1/2025 6:13:45 PM Page 2 of 10
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4243) 11.06.25 Fab Glass and Mirror, Conference Room
100-000-790600 1,321.19
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4243) 11.06.25 Amazon, Conference Room 100-195-622000 408.85 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4243) 11.06.25 Amazon, Wellness & Conference
Rooms
100-195-622000 466.87
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (3165) 11.06.25 America's Instant Signs 100-355-720701 2,380.58 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (3165) 11.06.25 Barco Products LLC 100-355-720701 5,627.62 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (3165) 11.06.25 Home Depot 100-355-720701 6.95
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (3165) 11.06.25 Home Depot 100-355-720701 28.21 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (3165) 11.06.25 Home Depot 100-355-720701 395.93 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (3165) 11.06.25 Home Depot 100-355-720701 (385.18) 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (3165) 11.06.25 Devil Mountain Wholesale 100-355-720700 163.78 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (3165) 11.06.25 Smartlink 100-355-720700 540.00 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (3165) 11.06.25 Devil Mountain Wholesale 100-355-720700 2,787.06 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (2829) 11.06.25 ChatGPT Subscription, 11/3/25 - 12/3/25
100-155-610000 20.00
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (3165) 11.06.25 76 - APRO LLC 100-355-646100 95.31 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (3165) 11.06.25 Chevron 100-355-646100 117.77
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (2811) 11.06.25 Intelius 100-225-610000 24.86
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (2811) 11.06.25 76 - APRO LLC 100-225-646100 136.50 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (2811) 11.06.25 76 - APRO LLC 100-225-646100 141.15 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (2811) 11.06.25 Intelius 100-225-610000 4.99
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (2811) 11.06.25 Intelius 100-225-610000 24.86
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (1281) 11.06.25 Walmart, Circle of Friends 100-310-695500 66.61 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (1281) 11.06.25 Costco, Circle of Friends 100-310-695500 107.21 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (1281) 11.06.25 Costco, Circle of Friends 100-310-695500 112.75 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (1281) 11.06.25 Hobby Lobby, Harvest in the Hills 100-310-695500 47.13 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (1281) 11.06.25 Walmart, Trunk or Treat 100-310-695500 48.15 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (1281) 11.06.25 Smart & Final, Harvest in the Hills 100-310-695500 64.11 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (0629) 11.06.25 FunFlicks 100-310-695512 493.37 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (1281) 11.06.25 CPRS 2026 Conference, 3/10/26 - 3/13/26
100-310-611000 515.00
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (1281) 11.06.25 Ralphs 100-310-622000 12.42
Payables Detail Report Payment Dates: 11/09/2025 - 11/27/2025 Payment Date Vendor Name Payable Number Description (Item) Account Number 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (0629) 11.06.25 Baker Party Rentals, Tree Lighting 100-310-695510 465.00 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (0629) 11.06.25 CT Sound & Lighting, Dance
Extravaganza
100-310-695510 2,460.00

Page 52 of 1305 ends

Amount
12/1/2025 6:13:45 PM Page 3 of 10
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (5166) 11.06.25 ChatGPT Subscription 100-155-610000 20.00 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (5166) 11.06.25 Dropbox 100-155-610000 11.99
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (5166) 11.06.25 Microsoft 365 100-195-700090 6.00 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Amazon, Signs 100-355-720701 198.66 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Amazon, Signs 100-355-720701 18.31 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (5166) 11.06.25 ASCE Membership, 7/1/26 - 12/31/26 100-000-140000 163.00 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Amazon 100-195-622000 12.92
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Staples 100-195-622000 45.26
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Tagstand 100-195-622000 51.56
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Green Thumb International 100-195-622000 164.79 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Amazon 100-195-622000 151.20
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Amazon 100-195-622000 83.14
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Nespresso 100-195-622000 331.52 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Amazon 100-195-622000 133.78
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Amazon 100-195-622000 127.64
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Amazon 100-155-622000 159.05
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Secure Live Scan, LLC 100-195-617000 70.00 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Secure Live Scan, LLC 100-195-617000 105.00 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Amazon 100-155-622000 86.54
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Ralphs 100-155-622000 37.44
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Smart & Final 100-155-622000 71.55 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Amazon 100-155-622000 25.85
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Smart & Final 100-155-622000 26.18 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Amazon 100-155-622000 27.99
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Board & Brew 100-155-611001 345.86 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 Franco's Famous 100-155-611001 192.66 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 BJ's Restaurants 100-155-622000 190.97 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 ChatGPT Subscription, 10/23/25 - 11/23/25
100-155-610000 20.00
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 ACC-OC 2025 Washington DC
Advocacy Trip - Refunded
100-155-611000 (2,700.00)
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4849) 11.06.25 LH Chamber of Commerce, State of Business
100-155-611000 80.00
Payables Detail Report Payment Dates: 11/09/2025 - 11/27/2025 Payment Date Vendor Name Payable Number Description (Item) Account Number 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4243) 11.06.25 Tuttle-Click Ford Lincoln 100-355-646100 164.25 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4243) 11.06.25 Chevron 100-355-646100 59.99

Page 53 of 1305 ends

Amount
12/1/2025 6:13:45 PM Page 4 of 10
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Amazon, Fall Median Decorations 100-355-720401 64.60 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Home Depot, Fall Median 100-355-720401 43.73 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Home Depot 100-355-720401 115.51 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Michael's, Fall Median Decorations 100-355-720401 (32.30) 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Home Depot 100-355-720401 93.43 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Harbor Freight Tools 100-355-720401 86.19 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Michael's, Fall Median Decorations 100-355-720401 182.88 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Harbor Freight Tools 100-355-720401 172.37 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Michael's, Fall Median Decorations 100-355-720401 142.06 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Michael's, Fall Median Decorations 100-355-720401 32.30 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Harbor Freight Tools 100-355-720401 24.22 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Home Depot, Survey Monument Cap 100-355-720401 220.32 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Home Depot, Fall Median 100-355-720401 (17.12) 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Home Depot 100-355-720401 9.68
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Home Depot, Fall Median 100-355-720401 35.19 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Shell 100-355-646100 102.04
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Shell 100-355-646100 151.50
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Home Depot, Fall Median 100-355-720401 (22.76) 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (6615) 11.06.25 Chevron 100-310-646100 79.99
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (6976) 11.06.25 I Love Bagels 100-225-622000 68.36 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (7241) 11.06.25 Harbor Freight Tools 100-355-646100 51.71 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (6615) 11.06.25 Chevron 100-310-646100 37.99
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (6615) 11.06.25 Chevron 100-310-646100 33.99
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (6615) 11.06.25 Chevron 100-310-646100 75.09
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (6615) 11.06.25 Costco 100-310-622000 41.98
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (6615) 11.06.25 Home Depot 100-310-622000 96.71 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (6615) 11.06.25 Pro Court Supply 100-310-622500 231.12 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (5166) 11.06.25 Ephonomation.com, 9/18/25 -
11/12/25
100-355-630000 559.84
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (5166) 11.06.25 Chargepoint Inc 100-355-646100 12.94 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (6615) 11.06.25 Home Depot 100-310-622000 41.47 Payables Detail Report Payment Dates: 11/09/2025 - 11/27/2025 Payment Date Vendor Name Payable Number Description (Item) Account Number 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (5166) 11.06.25 ASCE Membership, 1/1/26 - 6/30/26 100-355-610000 163.00 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (5166) 11.06.25 CEAOC Meetings 100-355-611000 177.00

Page 54 of 1305 ends

Amount
12/1/2025 6:13:45 PM Page 5 of 10
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8740) 11.06.25 Town & Country Resort, MISAC
Parking, 10/22/25
100-195-611000 25.00
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8740) 11.06.25 Verizon Wireless 100-195-622000 56.01 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8740) 11.06.25 Verizon Wireless 100-195-622000 64.64 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8740) 11.06.25 Town & Country Resort, MISAC
Parking, 10/21/25
100-195-611000 38.00
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8740) 11.06.25 Mission Bay Resort, MISAC Conf, 10/19-10/22/25
100-195-611000 243.28
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8740) 11.06.25 Mission Bay Resort, MISAC Conf, 10/19-10/22/25
100-195-611000 1,320.93
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8151) 11.06.25 Aliso Coffee & Donut, Prescription Take Back
100-420-695000 67.20
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8151) 11.06.25 Smart & Final, Trunk or Treats 100-420-695000 78.95 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8665) 11.06.25 Home Depot 100-310-645500 55.22 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8151) 11.06.25 Chick-fil-A 100-420-622000 194.08 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8151) 11.06.25 South Coast Trophy 100-420-622000 172.64 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8151) 11.06.25 Amazon 100-420-622000 109.55
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Amazon, Wishing Tree Envelopes 100-310-695510 53.80 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8151) 11.06.25 Amazon Prime 100-420-610000 16.15 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8151) 11.06.25 Canva Subscription 100-420-610000 119.99 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Amazon, Tree Lighting Giveaway 100-310-695510 40.92 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Amazon, Tree Lighting Giveaway 100-310-695510 88.67 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Amazon, Holiday Decor Event 100-310-695510 837.64 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Amazon, Circle of Friends 100-310-695500 263.65 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Prime Video, Halloween Movie &
Trivia Night
100-310-695500 7.99
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 United Valet Parking, Queen Mary Excursion
100-310-695500 2.40
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Exxon Circle K 100-310-646100 52.40 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Metro Auto Parks, Union Station Excursion
100-310-695500 16.00
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Historical Society, Cemetery Tour Excursion
100-310-695500 220.72
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Exxon Circle K 100-310-646100 62.93 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Exxon Circle K 100-310-646100 61.97 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Exxon Circle K 100-310-646100 60.84 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Amazon 100-310-622000 39.37
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Amazon 100-310-622000 61.36
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Amazon 100-310-645500 391.98
Payables Detail Report Payment Dates: 11/09/2025 - 11/27/2025 Payment Date Vendor Name Payable Number Description (Item) Account Number 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Amazon 100-310-622000 10.74
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8097) 11.06.25 Amazon 100-310-622000 16.03

Page 55 of 1305 ends

Amount
11/20/2025 THE RITZ COMPANIES 226234 Heritage Room Carpet Cleaning, Sep '25
100-310-721505 695.00
12/1/2025 6:13:45 PM Page 6 of 10
11/20/2025 IRV SEAVER MOTORCYCLES 20252316 Motorcycle Maintenance, Police Svcs, Nov '25
100-420-646100 1,118.83
11/20/2025 CITY OF MISSION VIEJO 21536 Homelessness Outreach, Oct '25 100-310-720302 5,375.83 11/20/2025 THE RITZ COMPANIES 226152 Heritage Room Carpet Cleaning, Aug '25
100-310-721505 695.00
11/20/2025 DUDEK 202508419 Professional Svcs, USE-0166-2023, 8/23/25-9/26/25
100-000-223000 991.25
11/20/2025 DUDEK 202508627 Professional Svcs, USE-0147-2023, 8/23/25-9/26/25
100-000-223000 16,294.57
11/20/2025 IRV SEAVER MOTORCYCLES 20252268 Motorcycle Maintenance, Police Svcs, Nov '25
100-420-646100 343.30
11/20/2025 HR GREEN PACIFIC, INC. 195027 Field Verification of Street Rehab Zones, Oct '25
100-355-700000 1,090.00
11/20/2025 HR GREEN PACIFIC, INC. 195028 Electrical Upgrades, CIP #520, Oct '25 100-000-790600 925.00 11/20/2025 FASTSIGNS OF LAKE FOREST 2016-22042 Winter Event Banners & Yard Signs, Nov '25
100-310-624500 914.43
11/20/2025 ARDURRA GROUP, INC. 175304 Engineering Services, Oct '25 100-355-700000 7,008.00 11/20/2025 DATA TICKET, INC. 186220 Process Fee, Parking Citations, Oct '25 100-420-720823 432.15 11/20/2025 HR GREEN PACIFIC, INC. 195017 Public Works Permit Inspections, Oct '25
100-355-700255 15,829.50
11/20/2025 THE BEE MAN 136622 Bee Removal, Nov '25 100-355-720701 185.00 11/20/2025 SANTA MARGARITA PLUMBING AND
AIR
16609-45804 Unclog Sinks, Replace Faucet
Batteries, Oct '25
100-310-645500 1,330.54
11/20/2025 SANTA MARGARITA PLUMBING AND
AIR
16609-45927 Replace & Install Faucet Sensor, Oct
'25
100-310-645500 1,065.17
11/20/2025 SAN DIEGO GAS AND ELECTRIC 111325 Utilities - Electric, 10/1/25 - 10/31/25 100-356-631900 738.23 11/20/2025 RON GORMAN 1225 Breakfast with Santa Music
Entertainment, 12/13/25
100-310-695510 300.00
11/20/2025 THE BEE MAN 136573 Bee Removal, Oct '25 100-355-720701 340.00 11/20/2025 LORNA ANGELA GAIL KNIGHT 111325 Yoga, Fall '25 100-310-721500 561.16 11/20/2025 SAN DIEGO GAS AND ELECTRIC 111325 Utilities - Electric, 9/9/25 - 10/31/25 100-355-631000 7,762.74 11/20/2025 SAN DIEGO GAS AND ELECTRIC 111325 Utilities - Electric, 9/9/25 - 10/31/25 100-356-631400 13,929.26 11/20/2025 SAN DIEGO GAS AND ELECTRIC 111325 Utilities - Electric, 9/9/25 - 10/31/25 100-310-631000 13,004.22 11/20/2025 BRAVO PLAYERS GUILD LLC 111325 Musical Theatre, Fall '25 100-310-721500 490.00 11/20/2025 DALE BRUCE EISENBERG 111325 Aikido Instruction, Fall '25 100-310-721500 485.10 11/20/2025 CIVIC SOLUTIONS, INC. 107055 Consultant Services, USE-0210-2025, Sep '25
100-000-223000 312.00
11/20/2025 CIVIC SOLUTIONS, INC. 107056 Consultant Services, USE-0195-2024, Sep '25
100-000-223000 390.00
11/20/2025 CIVIC SOLUTIONS, INC. 107057 Consultant Services, USE-0209-2025, Sep '25
100-000-223000 456.50
11/20/2025 CIVIC SOLUTIONS, INC. 107052 Consultant Services, USE-0166-2023, Sep '25
100-000-223000 2,223.00
11/20/2025 CIVIC SOLUTIONS, INC. 107053 Contract Staffing Services, Sep '25 100-225-720512 858.00 11/20/2025 CIVIC SOLUTIONS, INC. 107054 Consultant Services, USE-0221-2025, Sep '25
100-000-223000 624.00
11/20/2025 POLLY'S INC 000579 Breakfast with Santa Catering, 12/13/25
100-310-695510 3,141.00
11/20/2025 BLUETRITON BRANDS INC 05J8710008221 Operating Supplies, Comm Ctr, 9/25/25 - 10/24/25
100-310-622000 150.36
11/20/2025 ALL CITY MANAGEMENT, INC. 104736 Crossing Guard Services, 10/26/25 - 11/8/25
100-420-720822 9,112.32
11/20/2025 AT&T 000024326483 Traffic Signal, 10/6/25 - 11/5/25 100-356-630000 31.41 11/20/2025 AT&T 000024328457 Alarm, Com Ctr & City Hall Lines, 10/7/25-11/6/25
100-195-630000 210.54
11/20/2025 AT&T 000024328457 Alarm, Com Ctr & City Hall Lines, 10/7/25-11/6/25
100-310-630000 157.52
Payables Detail Report Payment Dates: 11/09/2025 - 11/27/2025 Payment Date Vendor Name Payable Number Description (Item) Account Number 11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8740) 11.06.25 Dell 100-195-622000 226.24
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (8740) 11.06.25 FedEx 100-195-623000 69.33

Page 56 of 1305 ends

Amount
12/1/2025 6:13:45 PM Page 7 of 10
11/20/2025 JAMEY CLARK, INC. 77158 Graffiti Removal, Public Works, Nov 100-355-720500 1,152.00 11/20/2025 JAMEY CLARK, INC. 77169 Park Repairs, Public Works, Nov '25 100-355-720701 96.00 11/20/2025 JAMEY CLARK, INC. 77181 Graffiti Removal, Public Works, Nov 100-355-720500 432.00 11/20/2025 JAMEY CLARK, INC. 77126 Graffiti Removal, Public Works, Oct 100-355-720500 585.00 11/20/2025 JAMEY CLARK, INC. 77133 Park Repairs, Public Works, Oct '25 100-355-720701 384.00 11/20/2025 JAMEY CLARK, INC. 77134 Park Repairs, Public Works, Nov '25 100-355-720701 504.03 11/20/2025 JAMEY CLARK, INC. 77119 Park Repairs, Public Works, Oct '25 100-355-720701 336.00 11/20/2025 JAMEY CLARK, INC. 77120 Park Repairs, Public Works, Oct '25 100-355-720701 4,274.17 11/20/2025 JAMEY CLARK, INC. 77125 Janitorial Services, Oct '25 100-310-721505 3,450.00 11/20/2025 CHARLES ABBOTT ASSOCIATES, INC 69586 - B (Civic Center Drain Cleaning) Civic Center Drain Cleaning, Oct '25 100-355-720401 311.70 11/20/2025 CHARLES ABBOTT ASSOCIATES, INC 69586 - C (Bulletin Board Removal) Public Notices Board Removal, Oct '25 100-355-720401 311.70 11/20/2025 MOULTON NIGUEL WATER DISTRICT 7217018 H2O for HOAs Support, 10/23/25 100-355-696000 564.09 11/20/2025 RJ ELECTRIC 64337 Park Repairs, Snack Bar, Nov '25 100-355-720701 255.86 11/20/2025 CHARLES ABBOTT ASSOCIATES, INC 69568 Interim Principal Project Manager, Oct '25
100-355-700000 18,725.00
11/20/2025 CHARLES ABBOTT ASSOCIATES, INC 69586 - A (Fall Decor Installation) Median Decorations, Oct '25 100-355-720401 779.25 11/20/2025 RJ ELECTRIC 64285 Electric Repairs, Mackenzie Park, Oct '25
100-355-720701 355.00
11/20/2025 RJ ELECTRIC 64297 Electric Repairs, Mandeville Park, Oct '25
100-355-720701 1,059.29
11/20/2025 RJ ELECTRIC 64322 GFI Inspections, Nov '25 100-355-720701 1,795.00 11/20/2025 SAGECREST PLANNING AND

ENVIRONMENTAL
5475 Plan Check Fee, USE-0211-2025, Oct
'25
100-000-223000 5,397.50
11/20/2025 CROSSTOWN ELECTRICAL AND DATA,
INC.
5896 - 5937 Traffic Signal Maintenance, Oct '25 100-356-720420 14,026.95 11/20/2025 HIGH LEVEL SECURITY SOLUTIONS,
INC.
6004 Private Security Patrol, 11/3/25 -
11/16/25
100-420-720850 7,308.00
11/20/2025 DE NOVO PLANNING GROUP 4880 Terravita CEQA, USE-0209-2025, Sep '25
100-000-223000 4,640.00
11/20/2025 DE NOVO PLANNING GROUP 4916 Terravita CEQA, USE-0209-2025, 10/1/25-11/5/25
100-000-223000 2,132.50
11/20/2025 SAGECREST PLANNING AND

ENVIRONMENTAL
5433 Plan Check Fee, USE-0211-2025, Sep
'25
100-000-223000 800.00
11/20/2025 TOTAL SOURCE OFFICEWORKS 40433 Operating Supplies, Nov '25 100-195-622000 381.60 11/20/2025 BILL'S SOUND AND SECURITY 47099 Passcode Change, Oct '25 100-310-630000 65.00 11/20/2025 DE NOVO PLANNING GROUP 4879 23161 Mill Creek CEQA, USE-0211- 2025, Sep '25
100-000-223000 2,608.00
11/20/2025 WSP USA ENVIRONMENT AND

INFRASTRUCTURE INC
40273744 Professional Services, NPDES Support,
Oct '25
100-355-700000 28,956.50
11/20/2025 TOTAL SOURCE OFFICEWORKS 40382 Operating Supplies, Nov '25 100-195-622000 96.51 11/20/2025 TOTAL SOURCE OFFICEWORKS 40382 Operating Supplies, Nov '25 100-225-622000 27.94 11/20/2025 CIVICPLUS, LLC 353916 FOIA Workflow Platform Subscrip, 11/1/25-6/30/26
100-195-700090 6,508.53
11/20/2025 AQUATICO 372-288 Fountains/Water Features
Maintenance, Oct '25
100-310-645500 795.00
11/20/2025 AQUATICO 372-289 Fountains/Water Features
Maintenance, Nov '25
100-310-645500 795.00
11/20/2025 CIVICPLUS, LLC 350411 Acquia Optimize Standard Package, 8/21/25-6/30/26
100-195-700090 6,886.41
11/20/2025 BURKE, WILLIAMS & SORENSEN, LLP 353744 Professional Services, Legal, Oct '25 100-155-700010 1,260.00 11/20/2025 CIVICPLUS, LLC 353916 FOIA Workflow Platform Subscrip, 7/1/26-10/31/26
100-000-140000 3,254.26
11/20/2025 JACOB GREEN & ASSOCIATES, INC 3154 Recruitment Services, Oct '25 100-195-617000 2,250.00 11/20/2025 LONG BEACH ICE INC 332034 Snow at Tree Lighting, 12/5/25 100-310-695510 2,762.50 11/20/2025 CIVICPLUS, LLC 350411 Acquia Optimize Standard Package, 7/1/26-8/20/26
100-000-140000 1,377.28
11/20/2025 NUVIS LANDSCAPE ARCHITECTURE 28344 Professional Services, USE-0209- 2025, Aug '25
100-000-223000 550.00
11/20/2025 NUVIS LANDSCAPE ARCHITECTURE 28345 Professional Services, USE-0211- 2025, Aug '25
100-000-223000 4,050.00
11/20/2025 STONE IMAGERY 31060 Nameplate, Nov '25 100-155-622000 80.81 Payables Detail Report Payment Dates: 11/09/2025 - 11/27/2025 Payment Date Vendor Name Payable Number Description (Item) Account Number 11/20/2025 WEST COAST ARBORISTS, INC. 235639 Tree Trimming Services, 10/1/25 - 10/15/25
100-355-720702 11,407.30

Page 57 of 1305 ends

Amount
12/1/2025 6:13:45 PM Page 8 of 10
11/20/2025 RJM DESIGN GROUP, INC. 37428 Veeh Ranch & San Remo Rehab, CIP #241, Oct '25
600-000-490311 (39,530.70)
11/20/2025 RJM DESIGN GROUP, INC. 37428 Veeh Ranch & San Remo Rehab, CIP #241, Oct '25
600-252-950241 39,530.70
Fund 600 - Capital Improvement Projects Fund Total: -
Grand Total: 744,397.14
11/20/2025 HR GREEN PACIFIC, INC. 195028 Electrical Upgrades, CIP #520, Oct '25 600-255-950520 925.00 11/20/2025 RJM DESIGN GROUP, INC. 37427 Cabot Park Rehabilitation, CIP #241, Oct '25
600-000-490311 (24,409.35)
11/20/2025 RJM DESIGN GROUP, INC. 37427 Cabot Park Rehabilitation, CIP #241, Oct '25
600-252-950241 24,409.35
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4243) 11.06.25 Fab Glass and Mirror, Conference Room
600-000-490100 (1,321.19)
11/17/2025 US BANK CORPORATE PAYMENT

SYSTEMS
CalCard (4243) 11.06.25 Fab Glass and Mirror, Conference Room
600-255-950505 1,321.19
11/20/2025 HR GREEN PACIFIC, INC. 195028 Electrical Upgrades, CIP #520, Oct '25 600-000-490100 (925.00) 11/20/2025 RJM DESIGN GROUP, INC. 37428 Veeh Ranch & San Remo Rehab, CIP #241, Oct '25
311-000-790600 39,530.70
Fund 311 - Quimby Act Park In-Lieu Fee (VALH) Fund Total: 64,440.05 Fund: 600 - Capital Improvement Projects Fund
11/13/2025 ZIMPRICH ENGINEERING INC 25-220 Cabot Park Rehab Consulting, CIP #241, Oct '25
600-000-490311 (500.00)
11/13/2025 ZIMPRICH ENGINEERING INC 25-220 Cabot Park Rehab Consulting, CIP #241, Oct '25
600-252-950241 500.00
Fund: 221 - Senior Mobility Program Fund
11/20/2025 OCY MANAGEMENT, LLC 10406025 Senior Mobility Program, Oct '25 221-310-720000 5,070.00 Fund 221 - Senior Mobility Program Fund Total: 5,070.00 Fund: 311 - Quimby Act Park In-Lieu Fee (VALH) Fund
11/13/2025 ZIMPRICH ENGINEERING INC 25-220 Cabot Park Rehab Consulting, CIP #241, Oct '25
311-000-790600 500.00
11/20/2025 RJM DESIGN GROUP, INC. 37427 Cabot Park Rehabilitation, CIP #241, Oct '25
311-000-790600 24,409.35
11/20/2025 ABTECH TECHNOLOGIES, INC. W206471-IN Managed IT Services, Nov '25 100-195-700090 9,550.00 Fund 100 - General Fund Total: 621,408.14
Fund: 212 - Measure M2 Fund
11/20/2025 CHARLES ABBOTT ASSOCIATES, INC 69586 Road Maintenance, Oct '25 212-355-720400 53,478.95 Fund 212 - Measure M2 Fund Total: 53,478.95
11/20/2025 H.S.G. PROFESSIONAL WINDOW

CLEANERS, LLC
INHSG2493 Interior Window Cleaning, Sep '25 100-310-645500 873.00 11/20/2025 SAN DIEGO NATURAL HISTORY
MUSEUM
SI05310 Fossil Exhibit Improvement Project,
Oct '25
100-310-695504 4,495.00
11/20/2025 DMS FACILITY SERVICES, LLC STL-001795 Landscape Services, Jan '25 100-355-720700 1,360.00 Payables Detail Report Payment Dates: 11/09/2025 - 11/27/2025 Payment Date Vendor Name Payable Number Description (Item) Account Number 11/20/2025 JAMEY CLARK, INC. 77184 Park Repairs, Public Works, Nov '25 100-355-720701 233.86 11/20/2025 LAILA BERGHEIM 97601572 Refund, Facility Deposit, R #96196876 100-000-222000 250.00

Page 58 of 1305 ends

100-355-696000 NPDES Permits & Fees 18,760.09
100-355-700000 Professional Services 87,089.50
12/1/2025 6:13:45 PM Page 9 of 10
100-355-610000 Memberships & Subscriptions 163.00
100-355-611000 Training, Conferences, & 177.00
100-355-630000 Communications 559.84
100-355-631000 Utilities - Electric 7,375.71
100-355-635000 Utilities - Water 15,654.29
100-355-646100 Vehicles - Fuel & Maintenance 755.51
100-310-695504 Exhibits & Educational Programs 4,495.00 100-310-695510 Holiday Event Series 10,149.53
100-310-695512 Movies in the Park 493.37
100-310-720302 Contract Services - Homelessness 5,375.83 100-310-721500 Contract Services - Programs 1,536.26
100-310-721505 Contract Services - Janitorial & 4,840.00 100-310-624500 Printing & Advertising 959.93
100-310-630000 Communications 222.52
100-310-631000 Utilities - Electric 13,004.22
100-310-645500 Facility Maintenance & Repairs 5,305.91
100-310-646100 Vehicles - Fuel & Maintenance 465.20
100-310-695500 Special Events - Program Services 1,251.61 100-225-720512 Contract Services 858.00
100-310-610000 Memberships & Subscriptions 10.00
100-310-611000 Training, Conferences, & 515.00
100-310-622000 Operating Supplies 561.96
100-310-622500 Program & League Supplies 231.12
100-310-623000 Printing & Mailing 120.75
100-195-630000 Communications 210.54
100-195-700090 IT Contract Services & Support 22,950.94 100-225-610000 Memberships & Subscriptions 59.70
100-225-622000 Operating Supplies 96.30
100-225-646100 Vehicles - Fuel & Maintenance 277.65
100-225-700000 Professional Services - Building & 33,730.51 100-155-700010 Legal Services - General Counsel 48,409.20 100-155-700011 Legal Services - Litigation 705.60
100-195-611000 Training, Conferences, & 1,627.21
100-195-617000 Recruitment 2,553.00
100-195-622000 Operating Supplies 2,802.53
100-195-623000 Printing & Mailing 69.33
100-000-790600 Transfers Out to Capital 2,246.19
100-155-610000 Memberships & Subscriptions 71.99
100-155-611000 Training, Conferences, & (2,620.00)
100-155-611001 Staff Development & Team 538.52
100-155-622000 Operating Supplies 706.38
100-155-624001 Advertising - Legal 1,402.42
Grand Total: 744,397.14
Account Summary
Account Number Account Name Payment Amount
100-000-140000 Prepaid Items 4,794.54
100-000-222000 Refundable Deposits 250.00
100-000-223000 Plan Application Deposit 94,082.90
100-000-227001 Security Deposit - Waste 300.00
Payables Detail Report Payment Dates: 11/09/2025 - 11/27/2025 Report Summary
Fund Summary
Fund Payment Amount
100 - General Fund 621,408.14
212 - Measure M2 Fund 53,478.95
221 - Senior Mobility Program Fund 5,070.00
311 - Quimby Act Park In-Lieu Fee (VALH) Fund 64,440.05 600 - Capital Improvement Projects Fund -

Page 59 of 1305 ends

600-255-950505 Civic Center Improvements 1,321.19
600-255-950520 Community Center Electrical 925.00
Grand Total: 744,397.14
Project Account Summary
Project Account Key Payment Amount
**None** 744,397.14
Grand Total: 744,397.14
12/1/2025 6:13:45 PM Page 10 of 10
212-355-720400 Street Maintenance 53,478.95
221-310-720000 Contract Services 5,070.00
311-000-790600 Transfers Out to Capital 64,440.05
600-000-490100 Transfers In from General Fund (2,246.19) 600-000-490311 Transfers In from Quimby Act (64,440.05) 600-252-950241 General Park Renovations 64,440.05
100-420-695000 Community Assistance & Public 146.15
100-420-720401 Animal Care & Shelter Services 87,426.00 100-420-720822 Crossing Guard Services 9,112.32
100-420-720823 Parking Citation Processing 2,469.15
100-420-720835 Fingerprint Identification Services 908.00 100-420-720850 Private Security Patrol 7,308.00
100-356-631400 MOE - Electric (Streetlights & 41,904.64 100-356-631900 MOE - Electric (On-Bill Financing) 4,905.50 100-356-720420 MOE - Traffic Signal Maintenance 14,026.95 100-420-610000 Memberships & Subscriptions 136.14
100-420-622000 Operating Supplies 476.27
100-420-646100 Vehicles - Fuel & Maintenance 1,462.13
100-355-720401 Other Public Works Maintenance 2,552.95
100-355-720500 Graffiti Removal 2,169.00
100-355-720700 Landscape Maintenance 4,850.84
100-355-720701 Parks Maintenance & Repairs 18,089.29
100-355-720702 Tree Maintenance 11,407.30
100-356-630000 MOE - Communications 31.41
Payables Detail Report Payment Dates: 11/09/2025 - 11/27/2025 Account Summary
Account Number Account Name Payment Amount
100-355-700255 Improvement Inspections 15,829.50

Page 60 of 1305 ends

Item No. 4.6
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: December 9, 2025
To: Mayor and Council Members
From: Eric Hendrickson, Finance Director
Issue: Financial Statements for Fiscal Year Ending June 30, 2025 Recommendation: That the City Council receive and file the Annual Comprehensive Financial Report and other audit reports for fiscal year 2024/2025.

Background:

The certified public accounting firm Eide Bailly was engaged by the City to perform the audit of the City’s financial statements and render an opinion on whether the City’s fiscal year 2024/2025 financial statements are presented fairly in all material respects.

Attached to this report are the final audit reports issued by the auditors.

In the opinion of the auditors, the attached financial statements present fairly, in all material respects, the financial position of the governmental activities, the businesstype activities, 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 generally accepted accounting principles.

The financial section, which is the focal point of the Annual Comprehensive Financial Report (ACFR), consists of the independent auditors’ report, management’s discussion and analysis, and the financial statements. Along with the ACFR, are the other audit reports, including the Gann Appropriations Limit AUP and Governance Letter.

Staff is pleased to report there are no audit findings for this fiscal year. The City's General Fund ended the year with expenditures exceeding revenues by $1,614,606. The General Fund balance as of June 30, 2025 is $23,153,859. This decline in fund balance

Page 61 of 1305 ends

Item No. 4.6
reserves is directly attributable to the City's General Fund investing in capital improvements and projects, namely the street rehabilitation of Paseo de Valencia. In fiscal year 2024/2025, the General Fund contributed over $3 million towards these projects.

Fiscal Impact:

There is no fiscal impact to receive and file these audit reports.

Attachments:

1. City of Laguna Hills 2025 Final ACFR

2. City of Laguna Hills 2025 Final GAGAS Report

3. City of Laguna Hills 2025 Final GANN Limit AUP Report

4. City of Laguna Hills 2025 Final Governance Letter

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Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025
California

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City of Laguna Hills, California
Annual Comprehensive Financial Report
Year Ended June 30, 2025
City Manager
Jarad Hildenbrand
Finance Director
Eric Hendrickson

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City of Laguna Hills, California
Table of Contents
June 30, 2025

INTRODUCTORY SECTION
Letter of Transmittal................................................................................................................................................i Organizational Chart.............................................................................................................................................. vi City Officials.......................................................................................................................................................... vii City Executive Staff............................................................................................................................................... vii Certificate of Achievement for Excellence in Financial Reporting (GFOA).......................................................... viii

FINANCIAL SECTION
Independent Auditor’s Report .................................................................................................................................. 1 Management’s Discussion and Analysis.................................................................................................................... 5 Basic Financial Statements
Government Wide Financial Statements
Statement of Net Position................................................................................................................................... 17 Statement of Activities........................................................................................................................................ 18 Fund Financial Statements
Balance Sheet - Governmental Funds ................................................................................................................. 20 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position............................ 21 Statement of Revenues, Expenditures and Changes in Fund Balances............................................................... 22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities........................................................................................... 23 Proprietary Fund Financial Statements
Statement of Net Position – Proprietary Fund.................................................................................................... 24 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Fund............................... 25 Statement of Cash Flows – Proprietary Fund...................................................................................................... 26 Notes to Financial Statements ................................................................................................................................ 27 Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability............................................................................ 59 Schedule of Contributions................................................................................................................................... 60 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund ...... 61 Note to Required Supplementary Information ....................................................................................................... 62

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City of Laguna Hills, California
Table of Contents
June 30, 2025
Supplementary Information
Non-Major Governmental Funds – Special Revenue:

Combining Balance Sheet.................................................................................................................................... 65 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances........................................... 72 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Capital Projects Fund – Major Fund .................................................................................................................... 79 Gas Tax Special Revenue Fund ............................................................................................................................ 80 Measure M2 Special Revenue Fund .................................................................................................................... 81 SB1 RMRA Special Revenue Fund........................................................................................................................ 82 AB 2766 Special Revenue Fund ........................................................................................................................... 83 Senior Mobility Program Special Revenue Fund ................................................................................................. 84 CARITS Special Revenue Fund ............................................................................................................................. 85 Community Development Block Grant (CDBG) Special Revenue Fund............................................................... 86 Public Art Special Revenue Fund ......................................................................................................................... 87 Beverage Recycling Special Revenue Fund.......................................................................................................... 88 CR&R Recycling Fee Special Revenue Fund......................................................................................................... 89 C & D Forfeited Deposits Special Revenue Fund................................................................................................. 90 SB 1383 Grant Special Revenue Fund.................................................................................................................. 91 Park In-Lieu Special Revenue Fund...................................................................................................................... 92 CASp Special Revenue Fund ................................................................................................................................ 93 Water Conservation Special Revenue Fund ........................................................................................................ 94 Public Art VALH MGP Special Revenue Fund....................................................................................................... 95 State COPS/SLESF Special Revenue Fund ............................................................................................................ 96 Debt Service Fund................................................................................................................................................ 97

STATISTICAL SECTION
Financial Trends:

Net Position by Component ............................................................................................................................ 99 Changes in Net Position................................................................................................................................. 101 Governmental Activities Tax Revenues By Source ........................................................................................ 105 Fund Balances of Governmental Funds......................................................................................................... 106 Changes in Fund Balances of Governmental Funds ...................................................................................... 108 Revenue Capacity:

Assessed Value and Estimated Actual Value of Taxable Property, Citywide ................................................ 110 Assessed Value of Property by Use Code, Citywide ...................................................................................... 111 Direct and Overlapping Property Tax Rates.................................................................................................. 113 Principal Property Taxpayers......................................................................................................................... 115 Property Tax Levies and Collections.............................................................................................................. 116 Principal Sales Tax Producers........................................................................................................................ 117

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City of Laguna Hills, California
Table of Contents
June 30, 2025
Debt Capacity:

Ratios of Outstanding Debt by Type.............................................................................................................. 118 Ratios of General Bonded Debt Outstanding ................................................................................................ 119 Direct and Overlapping Governmental Activities Debt................................................................................. 120 Legal Debt Margin Information ..................................................................................................................... 121 Pledged Revenue Coverage........................................................................................................................... 123 Demographic and Economic Information:

Demographic and Economic Statistics .......................................................................................................... 124 Principal Employers....................................................................................................................................... 125 Operating Information:

Full-time Equivalent Personnel Allocation by Function ................................................................................ 126 Operating Indicators by Function.................................................................................................................. 127 Capital Asset Statistics by Function............................................................................................................... 128 City at a Glance...................................................................................................................................................... 129

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Introductory Section

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December 3, 2025
Honorable Mayor, Council Members, and Residents of the City of Laguna Hills:
he Annual Comprehensive Financial Report (ACFR) of the City of Laguna Hills for the fiscal year ended June 30, 2025, is submitted herewith. This report is published in accordance with local ordinance and State law requirements that financial statements be presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by an independent public accounting firm of licensed certified public accountants.

This report consists of management’s representations concerning the finances of the City of Laguna Hills. Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City’s management. It is management’s opinion that the data is accurate in all material aspects, is presented in a manner designed to fairly set forth the financial position and results of operations of the City, and contains all disclosures necessary to enable the reader to gain an understanding of the City’s financial affairs.

To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, misuse, and to compile sufficient reliable information for the preparation of the financial statements in conformity with GAAP. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute assurance that the financial statements are free of material misrepresentation. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects and is reported in a manner that presents fairly the financial position and results of operations of the various funds of the City, as well as the City as a whole.

The City’s financial statements have been audited by Eide Bailly, LLP, a public accounting firm fully licensed and qualified to perform audits of local government. The independent auditors concluded that there was a reasonable basis for rendering an unmodified opinion on the City’s financial statements and that the financial statements present fairly, in all material respects, the financial condition of the City at the end of this fiscal year.

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ii
A narrative introduction, overview and analysis of the basic financial statements for the City for the fiscal year ended June 30, 2025, is discussed in the Management’s Discussion and Analysis (MD&A), which immediately follows the independent auditor’s report. The MD&A is designed to complement this letter of transmittal and should be read in conjunction with it.

PROFILE OF THE CITY OF LAGUNA HILLS
The City of Laguna Hills is located in South Orange County approximately 60 miles south of Los Angeles and 70 miles north of San Diego.

Incorporated in 1991 under the laws of the State of California, it enjoys all the rights and privileges pertaining to “General Law” cities. The City is home to approximately 30,309 residents and over 1,400 businesses.

The City operates under a Council-Manager form of government.

Policymaking and legislative authority are vested in the City Council, which consists of a Mayor and a four-member Council. The Mayor is annually selected by the City Council from among its membership, and serves a one-year term. The governing Council is responsible, among other things, for passing the City’s ordinances and operating resolutions, adopting the biennial budget, appointing commissions and committees, retaining the City Attorney and hiring the City Manager. The City Manager is the chief executive officer of the City and administers the daily operations and programs of the City through department heads, other staff members and contracted services.

The City contracts for selected municipal services utilizing agreements with other governmental entities, private firms and individuals. Police services are provided by the Orange County Sheriff’s Department and fire services are provided through the Orange County Fire Authority, of which the City is a member.

Although the majority of the area in the City has a distinctive residential character, the City has a strong commercial base, specifically in the northern section of the City. This commercial area, or “Urban Village,” is anchored by the regional Village at Laguna Hills, the Oakbrook Village Shopping Center, and the Saddleback Memorial Medical Center. In addition, the area north of the Village at Laguna Hills holds a complement of commercial, retail and office mixed-uses.

FACTORS AFFECTING FINANCIAL CONDITION
The City has remained resilient and adaptable to the ever-changing situations over the past years.

Orange County saw its unemployment rate rise from 3.7 percent in June 2023 to 4.0 percent in June 2024. It has continued to increase as of June 2025 to 4.4 percent.

ECONOMIC

CONDITIONS &

OUTLOOK

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iii
Overall, on a national and local scale, inflation and the associated impacts are still hampering the economy. An economic recession is still a possibility, given the challenges with inflationary prices, a tight labor market, declining interest rates, and a stock market at an all-time high point.

As a result, the Southern California region’s economic situation remains uncertain.

To maintain its strong financial position into the future, the City must continue to promote overall fiscal health and sustainability by adhering to its conservative financial policies, focusing on organizational efficiency and performance, and fiscally prudent decision-making. This financially conservative stance has played a critical role in allowing the City to respond quickly to difficulties that were prevalent in the economy as a result of the coronavirus pandemic that began in 2020, as well as to the previous economic downturn during the years of the Great Recession.

The City utilizes a customized 8-Year Resource Allocation plan that is specifically designed to project the City’s operating and reserve policy ratios over an eight-year forecast horizon. The City’s policy is to strive to maintain an operating ratio of 1.1 to 1.0, and an Unassigned General Fund Balance Ratio of 35% as compared to General Fund operating expenditures. Both of these benchmarks were achieved as of June 30, 2025. The operating ratio for FY 2024-25 came in at 1.03 and the Unassigned Fund Balance ratio was 85%.

In developing the City’s accounting system, consideration was given to the adequacy of internal accounting controls, which are designed to provide reasonable, but not absolute, assurance in connection with: (1) the safeguarding of assets against loss from unauthorized use or disposition, and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. All internal control evaluations occur within the above framework. We believe the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Furthermore, the City maintains budgetary controls to ensure compliance with the legal provisions embodied in the annual appropriated budget approved by the City Council. The City Manager is authorized to transfer budgeted amounts within and between funds as deemed necessary in order to meet the City’s needs. Revisions that exceed the appropriated budget must be approved by the City Council.

The City invests its temporary idle cash in investments authorized under the City’s prevailing Investment Resolution and Policies, which are reviewed and approved annually. These policies are significantly more restrictive than State law, limiting investments to a maturity of one year or less. The City’s investments at the close of the most recent fiscal year ended June 30, 2025, consisted of money market mutual funds, and

LONG TERM

FINANCIAL PLANNING

ACCOUNTING SYSTEM

AND BUDGETARY

CONTROLS

CASH MANAGEMENT

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iv
investment pools with the State Treasurer’s Local Agency Investment Fund (LAIF) and Investment Trust of California (CALTrust).

Generally, only assets which cost $20,000 or more and which have a useful life of five years or more are considered capital assets. This designation is extensively discussed in the City’s Internal Control Policies and Procedures for Capital Assets and Minor Equipment, which were developed for the City’s compliance with the requirements with GASB 34.

MAJOR INITIATIVES
The following section provides a sampling of some of the various initiatives and highlights occurring throughout the 2024-2025 fiscal year:

In March of 2016, the City approved a plan for the renovation of the Laguna Hills Mall which included approximately 860,000 square feet of new and renovated commercial retail space, movie theaters, restaurants, and 988 residential units. The approved plan was known as Five Lagunas. In 2018, the property owner of Five Lagunas, Merlone-Geier Partners (MGP), informed City staff that they could not move forward with the approved 2016 plan. On November 4, 2019, MGP submitted a new application to redevelop the site. The new project, named “The Village at Laguna Hills”, was presented to the City Council by MGP at the November 12, 2019, City Council meeting.

On March 8, 2022, the City Council and Planning Agency approved “The Village at Laguna Hills” project. This project consists of demolition of the remaining mall property and buildings, along with development and construction of new retail buildings, residential buildings, a hotel, parking structures, and other infrastructure. As of June 30, 2025, the majority of the former mall buildings have been demolished. Plans for installing utility functions and infrastructure are the next significant phase. It is estimated to take many years before this major project is complete.

The California Department of Resources Recycling and Recovery (“CalRecycle”) finalized regulations for the implementation of Senate Bill (“SB”) 1383 in November 2020. SB 1383 requires local governments to reduce organic waste being sent to landfills. City staff have been consistently working to implement the requirements of SB 1383 and CalRecycle. Some of these efforts include the following. ● The City negotiated a new contract in 2024 with the City’s Franchise Waste Hauler, CR&R.
● The City implemented revised trash and recycling service fees. ● The City established an enforcement ordinance and policies to meet the requirements of SB 1383.
● The City has conducted community outreach and education on the requirements of SB 1383.

CAPITAL ASSETS

THE VILLAGE AT

LAGUNA HILLS
(FORMERLY FIVE

LAGUNAS)
SB 1383 ORGANIC

WASTE REDUCTION

IMPLEMENTATION

WORK EFFORT

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vii

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viii

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Financial Section

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eidebailly.com
25231 Paseo De Alicia, Ste. 100 | Laguna Hills, CA 92653-4615 | T 949.768.0833 | F 949.768.8408 | EOE 1 Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
City of Laguna Hills
Laguna Hills, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Laguna Hills, California (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 accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, 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 Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s 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.

Adoption of New Accounting Standard
As discussed in Note 1 to the financial statements, the City has adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences, for the year ended June 30, 2025. As a result of implementing the standard, there was no effect on the governmental activities beginning net position as of July 1, 2024. Our opinions are not modified with respect to this matter.

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2 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.

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.

Auditor’s 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 GAAS 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 GAAS 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.

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3 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of proportionate share of the net pension liability, the schedule of contributions - defined benefit pension plans, and the schedule of revenues, expenditures and changes in fund balance - budget and actual - general fund identified as Required Supplementary Information (RSI) in the accompanying table of contents, be 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.

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 combining and individual nonmajor funds financial statements, and budgetary comparison schedules 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 combining and individual nonmajor funds financial statements and budgetary comparison schedules are 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 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.

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4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 3, 2025, 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 the City’s internal control over financial reporting and compliance.

Laguna Hills, California
December 3, 2025

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Management’s Discussion and Analysis

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5 MANAGEMENT’S DISCUSSION AND ANALYSIS
The management of the City of Laguna Hills offers the readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with the accompanying transmittal letter on page i and the basic financial statements in the appropriate section.

Financial Highlights
Government-Wide
 The net position of the City of Laguna Hills at the close of the most recent fiscal year was $104,277,525. Of this amount, $18,707,376 is not restricted to a specific use or purpose.  The net change in the City’s net position resulting from the most recent fiscal year’s operation was a decrease of $6,259,883, or 5.7%. The net position of governmental activities was $100,048,432 as of June 30, 2025, for a decrease of $5,692,883, while Business-type activities decreased the City’s net position by $567,000, for a total net position of $4,229,093.
 Total revenues from all sources were $31,742,536. Of this amount, $7,370,065, or

23.2%, was from program revenues and $24,372,471, or 76.8%, was from general revenues.
 The total cost of all City programs and projects was $38,002,419. Approximately 40.3%, or $15,302,004, of this amount is attributable to public works; 32.1%, or $12,217,614, is attributable to public safety; and, 13.0%, or $4,913,429, to general government.  The net pension liability reported as of June 30, 2025, for the City’s proportionate share of the net pension liability of all pension plans, was $6,177,535. Deferred inflows of resources related to pension plans was $266,068; and deferred outflows of resources related to pension plans was $2,092,707.

Fund Based
 As of the close of the current fiscal year, the governmental funds reported combined ending fund balances of $30,618,921.
 Total nonspendable fund balances, amounts that are either not in spendable form or are legally or contractually required to be maintained, were $286,667.  Total spendable fund balances were $30,332,254. Of this amount, approximately 2.0% ($612,572 in total assigned) is constrained by the City’s intent to be used for a specific purpose and 24.6% ($7,462,962 in total restricted) is constrained in their use by external restrictions, such as by creditors, debt covenants, grantors, contributors, or by laws and regulations. This leaves a residual of $22,256,720 in unassigned fund balance for the City.

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6  Total governmental fund balances decreased by $3,971,568.  At the end of the most recent fiscal year, the total fund balance for the General Fund was $23,153,859, a decrease of $1,614,606 over prior year.
 General Fund reported revenues exceeding expenditures by $775,874.

Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Laguna Hills’ basic financial statements. The City’s basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statement themselves.
(1) Government-wide financial statements. These statements are designed to provide readers with a broad overview of the City of Laguna Hills’ financial position, in a manner similar to a private-sector business, using the economic resources measurement focus and the full accrual basis of accounting. The following reports comprise the government-wide financial statements:
a) Statement of Net Position. This report presents information on all the assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position. The difference between the assets and deferred outflows, on one hand, and liabilities and deferred inflows of resources, on the other hand, constitutes the net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or weakening, though it is important to consider other non-financial factors in accurately assessing the overall health of the City, such as the property tax base or condition of the roads, etc.
b) Statement of Activities. The information presented in this report shows how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenditures are reported in this statement for some items that will only result in cash flows in future fiscal periods.

Both of these government-wide financial statements distinguish functions of the City that are principally supported by taxes, program revenues, and intergovernmental revenues (referred to as governmental activities), from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (referred to as business-type activities).

The governmental activities of the City of Laguna Hills include general government, public works, community development, community services and public safety. Property taxes, sales and use taxes, transient occupancy taxes, and franchise fees finance most of these activities.

The business-type activity of the City of Laguna Hills pertains to the leasing of certain areas in the Laguna Hills Civic Center, which also houses City Hall.

The government-wide financial statements can be found on pages 17 to 19 of this report.

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7 (2) Fund financial statements. These statements show how City services were financed in the short term as well as what remains for future spending. These statements also report the City’s operation in more detail than the government-wide statements by providing information about the City’s most significant funds, but not the City as a whole. Funds are required to be established, either by State or Federal laws, in order to meet legal responsibilities associated with the usage of certain taxes, grants, and other money. There are three types of funds, of which, the City has two types:
a) Governmental funds. The City maintains 20 individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund and Capital Projects Fund, both of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each non-major governmental fund is provided in the form of combining statements elsewhere in this report. b) Proprietary funds. When the City charges for the services it provides, other than those services associated with the City’s general governmental operations, these services are generally reported in proprietary funds. The proprietary fund is used to report the same function presented as the business-type activity in the government-wide financial statements. The City uses the proprietary fund to account for its Civic Center leasing activity.

The fund financial statements focus on the near-term inflows and outflows of spendable resources, as well as on balances of spendable resources at the end of the fiscal year. Such information provides a short-term view of the City’s general government operations and shows whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can be readily converted to cash. The relationship between governmental activities and the governmental funds are reported in the reconciliation of government-wide and fund financial statements and in Note 1 in the Notes to the Basic Financial Statements.

The fund financial statements can be found on pages 20 to 26 of this report. (3) Notes to the basic financial statements. The notes provide additional information essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 27 to 58 of this report.
(4) Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information including budgetary comparisons for the General Fund, a schedule of proportionate share of the net pension liability, and a schedule of employer plan contributions. Additionally, the combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information.

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8 Government –Wide Financial Analysis
The City’s combined net position at the close of the most recent fiscal year ended June 30, 2025, was $104,277,525, as shown on Table 1 below. The City is able to report positive balances in all three categories of net position for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year.

Table 1
Condensed Statement of Net Position
(in thousands)
Governmental Business-Type
Activities Activities
Totals
2024 2025 2024 2025 2024 2025

Current and other assets $ 37,953 $ 34,836 $ 1,677 $ 2,115 $ 39,630 $ 36,951 Capital assets 75,668 74,028 4,603 4,079 80,271 78,107
Total assets 113,621 108,864 6,280 6,194 119,901 115,058

Total deferred outflows 2,865 2,093 - - 2,865 2,093

Long-term liabilities 6,500 6,385 - - 6,500 6,385
Other liabilities 3,233 3,805 75 115 3,308 3,920
Total liabilities 9,733 10,190 75 115 9,808 10,305

Total deferred inflows 1,012 719 1,409 1,850 2,421 2,569

Net position:

Net investment in capital assets 75,263 74,028 4,603 4,079 79,866 78,107 Restricted 9,821 7,463 - - 9,821 7,463
Unrestricted 20,657 18,557 193 150 20,850 18,707
Total net position $ 105,741 $ 100,048 $ 4,796 $ 4,229 $ 110,537 $ 104,277 By far the largest portion of the City’s net position (roughly $78.1 million, or 74.9% of total net position) reflects its net investment in capital assets, which is made up of: (1) capital assets (land, building, machinery, and equipment) less accumulated depreciation. The City does not have any debt related to capital assets as of June 30, 2025. The City uses these capital assets to provide services to citizens. Consequently, these assets are not available for future spending.

Another portion of the City’s net position, $7,462,962 (7.2% of the total net position), represents resources that are subject to external restrictions on how they may be used. The remaining balance of the City’s net position is unrestricted net position of $18,707,376 (17.9% of the total net position), which may be used to meet the City’s ongoing obligations to its citizens and creditors.

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9 The City’s combined total assets at the close of the fiscal year was $115,057,469. Of this amount, $108,863,595, or 94.6%, represents assets from governmental activities and $6,193,874, or 5.4%, represents assets from business-type activities. By far the largest component of the City’s combined total assets is in the form of capital assets at $78,107,187, or

67.9%. The remaining $36,950,282 of combined total assets is largely in the form of cash and investments of $31,060,364.

At the end of the fiscal year, the City’s combined total liabilities was $10,304,821, which was largely in the form of long-term liabilities of the City’s government activities at $6,384,557, or

62.0%. Long-term liabilities were mainly comprised of the City’s net pension liability of $6,177,535, or 60.0% of total liabilities.

Deferred inflows and outflows reported in the Statement of Net Position represent an acquisition (revenue) or consumption (expense) of net position that applies to a future period and hence will not be recognized as an inflow or outflow of resources until that time. The reported deferred inflows of $266,068 and deferred outflows of $2,092,707 pertain to the City’s pension liability, while $2,301,762 of deferred inflows relates to the City’s leases receivables. More information on the City’s pension plan can be found in Note 8, beginning on page 48 of this report. In addition, more information on the City’s leases can be found in Note 14, beginning on page 57 of this report.

The details of the changes in the City’s Net Position are shown in Table 2 on the following page.

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10 Table 2
Statement of Changes in Net Position
(in thousands)
Governmental Business-type
Activities Activities Totals
2024 2025 2024 2025 2024 2025
Revenues:

Program Revenues:

Charges for services $ 3,990 $ 2,639 $ 834 $ 802 $ 4,824 $ 3,441 Operating contributions 1,236 1,084 - - 1,236 1,084
Capital contributions 3,177 2,845 - - 3,177 2,845
General Revenues:

Property taxes 13,582 14,095 - - 13,582 14,095
Sales and use taxes 6,193 6,364 - - 6,193 6,364
Franchise taxes 1,345 1,244 - - 1,345 1,244
Transient occupancy taxes 1,161 1,073 - - 1,161 1,073
Motor vehicle in lieu taxes 39 49 - - 39 49
State subvention 29 48 - - 29 48
Interest earnings 1,324 1,129 - - 1,324 1,129
Miscellaneous revenues 146 371 - - 146 371
Total revenues 32,222 30,941 834 802 33,056 31,743
Expenses:

General government 4,508 4,913 - - 4,508 4,913
Public works 9,520 15,302 - - 9,520 15,302
Community development 1,577 1,471 - - 1,577 1,471
Community services 2,699 2,747 - - 2,699 2,747
Public safety 10,978 12,218 - - 10,978 12,218
Property leasing - - 1,373 1,369 1,3731,369
Interest (27) (17) - - (27) (17)
Total expenses 29,255 36,634 1,373 1,369 30,627 38,003
Change in net position before
transfers 2,967 (5,693) (539) (567) 2,428 (6,260)
Transfers (129) - 129 - - -
Change in net position 2,838 (5,693) (410) (567) 2,428 (6,260) Net position, beginning 102,903 105,741 5,206 4,796 108,109 110,537 Net position, ending $ 105,741 $ 100,048 $ 4,796 $ 4,229 $ 110,537$ 104,277

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11 During the fiscal year, the total revenue from all sources was $31,742,536 and the cost of all activities was $38,002,419, resulting in an overall decrease in net position of $6,259,883. The City’s governmental activities decreased total net position by $5,692,883 and its business-type activities decreased total net position by $567,000.

The revenue sources from governmental activities presented in the preceding table are illustrated in a pie chart shown below as Figure 1, which illustrates the percentage relationship of these revenues to each other, as well as their impact on the City’s total resources.

Figure 1
Revenue by Sources – Governmental Activities
FY 2024-25
As shown in the above pie chart, roughly 73.8%, or $22,824,631 of the City’s total governmental revenues are from taxes, comprised of property, sales and use, motor vehicle in lieu, franchise and transient occupancy taxes. Program revenues totaled $6,568,242, or 21.2%, of the total governmental revenues, which is comprised of charges for services, operating contributions and capital contributions. Program revenues decreased from prior year by 21.8% due primarily to one-time revenues that occurred in the prior year for Community Benefit fees for an agreement milestone being met ($1.1 million). General revenues increased from the prior year primarily due to increases in property taxes, transient occupancy taxes, and sales and use tax that were realized in Fiscal Year 2024-25.

The City’s expenses in connection with its governmental activities are categorized by function, namely: general government, public services, community development, community services and public safety. The program revenues associated with these governmental activities are classified into three categories, which are charges for services, operating contributions and grants, and capital contributions. The relationship of the City’s program revenues to the related governmental functions are illustrated in a graph shown as Figure 2 on the following page.

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12 Expenses associated with governmental activities experienced an overall increase of 25.2%, or $7,378,025 over the prior fiscal year, primarily due to increases in the Orange County Sheriff contract costs ($1.1 million) and an increased level of work completed by Public Works for capital improvement projects ($5.4 million). The significant increase in Public Works projects mainly included the two street rehabilitation projects that were completed in the fiscal year 2024-25.

The overall increase is largely attributable to increases in Public Works activity of $5,781,691 and Public Safety activity of $1,239,325.

The City’s business-type activities for the leasing of the Civic Center decreased total net position by $567,000. The decrease from business-type activities is largely attributable to depreciation.

Of the $1,368,823 of total operating expenses related to property leasing activities, depreciation represents 43.6%, or $596,361, of that total.

Program Revenues and Expenses:

Program revenues for the most recent fiscal year were $6,568,242. Expenses related to governmental activities were $36,633,596. The program revenues are generally not adequate to finance the governmental programs, so it is typical for governmental expenses to be subsidized by general revenues. The City’s expenses for public works and public safety are comparatively higher than the other expense categories, as shown in Figure 2 below.

Figure 2
Business-type Activities
The City’s business-type activity involves the leasing of rentable areas in the Civic Center building. This 3-story building complex was renovated to accommodate the City offices and to add leasable spaces. Since June 28, 2004, the City government has operated from this facility.

Altogether, there are 51,945 square feet of leasable office space in the Civic Center building.

The City occupies 21,033 square feet and leases out 30,912 square feet. The occupancy rate was approximately 97% on June 30, 2025.

During the current fiscal year, the operating revenues of the Laguna Hills Civic Center were $801,823 and the operating expenses were $1,368,823, resulting in a net operating loss of $567,000. This is largely attributable to the depreciation charge of $596,361. The contra rent revenue associated with occupied spaces for City Hall was $549,965 for the current fiscal year.

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13 Analysis of Major Funds
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities and objectives. As noted earlier, the City of Laguna Hills uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds:

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, the focus of the governmental funds is to provide information on near-term inflows and outflows, as well as the balances of spendable resources at the end of the fiscal year. Such information is useful in assessing the City of Laguna Hills’ near term financing requirements. In particular, fund balances of the governmental funds are reported separately within classifications based on a hierarchy of constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, committed, assigned, and unassigned fund balance.

As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balance of $30,618,921, a decrease of $3,971,568 from the prior year’s balance.

Of the ending fund balance, $286,667 is nonspendable fund balance, which represents the portion of fund balance that is either not in spendable form or are legally or contractually required to be maintained. Of the remaining $30,332,254 in spendable fund balance, $7,462,962 is restricted fund balance, $612,572 is assigned fund balance and $22,256,720 is unassigned fund balance. Restricted fund balance includes amounts that have externally imposed restrictions on their usage by creditors, such as debt covenants, grantors, and contributors, or by laws and regulations. Assigned fund balance includes amounts which are constrained by the City’s intent to be used for a specific purpose. These include designations for claims liability and amounts assigned for equipment maintenance of the Civic Center, Community Center, Sports Complex, slopes, storm drains, and parks.

The City identifies “major” governmental funds within the fund financial statements. Funds are reviewed annually to determine if any should be classified as a major fund. Specifically, funds that have 10% or more of total assets, liabilities, or fund balance of total governmental funds. The City may also classify as a major fund any fund or combination of funds that is considered essentially important to users.

The General Fund is the City’s primary operating governmental fund. The fund balance of the City’s general fund decreased by $1,614,606 from the prior fiscal year’s balance. While revenues exceeded expenditures in the fiscal year, the fund balance overall decreased due to the significant amount of transfers out to other funds, primarily for capital improvement project purposes.

The City’s Capital Projects Fund accounts for financial resources related to the acquisition and construction of the City’s capital projects. Revenues and transfers in from other funds reflect the financial resources used to fund the capital project expenditures during the current fiscal year; therefore, this fund typically reflects no fund balance at the end of the fiscal year.

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14 Total expenditures and transfers in for the current fiscal year were $6,886,374. Expenditures increased from the prior year by roughly 361.4%, or $5,393,950, primarily due to the street rehabilitation projects on Paseo De Valencia and La Paz Road that were completed in the current fiscal year for $5,688,213. Aside from the large street projects, capital project spending was overall down from prior year.

Proprietary fund:

The proprietary fund provides the same type of information found in the government-wide financial statements. The City’s proprietary fund consists of owning a piece of commercial real estate and leasing it to various entities. The total square footage of the Civic Center building is 51,945, of which the City is a tenant using approximately 21,033 square feet.

The statement of revenues, expenses, and changes in fund net position reflect a net operating loss of $567,000, which is largely attributable to depreciation. Before accounting for $596,361 in depreciation expense, the net operating activity would result in a net operating income of $29,361 from the City’s other leasing related activities. Moreover, the enterprise fund does not charge the City rent and common area maintenance (CAM). The estimated annual rent for the space occupied by City Hall would be approximately $549,965, not including CAM.

General Fund Budgetary Highlights
At fiscal year-end, total General Fund revenues came in at $26,899,277, which was roughly

0.1%, or $38,486, above the amended budget for the year. This increase was primarily the result of higher interest rates during the current fiscal year, which increased the City’s earnings on its cash and investments balances more than initially budgeted. Higher than anticipated property taxes, vehicle code fines, and miscellaneous revenues for reimbursements for capital improvement project costs also materialized. These higher revenues were partially offset by revenues coming in lower than budgeted in sales and use tax and transient occupancy taxes, building related permits, and intergovernmental revenues relating to a federal grant that was not recognized due to delays in grant expenditures.

Revenues from taxes, the City’s largest General Fund revenue source, came in over the budgeted amount by $110,598, or 0.5%, primarily due to property taxes coming in higher than anticipated by $409,939. However, sales and use tax and transient occupancy taxes came in lower than budgeted by $293,591 collectively. The City’s second largest General Fund revenue source were charges for services, which came in slightly lower than budgeted by $50,237 based on current year actual activity. Additionally, investment income, the City’s third largest General Fund revenue source, came in higher than budgeted by $145,808, due to increased interest rates during the fiscal year earning higher amounts on the City’s cash and investments.

General Fund expenditures totaled $26,123,403 at fiscal year-end, below budget by $1,820,670, or 6.5%. The largest budgetary savings by department was from Public Works, which came under budget by $658,392. This was mainly due to less spending than anticipated for tree and landscape maintenance, as well as professional services for a grant funded project that did not start during the fiscal year as anticipated. General Government had the second largest savings by department of $482,734 under budget, primarily due to lower actual costs for legal services

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15 than budgeted. In addition, there were salary savings from vacant positions at various points in the fiscal year.

The net change in fund balance at fiscal year-end in the General Fund was $1,614,606, which was lower than budgeted by $3,726,717. The main reason for the lower net change, as noted above, is better than expected results in taxes revenues, fines and forfeitures, investment income and miscellaneous revenues, as well as lower than anticipated expenditures during the fiscal year.

Capital Assets and Debt Administration
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2025 amounted to $78,107,187, net of accumulated depreciation. This investment includes land, land improvements, easements, right-of-ways, building, building improvements, equipment, machinery, construction in progress, and infrastructure. In accordance with the requirement of GASB 34, the value of the City’s infrastructure assets are included in this report, which include streets, sidewalks, curbs, gutters, playground equipment, and similar assets that are considered public property. Equipment and machinery includes vehicles, furniture, computer hardware and software.

A schedule showing the changes in the City’s capital assets are shown in Table 3 below.

Table 3
City of Laguna Hills Capital Assets (Net of accumulated depreciation) (in thousands)
Governmental Business-type
Activities Activities Totals
2024 2025 2024 2025 2024 2025

Land $ 17,955 $ 17,955 $ 2,855 $ 2,855 $ 20,810$ 20,810 Land improvements 1,117 955 - - 1,117 955
Rights of ways/Easements 2,854 2,854 - - 2,854 2,854
Building & improvements 1,043 973 1,748 1,224 2,791 2,197 Equipment and machinery 400 472 - - 400 472
Construction in progress 15 286 - - 15 286
Infrastructure 52,284 50,533 - - 52,284 50,533
Total capital assets, net of
accumulated depreciation

$ 75,668 $ 74,028 $ 4,603 $ 4,079 $ 80,271 $ 78,107
Additional information on the City’s capital assets can be found in Note 5 on page 42 of this report.

Long-term Debt
On January 26, 2010, to take advantage of favorable interest rates, the City issued $17,190,000 of Certificates of Participation (COPs). Proceeds from the sale were placed in an irrevocable trust used to service the future debt requirements of the 2001 and 2003 Certificates of

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16 Participation, which were issued to finance a portion of the costs to develop certain property, including the Civic Center Renovation Project and Community Center. As a result, the balance of the 2001 and 2003 COPs are considered to be defeased and the liability for those bonds has been removed. The 2010 COPs maintained an “AA+” rating from Standard & Poor’s. At fiscal year-end June 30, 2025, the remaining principal balance was $0, as the COPs were paid off during fiscal year 2024-25. Additional information on the City’s long-term debt can be found in Note 6 on pages 43 to 45 of this report.

Budget and Economic Factors
The City’s most recent adopted biennial budget for fiscal years 2025/26 - 2026/27 demonstrates the City’s intent to effectively manage costs while simultaneously positioning the City for future growth. For Fiscal Year 2025/26, General Fund operating expenditures are projected at $27,853,695, while General Fund revenues are estimated at $28,007,276.

The major goals and issues that dominated the budget process for this 2025 – 2027 biennial period are discussed in the transmittal letter, along with measures adopted to address prevailing issues facing the City.

A copy of the 2025-2027 Biennial Budget is available on the City’s website:
https://www.lagunahillsca.gov/378/Biennial-Budgets-and-Financial-Statement.

Requests for Information
This financial report is designed to provide a general overview of the City of Laguna Hills’ finances to all interested parties. Any questions regarding this report or requests for additional information should be addressed to the City’s Finance Department, at 24035 El Toro Road, Laguna Hills, California, 92653.
* * * * * *

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Basic Financial Statements

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See Notes to Basic Financial Statements 17
City of Laguna Hills, California
Statement of Net Position
June 30, 2025
Governmental Business-type
Activities Activities Total
Assets:

Cash and investments $ 30,949,209 $ 111,155 $ 31,060,364 Taxes receivable 1,791,263 - 1,791,263
Accounts receivable 51,211 39,962 91,173
Interest receivable 1,073 - 1,073
Lease receivable 497,651 1,963,405 2,461,056
Prepaid items 286,667 - 286,667
Other current assets 2,000 - 2,000
Due from other governments 1,256,686 - 1,256,686
Capital assets, not depreciated 21,095,182 2,855,425 23,950,607 Capital assets, net of accumulated
depreciation 52,932,653 1,223,927 54,156,580
Total assets 108,863,595 6,193,874 115,057,469
Deferred Outflows of Resources:

Deferred amounts from pension plans 2,092,707 - 2,092,707 Total deferred outflows of resources 2,092,707 - 2,092,707 Liabilities:

Accounts payable 2,429,999 - 2,429,999
Accrued liabilities 239,038 33,284 272,322
Deposits payable 828,934 65,677 894,611
Unearned revenue 26,551 16,327 42,878
Noncurrent Liabilities:

Due within one year 280,454 - 280,454
Due in more than one year
Other long-term liabilities 207,022 - 207,022
Net pension liability 6,177,535 - 6,177,535
Total liabilities 10,189,533 115,288 10,304,821
Deferred Inflows of Resources:

Deferred amounts from pension plans 266,068 - 266,068
Deferred amount from leases 452,269 1,849,493 2,301,762 Total deferred inflows of resources 718,337 1,849,493 2,567,830 Net Position:

Net investment in capital assets 74,027,835 4,079,352 78,107,187 Restricted for:

Capital projects 6,166,531 - 6,166,531
Public works 879,279 - 879,279
Community services 291,102 - 291,102
Police services 88,901 - 88,901
Community development 37,149 - 37,149
Unrestricted 18,557,635 149,741 18,707,376
Total net position $ 100,048,432 $ 4,229,093 $ 104,277,525

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See Notes to Basic Financial Statements 18
City of Laguna Hills, California
Statement of Activities
Year Ended June 30, 2025
Operating Capital Total
Charges for Contributions Contributions Program
Expenses Services and Grants and Grants Revenues
Governmental Activities:

General government $ 4,913,429 $ 42,000 $ - $ - $ 42,000 Public works 15,302,004 170,182 41,551 2,845,497 3,057,230 Community development 1,470,472 1,538,978 770,991 - 2,309,969 Community services 2,747,413 538,396 64,812 - 603,208
Public safety 12,217,614 349,631 206,204 - 555,835
Interest expense (credit) (17,336) - - - -
Total governmental activities 36,633,596 2,639,187 1,083,558 2,845,497 6,568,242 Business-Type Activity:

Property leasing 1,368,823 801,823 - - 801,823
Total business-type activities 1,368,823 801,823 - - 801,823 Total primary government $ 38,002,419 $ 3,441,010 $ 1,083,558 $ 2,845,497 $ 7,370,065 General Revenues:

Taxes:

Property taxes
Franchise tax
Transient occupancy tax
Intergovernmental, unrestricted:

Sales and use tax
Motor vehicle in lieu
State subvention
Investment earnings, net
Miscellaneous revenue
Total general revenues
Change in Net Position
Net Position at Beginning of Year
Net Position at End of Year
Program Revenues
Functions/Programs

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See Notes to Basic Financial Statements 19
City of Laguna Hills, California
Statement of Activities
Year Ended June 30, 2025
Governmental Business-type
Activities Activities Total
$ (4,871,429) $ - $ (4,871,429)
(12,244,774) - (12,244,774)
839,497 - 839,497
(2,144,205) - (2,144,205)
(11,661,779) - (11,661,779)
17,336 - 17,336
(30,065,354) - (30,065,354)
- (567,000) (567,000)
- (567,000) (567,000)
(30,065,354) (567,000) (30,632,354)
14,094,582 - 14,094,582
1,244,250 - 1,244,250
1,072,849 - 1,072,849
6,363,490 - 6,363,490
49,460 - 49,460
47,543 - 47,543
1,129,452 - 1,129,452
370,845 - 370,845
24,372,471 - 24,372,471
(5,692,883) (567,000) (6,259,883)
105,741,315 4,796,093 110,537,408
$ 100,048,432 $ 4,229,093 $ 104,277,525
Net (Expense) Revenue and Changes in Net Position

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See Notes to Basic Financial Statements 20
City of Laguna Hills, California
Balance Sheet - Governmental Funds
June 30, 2025
Other
Capital Governmental
General Projects Funds Totals
Assets:

Cash and investments $ 23,746,024 $ - $ 7,203,185 $ 30,949,209 Receivables:

Taxes 1,791,263 - - 1,791,263
Accounts 51,211 - - 51,211
Interest 1,073 - - 1,073
Leases 497,651 - - 497,651
Prepaid items 284,567 - 2,100 286,667
Other current assets 2,000 - - 2,000
Due from other funds 252,775 - 443 253,218
Due from other governments 518,566 - 738,120 1,256,686
Total assets $ 27,145,130 $ - $ 7,943,848 $ 35,088,978
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable $ 2,316,077 $ - $ 113,922 $ 2,429,999
Accrued liabilities 239,038 - - 239,038
Deposits 828,934 - - 828,934
Due to other funds 443 - 252,775 253,218
Unearned revenue 26,551 - - 26,551
Total liabilities 3,411,043 - 366,697 3,777,740
Deferred Inflows of Resources:

Unavailable revenues 127,959 - 112,089 240,048
Lease related 452,269 - - 452,269
Total deferred inflows of resources 580,228 - 112,089 692,317 Fund Balances:

Nonspendable 284,567 - 2,100 286,667
Restricted - - 7,462,962 7,462,962
Assigned 612,572 - - 612,572
Unassigned 22,256,720 - - 22,256,720
Total fund balances 23,153,859 - 7,465,062 30,618,921
Total liabilities, deferred inflows of
resources and fund balances $ 27,145,130 $ - $ 7,943,848 $ 35,088,978

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See Notes to Basic Financial Statements 21
City of Laguna Hills, California
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Governmental Funds
June 30, 2025
Fund balances of governmental funds $ 30,618,921
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets net of depreciation have not been included as financial resources in governmental fund activity
Capital assets 167,164,547
Accumulated depreciation (93,136,712)
Long-term liabilities are not available to pay for current-period expenditures and, therefore, are not reported in the governmental funds. Long-term liabilities consist of the following:

Direct borrowings (100,943)
Compensated absences (386,533)
Pension related liabilities applicable to the City's governmental activities are not due and payable in the current period and, accordingly, are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the Statement of Net Position as the changes in these amounts affects only the government-wide statements for governmental activities:

Deferred outflows of resources 2,092,707
Deferred inflows of resources (266,068)
Net pension liability (6,177,535)
Revenues reported as unavailable revenue in the governmental funds do not provide current financial resources but are recognized in the statement of activities. 240,048 Net Position of Governmental Activities $ 100,048,432

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See Notes to Basic Financial Statements 22
City of Laguna Hills, California
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2025
Other
Capital Governmental
General Projects Funds Totals
Revenues:

Taxes $ 22,775,171 $ - $ - $ 22,775,171
Licenses and permits 951,596 - 115,761 1,067,357
Intergovernmental 369,081 - 3,364,371 3,733,452
Charges for services 1,243,981 - - 1,243,981
Fines and forfeitures 349,631 - - 349,631
Investment income 1,038,308 - 426,189 1,464,497
Other revenues 171,509 - - 171,509
Total revenues 26,899,277 - 3,906,321 30,805,598
Expenditures:

Current:

General government 4,202,465 - - 4,202,465
Public works 5,482,910 - 1,026,095 6,509,005
Community development 1,395,472 - 75,000 1,470,472
Community services 2,471,849 - 43,533 2,515,382
Public safety 12,211,081 - - 12,211,081
Capital outlay 300,425 6,886,374 228,320 7,415,119
Debt service:

Interest and fiscal charges - - 19,441 19,441
Principal retirement 59,201 - 375,000 434,201
Total expenditures 26,123,403 6,886,374 1,767,389 34,777,166 Excess (Deficiency) of Revenues
over (Under) Expenditures 775,874 (6,886,374) 2,138,932 (3,971,568) Other Financing Sources (Uses):

Transfers in 944,176 6,886,374 375,792 8,206,342
Transfers out (3,334,656) - (4,871,686) (8,206,342)
Total other financing sources (uses) (2,390,480) 6,886,374 (4,495,894) - Net Changes in Fund Balances (1,614,606) - (2,356,962) (3,971,568) Fund Balances, Beginning of Year 24,768,465 - 9,822,024 34,590,489 Fund Balances, End of Year $ 23,153,859 $ - $ 7,465,062 $ 30,618,921

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See Notes to Basic Financial Statements 23
City of Laguna Hills, California
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2025
Net change in fund balances - total governmental funds $ (3,971,568) Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense.

This activity is reconciled as follows:

Capital outlay, net of disposals 369,372
Depreciation and amortization expense, net of disposal (2,009,302) Long-term debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Premiums associated with the issuance of long-term debt are reported as revenues in the governmental funds, but in the Statement of Net Position, the premiums are deferred and amortized throughout the period during which the related debt is outstanding. Repayment of principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.

Principal payments 375,000
Amortization of bond premium 46,932
Direct borrowing principal payments 59,201
Deferred losses on refunding of long-term debt in the Statement of Net Position are deferred and amortized throughout the period during which the related debt is outstanding. (16,796)
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.

Change in compensated absences (125,157)
Change in accrued interest for Certificates of Participation 6,641 Net difference between pension expense recorded on the government wide statement of activities and contributions paid. (562,321) Revenues in the Statement of Activities that do not meet the "availability" criteria for revenue recognition are reported as deferred inflows of resources, unavailable revenues, in the governmental funds. This is the net change in deferred inflows of resources, unavailable revenues, from the prior year. 135,115 Change in net position of governmental activities $ (5,692,883)

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See Notes to Basic Financial Statements 24
City of Laguna Hills, California
Statement of Net Position – Proprietary Fund
June 30, 2025
Enterprise -
Property Leasing
Assets:

Current Assets:

Cash and investments $ 111,155
Receivables:

Accounts 39,962
Leases 325,235
Total current assets 476,352
Noncurrent Assets:

Receivables:

Leases 1,638,170
Capital assets not depreciated 2,855,425
Capital assets, net of accumulated depreciation 1,223,927 Total noncurrent assets 5,717,522
Total assets 6,193,874
Liabilities:

Current Liabilities:

Accrued liabilities 33,284
Deposits payable 65,677
Unearned revenue 16,327
Total current liabilities 115,288
Deferred Inflows of Resources:

Leases 1,849,493
Net Position:

Net investment in capital assets 4,079,352
Unrestricted 149,741
Total net position $ 4,229,093

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See Notes to Basic Financial Statements 25
City of Laguna Hills, California
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Fund Year Ended June 30, 2025
Enterprise -
Property Leasing
Operating Revenues:

Rental fees $ 755,922
Common area maintenance revenues 45,901
Total operating revenues 801,823
Operating Expenses:

Direct operating expenses 735,914
Administrative and professional fees 36,548
Depreciation expense 596,361
Total operating expenses 1,368,823
Operating income (loss) (567,000)
Change in Net Position (567,000)
Net Position at Beginning of Year 4,796,093
Net Position at End of Year $ 4,229,093

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See Notes to Basic Financial Statements 26
City of Laguna Hills, California
Statement of Cash Flows – Proprietary Fund
Year Ended June 30, 2025
Enterprise -
Property Leasing
Operating Activities:

Receipts from tenants $ 372,439
Payments to suppliers for goods and services (736,609)
Net Cash Used for Operating Activities (364,170)
Capital and Related Financing Activities:

Acquisition of capital assets (73,182)
Cash received on lease receivables 349,985
Cash received for interest on lease receivables 58,909
Net Cash Provided by Capital and Related Financing Activities 335,712 Net Decrease in Cash and Cash Equivalents (28,458)
Cash and Cash Equivalents at Beginning of Year 139,613
Cash and Cash Equivalents at End of Year $ 111,155
Reconciliation of cash and cash equivalents:

Operating loss $ (567,000)
Adjustments to reconcile operating loss to net cash
Provided by Operating Activities:

Depreciation expense $ 596,361
Recognition of lease income (441,486)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 7,339
Increase (decrease) in accrued liabilities 21,106
Increase (decrease) in deposits payable 14,747
Increase (decrease) in unearned revenue 4,763
Total adjustments 202,830
Net Cash Provided by (used for) Operating Activities $ (364,170) Schedule of Non-Cash Investing, Capital and Financing Activities Lease receivable and deferred inflows recognized on new lessor lease transaction $ 823,374 Lease revenue recognized $ 32,592

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27 City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies a) Summary of Significant Accounting Policies
The basic financial statements of the City have been prepared in accordance with generally accepted accounting principles as applicable to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The Financial Reporting Entity
The City of Laguna Hills (the City) was incorporated on December 20, 1991 under the General Laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: public safety, highways and streets, parks, solid waste, public improvements, planning and zoning, building and safety, community services, and general administrative services.

This report includes all fund types of the City (the primary government) and the Laguna Hills Public Improvement Corporation (the Corporation). The Corporation meets the definition of a component unit and is presented on a blended basis, as if it is a part of the primary government. Although it is a legally separate entity, the governing board of the Corporation is comprised of the same membership as the City Council. The City may impose its will on the Corporation, including the ability to appoint, hire, reassign, or dismiss management. There is also a financial benefit/burden relationship between the City and the Corporation.

The Corporation was established by the City Council on September 2, 1998. The Board of Directors of the Corporation is composed of the five members in connection with the acquisition, construction and improvement of public capital improvements. The activity of the Corporation is reported in the Debt Service Fund. Separate financial statements are not prepared for this blended component unit. 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 the basic financial statements
Government-wide Financial Statements
Government-wide financial statements display information about the reporting government as a whole. These statements include separate columns for the governmental and business-type activities of the primary government. 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. Also, interfund services provided and used have not been eliminated.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
28 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. The 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, deferred outflows of resources, liabilities, and deferred inflows of resources resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

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.

The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. The types of transactions reported as program revenues for the City are reported in three categories: charges for services, operating grants and contributions, and capital grants and contributions.

Charges for services include revenues from customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Grants and contributions include revenues restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the governmentwide 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 expenditures.

Reclassifications and Eliminations
Interfund balances must generally be eliminated in the government-wide statements, except for net residual amounts due between governmental and business-type activities. Any allocations must reduce the expenses of the function from which the expenses are being allocated, so that expenses are reported only once - in the function in which they are allocated.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
29 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, deferred inflows of resources, 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 and proprietary funds are presented after the government-wide financial statements. These statements display information about major funds individually and non-major funds in the aggregate for governmental and enterprise funds.

Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their 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. For this purpose, the City considers its general revenue to be available if they are collected within 60 days of the end of the fiscal year. The City uses a 180-day availability period for special revenue grants.

Imposed non-exchange 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.

Sales taxes, property taxes, franchise fees, gas taxes, motor vehicle in lieu fees, transient occupancy taxes, grants and investment income 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. Other revenue items are considered to be measurable and available where cash is received by the government.

In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance 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.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
30 Non-current 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 non-current 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. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

When expenditures are incurred, the City’s applies the most restrictive funds first; and then the City would use the appropriate funds in the following order: committed, assigned, and lastly unassigned amounts.

Proprietary Fund
The City’s enterprise fund is a proprietary fund. In the fund financial statements, the proprietary fund is 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, the proprietary fund is presented using the economic resources measurement focus. This means that all assets and liabilities (whether current or non-current) associated with their activity are included on their statement of net position. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position. The City has no internal service funds.

Proprietary fund operating revenues, such as rental fees, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as investment income, results from non-exchange transactions or ancillary activities. Proprietary fund operating expenses result from providing the services in connection with the proprietary fund’s principal ongoing operations.

Amounts paid to acquire capital assets are capitalized as assets in the enterprise fund financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the enterprise fund financial statements, rather than as an other 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 expenditures.

When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
31 c) Major Funds
The City reports the following major governmental funds:

General Fund
The General Fund is the general operating fund of the City. It is used to account for resources traditionally associated with government, which are not required legally or by sound financial management to be accounted for in another fund.

Capital Projects Fund
The Capital Projects Fund is used to account for the financial resources to be used for the acquisition and construction of the City’s capital projects. The City has designated the Capital Projects Fund as a major fund.

The City reports the following major proprietary fund:

Property Leasing
The Property Leasing Enterprise Fund is used to account for activity pertaining to the leasing of certain areas in the Laguna Hills Civic Center, which has been the City Hall site and seat of government since June 28, 2004.

Additionally, the City reports the following fund types:

Special Revenue Funds
The Special Revenue Funds are used to account for certain revenue sources set aside for specific purposes, to avoid including restricted revenues within the general fund and to provide separate information on the sources and applications of these restricted sources.

Debt Service Fund
The Debt Service Fund is used to pay the City’s debt service on its Certificate of Participation (COP) issue. d) New Government Accounting Standards Board (GASB) Pronouncements The following accounting pronouncements were effective in fiscal year 2025:

GASB Statement No. 101, Compensated Absences – The provisions of this standard modernize the types of leave that are considered a compensated absence and provides guidance for a consistent recognition and measurement of the compensated absence liability. The City has implemented this Statement without material impact to the financial statements.

GASB Statement No. 102, Certain Risk Disclosures – The Statement requires management to evaluate whether there are risks related to a government’s vulnerabilities due to certain concentration or constraints that require disclosure. The City has implemented this Statement without material impact to the financial statements.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
32 Effective in Future Fiscal Years:

The GASB has issued the following pronouncements that have effective dates which may impact future financial statement presentation. The City has not determined the effect of the following Statements:

GASB Statement No. 103, Financial Reporting Model Improvements GASB Statement No. 104, Disclosure of Certain Capital Assets e) Cash and Investments
Investments are reported in the accompanying basic financial statements at fair value, which 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. Investments that are not traded on a market, such as investments in external pools, are valued based on the stated fair value represented by the external pool.

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 or losses realized upon the liquidation, maturity, or sale of investments.

The City pools cash and investments of all funds, except for amounts held by fiscal agents. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance.
f) Statement of Cash Flows
The enterprise proprietary fund participates in the City-wide cash and investments pool, which provides immediate access to invested funds. Accordingly, all cash and investments are considered to be cash and cash equivalents for purposes of the Statement of Cash Flows. g) Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the Government-Wide and Fund Financial Statements utilizing the consumption method. h) Property Taxes
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available (within 60 days of the fiscal year end). The County of Orange collects property taxes for the City. Tax liens attach annually as of 12:01 am on the first day of January proceeding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on January 1 each year, and are delinquent, if unpaid, on August 31.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
33 i) Capital Assets
Capital assets are capital outlay for assets of a permanent nature, valued at $20,000 or more and the usage of which is expected to be more than five years. Right to use lease assets in excess of $20,000 are capitalized. Right to use subscription assets in excess of $20,000 are capitalized. Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Contributed capital assets are valued at acquisition value at the date of the contribution.

Capital assets include public domain (infrastructure) general assets consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains.

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government-wide financial statements and in the fund financial statements of the enterprise fund.

Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective statements of net position. The range of lives used for depreciation purposes for each capital asset class, are as follows:

Years
Building and improvements 20 years
Machinery and equipment 5 - 10 years
Infrastructure 5 - 60 years
Land improvements 20 years
Asset
j) Lease Receivable
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.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
34 k) Deferred Inflows and Outflows of Resources
In addition to assets, the government-wide statement of net position and the governmental funds balance sheet will sometimes report 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) 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 experiences, changes in assumptions, and changes in proportion. These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with pensions through the plans.
• Deferred outflows related to pensions resulting from the difference in projected and actual earnings on investments of the pension plan fiduciary net position. These amounts are amortized over five years.

In addition to liabilities, the government-wide statement of net position and the governmental funds balance sheet will sometimes report 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 items that qualify for reporting in this category:
• Deferred inflows related to pensions for differences between expected and actual experiences and differences between employer contributions and the proportionate share of contributions.

These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with pensions through the plans. • Deferred inflows related to leases where the City is the lessor and is reported in the governmental fund balance sheet and statement of net position. The deferred inflows of resources related to leases are recognized as an inflow of resources (revenue) on the straight-line basis over the term of the lease.
l) Compensated Absences
Vacation time is provided to all full-time and extended part-time employees. Upon separation or retirement from City service, all employees shall be compensated at their prevailing pay rate for their accrued vacation. No employee shall be allowed to carry over more than 320 hours of vacation time from one fiscal year to the next.

At the start of the fiscal year, if an employee has more than 320 hours accrued, the City will automatically cash out any hours in excess of 320.

Compensatory time is provided to all full-time, non-management employees. Upon separation or retirement from City service, all employees shall be compensated at their prevailing pay rate for their accrued compensatory time. No employee shall be allowed to carry over more than 120 hours of compensatory time from one fiscal year to the next. At the start of the fiscal year, if an employee has more than 120 hours accrued, the City will automatically cash out any hours in excess of 120.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
35 Sick leave is provided to all full-time and extended part-time employees. Employees may accumulate unlimited sick leave hours. Upon separation or retirement from City service, all employees shall be compensated at their prevailing pay rate for their accrued sick leave.

All vacation, compensatory and sick leave pay is accrued when incurred in the government-wide financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. m) Defined Contribution Plan
The City provides a Retirement Health Savings (RHS) Plan, a defined contribution plan, through MissionSquare Retirement to its full-time employees that have reached ten (10) years of service with the City. This employersponsored retiree health benefit allows employees to accumulate assets to pay for medical expenses on a taxfree basis either upon separation of service from the City or age 50 dependent upon when contributions to the plan were made. In compliance with the Patient Protection and Affordable Care Act, contributions to the plan made after December 31, 2013, are available to plan participants for medical expenses only upon separation of employment. In the event of a participant’s death, the participant’s surviving spouse and/or eligible dependent(s) are immediately eligible to maintain the account and utilize it to fund eligible medical expenses. If a participant’s balance is not fully depleted upon the death of the eligible spouse, the account balance may continue to be utilized to pay medical expenses of eligible dependents. An eligible dependent is (a) the participant’s lawful spouse, (b) the participant’s child under the age of 27, as defined by IRC Section 152(f)(1) and Internal Revenue Service Notice 2010-38, or (c) any other individual who is a person described in IRC Section 152(a), as classified by Internal Revenue Service Notice 2004-79. The assets of the individual plans are not subject to claims of the City’s creditors. The start-up contribution for employees will be based on their accumulated sick leave hours in excess of 160 hours at their prevailing pay rate, upon the completion of ten (10) years of service to the City. Thereafter, annual contributions will be made to each employee’s account for their unused sick leave hours in excess of 160 hours on June 30th of each fiscal year at the employees’ prevailing pay rate. Upon separation from employment, the City will make a final contribution on behalf of the employee equivalent to all the unused sick leave balance of the employee at the employee’s prevailing pay rate at the time of separation. The City also contributes $5,000 on behalf of each participant, upon completion of ten years of service and annually thereafter on the participant’s employment anniversary date as long as the individual is an employee with the City. The $5,000 City contributions cease after termination or retirement of the employee. In the fiscal year ended June 30, 2025, the City contributed $30,000 to the RHS Plan. n) 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 (Plans) and additions to/deductions from the Plans’ 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.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
36 o) Use of Estimates
The preparation of the basic financial statements in accordance with accounting principles generally accepted in the United States of America, as prescribed by the GASB, requires management to make assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates.

Note 2 - Cash and Investments
The City maintains a cash and investment pool that is available for use by all funds. Cash and investments at June 30, 2025, are reported in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments $ 31,060,364
Total cash and investments $ 31,060,364
Cash and investments at June 30, 2025, consisted of the following:

Cash on hand $ 500
Pooled deposits:

Demand deposits $ 9,765,329
Total pooled deposits 9,765,329
Pooled investments:

Local Agency Investment Fund 98,009
CalTRUST Short-Term Investment Fund
CalTRUST Money Market Mutual Fund 21,196,526
Total pooled investments and deposits 21,294,535
Total cash and investments $ 31,060,364
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under provisions of bond indentures, including investment policy considerations. Interest income earned on pooled cash and investments is allocated quarterly to the various funds based on quarterly cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
37 Authorized Investments
Under the provision of the City’s investment policy, and in accordance with Section 53601 of the California Government Code, the City may invest in the following types of investments.

Maximum
Percent of
Diversification By Investments Portfolio
U.S. Treasury Obligations (bills, notes and bonds) 50%
Certificates of Deposit (CDs) Commercial Banks 50%
Certificates of Deposit (CDs) Savings and Loan 25%
State Treasurer’s Local Agency Investment Fund 100%
CalTRUST 100%
Overnight investment accounts managed by 50%
City’s primary bank
Commercial Paper 10%
Banker’s Acceptances 15%
Money Market Mutual Funds 15%
Maximum
Percent of
Diversification By Institution/Issuer Portfolio
Certificates of Deposit (CDs) Commercial Banks 25%
Certificates of Deposit (CDs) Savings and Loan $250,000 maximum
The maximum maturity for all investments listed above is 1 year with the exception of commercial paper and Prime Banker’s Acceptances for which the maximum maturity is 180 days and 270 days, respectively.

Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code.

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.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
38 The City has a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from interest rates. The City limits the investment maturities for operating funds to be scheduled to coincide with projected cash flow needs, taking into account large routine expenditures as well as considering sizable blocks of anticipated revenue. The City has elected the specific identification method to present the investment maturities as follows.
6 Months
or less Fair Value
Local Agency Investment Fund $ 98,009 $ 98,009
CalTRUST Money Market Mutual Fund 21,196,526 21,196,526 Total $ 21,294,535 $ 21,294,535
Investment Type
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. The City’s minimum legal rating for Money Market Mutual Funds is AAA. There is no minimum legal rating applicable for investments in the Local Agency Investment Fund and the City has no minimum legal rating for investments in CalTRUST. As of June 30, 2025, the City’s investment in the Local Agency Investment Fund has not been rated by a nationally recognized statistical rating organization.

Concentration of Credit Risk
Concentration credit risk is the heightened risk of potential loss when investments are concentrated in one issuer. As of June 30, 2025, other than the State Treasurer’s Local Agency Investment Fund and the CalTRUST Money Market Mutual Fund, the City had no investments concentrated in one issuer which exceeded 5% of total investments.

Custodial Credit Risk
The 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 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 to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
39 The California Government Code requires California banks and savings and loan associations to secure a city's deposits by pledging government securities with a fair value of 110% of a city's deposits. California law also allows financial institutions to secure a city’s deposits by pledging first trust deed mortgage notes having a fair value of 150% of a city's total deposits. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking.

The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.

As of June 30, 2025, none of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts.

For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement acquires the investment, and holds the investment on behalf of the reporting government.

Investment in State Treasurer’s Local Agency Investment Fund The City is a voluntary participant in the State Treasurer’s Local Agency Investment Fund that is regulated by the 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 State Treasurer’s Local Agency Investment Fund for the entire State Treasurer’s Local Agency Investment Fund portfolio (in relation to the amortized cost of that portfolio).

The balance available for withdrawal is based on the accounting records maintained by State Treasurer’s Local Agency Investment Fund, which are recorded on an amortized cost basis. The Local Agency Investment Fund is not registered with the Securities Exchange Commission and not rated.

Investment in CalTRUST Investment Pool:

CalTRUST is a Joint Powers Agency Authority created by local public agencies to provide a convenient method for local public agencies to voluntarily pool their assets for investment purposes. CalTRUST is governed by a Board of Trustees made up of experienced local agency treasurers and investment officers. The Board sets overall policies for the program and selects and supervises the activities of the investment manager and other agents. CalTRUST maintains and administers four pooled accounts within the program: Government Fund, Money Market, Short-Term, and Medium-Term. The Government Fund and Money Market accounts permit daily transactions, with same-day liquidity (provided redemption requests are received by 1:00 p.m. Pacific time), with no limit on the amount of funds that may be invested. The Short-Term account permits an unlimited number of transactions per month (with prior day notice), with no limit on the amount of funds that may be invested. The Medium-Term account permits investments, withdrawals and transfers once per month, with five days advance notice. All CalTRUST accounts comply with the limits and restrictions placed on local agency investments by the California Government Code. CalTRUST imposes a $250,000 minimum investment; however, there is no maximum limit.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
40 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 percentage interest of the fair value provided by CalTRUST for the CalTRUST accounts (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by CalTRUST.

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 in active markets for identical assets, Level 2 inputs are quoted prices for similar assets in active markets, and Level 3 inputs are significant unobservable inputs.

Amounts invested in the Local Agency Investment Fund and CalTRUST Money Market Mutual Funds are not subject to fair value measurements. Deposits and withdrawals are made on the basis of $1 and not at fair value.

Note 3 - Due From/To Other Funds
Interfund receivables and payables at June 30, 2025, were as follows.

Due From Due To
Other Funds Other Funds
Major Governmental:

General $ 252,775 $ 443
Non-major Governmental:

CDBG Special Revenue - 252,775
CASp Special Revenue 443 -
Total $ 253,218 $ 253,218
Funds
Outstanding balances at the end of the fiscal year between funds are reported as “due to/from other funds”.

These balances are the result primarily from the short-term negative cash balance in the CDBG Special Revenue Fund due to outstanding grants reimbursement and the General Fund’s outstanding transfer to the CASp Special Revenue Fund for fees retained for City use.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
41 Note 4 - Transfers In and Out
Transfers in and out for the fiscal year ended June 30, 2025, are as follows:

Transfers Transfers
Out In
Major Governmental: Major Governmental:

General $ 3,334,656 General $ 944,176
Capital Projects 6,886,374
Total major governmental 3,334,656
Total major governmental 7,830,550
Non-major Governmental: Non-major Governmental:

Gas Tax Special Revenue 1,424,312 Public Art Special Revenue Fund 367,085 Measure M2 Special Revenue 200,000 Senior Mobility Program Special Revenue 8,707 SB1 RMRA Special Revenue 1,300,000
CARITS Special Revenue Fund 101,264 Total non-major governmental 375,792 CDBG Special Revenue 275,000
Park In-Lieu Special Revenue 259,849
Public Art VALH MGP Special Revenue Fund 367,085
State COPS / SLESF Special Revenue 151,000
Debt Service Fund 793,176
Total non-major governmental 4,871,686
Total $ 8,206,342 Total $ 8,206,342
Paying Fund Receiving Fund
The General Fund transferred $3,325,949 to the Capital Projects Fund for the funding of capital improvement project (CIP) expenses. Funding of eligible CIP costs transferred to the Capital Projects Fund also included $1,424,312 from the Gas Tax Special Revenue Fund, $1,300,000 from the SB1 RMRA Special Revenue Fund, $200,000 from the Measure M2 Special Revenue Fund, $101,264 from the CARITS Special Revenue Fund, $275,000 from the CDBG Special Revenue Fund, and $259,849 from the Park In-Lieu Special Revenue Fund.

Transfers from the State COPS/SLESF Special Revenue Fund in the amount of $151,000 to the General Fund were to cover partial law enforcement contract costs.

Transfers from the Debt Service Fund in the amount of $793,176 to the General Fund were to close out the fund, moving the excess funds earned upon the final payment of the 2010 COP.

The Public Art (VALH) Special Revenue Fund was closed out during the fiscal year into the Public Art Special Revenue Fund, resulting in a transfer of $367,085.

Transfers from the General Fund were to provide the required 20% match for the Senior Mobility Program primarily funded by OCTA in the amount of $8,707.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
42 Note 5 - Capital Assets
Capital asset activity for the fiscal year ended June 30, 2025, was as follows:

Balance at Ending
July 1, 2024 Additions Deletions June 30, 2025
Governmental activities:

Land $ 17,955,354 $ - $ - $ 17,955,354
Rights of way / easements 2,854,182 - - 2,854,182
Construction in progress 15,000 270,646 - 285,646
Total cost of non-depreciable assets 20,824,536 270,646 - 21,095,182 Buildings and improvements 14,577,368 - - 14,577,368
Machinery and equipment 2,732,462 148,660 (49,934) 2,831,188 Land improvements 26,347,918 - - 26,347,918
Infrastructure 102,312,891 - - 102,312,891
Total cost of depreciable assets 145,970,639 148,660 (49,934) 146,069,365 Less accumulated depreciation for:

Buildings and improvements (13,534,808) (69,950) - (13,604,758) Machinery and equipment (2,332,903) (75,872) 49,934 (2,358,841) Land improvements (25,230,614) (162,709) - (25,393,323) Infrastructure (50,029,085) (1,750,705) - (51,779,790)
Total accumulated depreciation (91,127,410) (2,059,236) 49,934 (93,136,712) Net depreciable assets 54,843,229 (1,910,576) - 52,932,653 Total capital assets, net $ 75,667,765 $ (1,639,930) $ - $ 74,027,835 Business-type activity:

Land $ 2,855,425 $ - $ - $ 2,855,425
Total cost of non-depreciable assets 2,855,425 - - 2,855,425 Buildings and improvements 15,458,479 73,182 - 15,531,661 Total cost of depreciable assets 15,458,479 73,182 - 15,531,661 Less accumulated depreciation for:

Buildings and improvements (13,711,373) (596,361) - (14,307,734) Total accumulated depreciation (13,711,373) (596,361) - (14,307,734) Net depreciable assets 1,747,106 (523,179) - 1,223,927
Total capital assets, net $ 4,602,531 $ (523,179) $ - $ 4,079,352

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
43 Depreciation expense was charged in the following functions in the Statement of Activities:

Governmental Activities:

General government $ 23,486
Public works 1,797,186
Community services 232,031
Public safety 6,533
2,059,236
Business-type Activity:

Property leasing 596,361
Total $ 2,655,597
Note 6 - Long-term Liabilities
Long-term liability activity for the fiscal year ended June 30, 2025, was as follows:

Governmental Activities:

Balance at Balance at Amounts Due
July 1, 2024 Additions Reductions June 30, 2025 in One Year Certificates of Participation:
2010 COP $ 375,000 $ - $ (375,000) $ - $ -
Unamortized premium 46,932 - (46,932) - -
Total Certificates of
Participation 421,932 - (421,932) - -
Direct Borrowings:

Edison 131,524 - (50,342) 81,182 49,811
SDGE 28,620 - (8,859) 19,761 8,859
Other Liabilities:

Compensated absences* 261,376 125,157 - 386,533 221,784 Total other liabilities 421,520 125,157 (59,201) 487,476 280,454 Total $ 843,452 $ 125,157 $ (481,133) $ 487,476 $ 280,454 * The rollfoward only represents the net change in the compensated absences liability.

Typically, the City liquidates its certificates of participation and direct borrowings with General Fund resources.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
44 2010 Certificates of Participation
On January 26, 2010, the City (through the City’s blended component unit the Corporation) issued $17,190,000 of Certificates of Participation (COPs). Proceeds from the sale were placed in an irrevocable trust that was used to service the future debt requirements of the 2001 and 2003 Certificates of Participation. There are no amounts outstanding on the defeased COPs.

The 2010 COPs were direct obligations and pledge the full faith and credit of the City of Laguna Hills. The certificates were executed and delivered under the provisions of the Trust Agreement by and among The Bank of New York Mellon Trust Company, N.A, as trustee. The City is required under the Agreement to make rental payments each 15th day of the month immediately preceding each February 1st and August 1st from any source of available funds in an amount sufficient to pay the annual principal and interest due with respect to the Certificates.

The Serial bonds matured in annual installments ranging from $345,000 to $1,670,000, commencing February 1, 2011 and ending February 1, 2025. Interest accrues at rates between 4.00% and 5.00% and is payable semiannually.

The COPs were subject to federal arbitrage regulations. The City calculated no arbitrage rebate due.

The COPs required a reserve in an amount that is the least of (1) 125% of the average annual lease payments, (2) 10% of the original proceeds, or (3) maximum annual lease payments. This reserve at June 30, 2025 was $0 as the COPs were fully paid off as of June 30, 2025.

Direct Borrowings:

Southern California Edison On-Bill Financing Program
In fiscal year 2016-2017, the City approved the installation of energy-efficient LED streets lights in areas of the City. The project was partially funded through Southern California Edison’s On-Bill Financing Program. Through this program, the City received zero percent financing for approved energy reduction projects for $471,344.

Since each individual item is below the City’s capitalization policy, there are no amounts recorded as capital assets for these purchases. The costs are repaid from energy savings over a period of up to ten years. The unpaid balance as of June 30, 2025 was $81,182.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
45 The annual debt service requirements are as follows:

Principal
2026 $ 49,811
2027 30,404
2028 967
Total $ 81,182
Year Ending June 30:

San Diego Gas & Electric On-Bill Financing Program
In fiscal year 2017-2018, the City approved the installation of energy-efficient LED streets lights in areas of the City. The project was partially funded through San Diego Gas & Electric’s On-Bill Financing Program. Through this program, the City received zero percent financing for approved energy reduction projects for $287. Since each individual item is below the City’s capitalization policy, there are no amounts recorded as capital assets for these purchases. The costs are repaid from energy savings over a period of up to ten years. The unpaid balance as of June 30, 2025 was $19,761. The annual debt service requirements are as follows:

Principal
2026 $ 8,859
2027 7,871
2028 3,031
Total $ 19,761
Year Ending June 30:

Note 7 - Liability, Workers’ Compensation, and Purchased Insurance a) Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 126 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The Authority began covering claims of its members in 1978.

Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.
b) Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
46 Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.

Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/.

Primary Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2024-25 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members. c) Purchased Insurance
Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program which is available through the Authority.

The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $5 million.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
47 Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City property is currently insured according to a schedule of covered property submitted by the City to the Authority. City property currently has all-risk property insurance protection in the amount of $76,582,785. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible.

Earthquake and Flood Insurance
The City purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City property currently has earthquake protection in the amount of $62,294,301. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.
d) Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2024-25.

The following is a list of the allocation of risk coverage for the City as of June 30, 2025, taking in to account the City’s self-insurance portion, if any.

Claims Liability
In the financial statements prepared using the economic resources measurement focus, authoritative standards require that the liability for claims and the corresponding expense should be recognized in the period in which the underlying event occurs. In previous years, the City’s liability resulted from outstanding unallocated loss adjustment expenses (ULAE) representing the amount that will be paid out in claims as well as the expenses associated with processing of those claims. The City’s third-party administrator provided the data on estimated claim liabilities (paid and reserves). As of July 1, 2023, the City changed its insurance to the Authority noted above, and no longer has a self-insurance portion. The City paid out the remaining claims from the prior year as of June 30, 2024. As of June 30, 2025, the estimated outstanding ULAE was $0.

The following is a summary of the changes in the claims liability for the last two fiscal years:

FY 2024/25 FY 2023/24
Claims payable, beginning $ - $ 111,802
Claims and changes in estimate - (63,358)
Claims payments - (48,444)
Claims payable, ending $ - $ -
Fiscal Year Ending June 30,

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
48 Note 8 - Pension Plans
a) General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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 and 52 with statutorily reduced benefits for Tier I and PEPRA, respectively. All members are eligible for non-industrial disability benefits after 5 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. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at the measurement period ending June 30, 2024, are summarized as follows:

Miscellaneous Plan
Tier 1 PEPRA
Prior to On or After
Hire date January 1, 2013 January 1, 2013
Benefit formula 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 63 52 - 67
Monthly benefits, as a % of
eligible compensation 1.092% to 2.418% 1.0% - 2.5%
Required employee contribution rates 7.0% 8.25%
Required employer contribution rates:

Normal cost rate 11.49% 8.18%
Payments of unfunded liability $ 458,509 $ 4,182

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
49 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 the 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 rate 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. For the period ended June 30, 2025, City contributions was $807,832.

Typically, the City liquidates its net pension liability with General Fund resources. b) Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported net pension liabilities for its proportionate share of the net pension liability of all Plans as follows:

Proportionate
Share of Net
Pension Liability
Miscellaneous $ 6,177,535
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability.

The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the 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 projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for all Plans as of the measurement dates ended June 30, 2023 and 2024 was as follows:

Miscellaneous
Proportion - June 30, 2023 0.12379%
Proportion - June 30, 2024 0.12772%
Change - Increase (Decrease) 0.00393%

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
50 For the year ended June 30, 2025, the City recognized pension expense of $1,370,153. At June 30, 2025, (measurement period ending June 30, 2024), the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 807,832 $ - Differences between expected and actual experience 534,105 20,840 Change in assumptions 158,775 -
Differences between the employer's contributions and the employer's proportionate share of contributions - 245,228 Change in employer's proportion 236,362 -
Net differences between projected and actual earnings on plan investments 355,633 -
Total $ 2,092,707 $ 266,068
Deferred outflows of resources related to contributions subsequent to the measurement date of $807,832 will be recognized as a reduction of the net pension liability in the year ending June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Amount
2026 $ 373,742
2027 765,204
2028 1,732
2029 (121,871)
$ 1,018,807
Year Ending June 30,

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
51 Actuarial Assumptions
The total pension liability for the June 30, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The total pension liability was based on the following assumptions:

Miscellaneous
Valuation Date June 30, 2023
Measurement Date June 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)
Post Retirement Benefit Increase (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.
(3) The less of contract COLA or 2.3% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.3% thereafter.

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 as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
52 The expected real rates of return by asset class are as follows:

Assumed Asset Real Return
Allocation Years 1 - 10 (a) (b)
Global Equity - Cap-Weighted 30.00% 4.54%
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 Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.0%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021-22 Asset Liability Management study.

Asset Class
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.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous
1% Decrease 5.90%
Net Pension Liability $ 9,878,886
Current Discount Rate 6.90%
Net Pension Liability $ 6,177,535
1% Increase 7.90%
Net Pension Liability $ 3,130,778

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
53 Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
c) Payable to the Pension Plans
At June 30, 2025, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2025.

Note 9 - Deferred Compensation
The City offers its employees two kinds of defined contribution deferred compensation plans. City contribution rates may change if plan contracts are amended.

One plan is created in accordance with Internal Revenue Code Section 457. This plan, available to all employees, permits them to defer annually up to a maximum of $23,000 for calendar year 2024 and $23,500 for calendar year 2025. This maximum deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. Amounts accumulated under the plan have been invested in several investment options administered by independent third-party administrators at the direction of the employee.

The assets of the plan are held in trust for the exclusive benefit of the plan participants and their beneficiaries, and the assets cannot be diverted to any other purpose. The Trustee’s beneficial ownership of plan assets held in the MissionSquare Retirement is held for the further exclusive benefit of the plan participants and their beneficiaries. The plan permits loans, administered by the City, in accordance with approved loan guidelines.

The City contributes 3.75% of the employee’s compensation for part-time seasonal employees. There are no City contributions required for full-time and non-seasonal part-time employees. The City’s total contributions for the fiscal year ended June 30, 2025 was $5,407.

The other Plan is a defined contribution plan created in accordance with Internal Revenue Code Section 401A.

This Plan is available to all management staff regardless of years of service, and non-management employees who have reached a minimum of ten years of service with the City. The City is the sole contributor to this Plan and sets the contribution amount to each class of eligible employees. The contribution limit is in accordance with the prevailing IRS regulation, which is 3% for eligible non-management employees and 6.5% for eligible management employees. The City’s total contributions for the fiscal year ended June 30, 2025 was $92,983. The assets of this Plan, held for the exclusive benefits of the Plan’s participants and their beneficiaries, are administered by MissionSquare Retirement. Amounts accumulated under this Plan are self-directed by each participant.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
54 Note 10 - Classification of Net Position and Governmental Fund Balances Net Position is measured on the full accrual basis of accounting as compared to the concept of Fund Balance, which is measured on the modified accrual basis of accounting.

Net Position Classifications
Net Position is divided into three captions as 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, less outstanding balance of any debt issued to finance these capital assets.

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. Restricted net position is subject to constraints either by (1) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulation of other governments or (2) imposed by law through constitutional provisions or enabling legislation.

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

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.

Governmental Fund Balances Classifications
Fund Balances of the governmental funds are reported separately within classifications based on a hierarchy of constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, committed, assigned, and unassigned fund balance.

The nonspendable fund balance classification includes amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.

Restricted fund balances are those that have externally imposed restrictions on their usage by creditors, such as through debt covenants, grantors, contributors, or laws and regulations.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
55 Committed fund balances are those constrained to specific purposes determined by a formal action (resolution) of the City’s highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally. The City does not have any committed fund balances at June 30, 2025.

Assigned fund balances include amounts that are constrained by the City’s intent to be used for specific purposes. The City Manager has the authority to assign the portion of the fund balance in the General Fund that are constrained by the City’s intent to be used for reserves as established in the City’s Financial Policy No. 105 Section G.

Unassigned fund balances include the residual balance for the City’s General Fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.

Fund balances are presented in the following categories: nonspendable, restricted, assigned, and unassigned. A detailed schedule of fund balances at June 30, 2025 is as follows:

Other
General Capital Projects Governmental
Fund Fund Funds Total
Nonspendable:

Prepaid items $ 284,567 $ - $ 2,100 $ 286,667
Total 284,567 - 2,100 286,667
Restricted:

Capital projects - - 6,166,531 6,166,531
Public works - - 879,279 879,279
Community services - - 291,102 291,102
Police services - - 88,901 88,901
Community development - - 37,149 37,149
Total - - 7,462,962 7,462,962
Assigned:

Claims liability 161,300 - - 161,300
Community Center and
Sports Complex maintenance 112,962 - - 112,962
Parks maintenance 309,213 - - 309,213
Slopes/Storm Drain maintenance 29,097 - - 29,097
Total 612,572 - - 612,572
Unassigned 22,256,720 - - 22,256,720
Total fund balances $ 23,153,859 $ - $ 7,465,062 $ 30,618,921

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
56 Note 11 - Joint Venture
Orange County Fire Authority
In January 1995, the City of Laguna Hills entered into a Joint Powers Agreement with the Cities of Buena Park, Cypress, Dana Point, Irvine, Laguna Niguel, Lake Forest, La Palma, Los Alamitos, Mission Viejo, Garden Grove, San Clemente, San Juan Capistrano, Seal Beach, Stanton, Tustin, Villa Park, and Yorba Linda and the County of Orange to create the Orange County Fire Authority (the Authority). Since the creation of the Authority, the Cities of Aliso Viejo, Laguna Woods, Rancho Santa Margarita, Santa Ana, and Westminster have joined the Authority as members eligible for protection services. The purpose of the Authority is to provide for mutual fire protection, prevention and suppression services and related and incidental services including, but not limited to, emergency medical and transport services, as well as providing facilities and personnel for such services. The effective date of formation was March 1, 1995. The Authority’s governing board consists of one representative from each City and two from the County. The operations of the Authority are funded with structural fire fees collected by the County through the property tax roll for the unincorporated area and on behalf of all member Cities except for the Cities of Stanton, Tustin, San Clemente, Buena Park, Garden Grove, Santa Ana, Seal Beach and Westminster.

The County pays all structural fire fees it collects to the Authority. The Cities of Stanton, Tustin, San Clemente, Buena Park, Garden Grove, Santa Ana, Seal Beach and Westminster are considered “cash contract cities” and accordingly make cash contributions based on the Authority’s annual budget. No determination has been made as to each participant’s proportionate share of fund equity as of June 30, 2025. Upon dissolution of the Authority, all surplus money and property of the Authority will be conveyed or distributed to each member in proportion to all funds provided to the Authority by that member or by the County on behalf of that member during its membership.

Complete financial statements may be obtained from the Orange County Fire Authority, 1 Fire Authority Road, Irvine, California 92602.

Note 12 - Related Party Transactions
The City’s enterprise fund consists of owning a piece of commercial real estate and leasing it to various entities.

The total square footage of the building is 51,945. The City is a tenant using approximately 21,033 square feet of the building. The enterprise fund does not charge the City rent. The estimated annual rent for the space occupied by the City would be approximately $549,965.

Note 13 - Commitments and Contingencies
The City is occasionally a defendant in lawsuits which have arisen in the normal course of business. Damages are alleged in some of these actions and their outcome cannot be predicted with certainty. However, in the opinion of the City Attorney, the outcome of these actions will not have a material adverse effect on the financial position of the City.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
57 The City participates in several federal and state grant programs. The programs are subject to examination by the granters and the amount, if any, of expenses which may be disallowed by the granting agency cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

Note 14 - Leases
Governmental Activities/General Fund:

The City has accrued a receivable for four land leases. The remaining receivable for these leases was $497,651 for the year ended June 30, 2025. Deferred inflows related to these leases were $452,269 as of June 30, 2025.

Interest revenue recognized on these leases was $16,776 for the year ended June 30, 2025. Principal receipts of $106,029 were recognized during the fiscal year. The interest rate on the leases is between 2.25% and 3.25%.

Final receipt is expected in fiscal year 2038.

The future receipts on these leases are as follows:

Principal Interest Total
$ 81,923 $ 14,239 $ 96,162
84,728 12,231 96,959
44,319 10,151 54,470
28,711 9,069 37,780
21,499 8,384 29,883
133,048 30,364 163,412
103,423 6,864 110,287
$ 497,651 $ 91,302 $ 588,953
2031 - 2035
2036 - 2038
2029
2030
Years Ending June 30,
2026
2027
2028
Business-Type Activities - Property Leasing:

The City has accrued a receivable for 13 building leases. The remaining receivable for these leases was $1,963,405 for the year ended June 30, 2025. Deferred inflows related to these leases were $1,849,493 as of June 30, 2025. Interest revenue recognized on these leases was $58,909 for the year ended June 30, 2025.

Principal receipts of $349,987 were recognized during the fiscal year. The interest rate on the leases is between

1.25% and 4.71%. Final receipt is expected in fiscal year 2038.

The lease agreement call for payments that are partially variable and therefore were not included in lease receivable or deferred inflow of resources for leases. These variable payments are a result of the underlying lease measured not on a fixed rate, but rather variable due to the underlying payments derived from 1.18% through 5.83 percent of lessee’s share of operating expense. A total of $231,510 was recognized as revenue from these variable payments for the year ended June 30, 2025.

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City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2025
58 The future receipts on these leases are as follows:

Principal Interest Total
$ 325,235 $ 68,517 $ 393,752
287,323 61,239 348,562
229,431 48,017 277,448
207,844 39,456 247,300
137,500 34,332 171,832
632,767 91,411 724,178
143,305 6,183 149,488
$ 1,963,405 $ 349,155 $ 2,312,560
2031 - 2035
2036 - 2038
Years Ending June 30,
2026
2027
2030
2028
2029

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Required Supplementary Information

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59 City of Laguna Hills, California
Schedule of Proportionate Share of the Net Pension Liability Last Ten Fiscal Years
June 30, 2025
Fiscal year ended June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Measurement period June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Plan's proportion of the
net pension liability 0.12772% 0.12379% 0.04848% 0.03594% 0.04120% 0.03899% 0.03658% 0.03641% 0.03413% 0.02851% Plan's proportionate share of the
net pension liability $ 6,177,535 $ 6,189,773 $ 5,599,726 $ 1,943,651 $ 4,483,185 $ 3,995,763 $ 3,524,547 $ 3,610,550 $ 2,953,536 $ 1,956,617 Plan's covered payroll $ 3,539,497 $ 3,142,833 $ 2,820,234 $ 2,968,115 $ 3,079,318 $ 2,978,329 $ 3,199,277 $ 3,197,331 $ 3,076,464 $ 3,093,576 Plan's proportionate share of the
net pension liability as a percentage
of covered payroll 174.53% 196.95% 198.56% 65.48% 145.59% 134.16% 110.17% 112.92% 96.00% 63.25% Plan's fiduciary net position as a percentage
of the Plan's total pension liability 78.08% 76.21% 88.29% 88.29% 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measure date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

There were no significant changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no changes in assumptions.

From fiscal year June 30, 2021 to June 30, 2022:

There were no changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate was reduced from 7.15% to 6.90%.

From fiscal year June 30, 2023 to June 30, 2024:

There were no changes in assumptions.

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60 City of Laguna Hills, California
Schedule of Contributions
Last Ten Fiscal Years
June 30, 2025
Fiscal year ended June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Contractually required $ 807,832 $ 713,171 $ 674,800 $ 587,229 $ 546,745 $ 488,471 $ 422,127 $ 378,900 $ 346,439 $ 308,768 contribution (actuarially determined)
Contributions in relation to the
actuarially determined contribution (807,832) (713,171) (674,800) (587,229) (546,745) (488,471) (422,127) (378,900) (346,439) (308,768) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 3,500,214 $ 3,539,497 $ 3,142,833 $ 2,820,234 $ 2,968,115 $ 3,079,318 $ 2,978,329 $ 3,199,277 $ 3,197,331 $ 3,076,464 Contribution as a percentage of
covered payroll 23.08% 20.15% 21.47% 20.82% 18.42% 15.86% 14.17% 11.84% 10.84% 10.04% Notes to Schedule:

Valuation Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and Assumptions Used to Determine Contribution Rates:

Actuarial cost method Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Amortization method (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) Asset valuation method Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.30% 2.30% 2.50% 2.50% 2.50% 2.625% 2.75% 2.75% 2.75% 2.75% Salary increases (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) Investment rate of return 7.00 (3) 7.00 (3) 7.00 (3) 7.15 (3) 7.15 (3) 7.25 (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement age (4) (4) (4) (4) (4) (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5) (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 50 years (2%@60), 52 years (2%@62)**
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board

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See Note to Required Supplementary Information 61
City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund
Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Taxes $ 22,664,573 $ 22,664,573 $ 22,775,171 $ 110,598
Licenses and permits 1,274,500 1,274,500 951,596 (322,904) Intergovernmental 95,000 495,000 369,081 (125,919)
Charges for services 1,294,218 1,294,218 1,243,981 (50,237) Fines and forfeitures 190,000 190,000 349,631 159,631
Investment income 892,500 892,500 1,038,308 145,808
Other revenues 50,000 50,000 171,509 121,509
Total revenues 26,460,791 26,860,791 26,899,277 38,486
Expenditures:

Current:

General government 4,205,596 4,685,199 4,202,465 482,734 Public works 5,880,014 6,141,302 5,482,910 658,392
Community development 1,555,309 1,704,746 1,395,472 309,274 Community services 2,588,280 2,597,808 2,471,849 125,959 Public safety 12,359,834 12,359,834 12,211,081 148,753
Capital outlay 207,700 365,184 300,425 64,759
Debt service:

Principal retirement 90,000 90,000 59,201 30,799
Total expenditures 26,886,733 27,944,073 26,123,403 1,820,670 Excess (Deficiency) of Revenues
Over (Under) Expenditures (425,942) (1,083,282) 775,874 1,859,156 Other Financing Sources (Uses):

Transfers in 901,000 901,000 944,176 43,176
Transfers out (310,000) (5,159,041) (3,334,656) 1,824,385 Total other financing
sources (uses) 591,000 (4,258,041) (2,390,480) 1,867,561 Net Change in Fund Balance 165,058 (5,341,323) (1,614,606) 3,726,717 Fund Balance at Beginning of the Year 24,768,465 24,768,465 24,768,465 - Fund Balance at End of the Year $ 24,933,523 $ 19,427,142 $ 23,153,859 $ 3,726,717 Budget Amounts

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62 City of Laguna Hills, California
Note to Required Supplementary Information
Year Ended June 30, 2025
Note 1 - Budgets and Budgetary Accounting
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America and are used as a management control device. The City Council approves the two-year budget submitted by the City Manager prior to the beginning of the new two-year budget cycle. The Council conducts public hearings prior to its adoption. All remaining appropriations in the Operating Budget will be carried over from the first year to the second year of the two-year budget period. The City Council has the legal authority to amend the budget at any time during the fiscal year. The City Manager has the authority to transfer budgeted amounts between funds and divisions as deemed necessary to meet the City’s needs within the overall legal limit established by the City Council. The City maintains budgetary controls to ensure compliance with legal provisions embodied in the appropriated budget approved by the City Council. The level of budgetary control is total expenditures by fund. Formal budgetary integration is employed as a management control device during the fiscal year for the governmental fund types.

Biennial budgets are adopted for all governmental funds except for certain special revenue funds and capital projects funds, which adopt project length budgets.

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

Variance
Positive
Appropriations Expenditures (Negative)
Non-major Governmental
Special Revenue Funds:

CR&R Recycling Fee $ 169,250 $ 179,117 $ (9,867)
SB 1383 Grant - 83,383 (83,383)
Debt Service Fund 17,979 19,441 (1,462)

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Supplementary Information

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63 City of Laguna Hills, California
Non-Major Governmental Funds
June 30, 2025
Special Revenue Funds:

Gas Tax Fund - Used to account for revenues and expenditures for general street improvement maintenance related to the City’s share of state gasoline taxes collected under Street and Highway Code, Sections 2103, 2105, 2106, 2107 and 2107.5.

Measure M2 Fund - Used to account for Measure M2 revenues from the Orange County Transportation Authority (OCTA) to be used for street improvement and transportation system maintenance.

Senate Bill 1 Road Maintenance and Rehabilitation Account (SB1 RMRA) Fund - Used to account for revenues received from the State SB1 taxes. Expenditures are restricted to basic road maintenance, rehabilitation, and critical safety projects.

AB 2766 Fund - Used to account for revenues and expenditures for air quality improvement. AB 2766 was enacted to authorize air pollution control districts to impose fees on motor vehicles.

Senior Mobility Program Fund - Used to account for revenues and expenditures related to help design and operate a transit program that best fits the needs of older adults under the OCTA Senior Mobility Program.

CARITS Fund - Used to account for revenues and expenditures related to the cooperative agreement with the County of Orange for Coastal Area Road Improvement and Traffic Signals (CARITS) fee program.

Community Development Block Grant Fund – Used to account for revenue and expenditures related to grant funding received from the County of Orange for the purpose of implementing and supporting the Community Development Block Grant (CDBG) program within the City.

Public Art Fund - Used to account for revenues and expenditures related to the City’s Public Art program designed to enhance the cultural and aesthetic environment and to encourage creativity, education and appreciation of the arts.

Beverage Recycling Fund - Used to account for revenues and expenditures related to grant funding received from the California State Department of Conservation for the purpose of implementing and supporting beverage container recycling programs within the City.

CR&R Recycling Fee Fund - Used to account for contractual revenues received from the City’s franchised hauler, CR&R, for the purposes of recycling consulting services and general recycling activity expenditures.

C & D Forfeited Deposits Fund - Used to account for Construction and Demolition Waste Recycling Program security deposits, which have been forfeited by the applicant, used for administration costs of the program, or on programs to divert the waste from construction, demolition and alteration projects from landfill disposal, or other recycling programs.

SB 1383 Grant Fund - Used to account for a one-time grant program meant to provide aid in the implementation of regulations adopted by CalRecycle pursuant to Chapter 395, Statutes of 2016 and SB170 Budget Act of 2021.

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64 City of Laguna Hills, California
Non-Major Governmental Funds
June 30, 2025
Park In-Lieu Fund - Used to account for revenues received and expenditures made related to park fees. The Quimby Act authorizes the City to require residential subdivisions to dedicate land for parks or pay fees in-lieu of dedication.

CASp Fund - (Certified Access Specialist Program) Used to account for revenues and expenditures related to Senate Bill 1186 funds that are to be used for disability access and compliance with construction-related accessibility requirements.

Water Conservation Fund - Used to account for revenues and expenditures related to water use efficiency and conservation programs.

Public Art Village at Laguna Hills (VALH) Merlone-Geier Partners (MGP) Fund - Used to account for revenues received and expenditures made related to the City's public art program designed to enhance the cultural and aesthetic environment and to encourage creativity, education and appreciation of the arts.

State Citizens’ Options for Public Safety (COPS)/SLESF Fund - Used to account for revenues received and expenditures made for front line law enforcement services related to the allocations received through the State Supplemental Law Enforcement Services Fund (COPS)/SLESF program.

Debt Service Fund:

Debt Service Fund - Used to pay the City’s debt service on its COP issue.

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65 City of Laguna Hills, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
SB1
Gas Tax Measure M2 RMRA
Assets:

Cash and investments $ 822,142 $ 132,604 $ 961,242
Prepaid items - - - Due from other funds - - - Due from other governments 75,555 137,589 150,850 Total assets $ 897,697 $ 270,193 $ 1,112,092
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable $ - $ 18,675 $ - Due to other funds - - - Total liabilities - 18,675 -
Deferred Inflows of Resources:

Unavailable revenues - - -
Total deferred inflows of resources - - -
Fund Balances:

Nonspendable - - - Restricted 897,697 251,518 1,112,092 Total fund balances 897,697 251,518 1,112,092
Total liabilities, deferred inflows
of resources, and fund balances $ 897,697 $ 270,193 $ 1,112,092 (Continued)
Special Revenue Funds

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66 City of Laguna Hills, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
Assets:

Cash and investments
Prepaid items
Due from other funds
Due from other governments
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable
Due to other funds
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total deferred inflows of resources
Fund Balances:

Nonspendable
Restricted
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
Senior
Mobility
AB 2766 Program CARITS
$ 114,955 $ 291,298 $ 1,381,725
- - -
- - -
10,552 9,262 -
$ 125,507 $ 300,560 $ 1,381,725
$ - $ 9,458 $ 41,260
- - -
- 9,458 41,260
10,552 - -
10,552 - -
- - -
114,955 291,102 1,340,465
114,955 291,102 1,340,465
$ 125,507 $ 300,560 $ 1,381,725
(Continued)
Special Revenue Funds

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67 City of Laguna Hills, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
Assets:

Cash and investments
Prepaid items
Due from other funds
Due from other governments
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable
Due to other funds
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total deferred inflows of resources
Fund Balances:

Nonspendable
Restricted
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
Public Beverage
CDBG Art Recycling
$ - $ 481,883 $ 13,706
- - -
- - -
252,775 - -
$ 252,775 $ 481,883 $ 13,706
$ - $ - $ -
252,775 - -
252,775 - -
- - -
- - -
- -
- 481,883 13,706
- 481,883 13,706
$ 252,775 $ 481,883 $ 13,706
(Continued)
Special Revenue Funds

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68 City of Laguna Hills, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
Assets:

Cash and investments
Prepaid items
Due from other funds
Due from other governments
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable
Due to other funds
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total deferred inflows of resources
Fund Balances:

Nonspendable
Restricted
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances

CR&R C & D
Recycling Forfeited SB 1383
Fee Deposits Grant
$ 92,703 $ 427,717 $ 22,714
- - 2,100
- - -
- - -
$ 92,703 $ 427,717 $ 24,814
$ 26,929 $ - $ 17,105
- - -
26,929 - 17,105
- - -
- - -
- - 2,100
65,774 427,717 5,609
65,774 427,717 7,709
$ 92,703 $ 427,717 $ 24,814
(Continued)
Special Revenue Funds

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69 City of Laguna Hills, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
Assets:

Cash and investments
Prepaid items
Due from other funds
Due from other governments
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable
Due to other funds
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total deferred inflows of resources
Fund Balances:

Nonspendable
Restricted
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
Water
Park In-Lieu CASp Conservation
$ 1,946,177 $ 36,706 $ 388,712
- - -
- 443 -
- - -
$ 1,946,177 $ 37,149 $ 388,712
$ 495 $ - $ -
- - -
495 - -
- - -
- - -
- - -
1,945,682 37,149 388,712
1,945,682 37,149 388,712
$ 1,946,177 $ 37,149 $ 388,712
(Continued)
Special Revenue Funds

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70 City of Laguna Hills, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
Assets:

Cash and investments
Prepaid items
Due from other funds
Due from other governments
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable
Due to other funds
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total deferred inflows of resources
Fund Balances:

Nonspendable
Restricted
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
Public Art State COPS/
VALH MGP SLESF Debt Service
$ - $ 88,901 $ -
- - -
- - -
- 101,537 -
$ - $ 190,438 $ -
$ - $ - $ -
- - -
- - -
- 101,537 -
- 101,537 -
- - -
- 88,901 -
- 88,901 -
$ - $ 190,438 $ -
(Continued)
Special Revenue Funds

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71 City of Laguna Hills, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
Assets:

Cash and investments
Prepaid items
Due from other funds
Due from other governments
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable
Due to other funds
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total deferred inflows of resources
Fund Balances:

Nonspendable
Restricted
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
Total
Non-Major
Governmental
Funds
$ 7,203,185
2,100
443
738,120
$ 7,943,848
$ 113,922
252,775
366,697
112,089
112,089
2,100
7,462,962
7,465,062
$ 7,943,848

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72 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
Year Ended June 30, 2025
SB1
Gas Tax Measure M2 RMRA
Revenues:

Licenses and permits $ - $ - $ -
Intergovernmental 889,575 974,220 856,032
Investment income 64,390 1,694 71,033
Total revenues 953,965 975,914 927,065
Expenditures:

Current:

Public works - 763,063 -
Community development - - -
Community services - - -
Capital outlay - - -
Debt service:

Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures - 763,063 -
Excess (deficiency) of revenues
over (under) expenditures 953,965 212,851 927,065
Other Financing Sources (Uses):

Transfers in - - -
Transfers out (1,424,312) (200,000) (1,300,000)
Total other financing sources (uses) (1,424,312) (200,000) (1,300,000) Net Change in Fund Balances (470,347) 12,851 (372,935)
Fund Balances, Beginning of Year 1,368,044 238,667 1,485,027 Fund Balances, End of Year $ 897,697 $ 251,518 $ 1,112,092 (Continued)
Special Revenue Funds

Page 163 of 1305 ends

73 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
Year Ended June 30, 2025
Revenues:

Licenses and permits
Intergovernmental
Investment income
Total revenues
Expenditures:

Current:

Public works
Community development
Community services
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Senior
Mobility
AB 2766 Program CARITS
$ - $ - $ -
40,125 51,855 -
8,152 12,957 64,719
48,277 64,812 64,719
- - -
- - -
- 43,533 - 95,320 - -
- - -
- - -
95,320 43,533 -
(47,043) 21,279 64,719
- 8,707 -
- - (101,264)
- 8,707 (101,264)
(47,043) 29,986 (36,545)
161,998 261,116 1,377,010
$ 114,955 $ 291,102 $ 1,340,465
(Continued)
Special Revenue Funds

Page 164 of 1305 ends

Laguna Hills City CouncilDecember 9, 2025

Laguna Hills City Council
December 9, 2025