20250218_6_ACFR — Laguna Niguel City Council, February 18, 2025

CITY OF LAGUNA NIGUEL

CITY COUNCIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Trevor Agrelius, Finance Director
DATE: February 18, 2025
SUBJECT: Fiscal Year 2023-2024 Annual Comprehensive Financial Report

RECOMMENDATION
Staff recommends that the City Council receive and file the City's Annual Comprehensive Financial Report (ACFR) and related audit reports of the City of Laguna Niguel for the fiscal year ended June 30, 2024.

BACKGROUND
The City's independent accounting firm Clifton Larson Allen, LLP has completed its audit work of the City of Laguna Niguel for the fiscal year ended June 30, 2024.

Attached are the following reports in relation to the external audit:
• Annual Comprehensive Financial Report for fiscal year ended June 30, 2024 (Attachment A)
Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit for Fiscal Year 2023-2024 (Attachment B) • Popular Annual Financial Report for the year ended June 30, 2024 (Attachment C) The City's ACR for Fiscal Year 2022-2023 received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association of the United States and Canada (GOA). This was the 24th consecutive award that the City received for its ACFR. We believe the Fiscal Year 2023-2024 report continues to meet the Certificate of Achievement Program requirement, so it has been submitted to the GOA for award consideration.

Notably, the City received an unmodified audit opinion on the financial statements, and the report indicated there were no instances of material weaknesses nor significant deficiencies in the City's internal controls.

Additionally, the City prepared its first annual Popular Annual Financial Report (PAR) in Fiscal Year 2023-2024. The PAFR is intended to provide residents and stakeholders of Laguna Niguel with financial information in an easy-to-read format, using less

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technical language. It was developed using condensed financial information from the City's audited ACFR.

These reports were presented to the Investment Banking and Audit Committee in January 2025. During the meeting, the Committee unanimously voted to receive and file these reports.

ANALYSIS
The General Fund ended the fiscal year with a $3.0 million surplus, increasing total General Fund reserves to $53.3 million at June 30, 2024. That equates to approximately 108.3% of Fiscal Year 2023-2024 operating expenditures, easily meeting the minimum reserve target of 50% of operating expenditures.

Of the $3.0 million in surplus, $2.2 million is truly excess cash and available to allocate. $0.8 million is restricted or not realized yet through gains in the City's section 115 Trust or unrealized gains in the City's investment portfolio.

LEGAL REVIEW
No legal review is required for this report.

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

CONCLUSION
The City of Laguna Niguel is in excellent financial condition. The City's strong financial policies and fiscally conservative leadership since incorporation have served the City well. The City has a strong tax base and plans it's spending very conservatively. The City is prospering today and is well positioned to thrive in the future.

Samas Spousseau In
Tamara S. Letourneau Trevor Agrelius
City Manager Finance Director
Attachments:

Appropriations Limit for Fiscal Year 2023-2024
C. Popular Annual Financial Report for the year ended June 30, 2024

ATTACHMENT A
Annual Comprehensive Financial Report (ACFR) for
Fiscal Year ended June 30, 2024

CITY OF LAGUNA NIGUEL

CALIFORNIA
ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
Fiscal Year Ended June 30, 2024
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CITY OF LAGUNA NIGUEL,

CALIFORNIA
NIGUE

STA COUNTR
1989

ANNUAL COMPREHENSIVE FINANCIAL REPORT

WITH REPORTS ON AUDIT BY

INDEPENDENT PUBLIC ACCOUNTANTS
YEAR ENDED JUNE 30, 2024
Prepared by the Financial Department
of the City of Laguna Niguel
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CITY OF LAGUNA NIGUEL

INTRODUCTORY SECTION (UNAUDITED)

LETTER OF TRANSMITTAL

GOA CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL

REPORTING XI

ORGANIZATIONAL CHART XII

ELECTED OFFICIALS AND MANAGEMENT STAFF XIII

FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1
:

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 19
STATEMENT OF ACTIVITIES 21

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUND FINANCIAL STATEMENTS
BALANCE SHEET 26

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION 27

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES 28

RECONCILIATION OF THE STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 29

PROPRIETARY FUND FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 32

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 33
STATEMENT OF CASH FLOWS 34
NOTES TO BASIC FINANCIAL STATEMENTS 37

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

BUDGETARY COMPARISON SCHEDULES
GENERAL FUND 74
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND 75
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 76

CITY OF LAGUNA NIGUEL

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET

PENSION LIABILITY AND RELATED RATIOS
SCHEDULE OF CONTRIBUTIONS - PENSION 78

SCHEDULE OF THE CHANGES IN TOTAL OPE LIABILITY AND
RELATED RATIOS 79

SUPPLEMENTARY INFORMATION

NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET 83

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 85

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND

BALANCE - BUDGET AND ACTUAL
GAS TAX SPECIAL REVENUE FUND 87
MEASURE M SPECIAL REVENUE FUND 88
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND 89
LAW ENFORCEMENT SPECIAL REVENUE FUND 90

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE
FUND 91
SENIOR TRANSPORTATION SPECIAL REVENUE FUND 92
CITY CAPITAL PROJECTS FUND 93

STATISTICAL SECTION (UNAUDITED)
NET POSITION BY COMPONENT 98
CHANGES IN NET POSITION 100
FUND BALANCES OF GOVERNMENTAL FUNDS 102
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 104
TAX REVENUES BY SOURCE - GOVERNMENTAL FUNDS 106
ASSESSED VALUE OF TAXABLE PROPERTY 107
DIRECT AND OVERLAPPING PROPERTY TAX RATES 108
PRINCIPAL PROPERTY TAXPAYERS 110
PROPERTY TAX LEVIES AND COLLECTIONS 111
RATIO OF OUTSTANDING DEBT BY TYPE 112
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 113 LEGAL DEBT MARGIN INFORMATION 114
DEMOGRAPHIC AND ECONOMIC STATISTICS 115
PRINCIPAL EMPLOYERS 116

CITY OF LAGUNA NIGUEL

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY
FUNCTION/PROGRAM 118
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM 120
OPERATING INDICATORS BY FUNCTION/PROGRAM 121
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CITY OF LAGUNA NIGUEL CITY COUNCIL
30111 Crown Valley Parkway, Laguna Niguel. California 92677 Mayor Kelly Jenning:

Phone: (949) 362-4300 Fax: (949) 362-4352 ayor Pro Tem Stephanie Odd Council Member Ray Gennawey
Council Member Gene Johns
Council Member Stephanie Winstead
December 18, 2024
Honorable Mayor, Council Members, and Residents of the City of Laguna Niguel

LETTER OF TRANSMITTAL
2023-24 ANNUAL COMPREHENSIVE FINANCIAL REPORT
It is a pleasure to submit the City's Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024. This report has been compiled and prepared by the City's Finance Department in accordance with generally accepted accounting principles.

Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

The City's financial statements have been audited by Clifton Larson Allen, LLP, a firm of licensed certified public accountants. The independent auditor rendered an unmodified (clean) opinion that the City's financial statements for the fiscal year ended June 30, 2024, are fairly presented in conformity with Generally Accepted Accounting Principles (GAAP). The independent auditors' report is presented as the first component of the financial section of this report.

The Management's Discussion and Analysis (MD&A) immediately follows the introdendon, overver, and analysis or the baste nana stated detaine marave M designed to complement this letter of transmittal and should be read in conjunction with it.

GENERAL INFORMATION ABOUT LAGUNA NIGUEL
The City of Laguna Niguel was incorporated on December 1, 1989. The City is a master-planned community encompassing 14.72 square miles in the coastal area of South Orange County, California. As of January 2024, the State of California Department of Finance projected the City's population as 64,291. The City is primarily a residential community supported by a strong retail and commercial base. Over one-third of Laguna Niguel's geographic area is permanently designated as open space. This is one of the key features that define the character and urban form of the City.

Laguna Niguel is a General Law City and operates under the Council-Manager form of government. The City is governed by a five-member City Council, which is elected by District and serves staggered four-year terms. City Council elections are held in November of even numbered years. Annually, the City Council appoints a Mayor and Mayor Pro Tem from its own membership to serve a one-year term.

The City operates primarily as a contract city, utilizing agreements with other governmental entities, private firms and individuals to provide numerous municipal services to the community, including fire services which is provided through the Orange County Fire Authority, and police services which is provided by the Orange County Sheriff's Department.

FACTORS AFFECTING FINANCIAL CONDITION
Federal Stimulus Funds. As a result of the COVID-19 health crisis, the Federal Government enacted several different pieces of legislation to stimulate the national economy. The American Rescue Plan Act was a federal stimulus bill signed into law in March 2021. The City of Laguna Niguel received approximately $8.8 million from this legislation. The City has utilized these funds for infrastructure and capital improvements.

The funds are required to be fully spent by December 31, 2026. As of June 30, 2024, the City had $0.8 million of unspent American Rescue Plan Act funds. However, the City has a plan to spend the remaining funds on infrastructure and capital improvements prior to the December 31, 2026, deadline.

Local Economy. The City's largest revenue source is property tax. Actual property tax receipts in fiscal year 2023-2024 totaled $28.4 million and represented more than 50% of total General Fund revenues. As a point of comparison, the prior year's property tax receipts totaled $27.1 million, representing a 4.8% increase in the current year. Property values and sales have remained strong in South Orange County and the City of Laguna Niguel.

Sales tax is the second largest revenue source in the City. Actual sales tax receipts in riscal year 2023-2024 totaled $14.2 million, compared to $14.8 million in the prior year.

This represents a 4.1% decrease from the prior year and is consistent with the County and State. Higher interest rates in fiscal year 2023-2024 negatively impacted the auto- transportation sector, and fuel and service stations saw a reduction as well due to lower fuel prices as compared to fiscal year 2022-2023. The City actively monitors trends that affect both property taxes and sales taxes both locally and at the State, as these two revenue sources historically make up more than 80% of annual General Fund revenues.

The City adopted a balanced budget for fiscal year 2024-2025 that maintains all service levels and programs. The adopted General Fund budget includes approximately $55.3 million in revenues, $52.8 million in expenditures, and another $2.3 million in transfers out to the CIP fund. The budget provides $10.1 million in funding for the annual Capital Improvement Program that funds projects for the City's streets, parks and other improvements.
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Major Initiatives. The City is actively working on two of the largest capital projects in its history: the La Paz Road Mobility Enhancements and Permanent Repair project, and the Crown Valley Parkway Westbound Widening project. The estimated combined costs to complete these projects is over $31 million. The City continues to engage with Federal and State agencies to provide grant funding for those projects. Other significant projects being planned, designed, or constructed over the next several years include the Residential Annual Resurfacing Program, street improvements along Marina Hills Drive and several main thoroughfares, Residential Overlay Program, completion of playground replacements at various City parks, and capital improvements at the various parks and facilities throughout the City.

The City has a dedicated page to the Capital Improvement Program that discusses each of these projects in more detail at: https://cityoflagunaniquel.org/810/Capital- Improvement-Program
Reserve Policy. The City's Financial Reserves Policy is reviewed on an annual basis for the purpose of providing fiscal stability and to ensure the long-term financial health of the City. It is the goal of both the City Council and management to maintain adequate reserve funds for known and unknown contingencies. The policy calls for maintaining a reserve for financial and economic uncertainty in an amount equal to no less than 50% of annual General Fund operating expenditures and a reserve for compensable accrued unused vacation and sick leave and other post-employment benefits. The total reserves at the end of the fiscal year were $53.3 million. The Policy allows the City Council to designate portions of the fund balance of the General Fund for future capital projects, continuing or carry-over appropriations, or any other municipal purpose that the City Council deems prudent or necessary. Total reserves applicable to those categories at the end of the fiscal year were $49.7 million, which represented 101.0% of actual General Fund expenditures for the year, far exceeding the 50% threshold. All fund balance classifications comply with the requirements of Governmental Accounting Standards Board (GASB) Statement No. 54 and are identified in Note 9 of the Notes to Financial Statements.

Long-term Financial Planning. The City of Laguna Niguel adopted its first-ever strategic plan in 2020, which included a planning process to set goals and priorities for its future. Through the strategic planning process, the City created a blueprint for the future and developed a plan to accomplish its determined direction. The Strategic Plan defines current and future needs, established goals and strategies, and the City's mission statement, vision statement, and guiding values. The City has accomplished a great deal in the first four years of the Strategic Plan, and with the City moving into year five of the plan, important updates were made to the strategies and timelines to reflect current priorities.

A collaborative process was used to update the strategic plan. Throughout the process, a variety of stakeholders were involved, including City residents, business owners, Council Members, commissioners, committee members, department heads, and staff.

The process included the preparation of an environmental scan, a strategic plan survey mailed to all residents, and a workshop to discuss the City's goals for the future. The ill
City's continued success in implementing the identified priorities outlined in the strategic plan has furthered the achievement of the goals established by the City Council. This 2024 Strategic Plan update reflects new and modified strategies and timelines to ensure those goals are achieved.

The City has also taken other tangible actions to ensure long-term fiscal sustainability.

These include, but are not limited to, establishing a Section 115 trust to prepare for future pension costs, evaluating service levels on a constant basis, and adhering to the financial principle of not issuing bonded debt.

SUMMARY OF FISCAL YEAR 23-24 ACCOMPLISHMENTS
The City was able to complete many projects and achieve many accomplishments in fiscal year 2023-2024. Some of these include:

Fiscal Year
2023-24 Accomplishments
Strategic Plan Goal 1: Public Safety
Strategy Status
Continue enhancing public safety education Complete & Ongoing throughout the community • Enhanced Laguna Niguel Police Services on social media platforms to increase
awareness in the community.
• Increased e-bike education and the You Are
Not Alone Program
• Quarterly Police Services and OCFA
presentations at City Council Meetings.
• Reconfiguration of the Special Enforcement
Team Unit deployment for daily coverage
and directed enforcement.
• Implemented PACT Bike Patrol to amplify trail
and retail visibility and deterrence.
• Conducted a 12-week Citizen's Academy
• Conducted CERT Team training.
• Implemented the monthly Chief's Brief
and monthly video messages to the
• Hosted and provided training and community
education forums, including, but not limited to:
• Watch, Stop the Bleed, Car Seat
Installation, Emergency Preparedness,
and numerous public safety/crime
prevention presentations.
iv
Continue enhancing neighborhood watch Complete & Ongoing • Continued the implementation of
Neighborhood Watch meetings in both multi-
family and single-family neighborhoods
through small group meetings, block captain
meetings and community-wide safety meetings.
• Continued outreach efforts to the HOA's.

Monitor implementation of the trail safety Complete & Ongoing camera pilot program • 12 cameras installed along the Colinas Bluff Trail.
• Evaluation of pilot program is ongoing.

Continue implementation of the Business Complete & Ongoing Enhancement Team • The Business Enhancement Team has been established and will be completing their contact
with the last set of businesses in the next
several months.
• The Business Enhancement Team educates
business owners on security, safety
implementation plans and educations
regarding crime prevention and reporting.

Strategic Plan Goal 2: Fiscal Sustainability
Strategy Status
Produce a clean audit for FY 22-23 Complete
• Provided a "clean" financial audit for FY 22-
23 with no audit findings.
• Ended the fiscal year with $1.8 million surplus.

Present a balanced budget for FY 24-25 Complete
• Presented a balanced budget to the City
Council on May 14*, and it is scheduled for
adoption on June 4, 2024.

Continue implementation of organizational Completed & Ongoing efficiencies that save both money and staff • Increased the number of credit card payments resources to vendors, which saves staff time processing checks and allows the City to capture
additional revenue cash back rates on the
City's credit card ($85,000 in savings in FY
23-24).
• Implemented various cost-saving measures
via early payment discounts.

Awards Complete
•
Comprehensive Financial Award from the
Government Finance Officers Association.
• For the first time in the history of the City,
Laguna Niguel won the Government Finance
Officers Association Budget Award for the FY
23-24 Operating& Capital Improvement
Strategic Plan Goal 3: Open Space & Environmental Preservation Strategy Status
Complete open space inventory Ongoing
• The first phase of this project (trails) is 25%
complete.
• Phase 2 (the remaining open space
components) will be completed by December
2024.

Complete the Trail & Open Space Maintenance Ongoing
• RFP released in FY 23-24 and no
responses were received.
• The RFP will be recirculated in 2025.

Continue open space and environmental
preservation public education. • Enhanced the City's website to provide critical information to the public
regarding the City's environmental
programs.
• Developed and distributed public outreach
materials regarding the environmental
programs and the Laguna Niguel
Demonstration Garden.

Strategic Plan Goal 4: Infrastructure & Technology
Strategy Status
Complete the Energy Efficiency Evaluation In Progress
• Energy Efficiency Study is in the process of
being completed. It is scheduled to be
presented to the City Council in Summer 2024.

Develop and implement a short and long-term Complete & Ongoing plan to address the landslide under La Paz • Plans developed and approved for both short Road and make the permanent repairs and long- term La Paz Road Repair. • Construction on the short term plan is
underway and will be completed in Fall 2024.
• $15.5 million grant obtained for the long term
repair and the design is underway for that
project.

Continue implementation of the Total Cost of In Progress Ownership Program (City Infrastructure Analysis) • Parks inventory completed. • Facilities inventory will be completed in 2024.
• Streets inventory will be completed in 2025.

Begin the Active Transportation Study In Progress
: Sommisuing engagement and outreach is in
• Prudy is expected to be completed in 2025.

Complete the Crown Valley Park Outdoor WiFi Complete
Project • Outdoor WiFi enhancement project is complete. • WiFi is now available for all visitors throughout
Crown Valley Park.
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Strategic Plan Goal 5: Economic & Community Development Strategy Status
Complete the Gateway Specific Plan Update In Process
• Assessment of the current plan is complete.
• Studies have been commissioned to
address areas under review.
• Projected completion date is 2026.

General Plan - Award contract to consultant to In Progress assist with the public engagement, draft General • Studies have been completed.

Plan documents and Environmental Impact Report • Consultants retained and public engagement has been completed.
• Vision Plan is in progress.
• Estimated General Plan Update completion -
Complete the Trails Master Plan In Progress
• Trail inventory and trail design standards
complete.
• Draft document is in the process of being
completed.
• Estimated completion date 2026.

In Progress
• Consultant retained and municipal code
review underway.
• Estimated completion 2025.

City Center - Continue working with the developer In Progress for City Center • Regular meetings with City staff and
developer continue.
• Developer is committed to the project
• Developer is hopeful that they will break
ground in approximately 2 years.

Federal Building - Continue working with the In Progress Federal General Services Administration • Staff regularly meets with GSA regarding the sale of this property and the future representatives and potential bidders. development of this site • Auction begins in June 2024.

Implement the new online permitting system Completed
• Successfully launched the new online permit
system.
information online
• The new system also offers online
payment processing to increase the
efficiency of the permit process.

Achieve certification of the City's Housing Completed
Element by the State • The City received Housing Element certification by HCD in February 2024
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Complete & In Progress
• 15 new notable restaurants & retai
pened in the City in 2023
Two new residential developments opened
in 2023: Blu I| & Watermark
Strategic Plan Goal 6: Communication & Community Outreach Status
Continue enhancing community education and Completed & Ongoin outreach through various forms of social media, • Launched the new quarterly City videos and printed materials newsletter - The Beacon.

Surpassed over 5,000 downloads o
he City's mobile app
Continue enhancing HOA community Ongoing
education and outreach • Continued to provide in person HOA educational opportunities.
• Continued to prepare HOA quarterly
newsletters and HOA Board Education
roundtables.

Additional Items/Projects Completed
Human Resources
• Completed compensation study
• Streamlined the employee new hire process
• Conducted numerous employee training programs.
• Conducted numerous leadership, employee development and engagement trainings and programs throughout the year.

Information Technology
• Provided bi-annual staff training on ransomware, spyware & virtual threats. • Implemented a new backup system for all on-premises and cloud-based servers to protect the City from ransomware and other threats to City data.
• Implemented Multi Factor Authentication for all City employees. viii
Planning/Building
• Continued to coordinate the Coastal Fire Rebuild.
• Obtained entitlement approvals for the Village Shopping Center. • Obtained entitlement approvals for the Griffin Senior Living/Grace Church.

Parks & Recreation
• Hosted numerous events for participants of all ages with record attendance.
• Crown Valley Community Center record revenue achieved - $150,000 from July 1, 2023, through May 1, 2024.

Capital Improvement Projects Completed
• 7 Park modernization projects.
• Citywide Sports Field Grass Turf Rehabilitation Program - 3 natural grass soccer fields and two natural grass baseball fields.
• Residential Annual Resurfacing Program - Zones 3 & 4. • Chapparosa Park Soccer Field Synthetic Turf Replacement.

OTHER INFORMATION
Awards. Government Finance Officers Association of the United States and Canada (GOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Laguna Niguel for its annual comprehensive financial report for the fiscal year ended June 30, 2023. This was the 24" consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to GOA to determine its eligibility for another certificate.
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Conclusion and Acknowledgments. The City of Laguna Niguel is in excellent financial condition. The City's strong financial policies and keen leadership since incorporation have served the City well. The City has a strong tax base and plans it's spending very conservatively.

The City is prospering today and is well positioned to thrive in the future.

The preparation and development of this report would not have been possible without the continued support and encouragement of the Laguna Niguel City Council. We thank you for your support, vision, and leadership.

Respectfully submitted:

Jamara SEetousneau.

Tamara S. Letourneau Trevor Agrelius
City Manager Finance Director
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Laguna Niguel
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Chustopher P. Morill
Executive Director/CEO
xi

CITY OF LAGUNA NIGUEL

ORGANIZATIONAL CHART
JUNE 30, 2024

LAGUNA NIGUEL

RESIDENTS

L CITY COUNCIL

CITY ATTORNEY L CITY MANAGER
• Legal Counsel
PUBLIC

FINANCE ADMINISTRATION COMMUNITY DEVELOPMENT
SAFETY
Personnel - Law Enforcemen - Plain & Sarey
- Accounting E Risk Management Emergency Pref
Investments - Senice Rouest System
Purchasing • Records Mgmt.

Elections

PARKS & PUBLIC WORKS

RECREATION
Secretion Priams Engineering
Senior & Community Center Street Lighting
Skateboard Park Street Sweeping
Animal Control Street Maintenance
Parks Maintenance
Slopes & Median Maintenance

CITY OF LAGUNA NIGUEL

ELECTED OFFICIALS AND MANAGEMENT STAFF
JUNE 30, 2024

CITY COUNCIL
Kelly Jennings, Mayor
Stephanie Oddo, Mayor Pro Tem
Ray Gennawey, Council Member
Foster "Gene" Johns, Council Member
Stephanie Winstead, Council Member

MANAGEMENT STAFF
City Manager. .Tamara S. Letourneau
Assistant City Manager Justin Martin
City Attorney.. Scott C. Smith
City Clerk. Marissa Asistin
Chief of Fire Services (Division 5) Baryic Hunter
Chief of Police Services (O.C. Sheriff Department). . Isaac Flores Community Development Director... . Jonathan Orduna
Finance Director. .Trevor Agrelius
Parks and Recreation Director. Jonathon Harmon
Public Works Director. Jacki Scott
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xiv
CliftonLarsonAllen LLP
CLAconnect.com

INDEPENDENT AUDITORS' REPORT
Honorable Mayor and City Council
City of Laguna Niguel
Laguna Niguel, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Laguna Niguel (the City) as of and for the year June 30, 2024, 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 present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2024, 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. 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.

Responsibilities of Management for the Financial Statements The City's management is responsible for the preparation and fair presentation of the financial statements in a design, in pith entaini and mailes anne onlineered in orelevanderere rari and re 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 revents, considered in the aggregate, that raise substantial doubt about the City's ability to continue as oing concern for twelve months beyond the financial statement date, including any currently know information that my raise substantial doubt shortly thereafter CLAglobal.com/disclaimer
(1)
Honorable Mayor and City Council
City of Laguna Niguel
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 traud 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.
(2)
Honorable Mayor and City Council
City of Laguna Niguel
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison schedule for the general fund and miscellaneous grants special revenue fund, schedule of the city's proportionate share of the net pension liability and related ratios, schedule of contribution - pension, schedule of the changes in total OPEB liability and related ratios 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 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 fund financial statements and budget to actual 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 fund financial statements and budget to actual 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 basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. (3)
Honorable Mayor and City Council
City of Laguna Niguel
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 18, 2024 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.

Clifton Larson Allen 217
CliftonLarsonAllen LLP
Irvine, California
December 18, 2024
(4)

CITY OF LAGUNA NIGUEL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
As management of the City of Laguna Niguel ("City"), we offer readers of the City's financial statements this narrative overviev and analyss of the financial activities of the City for the fiscal year ended June 30, 2024. Our intent is to assist the reader o information furnished in our letter of transmittal.

OVERVIEW OF FINANCIAL STATEMENTS
The City's basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also consists of supplementary information in addition to the basic financial statements.

Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to private-sector business. They are comprised of the following:
• Statement of Net Position
The Statement of Net Position presents information on all City assets, deferred outflows of resources, liabilities, and deferred inflows of resources on a full accrual basis of accounting similar to that used by private-sector companies. The difference between assets and deferred outflows of resources, and liabilities and deferred inflows of resources is reported as 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 deteriorating.
• Statement of Activities
The Statement of Activities presents information about the City's revenues and expenses on a full accrual basis, with an emphasis on measuring net revenues or expenses for each of the City's programs. This statement also reflects the change in net position for the year.
overnment-wide financial statements distinguish functions of the City that are principally supported by taxes an ntergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significan portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, community development, and parks and recreation. The City has no business-type activities.

The government-wide financial statements can be found behind the tab section titled Government-Wide Financial Statements.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate Funds and one proprey aned legal requirements. All of the funds of the City are divided into two categories: governmental The fund financial statements provide detail information about each of the City's most significant funds, called Major Funds (5)

CITY OF LAGUNA NIGUEL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
OVERVIEW OF FINANCIAL STATEMENTS (Continued)
Fund Financial Statements (Continued)
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the near-term financial requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to financial statements can be found on pages behind the tab section titled Government-Wide Financial Statements.

The City has nine governmental funds for financial reporting purposes, of which three are considered major funds for presentation purposes. Each major fund is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances. The City's three major funds are its General Fund, City Capital Projects Fund, and Miscellaneous Grants Special Revenue Fund. Data from the nonmajor governmental funds (e.g., Gas Tax Fund, Air Quality Improvement Fund, Law Enforcement Fund, Community Development Block Grant Fund, etc.) are combined into a single, aggregated presentation. The governmental funds financial statements can be found on pages behind the tab section titled Fund Financial Statements. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements on pages behind the tab section titled Supplementary Schedules.

The City adopts an annual appropriated budget for all governmental funds. A budgetary comparison schedule has been provided for each of the funds to demonstrate compliance with this budget. • Proprietary Funds
The sole proprietary fund used by the City is an internal service fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses an internal service fund to account for its fleet of vehicles.

Proprietary fund financial statements provide the same type of information as the government-wide financial statements, only in more detail. Like the government-wide financial statements, proprietary fund financial statements use the accrual basis of accounting. A separate financial statement is provided for the Vehicle Replacement Fund.

The fund financial statements can be found behind the tab section titled Fund Financial Statements.

Notes to the Basic Financial Statements
The notes provide additional information that is essential to obtain 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 behind the tab section titled Notes to the Basic Financial Statements.

Required Supplementary Information
Revere Fund, me budget process, the dey sharea of net pension a bit andrel are is le or core al contributions and schedule of changes in net OPE liability and related ratios. Required supplementary information can be found behind the tab section titled Required Supplementary Information (6)

CITY OF LAGUNA NIGUEL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
OVERVIEW OF FINANCIAL STATEMENTS (Continued)
Supplementary Schedules
Supplementary schedules provide budgetary information on the City Capital Projects Fund, as well as detail about the Supplementay schedules cas, lound behind the false and pres Supplementary Schen in the fund financial statements The following table summarizes the major features of the City's financial statements, including the portion of the Cit government they cover and the types of information they contair Major Features of the City's Government-Wide and Fund Financial Statements Fund Financial Statements
Government-Wide
Financial Statements Governmental Funds Proprietary Funds Scope Entire City government The activities of the City that Activities the City operates are not proprietary similar to a private business
Required financial • Statement of Net Balance Sheet : Statement of Net Position statements Position : Statement of Revenues, Statement of Revenues, • Statement of Expenditures and Expenses and Changes in Activities Changes in Fund Net Position
Balances Statement of Cash Flows
Accounting basis Accrual accounting and Modified accrual accounting Accrual accounting and and measurement economic resources and current financial economic resources focus focus focus resources focus
Type of asset/ All assets and liabilities, Only assets expected to be All assets and liabilities, both liability information both financial and used up and liabilities that financial and capital, deferred capital, deferred come due during the year or outflows and inflows of outflows and inflows of soon thereafter; no capital resources, and short-term and resources, and short- assets or long-term debt long-term debt term and long-term debt included
Type of inflow/ All revenues and Revenues for which cash is All revenues and expenses expenses during year, received during or soon after during the year, regardless of information regardless of when the end of the year; when cash is received or paid cash is received or paid expenditures when goods or
services have been received
and payment is due during
the year or soon thereafter
Financial Highlights
• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at June 30, 2024, by $629.5 million. The amount is referred to as the net position of the City. Of this amount, $44.7 million is unrestricted net position and may be used to meet the City's ongoing obligations to citizens and creditors. • The City's overall net position increased by $4.9 million in the current year. Total revenues increased by $2.4 million, or

3.8%, primarily due to increases in property taxes and investment gains. Expenses increased by $3.5 million, or 6.1% as compared to fiscal year 2022-2023 levels primarily due to an increase in spending on public works activities. • At the close of fiscal year 2023-2024, the City's governmental funds reported combined ending fund balances of $61.6 million, an increase of $4.4 million compared to the prior year. Of the total $61.6 million fund balances at year-end, $50.6 million is available for spending at the government's discretion (the sum of the committed, assigned, and unassigned fund balance categories reported on the accompanying financial statements). (7)

CITY OF LAGUNA NIGUEL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
OVERVIEW OF FINANCIAL STATEMENTS (Continued)
Financial Highlights (Continued)
As of June 30, 2024, the total fund balance of the General Fund, the City's chief operating fund, totaled $53.3 million, representing an increase of $3.0 million, or 5.9% over the prior year.

FINANCIAL PERFORMANCE
Government-Wide Financial Analysis
The following analysis focuses on the net position and changes in net position of the City's governmental activities presented The following is a summary of the Government-Wide Statement of Net Position:

Governmental Activities
Net Position at June 30
(in millions)
Increase/
(Decrease)
2024 2023 from 2023
Cash and investments $ 66.2 65.7 0.5
Other current assets 7.9 5.7 22
Capital assets, net 573.6 571.9 1.7
Other noncurrent assets 2.2 2.4 (0.2)
Total assets 649.9 645.7 4.2
Deferred pension related items 6.6 10.1 (3.5)
Deferred OPEB related items 0.4 0.4
Total deferred outflows
of resources 7.0 10.5 (3.5)
Long-term liabilities 19.5 13.8 (4.3)
Other liabilities 13.5 (1.6)
Total liabilities 21.4 27.3 (5.9)
Deferred pension related items 2.7 0.8
Deferred OPE related items 1.0 1.0
Deferred lease related items 2.3 2.6 (0.3)
Total deferred inflows
of resources 6.0 4.4 1.6
Net position:

Net Investment in capital assets 570.0 571.6 (1.6)
Restricted 14.8 7.2 7.6
Unrestricted 44.7 45.8 (1.1)
Total net position $ 629.5 $ 624.6 4.9
(8)

CITY OF LAGUNA NIGUEL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
FINANCIAL PERFORMANCE (Continued)
Government-Wide Financial Analysis (Continued)
The following is a summary of the Government-Wide Statement of Activities:

Governmental Activities
Changes in Net Position for the Year Ended June 30
(in millions)
Increase/
(Decrease)
2024 2023 from 2023
Revenues:

Program revenues: 0.7
Charges for services $ 6.2 $ 5.5
Operating contributions and grants 3.2 2.9 0.3
Capital contributions and grants 6.5 7.8 (1.3)
Total program revenues 15.9 16.2 (0.3)
General revenues
Property taxes 28.4 27.1 1.3
Sales taxes 14.2 14.8 (0.6)
Other taxes 3.4 0.3
Investment earnings 2.8 1.5
Other revenues 1.0 0.8 0.2
Total general revenues 49.8 47.1 2.7
Total revenues 65.7 63.3 2.4
Program expenses:

General government 7.7 10.9 (3.2)
Public safety 17.9 17.5 0.4
Community development 5.4 3.6 1.8
Parks and recreation 6.9 7.9 (1.0)
Public works 22.9 17.4 5.5
Total expenses 60.8 57.3 3.5
Increase/(decrease) in net position 4.9 6.0 (1.1)
eginning net positior 624.6 618.6 6.0
indina net positior 629.5 $ 624.6 4.9
(9)

CITY OF LAGUNA NIGUEL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
FINANCIAL PERFORMANCE (Continued)
Government-Wide Financial Analysis (Continued)
The City's total revenues were $65.7 million in fiscal year 2023-2024, while the total cost of all programs was $60.8 million.

The cost of all governmental activities this year was $60.8 million. However, as shown in the Statement of Activities, the amount that Lagun Nigel taxpayers ultimately financed for these activities through City taxes was $46.0 million as portions Funding of Governmental Activities
• Program Revenue • General Revenue

25.0 20.0

15.0 (in millions)

10.0 5.0
General Public Safety Community Parks and Public Works
Govemment Development Recreation
Approximately 70.0% of all revenues this past year came from some form of tax, which is slightly lower than the 71.1% taxes represented of total revenues in fiscal year 2022-2023. Property tax revenue, the City's largest revenue source, accounted for

43.2% of total City revenue, compared to 42.8% last year. Sales tax revenue was the second largest revenue source at 21.6% of total revenues, down from 23.4% last year. While the tax revenues continued to increase ($1.0 million), the investment earnings and other revenues increased $1.7 million representing 5.8% of total revenues, up from 3.3% in the prior year. The following chart graphically depicts the City's governmental revenue sources. (10)

CITY OF LAGUNA NIGUEL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
FINANCIAL PERFORMANCE (Continued)
Government-Wide Financial Analysis (Continued)
Governmental Activities - Revenues by Source
Property taxes

43.2% Sales taxes
.21.6%
Capital contributions
Other taxes
and grants 5.2%
99%
Operating Investment earnings
contributions and J Charges for services and other revenues grants 9 4% 5.8%

4.9%
Public works activities comprise the City's largest function at 37.7% of all expenses in fiscal year 2023-2024, compared to

30.4% last year. These activities include all street maintenance, sweeping, and lighting; median, park, and slope maintenance storm drain/water quality maintenance; Metrolink station maintenance and City Hall maintenance. The Public Safety function represents the second largest activity in the City, accounting for 29.4% of total expenses in the current fiscal year, compared to 30.5% last year. Public safety activities include police services and emergency preparedness. Most of the public safety costs are for police services provided by the Orange County Sheriff, which were approximately $16.6 million in fiscal year 2023-2024. The increase of these functions in relation to all governmental activities is primarily due to increases in costs fol the Orange County Sheriff contract, along with increases in materials and supplies utilized in public works activities. The following chart graphically depicts the City's governmental expenses by function.

Governmental Activities - Expenses by Function
Parks and
Community Recreation
Development 11.3%

8.9%
Public Safetv

29.4%
L Public Works

37.7%
General
Government

12.7%
(11)

CITY OF LAGUNA NIGUEL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024
FINANCIAL PERFORMANCE (Continued)
Fund Financial Analysis
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. he focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendabl esources. Such information is useful in assessing the City's financing requirements. Under GASB Statement No. 54, Fun Balance Reporting and Governmental Fund Type Definitions, the sum of committed, assigned, and unassigned fund balance serves as a useful measure of a government's net resources available at its discretion for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City's governmental funds reported a total combined ending fund balance of $61.6 development, and air quality improvement purposes.

The City's three major funds are the General Fund, the Miscellaneous Grants Special Revenue Fund, and the City Capital Projects Fund. A description and analysis of each fund is presented as follows:
• General Fund - This fund is the chief operating fund of the City. The general fund is responsible for most of the City's general governmental operations and basic services, including operating costs for public safety, community development, parks and recreation, public works, and general government. At the end of the current fiscal year, the total fund balance was $53.3 million. General Fund revenues exceeded expenditures this year by $3.0 million, or 5.7%.

Miscellaneous Grants Special Revenue Fund - This fund accounts for revenues and expenditures made for various City orojects with funding provided by Federal and State grants. For FY 2023-2024, this fund has been classified as major due to the funds received from the Federal government's American Rescue Plan Act (ARPA). At the end of the current fiscal year, total assets were $0.9 million and total liabilities and deferred inflows of resources were $1.2 million. The City received a total of $8.8 million in ARPA funds. Through June 30, 2024, the City spent $8.0 million of the funding on various capital improvement projects with the balance of unspent funds classified as unearned revenue. • City Capital Projects Fund - This fund accounts for all expenditures relating to City capital projects. Revenues and transfers into the fund generally equal actual expenditures on capital projects; therefore, this fund typically reflects a minimal fund balance at the end of the year. Total expenditures were $9.8 million and subsequent transfers into the fund were $11.7 million for the current fiscal year, an increase of $3.9 million from the previous fiscal year.

GENERAL FUND BUDGETARY HIGHLIGHTS
The original adopted General Fund revenue budget for FY 2023-2024 was $52.6 million. Actual revenues for the General Fund totaled $55.7 million, a positive variance of $3.1 million, or 5.9%. le primary reasons for this variance were higher property taxes ($1.6 million), investment income ($1.2 million), licenses a ermits ($0.7 million), which all came in stronger than budgeted. The City intentionally budgets conservative The original adopted General Fund expenditure budget for fiscal year 2023-2024 was $51.9 million. Actual expenditures cam 1 at $49.2 million, a positive variance of $2.7 million. The variance was due to actions the City took to continuously monito and evaluate many operational budget items for effectiveness and efficiency. The General Fund ended with a positive, operational surplus of $3.0 million (actual revenues vs. actual non-capital expenditures). (12)

CITY OF LAGUNA NIGUEL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024

CAPITAL ASSETS
incutes roads, eas, at sly a, ages, a net of as and sitar asia use, byten in poputure infestructure Capital Assets at June 30
(net of depreciation)
(in millions)
Increase/
(Decrease)
2024 2023 from 2023
-
Land 271.1 $ 271.1
Construction in progress 6.8 6.9 (0.1)
Buildings and improvements 60.4 62.0 (1.6)
Park & other improvements 22.5 21.2 1.3

1.6 1.7 (0.1)
Swimming pool
Furniture, equipment, and software 0.8 0.9 (0.1)
Vehicles 0.2 0.4 (0.2)
Right to Use Assets 0.6 0.2 0.4
Infrastructure 209.7 207.5 2.1
Total $ 573.6 $ 571.9 1.7
The City's investment in capital assets, net of accumulated depreciation, increased by $1.7 million, or 0.3%, during FY 2023- 2024 primarily due to increases to the City's infrastructure assets. The City transferred $6.7 million of completed infrastructure projects during the year. In total, $9.8 million in projects were completed during the year, while the City also added another milton for ine nior nation on the ail oft asset, rafar a Note the Note toure asic nancin the amount of s8. 6v

DEBT ADMINISTRATION
s of June 30, 2024, the City had the following outstanding liabilities related to its vehicle leases, subscriptions payable, a ell as compensated absence
Long-Term Liabilities at June 30
(in millions)
Increase/
(Decrease)
2024 2023 from 2023
Leases 0.2 $ 0.3 (0.1)
Subscriptions Payable 0.2 - 0.2
Compensated Absences 0.6 0.6
Total 1.0 $ 0.9 0.1
For more information on the City's long-term liabilities, refer to Note 7 of the Notes to the Basic Financial Statements. (13)

CITY OF LAGUNA NIGUEL

MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2024

NEXT YEAR'S BUDGET
www.cityoflagunaniquel.org

CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide a general overview of the City's finances for all those interested in the government's finances. If you have questions about this report, or need additional financial information, please contact the Finance Department, City of Laguna Niguel, 30111 Crown Valley Parkway, Laguna Niguel, California 92677. (14)

BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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CITY OF LAGUNA NIGUEL

STATEMENT OF NET POSITION
JUNE 30, 2024
Total
Govemmental
Activities
ASSETS
Current Assets:

Cash and Investments $ 66,163,563
Restricted Cash and Investments 2,179,843
Receivables:

Accounts 499,096
Taxes 2,836,073
Interest 408,375
Prepaid Items 171,978
Deposits 19,644
Due from Other Governments 1,562,170
Lease Receivable 298,305
Total Current Assets 74,139,047
Noncurrent Assets:

Lease Receivable 2,150,93
Capital Assets, Not Being Depreciated 277,895,46
Capital Assets, Being Depreciated, Net 295,748,629
Total Noncurrent Assets 575,795,031
Total Assets 649,934,078

DEFERRED OUTFLOWS OF RESOURCES
Pension Related Deferred Outflows of Resources 6,596,397 OPEB Related Deferred Outflows of Resources 331.378
Total Deferred Outflows Of Resources 6,927,775

LIABILITIES
Current Liabilities:

Accounts Payable 7,655,526
Accrued Liabilities 353,748
Deposits Payable 1,916,440
Unearned Revenue 1,039,289
Retention Payable 165,108
Subscription Payable, Due Within One Year 122,898
Leases Payable, Due Within One Year 86,222
Compensated Absences, Due Within One Year 498,524
Other Postemployment Benefits Liabilities, Due Within One Year 66,32 Total Current Liabilities 11,904,08
Noncurrent Liabilities:

Subscription Payable, Due in More Than One Year 44,190
Leases Payable, Due in More Than One Year 98,077
Compensated Absences, Due in More Than One Yea 148,916
let Pension Liabilitie 7,365,509
1,858,049
Other Pal Noncure Labilits Liabilities, Due in More Than One Year 9.514.741 Total Liabilities 21,418,822

DEFERRED INFLOWS OF RESOURCES
2,288,129
2,716,404
956.386
Total Deferred Inflows of Resources 5,960,919

NET POSITION
Net Investment in Capital Assets 570,027,950
Restricted for:

Pension 2,179,843
'ublic Safet 89,845
842,166
11,667,794

44.674.514
Total Net Position 629.482,112
See accompanying Notes to Basic Financial Statements.
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CITY OF LAGUNA NIGUEL

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2024
Net Revenues
(Expenses) and
Changes in
Program Revenues Net Position
Operating Capital
Charges for Contributions Contributions Govemmental
Functions/Programs Expenses Services and Grants and Grants Activities

PRIMARY GOVERNMENT
Govermental Activities:

General Government $ 7,658,664 $ 775 $ 33,058 $ $ (7,624,831) Public Safety 17,891,745 267,507 273,669 (17,350,569)
Community Development 5,410,120 4,192,344 777,638 274,740 (165,398) Parks and Recreation 6,892,680 1,331,529 109,701 (5,451,450) Public Works 22,934,310 370,717 1,962,866 6,212,388 (14,388,339) Interest Expense 18,251 (18,251)
Total Governmental Activities $ 60,805.770 $ 6.162,872 S 3.156.932 $ 6.487.128 (44,998,838)

GENERAL REVENUES
Taxes:

Property Taxes, Levied for General Purpose 28,371,584
Sales Taxes 14,209,464
Franchise Taxes 2,657,013
Other Taxes 722,135
Total Taxes 45,960,196
Motor Vehicle in Lieu - Unrestricted 79,921
Use of Money and Property 2,854,024
Other 1,016,991
Total General Revenues 49.911,132
CHANGES IN NET POSITION 4,912,294
Net Position - Beginning of Year 624.569.818
NET POSITION - END OF YEAR 629,482.112
See accompanying Notes to Basic Financial Statements.
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FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
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GOVERNMENTAL FUND FINANCIAL STATEMENTS
General Fund - The City's primary operating fund that accounts for all financial resources of the general government except those required to be accounted for in another fund.

Miscellaneous Grants Special Revenue Fund - To account for revenues received and expenditures made for various City projects with funding provided by federal and state grants.

City Capital Projects Fund - To account for the activity relating to the City's individual capital projects.

Nonmajor Governmental Funds - To account for the aggregate of all the nonmajor governmental funds.
(25)

CITY OF LAGUNA NIGUEL

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2024
Miscellaneous Nonmajor Total
Grants Special City Capital Governmental Governmental
General Revenue Projects Funds Funds
ASSETS
Cash and Investments $ 53,641,317 547,912 $ 5,489,850 $ 6,301,890 $ 65,960,969 Restricted Cash and Investments 2,179,843 2,179,843
Receivables:

Accounts 498,997 99 499,096
2,391,665 : 444,408 2,836,073
Taxes
Interest 368,747 38,377 407,124
Lease Receivable 2,449,243 2,449,243
Prepaid Items 171,978 171,978
Deposits 1,960 17,684 19,644
Due from Other Governments 470,987 375,152 716,031 1,562,170 Due from Other Funds 18.227 18,227
Total Assets $ 62.192.964 923.064 $ 5,487,534 $ 7,500,805 § 76,104.367

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LIABILITIES
Accounts Payable $ 3,819,755 65,866 $ 3,099,648 $ 670,257 $ 7,655,526 Accrued Salaries 353,748 353,748
Deposit Payable 1,916,440 1,916,440
Due to Other Funds 18,227 18,227
Unearned Revenue 182,091 857,198 1,039,289
Retentions Payable 2.071 155,776 7,261 165,108
Total Liabilities 6,274,105 923,064 3,255,424 695,745 11,148,338

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 322,024 315,152 388,312 1,025,488
Lease Related 2,288,129 2,288,129
Total Deferred Inflows of Resources 2,610,153 315,152 388,312 3,313,617

FUND BALANCES
Nonspendable 173,938 17,684 191,622
Restricted 2,179,843 2,214,426 6.419,230 10,813,499
Committed 50,732,702 50,732,702
Assigned 222,223 222,223
Unassigned (Deficit) (315,152) (2,482) (317,634)
Total Fund Balances 53.308,706 (315,152) 2,232,110 6.416,748 61,642,412 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 62,192,964 923.064 5,487,534 $ 7.500.805 $ 76.104.367 See accompanying Notes to Basic Financial Statements.
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CITY OF LAGUNA NIGUEL

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
JUNE 30, 2024

RECONCILIATION TO THE STATEMENT OF NET POSITION
Fund Balances of Governmental Funds $ 61,642,412
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 (excluding amount reported in the internal service fund):

Capital Assets 775,018,170
Accumulated Depreciation (201,793,578)
Long-term liabilities were not due and payable in the current period and, therefore, were not reported in the governmental funds. All liabilities, both current and long-term, are reported in the statement of net position:

Compensated Absences (647,440)
Subscription Payable (167,088)
Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

Pension Related Deferred Outflows of Resources 6,596,397 Net Pension Liabilities (7,365,509)
Pension Related Deferred Inflows of Resources (2,716,404) Other postemployment benefits liability and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

OPE Related Deferred Outflows of Resources 331,378
Other Postemployment Benefits Liabilities (1,924,375)
OPE Related Deferred Inflows of Resources (956,386)
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the revenues of governmental activities. 1,025,488
Internal service funds are used by management to charge the costs of certain activities, such as vehicle replacement, to individual funds. The assets and liabilities of the internal service fund are reported with governmental activities. 439,047 Net Position of Governmental Activities as Reported in the Statement of Net Position $ 629,482,112 See accompanying Notes to Basic Financial Statements.
(27)

CITY OF LAGUNA NIGUEL

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
Miscellaneous Nonmajor Total
Grants Special City Capital Governmental Governmental
General Revenue Projects Funds Funds

REVENUES
Taxes $ 45,960,196 - $ $ 45,960,196
Licenses and Permits 4,554,662 4,554,662
Intergovernmental 229,338 3,137,885 - 6,261,149 9,628,372 Charges for Services 1,331,604 - 1,331,604
Fines and Forfeitures 275,907 : 275,907
Use of Money and Property (Loss) 2,462,778 333,568 2,796,346 Leases 467,970 467,970
Miscellaneous 378,161 378,161
Total Revenues 55,660,616 3,137,885 6,594,717 65,393,218

EXPENDITURES
Current:

General Govemment 6,599,799 6,599,799
Public Safety 17,643,906 206200 : 150,000 17,793,906
Community Development 4,473,842 89,037 4,929,085
Parks and Recreation 4,186,111 80,861 4,266,972
Public Works 15,453,835 1,383,160 16,836,995
Capital Outlay 856,064 9,369 9,824,999 10,690,432
Total Expenditures 49,213,557 375,575 9,824,999 1,703,058 61,117,189

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 6,447,059 2,762,310 (9,824,999) 4,891,659 4,276,029

OTHER FINANCING SOURCES (USES)
Transfers In 11,661,147 11,661,147
Transfers Out (3,625,099) (2.790,751) (5,245,297) (11,661,147) Issuance of Subscription Payable 167,088 167,088
Total Other Financing Sources (Uses) (3,458,011) (2,790.751) 11.661,147 (5.245,297) 167,088 NET CHANGES IN FUND BALANCES 2,989,048 (28,441) 1,836,148 (353,638) 4,443,117 Fund Balances (Deficit) - Beginning of Year 50,319,658 (286.711) 395.962 6,770,386 57,199,295 FUND BALANCES (DEFICIT) - END OF YEAR $ 53.308.706 (315.152) $ 2,232,110 $ 6.416,748 § 61.642.412 See accompanying Notes to Basic Financial Statements.
(28)

CITY OF LAGUNA NIGUEL

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2024

RECONCILIATION TO THE STATEMENT OF ACTIVITIES
Net Change in Fund Balances - Total Governmental Funds $ 4,443,117 Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlay as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period (excluding amount reported in the internal service fund):

Capital Assets 10,305,571
Depreciation Expense (8,383,981)
Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. 148,121
Proceeds from long-term debt provided current financial resources to governmental funds, but issuing debt increased long-term liabilities in the statement of net position.

Issuance of Subscription Payable (167,088)
Pension expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (1,462,207)
OPE expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (83,171)
Revenues reported as unavailable revenue in the governmental funds are recognized in the statement of activities. These are included in the revenues of governmental activities. 310,133
Internal service funds are used by management to charge the costs of certain activities, such as vehicle replacement, to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities. (198,201) Changes in Net Position of Governmental Activities as Reported on the Statement of Activities $ 4.912,294
See accompanying Notes to Basic Financial Statements.
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PROPRIETARY FUND FINANCIAL STATEMENTS
Internal Service Funds account for financing of goods and services provided by one department to other departments of the City on a cost-reimbursement basis.

Vehicle Replacement Internal Service Fund - Accounts for interdepartmental operations where it is the stated intent that costs of replacing vehicles to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments. (31)

CITY OF LAGUNA NIGUEL

STATEMENT OF NET POSITION

PROPRIETARY FUND
JUNE 30, 2024
Governmental
Activities -
Internal
Service Fund
Replacement
ASSETS
Current:

Cash and Investments $ 202,594
Interest Receivable 1,251
203,845
Total Current Assets
Noncurrent:

Vehicles, Net of Accumulated Depreciation 419501-
Total Noncurrent Assets
Total Assets 623,346

LIABILITIES
Current:

Lease Payable, Due Within One Year 86,222
Total Current Liabilities 86,222
Noncurrent:

Lease Payable, Due in More Than One Year 98,077
Total Noncurrent Liabilities 98,077
Total Liabilities 184,299

NET POSITION
Net Investment in Capital Assets 235,202
Unrestricted 203,845
Total Net Position 439,047
See accompanying Notes to Basic Financial Statements.
(32)

CITY OF LAGUNA NIGUEL

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUND
YEAR ENDED JUNE 30, 2024
Governmental
Activities-
Internal
Service Fund
Vehicle
Replacement
Fund

OPERATING EXPENSES
Depreciation Expense $ 194,663
Total Operating Expenses 194,663
OPERATING LOSS (194,663)

NONOPERATING REVENUES (EXPENSES)
Interest Revenue (Loss) 14,713
Interest Expense Related to Lease Payable (18,251)
Total Nonoperating Revenues (3,538)
CHANGES IN NET POSITION (198,201)
Net Position - Beginning of Year 637,248
NET POSITION - END OF YEAR $ 439,047
See accompanying Notes to Basic Financial Statements.
(33)

CITY OF LAGUNA NIGUEL

STATEMENT OF CASH FLOWS

PROPRIETARY FUND
YEAR ENDED JUNE 30, 2024
Governmental
Activities -
Internal
Service Fund
Vehicle
Replacement
Fund

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Repayment of Leases $ (86,222)
Interest Paid for Leases (18,251)
Net Cash Used by Capital and Related Financing Activities (104,473)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 13,462
Net Cash Provided by Investing Activities 13,462
NET DECREASE IN CASH AND CASH EQUIVALENTS (91,011)
Cash and Cash Equivalents - Beginning of Year 293,605
CASH AND CASH EQUIVALENTS - END OF YEAR $ 202,594

RECONCILIATION OF OPERATING LOSS TO NET CASH

PROVIDED BY OPERATING ACTIVITIES
Operating Loss $ (194,663)
Adjustments to Reconcile Operating Loss to Net Cash
Provided by Operating Activities:

Depreciation 194,663
Total Adjustments 194,663
Net Cash Provided by Operating Activities $
There was no significant noncash capital, financing, and investing activities during the year ended June 30, 2024.

See accompanying Notes to Basic Financial Statements.
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NOTES TO BASIC FINANCIAL STATEMENTS
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CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Laguna Niguel, California (the City) are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing accounting and financial reporting principles. The more significant of the City's accounting policies are described below.

A. Financial Reporting Entity
The City was incorporated on December 1, 1989 under the general laws of the state of California and enjoys all the rights and privileges pertaining to such "General Law" cities.

The City operates under a council-manager form of government and currently provides public safety, animal control, planning, building, code enforcement, engineering, street and park maintenance, street lighting, parks and recreation programs, and general administrative services.

This report includes all fund types of the City (the primary government). The City does units are entities for which the City is considered to be financially accountable. The City voting majority of that organization's governing body and the City is able to impose its will on that organization, or there is a potential for that organization to provide specific financial benefits to, or impose specific financial burdens on, the City. The City is also considered to be financially accountable if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete.

B. Basis of Accounting, Measurement Focus, and Financial Statement Presentation The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management ir demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.

Government-Wide Financial Statements
activities for the City.
(37)

CITY OF LAGUNA NIGUEL

Certain types of transactions are reported as program revenues for the City in three categories:
• Charges for services
• Operating grants and contributions
• Capital grants and contributions
Certain eliminations have been made in regard to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated.

In the Statement of Activities, direct expenses (charges based on actual use) are not eliminated, whereas indirect expense allocations made in the funds are reversed. The following interfund activities have been eliminated:

Due to/from other funds
• Transfers in/out
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and nonmajor governmental funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in Net Position as presented in these statements to the Net Position presented in the Government-Wide Financial Statements.

The City has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. (38)

CITY OF LAGUNA NIGUEL

The City reports the following major governmental funds:

General Fund
The City's primary operating fund that accounts for all financial resources of the general government except those required to be accounted for in another fund.

Miscellaneous Grants Special Revenue Fund
Accounts for revenues received and expenditures made for various City projects with funding provided by federal and state grants.

City Capital Projects Fund
Accounts for the expenditures relating to the City's individual capital projects.

Additionally, the City reports nonmajor governmental funds. These nonmajor governmental funds are special revenue funds which account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service and capital projects.

Proprietary Fund Financial Statements
Proprietary fund financial statements include a statement of net position, a statement of revenues, expenses, and changes in net position, and a statement of cash flows.

An internal service fund is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the government-wide financial statements. The City's Internal Service Fund includes one individual fund which provides services directly to other City funds. (39)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting, Measurement Focus, and Financial Statement Presentation (Continued)
Proprietary Fund Financial Statements (Continued)
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included in the statement of net position. The statement of revenues, expenses, and changes in net position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.

The City reports the following proprietary fund:

Vehicle Replacement Internal Service Fund
Accounts for interdepartmental operations where it is the stated intent that costs of replacing vehicles to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments.

C. Cash and Cash Equivalents
The City pools its available cash for investment purposes. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents.

For purposes of the statement of cash flows, cash equivalents are detined as short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in fair value because of changes in interest rates. Cash equivalents generally have an original maturity date of three months or less from the date of purchase. Cash equivalents also represent the proprietary fund's share in the cash and investments pool of the City.

D. Investments
Investments are reported in the accompanying financial statements at fair value.

Changes in fair value that occur during the fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings hanges in fair value, and any gains or losses realized upon the liquidation, maturity, o sale of investments.
(40)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Investments (Continued)
The City pools cash and investments of all funds. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments.

Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance, except for investment income associated with funds not legally required to receive pooled investment income, which has been assigned to and recorded as revenue of the General Fund, as provided by California Government Code 53647.

E. Fair Value Measurements
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:

The three levels of the fair value measurement hierarchy are described below:

Level 1 - Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.

Level 2 - Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities, either directly or indirectly and fair value is determined through the use of the models and other valuation methodologies including:

Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in markets that are inactive;
Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 - Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

F. Receivables
Receivables include such items as taxes, intergovernmental revenues, charges for services, miscellaneous accounts receivable, and interest receivable. No allowance for doubtful accounts has been established, as the City believes all amounts are considered to be collectible in the normal course of business.
(41)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Prepaid Items and Deposits
Prepaid items are payments made to vendors for services that will benefit periods beyond the fiscal year ended using the purchase method. Deposits are payments made as security or in part payment.

A nonspendable fund balance has been reported in the governmental funds to show that prepaid items and deposits do not constitute "available spendable resources", even though they are a component of net current assets.

H. Leases
The City accounts for leases in accordance with GASB Statement No. 87 based on the principle that leases are financings of the right to use an underlying asset. The primary objective of this statement is to enhance the relevance and consistency of information and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, refer to the disclosures in Note 4 Leases Receivable and Note 7 Long-Term Obligations.

At the commencement of the lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term.

Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines the discount rate it uses to discount the expected lease receipts to present value, lease term and lease receipts. ment in as oil composed of ted arent to ea
lessee.

The City monitors changes in circumstances that would require a remeasurement of its leases, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
(42)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their acquisition alue on the date of acquisition. The City's policy is to capitalize all assets with an initia ndividual cost equal to or more than $5.000 with a useful life of more than one year Capital assets, which include land, buildings and building improvements, park mprovements, swimming pool furniture and equipment, software, vehicles, constructions in progress, and infrastructure assets (street systems, storm drains bridges, etc.), are reported in the governmental activities column of the government-wide financial statements.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Depreciation has been provided on capital assets in the government-wide financial statements. Depreciation of all capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, called accumulated depreciation, is reported on the Statement of Net Position as a reduction in the book value of capital assets. Depreciation is reported using the straight-line method, which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated.

The City has assigned the useful lives listed below to capital assets:

Asset Type Useful Lives
Curbs, Gutters, Sidewalks, Catch Basins, and Manholes 100 Years Streets, Street Lights, Storm Drains, Tunnels, and Bridges 75 Years Buildings and Building Improvements 15 to 45 Years
Swimming Pool and Improvements 15 to 25 Years
Park Improvements 10 to 25 Years
Furniture and Equipment 3 to 15 Years
Vehicles 3 to 10 Years
Software 10 Years
Right-to-Use Lease Assets The Estimated Life of the
Lease Asset or the Contract
Term, Whichever is Shorter
(43)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Deferred Outflows and Inflows of Resources
The statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This 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 (expenditure) until that time. The City has two items that qualify for reporting in this category. The items are deferred outflows related to pensions and deferred outflows related to OPEB.

The statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City has four types of items which qualify for reporting in this category. Three of the items are deferred inflows related to pensions and deferred inflows related to OPEB, and leases, which are presented on the government-wide statement of net position. The fourth item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from accounts, taxes and grant receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

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

The following timeframes are used for pension reporting:

Valuation Date June 30, 2022
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
(44)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Pension Plans (Continued)
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized mounts are recognized in pension expense for the year the gain or loss occurs. Th emainina amounts are categorized as deferred outflows and inflows of resource:
• to be recognized in further pension expense. The
members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. The net pension liability is generally liquidated by the General Fund
L. Other Postemployment Benefits Plan
For the purpose of measuring the Total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPE expense, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit The following timeframes are reported OPEB reporting:

Valuation Date June 30, 2022
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Gains and losses related to changes in total OPEB liability are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. Gain and loss are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period. Other postemployment benefits are generally liquidated by the General Fund.

M. Property Taxes
Property tax revenue is recognized in the fiscal year for which the taxes have been in the current period.
(45)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Property Taxes (Continued)
Under California law, property taxes are assessed and collected by the counties at up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. The County of Orange collects property taxes for the City. Tax liens attach annually as of 12:01 a.m. on the first day of January preceding the fiscal year for which the taxes are levied. Taxes are levied on July 1 and cover the fiscal period July 1 to June 30. All ecured personal property taxes and one-half of the taxes on real property are du lovember 1: the second installment is due February 1. All taxes are delinquent, unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on March 1 each year, and are delinquent, if unpaid, on August 31.

N. Compensated Absences
Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary for all unused vacation leave, and 0%-50% of the value of unused sick leave depending on length of service and date of hire.

A liability is recorded for unused vacation and similar compensatory leave balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.

A liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in termination payments. This is estimated by including in the liability the unused balances of employees currently entitled to receive termination payments, as well as those who are expected to become eligible to receive termination benefits as a result of continuing their employment with the City. Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness), which is outside the control of the City and the employee.

O. Net Position and Fund Balances
In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows:
let investment in capital assets. This component of net position consists of capita ssets, net of accumulated depreciation, reduced by the outstanding balances o debt that are attributable to the acquisition, construction, or improvement of those (46)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Net Position and Fund Balances (Continued)
Restricted net position. This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. nrestricted net position. This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resource:
that are not included in the determination of net investment in capital assets or the In the Governmental Fund Financial Statements, fund balances are classified in the following categories:

Nonspendable fund balance. Nonspendable fund balances are items that are not expected to be converted to cash, such as prepaid items and deposits, or items that are required to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted fund balance. Restricted fund balances include amounts that can be spent only for the specific purposes stipulated by external resources providers, such as grant providers, constitutionally, or through enabling legislation. Effectively, restrictions may be changed or lifted only with the consent of resource providers.

Committed fund balance. Committed fund balances include amounts that can be used only for the specific purposes determined by formal action of the government's highest level of decision-making authority, i.e. adoption of the annual City Financial Reserves Policy and resolutions. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. The City Council is considered the highest authority for the City. Commitments of fund balance are specified in the City's Financial Reserves Policy, which is reviewed and amended as appropriate on an annual basis by the City Council Assigned fund balance. Assigned fund balances comprise amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. The City Council is the body authorized to assign amounts to a specific purpose. In governmental funds, other than the General Fund, assigned fund balance represents all amounts that are not classified as restricted or committed Resources in governmental funds other than the General Fund are to be used for the specific purpose of that fund.
(47)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Net Position and Fund Balances (Continued)
classification in that fund.

Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City's policy is to apply the restricted component of net position first, then the unrestricted component of net position as Governmental Fund Financial Statements
When expenditures are incurred for purposes for which all restricted, committed, assigned, and unassigned fund balances are available, the City's policy is to apply in the following order, except for instances wherein an ordinance specifies the fund balance:
• Restricted
Committed
• Jnassianer
P. Use of Estimates
The preparation of basic financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts assumptionsures. Accordingly, actual resuls could differ from these estimates and NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Deficit Fund Balance
The following funds had a deficit fund balance at June 30, 2024:

Special Revenue Funds:

CDBG $ (2,482)
Miscellaneous Grants (315,152)
(48)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) Deficit Fund Balance (Continued)
The fund deficit in the CDBG Special Revenue Fund and the Miscellaneous Grants Special Revenue Fund is the result of expenditures incurred during the fiscal year that have not been reimbursed since the grant is on-going
Excess of Expenditures Over Appropriations
The following funds had expenditures in excess of appropriations:

Fund Description Appropriations_Expenditures Excess
Major Govermental Funds:

General Capital Outlay $ 582,264 $ 856,064 $ (273,800)
Miscellaneous Grants
Special Revenue Fund Total Expenditures 60,000 375,575 (315,575) Nonmajor Governmental Funds:

Air Quality Improvement
Special Revenue Fund Total Expenditures 100,000 105,280 (5,280) Senior Transportation
Special Revenue Fund Total Expenditures 80,000 80,861 (861) NOTE 3 CASH AND INVESTMENTS
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds.

The City had the following cash and investments at June 30, 2024:

Governmental
Activities
Cash and Investments 66,163,563
Restricted Cash and Investments 2,179,843
Total Cash and Investments 68.343.406
(49)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
The City's cash and investments at June 30, 2024 in more detail:

Cash and Cash Equivalents:

Cash on Hand $ 2,400
Demand Deposits 3,176,692
Total Cash and Cash Equivalents 3,179,092
Investments:

Federal Government Agency Securities 34,514,486
U.S. Treasury Obligations 17,934,360
Insured Certificates of Deposits 4,472,993
Money Market Mutual Fund 5,881,889
Orange County Investment Pool 78,121
PARS Pooled 115 Trust 2,179,843
State Local Agency Investment Fund 102,622
Total Investments 65,164,314
Total Cash and Investments $ 68,343,406
A. Demand Deposits
The carrying amounts of the City's deposits were $3,176,692 at June 30, 2024. Bank balances at that date were $4,165,534, the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the City's name as discussed below.

The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging firs trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.

The City follows the practice of pooling cash and investments of all funds, except for funds deposited in escrow which were required by construction projects. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. (50)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
B. Investments Authorized by California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive).

The table also identifies certain provisions of the California Government Code (or the city's investment policy, where more restrictive) that address interest rate risk, credi risk, and concentration of credit risk. This table does not address investments of deb proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Maximum Maximum
Maximum Percentage Investments in
Authorized Investment Type Maturity Allowed One Issuer
U.S. Treasury Obligations 5 Years None None
Federal Agency Securities or U.S. Government
Sponsored Enterprise Securities 5 Years 60% 25%
State Local Agency Investment Fund (LAIF) N/A 55% $40 Million Insured Certificates of Deposits 5 Years 30% $250,000
Insured Money Market Accounts N/A None None
Money Market Mutual Funds N/A 20% 10%
Orange County Investment Pool (OCIP) N/A 55% $40 Million NIA 20% None
C. Fair Value Measurement Disclosure
At June 30, 2024, investments are reported at fair value. The following table presents the fair value measurements of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2024:

Measurement Inputs
Investment Type Level 1 Level 2 _Uncategorized Total
Federal Government Agency Securities $ = S 34,514,486 $ 34.514,486 U.S. Treasury Obligations 17,934,360 17,934,360
Insured Certificates of Deposits 4,472,993 4,472,993
Money Market Mutual Fund 5,881,889 5,881,889
78,121 78,121
PARS Pooled 115 Trust 2,179,843 2,179,843
LAIF 102,622 102,622
Total $ 17.934,360 $ 44,869.368 $ 2,360,586 § 65.164.314 (51)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
D. Risk Disclosures
Interest Rate Risk
greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter-term and longer-term investments and by timing cash flows fror naturities so that a portion of the portfolio is maturing or coming close to maturity even! Information about the sensitivity of the fair values of the City's investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:

Measurement Inputs
12 Months
Investment Type Months Months
Federal Government Agency Securities 6,860,960 11,696,971 $ 15,956,555 $ 34,514,486 U.S. Treasury Obligations 5,446,960 4,033,100 8,454,300 Insured Certificates of Deposits 500,848 - 3,972,145 4,472,993 Money Market Mutual Fund 5,881,889 5,881,889
OCIP® 78,121 78,121
PARS Pooled 115 Trust 2,179,843 2,179,843
LAIF 102,622 102,622
Total $ 21,051,243 $ 15.730.071 $ 28,383,000 $ 65.164.314 Credit Risk
Generally, credit risk is the risk that the issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the City's investment policy, and the actual rating as of the fiscal year-end for each investment type:

Legal Not Total as of
Investment Type Rating AAA Rated June 30, 2024
Federal Government Agency Securities AAA 34,514,486 $ $ 34,514,486 U.S. Treasury Obligations* N/A 17,934,360 17,934,360
Insured Certificates of Deposits N/A 4,472,993 4,472,993 Money Market Mutual Fund AAA 5,881,889 5,881,889
OCIP NIA 78,121 78,121
PARS Pooled 115 Trust N/A 2,179,843 2,179,843
LAIF N/A 102,622 102,622
Total 40.396.375 $ 24.767.939 $ 65.164.314
*Exempt from Rating Disclosure
(52)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
D. Risk Disclosures (Continued)
Concentration of Credit Risk
The investment policy of the City contains a limitation on the amount that can be invested in any one issuer of Federal Agency securities to a maximum of 25% of total investments. The City was in compliance with this limitation at June 30, 2024 and The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code.

Investments in any one issuer (other than mutual funds and external investment pools) that represent 5% or more of total City investments are as follows:
issuer Investment Type Amount
Federal Home Loan Mortgage Corporation Federal Government Agency Securities $ 4,905,900 Federal National Mortgage Association Federal Govemment Agency Securities 8,248,470 Federal Home Loans Banks Federal Govemment Agency Securities 10,611,096 Federal Farm Credit Banks Federal Government Agency Securities 10,749,020 Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than as follows.

The California Government Code requires that a financial institution secure deposit made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the City. California law also allows financial institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of the secured City deposits. The City's investment policy requires delivery versus payment procedures and that all securities be held in third-party safekeeping by a custodial financial institution.

As of June 30, 2024, all of the City's deposits with financial institutions in excess of federal depository insurance limits were collateralized by an interest in an undivided collateral pool as required by state law. In addition, all investments were held by the third-party safekeeping institution.
(53)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
E. Investment in State Investment Pool
regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The value of the City's investment in this pool is pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation he accounting records maintained by LAIF, which are recorded on an amortized cos basis. As of June 30, 2024, the City had $102,622 invested in LAIF F. Investment in Orange County Investment Pool
The City is a participant in the County Treasurer's Orange County Investment Pool (OCIP). The OCIP is an external investment pool, is not rated and is not registered with the Securities Exchange Commission (SEC). The County Treasury Oversight Committee conducts OCIP oversight. Cash on deposit in the OCIP at June 30, 2024, is stated at fair value. The OCIP values participant shares on an amortized cost basis during the year and adjusts to fair value at year-end. For further information regarding the OCIP, refer to the County of Orange Annual Comprehensive Financial Report.

G. Investment in Public Agency Retirement Services
The City established an Internal Revenue Service Section 115 irrevocable trust with the Public Agency Retirement Services (PARS) for the purposes of funding pension obligations. PARS is an external investment pool, is not rated and is not registered with the Securities Exchange Commission. The City selects the investment strategy and the pool is managed by the PARS Board. The fair value of the City's investments in the pool is reported in the accompanving financial statements at amounts based upon the City's pro-rata share of the fair value provided by PARS for the entire PARS portfolio. (54)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 4 LEASE RECEIVABLE
As of June 30, 2024, the City has 16 cell tower leases for easements located throughout _aguna Niguel. The interest rate for each lease is 1.65%. The initial lease agreement term I ive years with the option to extend for three additional terms of five years. The total amoun of lease revenue recognized in the current reporting period from leases is $323,517 and the total amount of interest received related to the lease was $42,959. The balance of the lease receivable at June 30, 2024 is $2,449,243. The City has a deferred inflow of resources associated with these leases that will be recognized as revenue over the lease term. The balance of the deferred inflow of resources at June 30, 2024 is $2,288,129.

NOTE 5 CAPITAL ASSETS
The following is a summary of changes in the capital assets for governmental activities during the fiscal year:

July 1. 2023 Additions Deletions Reclassification June 30, 2024 Capital Assets, Not Being Depreciated:

Land $ 271,068,667 $ 271,068,667

6.892,132 9.736.579 (9.801,914) 6.826.797
277,960,799 9,736,579 (9,801,914) 277,895,464
Capital Assets, Being Depreciated:
351,245,927 6,687,764 357,933,691
80,772,411 1,184,482 81,956,893
1,904,458 1,904,45
48,187,802 1.929,668 50, 117,470
2,408,558 2,408,55
1,808,37: 41.484 1,849,859
424,269 424,269
ight-to-Use Subscription Asset 527,508 527,508
'ehicle 561,299 561,299
ight-to-Use Lease Assets - Vehicle 460,727 460.727
otal Capital Assets, Bein
Depreciated 487,773,826 568,992 9,801,914 498,144,732
Less: Accumulated Depreciation:

Infrastructure (143,685,499) (4,654,065 (148,339,564)
Buildings and Building Improvements (18,805,456) 2,702,746 (21,508,202) Improvements Other Than Buildings (402,641) (124,428) (527,069) Park Improvements (28,443,214) (530,715) 139592)
Swimming Pool (736,859) (99,923)
Furniture And Equipment (1,001,851) (124,177) (1,126,028) Software (334,077) (42,427) (376,504)
Right-to-Use Subscription Assets (105,500) (105,500)
Vehicles (217,657) (108,934) (326,591)
Right-to-Use Lease Assets - Vehicles (190.205) (85,729) (275,934) Total Accumulated Depreciation (193,817,459) (8,578.644) (202,396, 103) Total Capital Assets, Being
Depreciated, Net 293.956,367 (8.009.652) 9,801,914 295,748,629 Governmental Activities Capital Assets, Net S 571.917.166 $ 1,726,927 $ 573.644.093 (55)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 5 CAPITAL ASSETS (CONTINUED)
Depreciation and amortization expense was charged to the City's programs as follows:

Governmental Activities:

General Government $ 708,650
ublic Safety 78,202
72,633
2,172,921
5,546,238
Total Depreciation and Amortization Expense $ 8.578.644 Infrastructure assets comprise a significant portion of capital assets. Infrastructure assets are further identified by type as follows:

Balance Balance
June 30, 2023 Additions Deletions June 30, 2024
Infrastructure Assets:

Streets $ 306,778,308 $ 6,497,789 $ $ 313,276,097
Storm Drains 21,301,683 21,301,683
Traffic Signals 10,340,486 189,975 10,530,461
Bridges 5,625, 168 5,625,168
Trails 7,200,282 7,200,282
Total Infrastructure Assets 351,245,927 6,687,764 357,933,691 Less: Accumulated Depreciation for:

Streets (124,002,095) (4,017,638) (128,019,733)
Storm Drains (10,924,295) (282,536) (11,206,831)
Traffic Signals (4,302,956) (139,791) (4,442,747)
Bridges (2,245,017) (93,796) (2,338,813)
Trails (2.211,136) (120.304) (2.331,440)
Total Accumulated Depreciation (143,685,499) (4.654.065) (148,339.564) Total Infrastructure Assets, Net § 207,560.428 $ 2,033,699 $ $ 209.594,127 NOTE 6 INTERFUND ACTIVITY
A. Due From and To Other Funds
The composition of interfund balances as of June 30, 2024, is as follows:

Due to
Other Funds
Nonmajor
Governmental
Due from Other Funds Funds Total
Governmental Funds:

General Fund $ 18.227 $ 18.227
(56)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 6 INTERFUND ACTIVITY (CONTINUED)
A. Due From and To Other Funds (Continued)
All interfund balances are short-term in nature and are expected to be repaid within one year. The Community Development Block Grant Special Revenue Fund had a negative cash balance at June 30, 2024. This amount has been reclassified as interfund receivables/payables for financial statement purposes.

B. Transfers In and Out
Transfers In
Governmental
Funds
City Capital
Transfers Out Projects Total
Governmental Funds:

General Fund $ 3,625,099 $ 3,625,099
Miscellaneous Grants Special Revenue Fund 2,790,751 2,790,751 Nonmajor Governmental Funds 5,245,297 5,245,297
Total $ 11.661.147 $ 11,661,147
Transfers from General Fund, Miscellaneous Grants Special Revenue Fund and Nonmajor Governmental Funds to the City Capital Projects Fund in the amount of $11.661,147 were to cover capital project expenditures during the fiscal year. These projects are approved through the annual budget process and each project is approved with identified funding sources.

NOTE 7 LONG-TERM LIABILITIES
Summary of changes in long-term liabilities for the year ended June 30, 2024 is as follows:

Balance Due Within
July 1, 2023 Additions June 30. 2024. One Year han One Ye.

Governmental Activities:

Subscription Payable $ § 167,088 $ 122,898
Leases Payable
Compensated Absences
Total Governmental Activities $ 1.066.082
(57)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Subscription Payable
The City entered into a subscription-based information technology arrangement (BITA) for a software. The SBITA arrangement expires in 2026. The subscription asset and the related accumulated amortization are detailed in Note 5. The future minimum subscription payments Fiscal Year Ending June 30. Principal Interest Total
2025 122,898 2,496 125,394
2026 44,190 1470- 46,170
Total $ 167,088 $ 171,564
Leases Payable
The City leases vehicles for various terms under long-term noncancelable lease agreements. The leases expire at various dates through 2028. The right-to-use lease assets and the related accumulated amortization are detailed in Note 5. The future minimum lease payments under the lease agreements are as follows:

Fiscal Year Ending June 30. Principal Interest Total
2025 $ 86,222 $ 17,518 $ 103,740
2026 81,146 16,751 97,897
2027 14,454 3,317 17,771
2028 2,477 678 3,155
Total $ 184,299 $ 38,264 $ 222,563
Compensated Absences
The City uses General Fund to liquidate the compensated absences liabilities.

NOTE 8 LIABILITY, WORKERS' COMPENSATION PLAN, 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 (the 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 California JPIA 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.
(58)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 8 LIABILITY, WORKERS' COMPENSATION PLAN, AND PURCHASED INSURANCE (CONTINUED)
B. Primary Self-Insurance Programs of the Authority
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; and (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; and (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.
(59)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 8 (CONTINUED)RKERS COMPENSATION PLAN, AND PURCHASED INSURANCE B. Primary Self-Insurance Programs of the Authority (Continued) Primary Workers' Compensation Program (Continued)
For 2023-24 the Authority's pooled retention is $1 million per occurrence, with 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 $250,000 deductible. The Authority has an aggregate limit of $20 million.

Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City property is currently insured according to a schedule of covered property submitted by the City to the Authority. The City property currently has all-risk property insurance protection in the amount of $145,378,540. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible.

Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.

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 2023-24. (60)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 9 CLASSIFICATION OF FUND BALANCE
Details of the fund balance classifications at June 30, 2024 are as follows:

Miscellaneous City Capital Nonmajor
General Fund Grants Projects Governmental Total
Nonspendable:

Prepaid Items 171,978 $ $ $ 171,978
Deposits 1,960 17,684 19,644
Total Nonspendable 173,938 17,684 191,62
Restricted:

Pension 2,179,843 2,179,843
ublic Safet 89,845 89,845
524,532 524,532
Subic ory Developmen 2.214.426 5.804,853 8,019,279
Total Restricted 2,179,843 2,214,426 6,419,230 10,813,499 -Compensated Absences 148,916
148.916
PEal Asset Replacemen 23,139,352 23,139,352
1,154,625 1,154,625
Economic Uncertainty* 26,289,809 26.289,809
Total Committec 50,732,702 50,732,702
Assigned:

Continuing Appropriations:

Community Development 222,223 222.22:

Total Assigned 222,223 22,22
Unassigned (Deficit) (315,152) (2,482) (317,634)
Total Fund Balance > 53308,706 (315.152) 2.232.110 6.416.748 2 61.642,412 *The City Council adopted the Financial Reserves Policy through resolution during the budget adoption process. The City will maintain a committed fund balance for Financial and Economic Uncertainty equal to no less than 50% of annual General Fund operating expenditures. City Council approval shall be required before expending any portion of the committed fund balance for Financial and Economic Uncertainty. Unforeseen circumstances that may require an expenditure of such amounts include, but are not limited to natural disasters, unforeseen deficiencies of a major revenue source, or unexpected operating or capital expenditures.
(61)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 10 JOINTLY GOVERNED ORGANIZATION
Orange County Fire Authority
In January 1995, the City entered into a joint powers agreement with the cities of Buena Park, Cypress, Dana Point, Irvine, Laguna Hills, 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 (OCFA). Since the creation of the OCFA, the cities of Laguna Woods, Rancho Santa Margarita, Westminster, Aliso Viejo, and Santa Ana joined the OCFA as members eligible for fire protection services. The purpose of the OCFA 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 OCFA's governing board consists of one representative from each city and two from the County. The operations of the OCFA 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, Seal Beach, Westminster, and Santa Ana. The County pays all structural fire fees it collects to the OCFA. The cities of Stanton, Tustin, San Clemente, Buena Park, Garden Grove, Seal Beach, Westminster, and Santa Ana are considered "cash contract cities" and accordingly, make cash contributions based on the OCFA's annual budget. No determination has been made as to each participant's proportionate share of fund equity as of June 30, 2024. Upon dissolution of the OCFA, all surplus money and property of the OCFA will be conveyed or distributed to each member in proportion to all funds provided to the OCFA by that member or by the County on behalf of that member during its. membership. The OCFA financial statements can be obtained from the OCFA at 1 Fire Authority Road, Irvine, CA 92602.

NOTE 11 DEFINED BENEFIT PENSION PLANS
A. General Information about the Pension Plan
Plan Description
The City contributes to CaPERS, a cost-sharing, multiemployer defined pension plan, for its' miscellaneous employees. CaPERS provides retirement and disability benetits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries.

CaPERS acts as a common investment and administrative agent for participating public entities within the state of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of CaPERS' annual financial report may be obtained from its website under Forms and Publications. (62)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. General Information about the Pension Plan (Continued) Benefits Provided
CaPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A first tier classic CaPERS nember becomes eligible for service retirement upon attainment of age 55 with at least five years of credited service. A second tier classic CaPERS member becomes eligible for service retirement upon attainment of age 60 with at least five years of credited service. A PEPRA miscellaneous member becomes eligible for service retirement upon attainment of age 62 with at least five years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 12 - 36 months of full-time equivalent monthly pay.

The following are the benefit provisions for each plan:
• Classic Tier 1: 2.0% (at age 55) of the average final 12 months compensation. • Classic Tier 2: 2.0% (at age 60) of the average final 36 months compensation. • PEPRA: 2.0% (at age 62) of the average final 36 months compensation.

Participants are eligible for nonindustrial disability retirement if they become disabled and have at least five years of credited service. There is no special age requirement.

The standard nonindustrial disability retirement benefit is a monthly allowance equal to

1.8% of final compensation, multiplied by service.

An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre- retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5% per year, plus a lump-sum in the amount of one month's salary for each completed year of current envice, up to a maximum of six service, up to a maximum of six months' salary. For purposes of this benefit, on nonth's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one- time lump-sum payment of $500 will be made to the retiree's designated survivors) or to the retiree's estate.

Benefit terms provide for annual cost-of-living adjustments to each employee's retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by (63)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. General Information about the Pension Plan (Continued) Contributions
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires hat the employer contribution rates for all public employers be determined on an annua asis by the actuary and shall be effective on the July 1 following the notice of a chang necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to $1,078,149.

Actuarial Methods and Assumption Used to Determine Total Pension Liability For the measurement period ended June 30, 2023, the total pension liability was determined by an actuarial valuation as of June 30, 2022, with update procedure used to roll forward the total pension liability to June 30, 2023. The June 30, 2023 total pension liabilities were based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Actuarial Cost Method
Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by entry age and service
Mortality Rate Table (1)
Post-Retirement Benefit Increase The lessor of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing
power applies, 2.30% thereafter
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CaPERS Experience Study for the period from 2001 to 2019.

Psing 80% of cale MI: 2020 puished by he Soney of Acerates for mail ear ement. table, please refer to the CaPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CaPERS website. (64)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension
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 om employers will be made at statutorily required rates, actuarially determined. Base n those assumptions, the Plan's fiduciary net position was projected to be available 1 make all projected future benefit payments of current plan members. Therefore, the projected benefit payments to determine the total pension liability.

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, CaPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 vears using a building-block approach. The expected rate of return was ther adjusted to account for assumed administrative expenses of 10 Basis points. The Assumed Asset
Asset Class (1) Allocation Real Return (1.2)

30.00 % 4.54%
Global Equity - Cap-Weighted
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)
Total 100.00%
'An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study. (65)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Proportionate Share of Net Pension Liability
proportionate Share ended uncle ne enor airy one peel earn $7,365,509.

The City's net pension liability for the miscellaneous plan is measured as the proportionate share of the net pension liability. 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, The City's proportionate share of the net pension liability for the Safety Plan as of the measurement dates ended June 30, 2022 and 2023, were as follows:

Miscellaneous
Proportion - June 30, 2022 (MD) 0.24302%
Proportion - June 30, 2023 (MD) 0.14730
Change - Increase (Decrease) (0.09572)%
Pension Expense and Deferred Outflows and Inflows of Resources For the year ended June 30, 2024, the City recognized pension expense in the amount of $2,540,356. At 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 of Inflows of
Resources Resources
Changes in Assumptions 444,689 $
Differences Between Expected and Actual Experience 376,270 58,369 Differences Between Expected and Actual
Investment Earnings 1,192,542 -
Differences between Employer's Contributions and
Proportionate Share of Contributions 3,302,143 293,104
Change in Employer's Proportion 202,604 2,364,931
Pension Contributions Made Subsequent to
Measurement Date 1,078,149
Total $ 6.596,397 $ 2,716,404
(66)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Pension Expense and Deferred Outflows and Inflows of Resources (Continued) $1,078,149 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net ctual investment earnings are amortized on a five-year straight-line basis and a ther amounts are amortized over the expected average remaining service lives of members that are provided with benefits. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognize Miscellaneous
Fiscal Year Ending June 30. Plan
2025 884,111
2026 715,284
2027 1,168,230
2028 34,219
Total 2,801,844
Sensitivity of the City's 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 of the Plan as of the measurement date, calculated using the discount rate of 6.90%, 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 (5.90%) or 1% Decrease to Current Discount 1% Increase to
Discount Rate Discount Rate Discount Rate
(5.90%) (6.90%) (7.90%)
Plan's Net Pension Liability (Asset) 13,892,108 7,365,509 1,993,558 Pension Plan Fiduciary Net Position
Detailed information about the plan's fiduciary net position is available in the separately issued CaPERS' financial report and can be obtained from CaPERS' website under Forms and Publications.

Payable to the Pension Plan
At June 30, 2024, the City had no outstanding amount of contributions to the miscellaneous cost-sharing pension plans required for the year ended June 30, 2024. (67)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 12 OTHER POSTEMPLOYMENT BENEFITS
A. General Information About the Other Postemployment Benefits (OPEB) Plan Plan Description
The City provides postretirement medical benefits to employees who retire directly from the City under CaPERS under a single employer defined benefit postemployment benefits plan. Eligible retirees can continue participation in the City's medical plans (PEMHCA). For miscellaneous retirees, the City contributes up to a capped dollar amount which varies by bargaining unit, medical coverage, and years of service.

The City has not established a trust for the purpose of holding assets accumulated for plan benefits.

Eligibility
Participants directly retire from the City under CaPERS plan at age 50 and 52 for classic members and PEPRA members, respectively or retire due to disability retirement.

Covered Participants
At June 30, 2024, the measurement date, the following numbers of participants were covered by the benefit terms:

Active Employees 80
Inactive Currently Receiving Benefits 23
Inactive Entitled to But Not Yet Receiving Benefits 31
134
Contributions
The obligation of the City to contribute to the plan is established and may be amended by the City Council. For the year ended June 30, 2024 the City made contributions on a pay-as-you-go basis.

B. Total OPEB Liability
The City's total OPEB liability was measured as of June 30, 2024, and the total OPEB liability was determined by an actuarial valuation as of June 30, 2022, rolled forward to June 30, 2024, using standard updated procedures.
(68)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
B. Total OPEB Liability (Continued)
Actuarial Methods and Assumption Used to Determined Total OPE Liability The total OPEB liability was determined using the following actuarial methods and assumptions, applied to all periods included in the measurement period, unless otherwise specified:

Contribution Policy No Pre-Funding
Discount Rate 3.93% at June 30, 2024
(Bond Buyer 20-Bond Index)
Inflation 2.50% Annually
Mortality, Retirement,
Disability, and Termination CaPERS 2000-2019 Experience Study Mortality Improvement Mortality Projected Fully Generational with Scale MP-2021
Salary Increases Aggregate - 2.75% Annually
Merit - CaPERS 2000-2019 Experience Study
Medical Trend Non-Medicare - 6.50% for 2023, Decreasing to an Ultimate Rate of 3.75% in 2076
Medicare - 5.65% for 2023, Decreasing to
an Ultimate Rate of 3.75% in 2076
PEMCA Minimum Increase 4.00% Annually
Healthcare Participation at Retirement Actives - 50%
Retirees - Current Election
Spouse Coverage Actives: Current Election if Covered, 80% if Waived Retirees: Current Election
Medicare Eligible 100%
Change of Assumptions
During the measurement period June 30, 2024, the accounting discount rate was updated based on the municipal bond rate.

Discount Rate
The discount rate used to measure the total OPEB liability was 3.93%. The discount rate is based on the yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale).
(69)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
B. Total OPEB Liability (Continued)
Change in Total OPEB Liability
Total OPEB
Liability
Balance at July 1, 2023 (Measurement Date) 1,856,547
Changes Recognized for the Measurement Period:

Service Cost 140,189
Interest on the Total OPEB Liability 71,671
Changes of Assumptions (77,706)
Benefit Payments, Including Refunds of Employee (66,326) Net Changes During July 1, 2023 to
June 30, 2024 67,828
Balance at June 30, 2024 (Measurement Date) 1,924,375
Sensitivity of the Total OPEB Liability to Change in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City's total OPE liability would be if it were calculated using a discount rate that is 1-percentage- point lower (2.93%) or 1-percentage- point higher (4.93%) than the current discount rate:
1% Decrease to Current Discount 1% Increase to
Discount Rate Discount Rate Discount Rate
(2.93%) 3.93% (4.93%)
Plan's Total OPEB Liability 2,225,101 § 1.924,375 1,681,448 Sensitivity of the Total OPE Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (Non-Medicare - 5.50% to 2.75% and Medicare - 4.65% to

2.75%) or 1-percentage-point higher (Non-Medicare - 7.50% to 4.75% and Medicare -

5.65% to 4.75%) than the current healthcare cost trend rates 1% Decrease to 1% Increase to
Current Trend
Plan's Total OPEB Liability 1.608,743
(70)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
C. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the measurement period ended June 30, 2024, the City recognized OPEB expense of $150,153. At June 30, 2024, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference Between Expected and Actual Experience $ 82,689 $ 421,239 Changes in Assumptions 248,689 535,147
Total $ 331,378 956,386
Amounts are amortized over the expected average remaining service lives of all members that are provided with benefits and will be recognized in the future OPEB expense as follows:

Deferred
Outflows
(Inflows)
of Resources
Fiscal Year Ending June 30. OPEB Plan
(62,363)
2026 (62,363)
(58,395)
2028 (61,493)
2029 (90,149)
Thereafter (290,245)
Total (625,008)
NOTE 13 CONTINGENCIES
position of the City.

The City has received state and federal funds for specific purposes that are subject to review by the grantor agencies. Although such audits could generate expenditures disallowances under the terms of the grants, it is believed that any required reimbursements, if any, will not be material.
(71)

CITY OF LAGUNA NIGUEL

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 14 OUTSTANDING COMMITMENTS
Loit act. At un of of 2024, near she Clane deo senil consoling and ail printe Projects with Outstanding Contracts Balance
Local Roadway Pavement Rehabilitation Project 1,045,989 La Paz Road Evaluation 824,451
Marina Hills Park Improvements 497,004
Total $ 2,367.444
(72)

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
(73)

CITY OF LAGUNA NIGUEL

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 45,000,000 $ 45,500,000 $ 45,960,196 $ 460,196
Licenses and Permits 3,823,850 5,923,850 4,554,662 (1,369,188) Intergovernmental 91,500 91,500 229,338 137,838
Charges for Services 1,232,051 1,232,051 1,331,604 99,553 Fines and Forfeitures 503,500 503,500 275,907 (227,593) Use of Money and Property (Loss) 1,230,000 1,730,000 2,462,778 732,778 Leases 460,595 460,595 467,970 7,375
Miscellaneous 214,300 265,684 378,161 112,477
Total Revenues 52,555,796 55,707,180 55,660,616 (46,564)

EXPENDITURES
Current:

General Government 6,632,765 6,983,255 6,599,799 383,456 Public Safety 19,120,637 18,733,035 17,643,906 1,089,129 Community Development 5,337,561 5,767,330 4,473,842 1,293,488 Parks and Recreation 4,451,332 4,412,392 4,186,111 226,281 Public Works 15,978,480 16,101,341 15,453,835 647,506
Capital Outlay 335,021 582,264 856,064 (273,800)
Total Expenditures 51,855,796 52,579,617 49,213,557 3,366,060

EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 700,000 3,127,563 6,447,059 3,319,496

OTHER FINANCING SOURCES (USES)
Transfer In 38,705 (38,705)
Transfers Out (200,000) (3,644,217) (3,625,099) 19,118
Issuance of Subscription Payable 167,088 167,088
Total Other Financing Sources (Uses) (200,000) (3,605,512) (3,458,011) 147.501 NET CHANGE IN FUND BALANCE 500,000 (477,949) 2,989,048 3,466,997 Fund Balance - Beginning of Year 50,319,658 50,319,658 50,319,658 FUND BALANCE - END OF YEAR $ 50,819,658 $ 49,841,709 $ 53,308,706 $ 3.466,997 See accompanying Note to Required Supplementary Information. (74)

CITY OF LAGUNA NIGUEL

BUDGETARY COMPARISON SCHEDULE

MISCELLANEOUS GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 2,814,960 $ 2,389,502 $ 3,137,885 $ 748,383 Total Revenues 2,814,960 2,389,502 3,137,885 748,383

EXPENDITURES
Current:

General Government :

Parks and Recreation
Capital Outlay 9,369 (9,369)
Total Expenditures 9,369 (9,369)

EXCESS OF REVENUES OVER
EXPENDITURES 2,814,960 2,389,502 3,128,516 739,014

OTHER FINANCING SOURCES (USES)
Transfers Out (2,754,960) (4,478,109) (2,790,751) 1,687,358 Total Other Financing Sources (Uses) (2,754,960) (4.478,109) (2,790,751) 1.687,358 NET CHANGE IN FUND BALANCE 60,000 (2,088,607) 337,765 2,426,372 Fund Balance (Deficit) - Beginning of Year (286,711) (286,711) (286,711) FUND BALANCE (DEFICIT) - END OF YEAR $ (226,711) $ (2,375,318) $ 51,054 $ 2.426,372 See accompanying Note to Required Supplementary Information. (75)

CITY OF LAGUNA NIGUEL

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2024
NOTE 1 BUDGET POLICY AND CONTROL
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. Annual budgets are adopted for the General Fund, all Special Revenue Funds, and the Capital Projects Fund. The City Manager and Director of Finance prepare and submit a proposed budget to the City Council. The City Council conducts a noticed public hearing to invite public input before the City Council conducts its detailed review of the proposed budget at a special meeting where additional public input is invited. After reviewing the proposed budget and making such revisions that it deems advisable, the City Council approves each year's budget by resolution before the first meeting of the new fiscal year. The City Council has the legal authority to amend the budget at any time during the fiscal year.

The City Manager is authorized to adjust appropriations within or between functions or programs as long as the transfer does not increase the adopted annual budget appropriations. Adjustments to appropriations between funds require City Council approval.

Transfers of each or unappropriated fund balance from one fund to another can only be made with City Council's approval. Unexpended appropriations for authorized, but uncompleted, projects in the Capital Improvement Program budget and some unexpended operating appropriations can be carried forward to the next succeeding budget year upon recommendation of the City Manager. All other appropriations lapse at the end of the fiscal (76)

CITY OF LAGUNA NIGUEL

SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE

NET PENSION LIABILITY AND RELATED RATIOS

LAST TEN FISCAL YEARS
Measurement Period _June 30, 2014 June 30, 2015 June 30. 2016 June 30, 2017 June 30, 2018 City's Proportion of the Net Pension Liability 0.07294% 0.06905% 0.07545% 0.07849% 0.07924% City's Proportionate Share of the Net Pension Liability $ 4,538,778 4,739,802 6,528,796 7,784,390 7,635,951 City's Covered Payroll $ 5,358,655 5,256,476 5,508,425 5,759,712 6,079,244 y's Proportionate Share of the Net Pension Liabi
a Percentage of Covered Payr 84.70% 90.17% 118.52% 135.15% 125.61%

83.03% 83.02% 78.49% 77.30% 78.97%
Measurement Period June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2022 June 30,2023 Citys Proportion of the Net Pension Liability 0.08299% 0.08621% 0.09199% 0.09845% 0.24302% City's Proportionate Share of the Net Pension Liability 8,504,317 9,380,067 4,974,843 11,371,523 $ 7,365,509 City's Covered Payroll 6,140,757 6,447,797 6,234,178 6,854,621 6,969,135 City's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll 138.49% 145.48% 79.80% 165.90% 105.69% an's Proportionate Share of the Fiduciary Net Positic
a Percentage of the Total Pension Liabili 77.49% 77.71% 90.49% 78.19% 84.74% Notes to Schedules:

Change in Benefit Terms: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit Changes of Assumptions: In 2022 (measurement date), the accounting discount rate was reduced from 7.15% to 6.90% and the inflation rate decreased from 2.50% to 2.30%. None in 2021, 2020, and 2019. In 2018, demographic assumptions and inflation were changed in accordance to CaPERS Experience Study and Review of Actuarial Assumptions December 2017. In 2017, the accounting discount rate was reduced from 7.65% to 7.15%.
(77)

CITY OF LAGUNA NIGUEL

SCHEDULE OF CONTRIBUTIONS - PENSION

LAST TEN FISCAL YEARS
Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19
-
ctuarially Determined Contributior
Miscellaneous Tier 1 Plai
liscellaneous Tier 2 Plai
Miscellaneous PEPR
Total Actuarially Determined Contributior
Determined Contibuto the Actually 576.574 768.939 920,585 Contribution Deficiency (Excess) (232,458) (296.697)
Covered Payroll $ 5,256,476 5,508,425 $ 5,759,712 6,079,244 6,140,757 Contributions as a Percentage of Covered Payroll 10.97% 8.23% 12.33% 1265% 14.99% Fiscal Year 2019-20 2020-21 2021-22 2022-23 2023-24
Actuarially Determined Contribution: $ 1,067,671 628,010 Miscellaneous Tier 1 Plan 862,885 790,976 $ 1,025,893
Miscellaneous Tier 2 Plan 119,672 119,663
Miscellaneous PEPRA
Total Actuarially Determined Contribution 1,428,531 1,078,149 COntermined Contain to the Actuaily 1,035,270 1.120.667 1.275,264 6.181.424 1.078,149 Contribution Deficiency (Excess) 62,468 500 38,365 3 (4.752,893) Covered Payroll 6,447,797 $ 6,234,178 $ 6,854,621 $ 6,969,135 $ 7,334,693 Contributions as a Percentage of Covered Payroll 16.06% 17.98% 18.60% 88.70% 14.70% Notes to Schedule of Plan Contributions:

Valuation Date June 30, 2021
Methods and Assumptions Used to Determine Contribution
Rates:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period Level Percent of Payroll
Asset Valuation Method Fair Value
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.80%
Investment Rate of Return 6.80%, net of pension plan investment and administrative expense; including inflation.

Retirement Age Classic Tier 1: 2% @ 55, Classic Tier 2: 2% @ 60, PEPRA: 2% @62 Mortality Based on mortality rates resulting from the most recent CaPERS Experience Study adopted by the CaPERS Board.

Other Information:
(78)

CITY OF LAGUNA NIGUEL

SCHEDULE OF THE CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
Measurement Period June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2022 otal OPEB Liabilit
ervice Cos 164,308 159,580 177,199 238,974 249,137
Interest 52,069 60,500 64,566 59,282 63,322
Clarences even Expected and (62,212) 90,002 423,242 22,375 (605,217) Actual Experience 172,569 (599,226)
(36.705) (44,487) (48,040) (75,178) (88,151)
117,460 265,595 789,536 245,453 (980,135)
Total OPEB Liability - Beginning 1,308,503 1,425,963 1.691.558 2,481.094 2.726,547 Total OPEB Liability - Ending ≤ 1,425.963 1.691.558 3 2.481.094 2.726.547 3 1746,412 Plan Fiduciary Net Position as a Percentage
of the Total OPEB Liability 0.00% 0.00% 0.00% 0.00% 0.00% Covered Employee Payroll 5,927,346 6,140,757 6,392,532 6,476,418 7,098,959 Plan Net OPEB Liability as a Percentage o 24.60%
Covered Employee Payrol 24.06% 27.55% 38.81% 42.10%
Measurement Period June 30, 2023 June 30.2024
Total OPEB Liability:

Service Cost $ 139,830 $ 140,189
Interest 65,606 71,671
(29,346) (77,706)
Charence Assueen Expected and
Actual Experience
Benefit Payments, Including Refunds of
Employee Contributions (65,955) (66,326)
Net Change in Total OPEB Liability 110,135 67,828
Total OPEB Liability - Beginning 1.746.412 1,856,547
Total OPEB Liability - Ending (a) 1.856,547 S 1.924,375 Plan Fiduciary Net Position as a Percentage
of the Total OPEB Liability 0,00% 0.00%
Covered Employee Payroll $ 7,430,446 $ 7,845,576
Plan Net OPEB Liability as a Percentage o
Covered Employee Payrol 24.99% 24.53%
Historical information is presented only for measurement periods for which GASB 75 is applicable. Additional years of information will be displayed as it becomes available.

Notes to Schedules:

Change in Benefit Terms: There were no changes in the benefit terms.

Changes of Assumptions: In 2022, the discount rate changed from 3.54% to 3.65%. In 2024, discount rate was updated based on municipal bond rate as of the measurement date.

The City has not established a trust for the purpose of holding assets accumulated for plan benefits. (79)
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(80)

SUPPLEMENTARY INFORMATION
(81)

CITY OF LAGUNA NIGUEL

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
Special Revenue Funds
State Gasoline Tax Fund (Gas Tax) - Accounts for revenues received and expenditures made for general street maintenance. Financing is provided by the City's share of state gasoline taxes collected under the Street and Highway Code, Sections 2103, 2105, 2106, 2107, and 2107.5, as well as the Road Maintenance and Rehabilitation Account funding (SB1).

Measure M - Accounts for revenues received and expenditures made for various City transportation projects fully or partially funded by Orange County Transportation Authority grants and County 1/2 cent local fair share sales tax apportionments.

Air Quality Improvement Fund - Accounts for revenues received under AB2766 and expenditures made for air quality improvements. AB2766 was enacted to authorize air pollution control districts to impose fees on motor vehicles. The California Department of Motor Vehicles collects the fees by assessing an amount on each registered vehicle in the South Coast District This fee is distributed by the South Coast Air Quality Management District to local governments on a prorated basis based on population in the area.

Law Enforcement Fund - Accounts for various law enforcement revenues received and expenditures made for certain law enforcement and crime prevention expenditures for Police Services. Funding is provided by the State of California's Citizens' Option for Public Safety (COPS) program.

Community Development Block Grant Fund - Accounts for revenues received and expenditures made for Community Development Block Grant eligible grants and capital projects.

Funding is provided by the U.S. Department of Housing and Urban Development.

Senior Transportation Fund - Accounts for the proceeds and outlays as designated in the Senior Mobility Program (SMP), which is funded through the Orange County Transportation Authority from the County's local 1/2 cent transportation sales tax measure. (82)

CITY OF LAGUNA NIGUEL

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
Special Revenue Funds
Air Quality Law
Gas Tax Measure M Improvement Enforcement
ASSETS
Cash and Investments $ 3,295,157 $ 2,253,314 $ 142,779 101,717 Receivables:

Accounts 99
Taxes 444,408
Interest 20,038 13,908 881 628
Deposits
Due from Other Governments 640,168 21,768
Total Assets $ 3,759,702 $ 2,907,390 165,428 102,345

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 551,894 $ 52,387 $ 30,295 $ 12,500
Due to Other Funds
Retentions Payable 7.261
Total Liabilities 559,155 52,387 30,295 12,500

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 99 363.963 21,768
Total Deferred Inflows of Resources 99 363,963 21,768

FUND BALANCES
Restricted for:

Public Safety - 89,845
Community Development
Public Works 3,200,448 2,491,040 113,365
Unassigned (Deficit)
Total Fund Balances 3,200,448 2,491,040 113,365 89,845
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 1 3759702 S 2307300 8 165128 S 102348 (83)

CITY OF LAGUNA NIGUEL

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
Special Revenue Funds Total
Community Nonmajor
Development Senior Governmental
Block Grant Transportation Funds
ASSETS
Cash and Investments $ - $ 508,923 $ 6,301,890
Receivables:

Accounts 99
Taxes ... 444,408
Interest 38,377
Deposits -
Due from Other Governments 36,984 17,111 716031
Total Assets $ 36,984 528,956 $ 7,500,805

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 18,757 $ 4,424 $ 670,257
Due to Other Funds 18,227 18,227
Retentions Payable 7.261
Total Liabilities 36,984 4,424 695,745

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 2,482 388,312
2,482 : 388,312
Total Deferred Inflows of Resources

FUND BALANCES
Restricted for:

Public Safety 89,845
: 524,532 524,532
Community Developmen
Public Works - 5,804,853
Unassigned (Deficit) (2,482) (2,482)
Total Fund Balances (2.482) 524,532 6,416,748
$ 36,984 528.956 $ 7,500,805
(84)

CITY OF LAGUNA NIGUEL

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
Special Revenue Funds
Air Quality Law
Gas Tax Measure M Improvement Enforcement

REVENUES
Intergovernmental $ 3,567,518 $ 1,970,431 $ 65,264 186,758 Jse of Money and Property 175,813 111.019 19,817 4,110
Total Revenues 3,743,331 2,081,450 85,081 190,868

EXPENDITURES
Current:

Public Safety 150,000
Community Development : : :

Parks and Recreation
Public Works 1,147,800 130,080 105,280
Total Expenditures 1,147,800 130,080 105,280 150,000

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,595,531 1,951,370 (20,199) 40,868

OTHER FINANCING SOURCES (USES)
Transfers Out (2,560,490) (2,234,899) (175,168)
Total Other Financing Sources (Uses) (2,560,490) (2,234,899) (175,168) NET CHANGES IN FUND BALANCES 35,041 (283,529) (195,367) 40,868 Fund Balances (Deficit) - Beginning of Year 3.165,407 2,774,569 308,732 48,977 FUND BALANCES (DEFICIT) - END OF YEAR $ 3,200.448 $ 2.491,040 113,365 89,845 (85)

CITY OF LAGUNA NIGUEL

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
Special Revenue Funds Total
Community Nonmajor
Development Senior Governmental
Block Grant Transportation Funds

REVENUES
Intergovernmental 363,777 $ 107,401 6,261,149
Use of Money and Property 22,809 333,568
Total Revenues 363,777 130,210 6,594,717

EXPENDITURES
Current:

Public Safety 150,000
Community Developmen 89,037 8080T 89,037
Parks and Recreation 80,861
Public Works 1,383,160
Total Expenditures 89,037 80,861 1.703,058

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 274,740 49,349 4,891,659

OTHER FINANCING SOURCES (USES)
Transfers Out (274,740) (5.245.297)
Total Other Financing Sources (Uses) (274,740) (5,245,297) NET CHANGES IN FUND BALANCES 49,349 (353,638)
Fund Balances (Deficit) - Beginning of Year (2,482) 475,183 6,770,386 FUND BALANCES (DEFICIT) - END OF YEAR $ (2.482) 524,532 $ 6,416,748 (86)

CITY OF LAGUNA NIGUEL

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 3,246,037 $ 3,246,037 $ 3,567,518 321,481 Use of Money and Property 5,000 5,000 175,813 170,813
Total Revenues 3,251,037 3,251,037 3,743,331 492,294

EXPENDITURES
Current:

Public Works 1,230,450 1,230,450 1,147,800 82,650
Total Expenditures 1,230,450 1,230,450 1,147,800 82,650

EXCESS OF REVENUES OVER
EXPENDITURES 2,020,587 2,020,587 2,595,531 574,944

OTHER FINANCING USES
Transfers Out (2,132,909) (5,014,668) (2,560,490) 2,454,178 Total Other Financing Uses (2,132,909) (5.014,668) (2,560.490) 2,454,178 NET CHANGES IN FUND BALANCE (112,322) (2,994,081) 35,041 3,029,122 Fund Balances - Beginning of Year 3,165,407 3.165.407 3,165,407 FUND BALANCES - END OF YEAR $ 3,053,085 171.326 $ 3,200,448 $ 3,029,122 (87)

CITY OF LAGUNA NIGUEL

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

MEASURE M SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 1,571,432 $ 1,571,432 $ 1,970,431 398,999 Use of Money and Property 7,500 7,500 111,019 103,519
Total Revenues 1,578,932 1,578,932 2,081,450 502,518

EXPENDITURES
Current:

Public Works 171,432 171,432 130,080 41,352
Total Expenditures 171,432 171,432 130,080 41,352

EXCESS OF REVENUES OVER
EXPENDITURES 1,407,500 1,407,500 1,951,370 543,870

OTHER FINANCING USES
Transfers Out (1.531.960) (4.042,734) (2,234,899) 1,807,835 Total Other Financing Uses (1,531,960) (4,042,734) (2,234,899) 1,807,835 NET CHANGES IN FUND BALANCE (124,460) (2,635,234) (283,529) 2,351,705 Fund Balances - Beginning of Year 2.774,569 2,774.569 2.774,569 FUND BALANCES - END OF YEAR $ 2,650,109 139,335 $ 2.491,040 $ 2.351,705 (88)

CITY OF LAGUNA NIGUEL

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 85,000 85,000 $ 65,264 $ (19,736)
Use of Money and Property 1,000 1,000 19,817 18,817
Total Revenues 86,000 86,000 85,081 (919)

EXPENDITURES
Current:

Public Works 100,000 100,000 105,280 (5,280)
Total Expenditures 100,000 100,000 105,280 (5,280)

EXCESS OF REVENUES UNDER
EXPENDITURES (14,000) (14,000) (20,199) (6,199)

OTHER FINANCING USES
Transfers Out (59,953) (187,757) (175,168) 12,589
Total Other Financing Uses (59,953) (187,757) (175,168) 12,589 NET CHANGES IN FUND BALANCE (73,953) (201,757) (195,367) 6,390 Fund Balances - Beginning of Year 308,732 308,732 308.732.

FUND BALANCES - END OF YEAR 234,779 $ 106,975 113.365 6,390 (89)

CITY OF LAGUNA NIGUEL

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

LAW ENFORCEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 150,000 $ 150,000 186,758 $ 36,758
Ise of Money and Propert! 50 50 4,110 4,060
otal Revenues 150,050 150,050 190,868 40,818

EXPENDITURES
Current:

Public Safety 150,000 150,000 150,000
Total Expenditures 150,000 150,000 150,000
NET CHANGES IN FUND BALANCE 50 50 40,868 40,818•
Fund Balances - Beginning of Year 48,977 48,977 48.977 - FUND BALANCES - END OF YEAR $ 49,027 49.027 $ 89,845 40.818 (90)

CITY OF LAGUNA NIGUEL

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 336,133 $ 336,133 363,777 27,644
Total Revenues 336,133 336,133 363,777 27,644

EXPENDITURES
Current:

Community Development 90,915 90,915 89,037 1,878
Total Expenditures 90,915 90.915 89,037 1,878

EXCESS OF REVENUES OVER
EXPENDITURES 245,218 245,218 274,740 29,522

OTHER FINANCING USES
Transfers Out (245.218) (329,648) (274,740) 54,908
Total Other Financing Uses (245,218) (329,648) (274,740) 54,908 NET CHANGES IN FUND BALANCE - (84,430) 84,430
Fund Balances (Deficit) - Beginning of Year (2,482) (2,482) (2,482) FUND BALANCES (DEFICIT) - END OF YEAR (2,482) (86,912) (2,482) 84.430 (91)

CITY OF LAGUNA NIGUEL

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

SENIOR TRANSPORTATION SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 85,000 85,000 107,401 22,401
Use of Money and Property 5,000 5,000 22,809 17,809
Total Revenues 90,000 90,000 130,210 40,210

EXPENDITURES
Current:

Parks and Recreation 80,000 80,000 80,861 (861)
Total Expenditures 80,000 80,000 80,861 (861)

EXCESS OF REVENUES OVER
EXPENDITURES 10,000 10,000 49,349 39,349

OTHER FINANCING USES
Transfers Out ÷ (38.705) 38,705
Total Other Financing Uses (38,705) 38,705
NET CHANGES IN FUND BALANCE 10,000 (28,705) 49,349 78,054 Fund Balances - Beginning of Year 475,183 475,183 475,183 FUND BALANCES - END OF YEAR $ 485,183 $ 446,478 524,532 78,054 (92)

CITY OF LAGUNA NIGUEL

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

CITY CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Budget Amounts Actual Positive
Original Amounts (Negative)

EXPENDITURES
Capital Outlay $ 6,925,000 $ 17,697,132 $ 9,824,999 $ 7,872,133 Total Expenditures 6,925,000 17,697,132 9.824,999 7,872,133

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (6,925,000) (17,697,132) (9,824,999) 7,872,133

OTHER FINANCING SOURCES
Transfers In 6,925,000 17,697,132 11,661,147 (6,035,985) Total Other Financing Sources 6,925,000 17,697,132 11,661,147 (6,035,985) NET CHANGES IN FUND BALANCE - - 1,836,148 1,836,148
Fund Balances - Beginning of Year 395,962 395,962 395,962 FUND BALANCES - END OF YEAR $ 395,962 395,962 $ 2,232,110 $ 1,836,148 (93)
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(94)

STATISTICAL SECTION (UNAUDITED)
(95)
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(96)

CITY OF LAGUNA NIGUEL

STATISTICAL SECTION OVERVIEW (UNAUDITED)
YEAR ENDED JUNE 30, 2024
This part of the City's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and require supplementary information says about the government's overall financial health Contents Page
Financial Trends Information - These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 98
Revenue Capacity Information - These schedules contain information to help the reader assess the City's most significant local revenue source, property taxes. 106 Debt Capacity Information - These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 112
City's financial activities take place. 115
Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. 120 (97)

CITY OF LAGUNA NIGUEL

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2015 2016 2017 2018 2019
Governmental activities:

Net investment in capital assets $ 563,204,034 $ 564,600,741 $ 566,781,948 $ 565,916,027 $ 579,093,630 Restricted:

Pension - - $
Public safety 66,898 85,186 71,752 49,739 62,619
Public Works 403,095 290,728 142,399 587,123 4,107,797
Community development 143,890 590,853 440,446 483,737 158,702 Air quality improvement 328,041 400,601 469,297 513,707 565,153 Total restricted $ 941,924 1,367,368 1,123,894 1,634,306 $ 4,894,271 Unrestricted 67,284,805 76,932,061 67,674,106 67,449,901 50,029,493 Total governmental activities net position S 631,430, 763 $ 642,900,170 5 S 635,579,948 $ 635,000,234 $ 634,017,394 The City does not have any Business-Type activities.

Therefore, all governmental activities comprise the primary government of the City of Laguna Niguel. (98)

CITY OF LAGUNA NIGUEL

NET POSITION BY COMPONENT (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2020 2021 2022 2023 2024
Governmental activities:

Net investment in capital assets $ 588,977,831 $ 579,071,088 $ 572,776,211 $ 571,646,645 $ 570,027,950 Restricted:

Pension $ 153,013 $ 692,039 916,958 $ 2,004,472 $ 2,179,843 Public safety 72,830 84,285 34,327 48,977 89,845
Public Works 5,614,824 5,718,205 6,382,693 6,567,634 11,667,794 Community development 216,803 304,171 393,984 475,183 842,166 Air quality improvement
Total restricted 6,057,470 6,798,700 7,727,962 $ 9,096,266 $ 14,779,648 Unrestricted 32,595,299 35,742,243 38,117,655 43,826,907 44,674,514 Total governmental activities net position $ 627,630,600 $ 621,612,031 $ 618,621,828 $ 624,569,818 $ 629,482,112 The City does not have any Business-Type activities.

Therefore, all govermental activities comprise the primary government of the City of Laguna Niguel. (99)

CITY OF LAGUNA NIGUEL

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2015 2016 2017 2018 2019
Expenses:

General government 4,778,543 5,049,643 4,721,188 5,105,212 5,087,668 Public safety 10,901,896 11,778,228 13,034,018 14,741,788 15,714,696 Community development 3,125,023 3,903,064 3,125,278 3,370,376 3,225,177 Parks and recreation 8,928,487 5,022,013 6,655,833 6,707,133 6,049,242 Public works 11,462,151 15,402,736 23,735,075 22,324,184 19,227,179 Interest expense 27,437
Total expenses 39,196,100 41,155,684 51,271,392 52,248,693 49,331,399 Program Revenues:

Charges for services:

General government 10,553 223,747 1,850
334,475 353257 456,443
Public safety 266,612 297,386
Community development 2,090,366 6,931,625 2,058,550 6,150,591 2,131,215 Parks and recreation 1,051,430 1,087,258 1,162,176 1,204,757 987,371 Public works 16,997 18,389 33,407 16,776 241,672
Operating grants and contributions 2,287,448 2,917,219 2,660,052 3,376,124 4,037,554 Capital grants and contributions 2,895,963 3,903,895 1,387,051 2,126,133 453,036 Total program revenues 8,619,369 15,379,519 7,635,711 13,227,638 8,309,141 Net (expenses)/revenues (30,576,731) (25,776,165) (43,635,681) (39,021,055) (41,022,258) General Revenues:

Taxes:

Property taxes 18,840,320 19,965,053 20,786,789 21,968,448 22,749,160 Sales taxes 11,453,345 12,244,172 11,448,371 11,223,516 11,831,049 Franchise fees 2,518,177 2,519,116 2,270,993 2,362,138 2,400,540 Other taxes 578,597 642,043 625,562 701,611 542,175
Motor vehicle license fee 27,730 26,160 29,631 35,104 31,381 Use of money and property (loss) 1,078,795 1,372,860 618,864 1,094,790 1,873,121 Other 424,658 476,168 535,249 589,613 611,992
Total general revenues 34,921,622 37,245,572 36,315,459 37,975,220 40,039,418 Changes in net position 4,344,891 11,469,407 (7,320,222) (1,045,835) (982,840) The City does not have any Business-Type activities.

Therefore, all governmental activities comprise the primary goverment of the City of Laguna Niguel. (100)

CITY OF LAGUNA NIGUEL

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2020 2021 2022 2023 2024
Expenses:

General government 6,128,946 6,163,102 6,588,919 10,894,992 7,658,664 Public safety 16,199,542 16,499,129 16,899,038 17,480,349 17,891,745 Community development 3,652,984 3,812,834 5,081,656 3,629,822 5,410,120 Parks and recreation 7,079,349 5,400,764 12,841,310 7,951,880 6,892,680 Public works 22,205,098 24,756,891 17,077,691 17,368,965 22,934,310 Interest expense 26,770 22,892 23,753 18,383 18,251
Total expenses 55,292,689 56,655,612 58,512,367 57,344,391 60,805,770 Program Revenues:

Charges for services:

General government 1,675 - 1,500 895 775
Public safety 336,530 295,071 601,684 400,866 267,507
Community development 2,288,391 1,845,081 3,740,831 3,656,316 4,192,344 Parks and recreation 660,087 508,182 970,591 1,205,036 1,331,529 Public works 209,672 200,655 227,387 234,857 370,717
Operating grants and contributions 4,401,389 5,776,718 2,539,129 2,888,410 3,156,932 Capital grants and contributions 273,159 463,305 5,070,885 7,760,533 6,487,128 Total program revenues 8,170,903 9,089,012 13,152,007 16,146,913 15,806,932 Net (expenses)/revenues (47,121,786) (47,566,600) (45,360,360) (41,197,478) (44,998,838) General Revenues:

Taxes:

Property taxes 23,584,278 24,630,701 25,292,654 27,072,457 28,371,584 Sales taxes 12,229,918 13,135,671 14,518,028 14,818,183 14,209,464 Franchise fees 2,359,348 2,352,241 2,348,798 2,546,264 2,657,013 Other taxes 589,705 851,034 1,085,753 603,923 722,135
Motor vehicle license fee 52,828 47,905 75,286 66,153 79,921 Use of money and property (loss) 1,036,458 12,375 (1,917,952) 1,318,001 2,854,024 Other 882,457 518,104 967,590 720,487 1,016,991
Total general revenues 40,734,992 41,548,031 42,370,157 47,145,468 49,911,132 Changes in net position (6,386,794) (6,018,569) (2,990,203) 5,947,990 4,912,294 The City does not have any Business-Type activities.

Therefore, all governmental activities comprise the primary government of the City of Laguna Niguel. (101)

CITY OF LAGUNA NIGUEL

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2015 2016 2017 2018 2019
General Fund
Nonspendable 570,062 250,345 514,590 141,903 909,697
Restricted
Committed 53,147,941 57,492,610 51,733,497 49,216,920 31,822,082 Assigned 19,787,730 25,158,015 21,555,152 24,965,800 24,714,780 Unassigned
Total General Fund 73,505,733 82,900,970 73,803,239 74,324,623 57,446,559 All other governmental funds
Nonspendable 137,000 153,207 157,740 145,462
941,924 1,238,087 964,646 1,465,968 4,834,624
Restricted
Unassigned (2,651,602) - (3,825,510) (1,558,827) (367,234) (10,816) Total all other governmental funds (1,709,678) (2,450,423) (440,974) 1,256,474 4,969,270 (102)

CITY OF LAGUNA NIGUEL

FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2020 2021 2022 2023 2024
General Fund
Nonspendable 698,381 75,745 111,990 191,832 173,938
Restricted 153,013 692,039 916,958 2,004,472 2,179,843
Committed 40,818,817 45,229,355 46,679,510 47,494,533 50,732,702 Assigned 349,954 782,099 628,821 222,223
Unassigned
Total General Fund 41.670.211 46,347,093 48,490,557 50,319,658 53,308,706 All other governmental funds
Nonspendable 64,900 64,094 77,036 17,684
Restricted 5,668,141 5,594,900 6,811,004 7,091,794 8,633,656 Unassigned (153,879) (58,477) (276,421) (289,193) (317,634) Total all other governmental funds 5,514,262 5,601,323 6,598,677 6,879,637 8,333,706 (103)

CITY OF LAGUNA NIGUEL

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2015 2016 2017 2018 2019
Revenues:

Taxes 33,213,255 35,446,201 35,577,102 36,255,713 37,522,924 Licenses and permits 1,894,529 3,548,393 2,052,662 2,841,459 2,346,727 Intergovernmental 5,314,331 5,590,258 6,259,760 6,672,937 4,985,890 Charges for services 1,128,334 4,105,706 1,214,619 4,543,201 989,221 Fines and forfeitures 266,558 297,239 334,394 353,041 460,296 Use of money and property (loss) 1,068,984 1,372,862 1,087,116 2,239,707 Leases
Developer participation 185,891 366,129
Contributions 33,960 6,440 9,820 41,153 33,747
Miscellaneous 424,658 476,168 535,249 589,613 193,546
Total revenues 43,530,500 51,209,396 46,602,476 52,384,233 48,772,058 Expenditures:

Current:

General government 3,840,177 4,134,758 3,948,320 4,393,163 4,334,859 Public safety 10,869,382 11,727,774 12,665,551 14,595,731 15,627,937 Community development 3,104,828 3,909,385 3,019,055 3,199,919 3,159,263 Parks and recreation 3,385,205 3,386,718 3,873,182 4,065,192 11,085,148 Public works 9,142,623 8,644,212 9,710,338 9,483,108 4,481,142 Capital outlay 16,808,664 10,752,057 20,474,312 14,406,858 23,223,090 Total expenditures 47,150,879 42,554,904 53,690,758 50,143,971 61,911,439 Excess (deficiency) of revenues
over (under) expenditures (3,620,379) 8,654,492 (7,088,282) 2,240,262 (13,139,381) Other Financing Sources (Uses):

Transfers in 17,179,568 10,802,763 20,246,160 14,477,949 22,769,659 Transfers out (17,179,568) (10,802,763) (20,246,160) (14,499,379) (22,795,546) Issuance of Subscription Pay able
Total other financing sources (uses) (21,430) (25,887)
Net change in fund balances (3,620,379) 8654,492 (7,088,282) 2,218,832 (13,165,268) Debt service as a percentage of noncap ital - -
expenditures
(104)

CITY OF LAGUNA NIGUEL

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2020 2021 2022 2023 2024
Revenues:

Taxes 38,763,249 40,969,647 43,245,233 45,040,827 45,960,196 Licenses and permits 2,426,416 2,037,023 3,957,690 3,882,045 4,554,662 Intergovernmental 4,518,791 6,030,006 7,351,559 10,954,663 9,628,372 Charges for services 661,762 465,020 1,014,777 1,205,931 1,331,604 Fines and forfeitures 352,064 302,213 612,212 409,994 275,907 Use of money and property (loss) 1,413,887 437,998 (1,946,386) 1,243,879 2,796,346 Leases 451,984 471,266 467,970
Developer participation : :

Contributions 19,340 :

Miscellaneous 492,781 122,880 550,772 296,312 378,161
Total revenues 48,648,290 50,364,787 55,237,841 63,504,917 65,393,218 Expenditures:

Current:

General government 4,470,422 4,637,532 5,905,024 11,451,201 6,599,798 Public safety 16,118,936 16,431,019 16,812,695 17,515,403 17,793,906 Community development 3,397,810 3,555,966 4,952,180 4,675,676 4,929,086 Parks and recreation 4,619,532 3.488,633 3,722,525 4,249,042 4,266,972 Public works 12,828,535 12,407,056 14,997,087 15,155,681 16,836,995 Capital outlay 22,419,678 5,069,588 5,587,512 8,347,853 10,690,432 Total expenditures 63,854,913 45,589,794 51,977,023 61,394,856 61,117,189 Excess (deficiency) of revenues
over (under) expenditures (15,206,623) 4,774,993 3,260,818 2,110,061 4,276,029 Other Financing Sources (Uses):

Transfers in 22,095,320 4,872,673 4,792,500 7,668,675 11,661,147 Transfers out (22,120,053) (4,883,723) (4,912,500) (7,668,675) (11,661,147) Issuance of Subscription Payable 167,088
Total other financing sources (uses) (24,733) (11,050) (120,000) 167,088 Net change in fund balances (15,231,356) 4,763,943 = 3,140,818 2,110,061 4,443,117 Debt service as a percentage of noncapital -
expenditures
(105) -

CITY OF LAGUNA NIGUEL

TAX REVENUES BY SOURCE - GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Property Taxes Sales Taxes Franchise Fees Other Taxes' Year % Change % Change Actual % Change Actual % Change % Change 2015 18,840,320 6.2% 11,453,345 3.9% 2,518,177 6.3% 578,597 9.9% 33,390,439 5.5% 2016 19,965,053 6.0% 12,244,172 6.9% 2,519,116 0.0% 642,043 11.0% 35,370,384 5.9% 2017 20,786,789 4.1% 11,448,371 -6.5% 2,270,993 -9.8% 625,562 -2.6% 35,131,715 -0.7% 2018 21,968,448 5.7% 11,223,516 -2.0% 2,362,138 4.0% 701,611 12.2% 36,255,713 3.2% 2019 22,749,160 3.6% 11,831,049 5.4% 2,400,540 1.6% 542,175 -22.7% 37,522,924 3.5% 2020 23,584,278 3.7% 12,229,918 3.4% 2,359,348 -1.7% 589,705 8.8% 38,763,249 3.3% 2021 24,630,701 4.4% 13,135,671 7.4% 2,352,241 -0.3% 851,034 44.3% 40,969,647 5.7% 2022 25,292,654 2.7% 14,518,028 10.5% 2,348,798 -0.1% 1,085,753 27.6% 43,245,233 5.6% 2023 27,072,457 7.0% 14,818,183 2.1% 2,546,264 8.4% 603,923 -14.4% 45,040,827 4.2% 2024 28,371,584 4.8% 14,209,464 -4.1% 2,657,013 4.3% 722,135 19.6% 45,960,196 2.0% Change
2015-2024 50.6% 24.1% 5.5% 24.8% 37.6%
'Other Taxes includes Real Property Transfer Taxes and Transient Occupancy Taxes. (106)

CITY OF LAGUNA NIGUEL

ASSESSED VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(UNAUDITED)
Taxable Total
Fiscal Assessed Direct
Year Residential Commercial Industrial Other Unsecured Value Tax Rate 2015 12,227,948,146 709,563,753 104,299,283 84,698,416 144,285,367 13,270,794,965 0.13463% 2016 12,908,323,391 748,131,051 133,378,348 92,189,497 136,727,885 14,018,750,172 0.13463% 2017 13,476,324,468 810,527,445 106,755,978 89,220,631 143,473,801 14,626,302,323 2018 14,170,189,583 828,023,757 130,240,687 80,636,282 153,767,064 15,362,857,373 0.13463% 2019 14,772,757,911 848,077,767 111,794,126 108,077,098 149,085,955 15,989,792,857 0.13463% 2020 15,400,702,974 871,787,891 115,436,254 335,849,810 209,118,079 16,932,895,008 0.13463% 2021 16,007,464,645 897,926,358 125,099,940 351,139,057 172,712,600 17,554,342,600 0.13463% 2022 16,460,566,082 903,240,811 122,824,193 373,231,982 163,547,376 18,023,410,444 0.13463% 2023 17,395,760,387 929,649,358 113,043,157 376,558,228 170,068,561 18,985,079,691 0.13463% 2024 18,445,311,904 960,659,628 142,275,923 351,788,867 182,835,131 20,082,871,453 0.13463% Notes:

Exempt values are not included in totals.

In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Source: Orange County Assessor 2014/15 - 2023/24 combined tax rolls, through HdL, Coren & Cone. (107)

CITY OF LAGUNA NIGUEL

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(UNAUDITED)
Overlapping Rates
County Laguna Moulton Saddleback
Direct Capistrano Beach Niguel Valley South Coast
Year Rate Unified Unified Water District Unified Water District 2015 1.00000% 0.00900% 0.01461% 0.06975% 0.02806% 0.00722% 2016 1.00000% 0.00845% 0.01396% 0.06270% 0.03008%
2017 1.00000% 0.00843% 0.01371% 0.09377% 0.02688%
2018 1.00000% 0.00800% 0.01287% 0.05179% 0.02365%
2019 1.00000% 0.00786% 0.01285% 0.06644% 0.02392%
2020 1.00000% 0.00745% 0.01266% 0.03072% 0.02295%
2021 1.00000% 0.00756% 0.01012% 0.00000% 0.02336%
2022 1.00000% 0.00727% 0.01018% 0.00000% 0.02200%
2023 1.00000% 0.00691% 0.00971% 0.00000% 0.02227%
2024 1.00000% 0.00633% 0.00883% 0.00000% 0.02037%
Notes:

Overlapping rates are those that apply to property owners within the City.

Not all overlapping rates apply to all city property owners.

Total direct rate is the weighted average of all individual direct rates applied by the City.

In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the pay ment of any voter approved bonds.

Source: Orange County Assessor 2014/15 - 2023/24 Tax Rate Tables, through HdL, Coren & Cone (108)

CITY OF LAGUNA NIGUEL

DIRECT AND OVERLAPPING PROPERTY TAX RATES (CONTINUED)

LAST TEN FISCAL YEARS
(UNAUDITED)
Overlapping Rates
Total City
Direct and Share of Total
Metropolitan Overlapping Direct Direct
Year Water District Rates Rate Rates
2015 0.00350% 1.13214% 0.13463% 0.10005%
2016 0.00350% 1.12534% 0.13463% 0.10015%
2017 0.00350% 1.14836% 0.13463% 0. 10023%
2018 0.00350% 1.09981% 0.13463% 0.10020%
2019 0.00350% 1.11457% 0.13463% 0.10010%
2020 0.00350% 1.07728% 0.13463% 0009997%
2021 0.00350% 1.04454% 0.13463% 0. 10064%
2022 0.00350% 1.04295% 0.13463% 0.10062%
2023 0.00350% 1.04239% 0.13463% 0.10097%
2024 0.00350% 1.03903% 0.13463% 0.10117%
(Concluded)
Notes:
verlapping rates are those that apply to property owners within the Cit! ot all overlapping rates apply to all city property owner Total direct rate is the weighted average of all individual direct rates applied by the City.

In 1978, Califomia voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.

Source: Orange County Assessor 2014/15 - 2023/24 Tax Rate Tables, through HdL, Coren & Cone (109)

CITY OF LAGUNA NIGUEL

PRINCIPAL PROPERTY TAXPAYERS

CURRENT YEAR AND NINE YEARS AGO
(UNAUDITED)
2024 2015
% of % of
Total City Total City
Taxable Taxable
Assessed Estimated Assessed Assessed Estimated Assessed Taxpayer Value Revenue Rank Value Value Revenue Rank Value Vilara Evergreen SPELLC $ 166,347,400 223,954 1 0.84%
BRE-FMCA LLC 126,878,044 170,816 2 0.64% 75,194,038 101,2342 0.57% Broadstone Laguna Niguel LLC 106,314,966 143,132 3 0.54% Sequoia Equities Inc. 96,847,614 130,386 4 0.49% 82,005,129 110,404 1 0.62% Crestavilla Propco LLC 89,087,804 119,939 5 0.45%
Cal I Crown Valley LLC 75,575,917 101,748 6 0.38%
Shapell SoCal Rental Properties LLC 59,604,312 80,245 0.30% 46,450,826 62,537 3 0.35% Rancho Niguel Office Partners 57,548,158 77,477 8 0.29% CostCo Wholesale Corporation 56,719,848 76,362 9 0.29% 46,009,894 61,943 4 0.35% Seaside Meadows LLC 55,047,239 74,110 10 0.28% 45,962,534 61,879 5 0.35% Laguna Niguel Investors No 1 LLC 40,727,463 54,831 0.31% Ocean Ranch Il 39,013,221 52,523 7 0.29%
FG Laguna Niguel Senior Apartment LP 38,626,885 52,003 8 0.29% EQR Bond Partnership 38,269,088 51,522 9 0.29%
Arden Really LP (Pending appeals) 38,002,191 51,162 10 0.29% Total 5891302 198/68 4.50% $490,261,269 $660,039 3.71%
Source: Orange County Assessor 2014/2015 and 2023/2024 Combined Tax Rolls and the SBE Non Unitary Tax Roll through HdL, Coren & (110)

CITY OF LAGUNA NIGUEL

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(UNAUDITED)
Collected within the
Fiscal Year of the Levy Total Collections to Date
Fiscal Year Taxes Levied Collections in
Ended for the Percentage Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years Amount of Levy 2015 18,985,609 18,686,825 98.43% 116,427 18,803,252 99.04% 2016 20,253,052 19,817,313 97.85% 116,490 19,933,803 98.42% 2017 21,044,889 20,646,100 98.11% 95,185 20,741,285 98.56% 2018 22,153,447 21,827,913 98.53% 85,105 21,913,019 98.91% 2019 22,966,722 22,606,099 98.43% 86,280 22,692,379 98.81% 2020 23,755,074 23,429,306 98.63% 94,115 23,523,421 99.02% 2021 24,748,265 24,436,951 98.74% 127,181 24,564,133 99.26% 2022 25,596,929 25,109,378 98.10% 120,526 25,229,904 98.57% 2023 27,339,653 26,659,907 97.51% 159,864 26,819,771 98.10% 2024 28,567,086 27,882,745 97.60% 135,841 28,018,586 98.08% Tax ledgers do not identify the tax year for which delinquent taxes are paid, therefore, this schedule reflects the cumulative collections from delinquent taxes.

Source: Orange County Auditor Controller Tax Ledgers
(111)

CITY OF LAGUNA NIGUEL

RATIO OF OUTSTANDING DEBT BY TYPE

GOVERNMENTAL ACTIVITIES

LAST TEN FISCAL YEARS
(UNAUDITED)
Percentage
Fiscal of Assessed Per
Year Leases and Subscriptions Property Value Capita
2015 0.00000%
2016 353,262 0000252% 5.34
2017 276,999 0.00189% 4.15
2018 515,684 0.00336% 7.89
2019 364,963 0.00228% 5.47
2020 157,984 0.00093% 2.42
2021 181,490 0.00103% 2.78
2022 318,897 0.00177% 4.96
2023 270,521 0.00142% 4.18
2024 351,387 0.00175% 5.47
Notes:

Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.

The City does not have any Business-Type activities. All debt is reported as governmental activities. "See "Assessed Value of Taxable Property" schedule for assessed property value data. This ratio is calculated using assessed property value for the prior calendar year.
'See "Demographic and Economic Statistics" schedule for population data This ratio is calculated using population as of January of each fiscal year as reported by the State Department of Finance. (112)

CITY OF LAGUNA NIGUEL

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2024
(UNAUDITED)
2023-24 Assessed Valuation: $19,714,354,241
Total Debt % City's Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/24 Applicable(1) Debt 6/30/24 Metropolitan Water District 18,210,000 0.509%$ 92,689
Capistrano Unified School District School Facilities Improvement District No. 1 6,712,860 24.343% 1,634,112 Laguna Beach Unified School District 9,940,000 0.022%) 2,187 Saddleback Valley Unified School District 0.050% 37,185 795000 100.000%
City of Laguna Niguel
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 1,766,173 OVERLAPPING GENERAL FUND DEBT:

Orange County General Fund Obligations 440,385,000 2.561%5 11,278,260 Orange County Board of Education General Fund Obligations 10,030,000 2.561% 256,868 Capistrano Unified School District Certificates of Participation 19,365,000 17.161%[ 3,323,228 Moulton Niguel Water District Certificates of Participation 48,605,000 42.780% 20,793,219 TOTAL GROSS OVERLAPPING GENERAL FUND DEBT $ 35,651,575
GROSS COMBINED TOTAL DEBT -2S 37,417,748
(I) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping distric's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non- bonded capital lease obligations.

Ratios to 2023-24 Assessed Valuation:

Total Direct Debt .............. ..... 0.00%
Total Direct and Overlapping Tax and Assessment Debt ... 0.01% Combined Total Debt 0.19%
Source: Avenu Insights & Analy tics
California Municipal Statistics, Inc
(113)

CITY OF LAGUNA NIGUEL

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(IN THOUSANDS)
(UNAUDITED)
Legal Debt Margin Calculation for Fiscal Year 2023
Assessed value $ 20,082,871
Debt limit (3.75% of assessed value) 753,108
Debt applicable to limit
Legal debt margin $ 753,108
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Debt limit $497,655 $525,703 $546,443 $573,609 $597,132 $634,984 $658,288 $675,878 $711,940 $753,108 Debt applicable
to limit -
Legal debt
margin 497,655 525,703 546,443 573,609 597,132 634,984 658,288 675,878 658,288 753,108 Total debt
applicable to
the limit as a
percentage of
debt limit
Note:

The general laws of the State of California for municipalities provide for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was established based on 25% of market value. Effective with FY 1981-82, taxable property is assessed at 100% of market value. Although the debt limit provision has not been amended by the State since this change, the percentage has been proportionately modified to 3.75% for the purpose of this calculation for the consistency with the original intent of the State's debt (114)

CITY OF LAGUNA NIGUEL

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
(UNAUDITED)
Personal Taxable Median
Income Registered Housing Unemployment
Population " (in thousands) " Income "_Per Capita
2015 64,449 3,215,232 49,888 17,653 37,676 25,456 689,000 5.00% 2016 66,142 3,327,443 50,307 17,724 39,915 25,458 695,000 4.10% 2017 66,689 3,337,813 50,050 17,167 37,397 25,884 745,500 3.70% 2018 65,377 3,380,822 51,713 17,167 40,188 25,888 799,250 3.30% 2019 66,748 3,496,077 52,377 17,725 41,080 26,235 795,000 2.80% 2020 65,316 3,654,152 55,946 18,724 45,119 26,236 811,500 2.70% 2021 65,168 3,920,887 60,165 20,157 45,024 26,774 952,000 7.70% 2022 64,316 4,058,420 63,101 22,573 45,036 27,822 1,175,000 5.50% 2023 64,702 4,358,404 67,361 22,902 45,100 27,827 1,200,000 3.10% 2024 64,291 4,793,710 74,562 22,102 46,302 28,136 1,327,500 3.50% Notes
"Taxable sales is based upon sales tax revenue reported by the City on the modified accrual basis of accounting. ' Median home value includes both single family and condo/townhouse units. Data obtained from HDL. "Data obtained from OC Registrar of Voters.
"Data obtained from Hdi, Coren & Cone.
• Data obtained from State Department of Finance/Center for Demographic Research.

Source: State Department of Finance
HdL, Coren & Cone
Center for Demographic Research
O.C. Registrar of Voters
(115)

CITY OF LAGUNA NIGUEL

PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO
(UNAUDITED)
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment Costco Wholesale Corporation (2 locations) 619 1 1.82% 564 1 1.61% 500 2 1.47%
United States Government - Chet Holifield Federal Building * 367 1.05% Capistrano Unified School District 356 3 1.05% 2
Whole Foods Market 244 4 0.72% 238 6 0.68%
Wal-Mart Stores, Inc. 240 0.71% 305 4 0.87%
Mercedes-Benz of Laguna Niguel 216 0.64% 230 ~ 0 0.66%
The Home Depot 170 7 0.50% 185 0.53%
Albertsons, Inc. (2 locations) 155 8 0.46% 170 9 0.49%
143 9 0.42%
Confluent Medical Technologies (previously Interface Associates, Inc.) 133 10 0.39% 330 3 0.94%
297 5 0.85%
Moulton Niguel Water District 120 10 0.34%
2,776 8.16% 2,806 8.02%
Note
Source: Avenu Insights & Analytics, FY2015, City of Laguna Niguel -- ACFR Publicatio (1) Total City Labor Force provided by EDD Labor Force Data.

Results based on direct correspondence with city's local businesses. * Chet Holifield Federal Building will be closed by 3/31/2025. The Ziggurat Building has been sold. (116)
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(117)

CITY OF LAGUNA NIGUEL

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES

BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal Year
2015 2016 2017 2018 2019
General Government
City Council 0.5 0.5 0.5 0.5
City Manager 4.5 6.2 4.2
City Clerk 3.0 2.0 2.0 2.5 2.0
Finance 5.5 7.0 6.0 6.5 6.3
Public Safety
Police Services 2.0 2.0 1.5
Emergency Preparedness io 1.0 1.0 1.0
Community Development
Administration 8 4.0 4.0 4.1
Planning 9. 8.0 9.0 9.0
Building and Safety 1.0 1.0
Code Compliance -
Public Works
Administration 2.0 3. .0 2.3 3.6
Engineering / Water Quality .0 8 10.5 11.4
Street Maintenance
Median Maintenance 0.8 0. 8
.0 2.0 3.0 4.0 5.2
Park Maintenance
Slope Maintenance 0 .8 0. 8
Building and Facility Maintenance 1.5 1.5 1.5
Parks and Recreation

2.5 4.0 4.0 3.5 4.0
Administration
Recreational Programs 11.5 14.0 14.0 13.5 16.2
Aquatics 10.0 10.8 9.0 12.0 5.4
Skateboard Park 5.0 5.5 5.0 5.0 5.3
Sports - -
Sea Country Senior & Community Center 14.0 11.9 15.0 13.0 13.2 Totals 84.8 93.1 96.0 97.5 97.3
Note:

For part-time employees, full-time equivalent employment is calculated by dividing part-time labor costs by average hourly wage and total labor hours of 2,080. The City is a full contract City and contracts out the following services: Police and Fire Services; Street Maintenance, including Street Sweeping; Park, Slope and Median Landscape Maintenance; Metrolink Station and Park Building Maintenance, and Building and Planning Inspection Services.

Source: Finance Department
(118)

CITY OF LAGUNA NIGUEL

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES

BY FUNCTION/PROGRAM (CONTINUED)

LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal Xear
2020 2021 2022 2023 2024
General Government
City Council 0.5 0.5 0.5 0,5
City Manager 4.6 5.1 5.3 6.0 6.7
City Clerk 2.0 2.1 2.6 2.1 2.0
Finance 6.0 6.0 6.0 6.0
Public Safety
Police Services 1.0 10 1.0 10

1.0 1.0 :

Emergency Preparedness 1.0 1.0
Community Development
Administration 4.1 3.9
Planning 5.0 7.0
Building and Safety
Code Compliance
Public Works
Administration 10.6 13.4 11.5 11.5
Engineering / Water Quality -
Street Maintenance 1.0 3.0
Median Maintenance
Park Maintenance 4.0 3.0
Slope Maintenance - -
Building and Facility Maintenance 3.0 3.4 4.3
Parks and Recreation
Administration 3.7 2.6 2.2 2.1
Recreational Programs 13.2 11.1 12.7 11. .8

7.6 7.2 4
Aquatics
Skateboard Park 4.6 . 6
Sports 3. 3.9
Sea Country Senior & Community Center 12.5 6 9.5 6

4.6 Totals 93.4 76.7 87.6 89.4 80.3
Note:

Source: Finance Department
(119)

CITY OF LAGUNA NIGUEL

CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(UNAUDITED)
2016 2017 2019 2021 2024
Public Safety: '
Patrol motorcycles +N
PACT units
Public Works:

Street miles 140 140 140
Parks and Recreation:

A creage 135 135 135 135 135 135 135 135 135 135
City parks 29 29 29 29 29 29 29 29 29 29
Play grounds 21
Swimming pool 1 1
Skateboard park 1
Baseball/softball diamonds 16
Soccer fields 16
Community centers 2 2 2 2 2 2 2 2 2 2
Note
No capital asset indicators are available for the general government or community development functions. ' The City contracts with the Orange County Sheriffs Department for its police services. The City does not own the patrol cars used by the County. Therefore, they are not included in this schedule, yet are part of the services provided to achieve the response times and issue the citations included in the "Operating Indicators By Function" schedule.

Sources: Various City departments
(120)

CITY OF LAGUNA NIGUEL

OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(UNAUDITED)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Public Safety:

Police priority one response time (minutes) 5.95 5.30 5.21 4.51 4.53 4.36 4.40 4.45 5.08 5.24 Fire response time (minutes)* 6.24 6.03 6.00 6.09 7.15 7.03 6.53 7.03 6.49 9.42 Traffic citations 3,936 2,719 3,729 4,397 7,029 4,540 4,998 6,778 6,906 6,524 Parking citations 2,449 2,975 3,405 3,747 3,099 2,203 2,836 3,922 4,016 3,305 Community Development:

Permits issued 3,406 3,755 4,139 3,735 4,106 3,105 3,258 3,665 3,798 3,268 Public Works:

Streets - miles resurfaced 12.7 2.7 10.4 37.2 0.6 2.1 7.2 0.8 10.5 6.4 *80% response rate used through 2023. 90% response rate used in 2024 Sources:

Orange County Fire Authority
Orange County Sheriff's Department
Data Ticket
Public Works Department
Community Development Department
(121)
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(122)

ATTACHMENT B
Independent Accountants' Report on Agreed-Upon
Procedures Applied to Appropriations Limit for
Fiscal Year 2023-2024

CITY OF LAGUNA NIGUEL, CALIFORNIA

INDEPENDENT ACCOUNTANTS' REPORT

ON AGREED-UPON PROCEDURES APPLIED TO
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2024
CPAS | CONSULTANTS | WEALTH ADVISORS
CLAconnect.com
CliftonLarsonAllen LLP
CLAconnect.com

INDEPENDENT ACCOUNTANTS' REPORT
Honorable Mayor and City Council
City of Laguna Niguel
Laguna Niguel, California
The City and the League of California Cities (as presented in the League publication entitled "Article XIII-B Appropriations Limit Uniform Guidelines") have agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

1. We obtained the completed Appropriations Limit Worksheet No. 6 for the year ended June 30, 2024, and compared the limit and annual adjustment factors included in the worksheet to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheet to those that were selected by a recorded vote of the City Council.

No exceptions were noted as a result of us performing this procedure.

2. For the Appropriations Limit Worksheet No. 6, we added last year's limit to the total adjustments, and compared the resulting amount to this year's limit. We also recalculated the adjustment factor and the adjustment for inflation and population and compared the results to the amounts on Worksheet No. 6.

No exceptions were noted as a result of us performing this procedure.

3. We compared the prior year appropriations limit presented in the Appropriations Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year.

No exceptions were noted as a result of us performing this procedure.

CLAglobal.com/disclaimer
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Honorable Mayor and City Council
City of Laguna Niguel
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or revien engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Worksheet No. 6. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Clifto Larson Alex 11D
CliftonLarsonAllen LLP
Irvine, California
December 18, 2024
(2)

CITY OF LAGUNA NIGUEL
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2024
Appropriations Limit for Nine Months Ended June 30, 2023 (see Note 2) $ 264,524,313 Adjustment Factors for the Fiscal Year Ended June 30, 2024 (see Note 2):

Inflation Population
Factor Factor Combined
(Note 3) (Note 4) Factor

1.0444 0.9953 1.0395 x 0.0394913
Adjustment for Inflation and Population 10,446,414
Other Adjustments (Note 5)
Total Adjustments 10,446,414
Appropriations Limit for the Fiscal Year Ended June 30, 2024 $ 274,970,727 See accompanying Notes to Appropriations Limit Worksheet No. 6. (3)

CITY OF LAGUNA NIGUEL
NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
JUNE 30, 2024
NOTE 1 PURPOSE OF LIMITED PROCEDURES REVIEW
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), limited procedures review in connection with the annual audit.

NOTE 2 METHOD OF CALCULATION
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed at Notes 3 and 4 below.

NOTE 3 INFLATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage change in California per capita personal income from the preceding year (which is supplied by the State Department of Finance), or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor utilized by the City for the fiscal year 2023-2024 represents the annual percentage change in California per capita personal income from the preceding year.

NOTE 4 POPULATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction's own population, or the annual percentage change in population in the County where the jurisdiction is located. The factor utilized by City for fiscal year 2023-2024 represents the annual percentage change in the population of the City.

NOTE 5 OTHER ADJUSTMENTS
A California governmental agency may be required to adjust its appropriations limit when ertain events occur, such as the transfer of responsibility for municipal services to, or tron another governmental agency or private entity. The City had no such adjustments for th year ended June 30, 2024.
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Investmer Ladsisery services are effered trough ChitoriLarsonAllen Wealth Advisors LEC. an INDEPENDENT SEC registered investment advisor

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ATTACHMENT C
Popular Annual Financial Report (PAFR) for Fiscal
Year ended June 30, 2024

CITY OF LAGUNA NIGUEL

CALIFORNIA

POPULAR ANNUAL

FINANCIAL REPORT
For Fiscal Year Ended June 30, 2024
City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024

TABLE OF CONTENTS
Introduction 02
About Laguna Niguel 03
City Organization Chart 04
Demographics and Key Statistics 05
Notable Community Events 06
Strategic Plan Executive Summary 07
Fund Balances 09
General Fund Revenues 10
General Fund Expenditures 11
General Fund Reserves 12
Capital Improvement Program -113
Investments 14

GLOSSARY OF ACCOUNTING TERMS
FUND: An accounting entity with a self-balancing set of accounts. Each fund operates independently almost like its own "company". Funds are established for specific purposes, like the Gas Tax Fund, which records revenues received for gas taxes, and allowable expenditures of those revenues.

FUND BALANCE: The "retained earnings" of the City since its incorporation. Each fund has its own fund balance.

GENERAL FUND: The primary fund of the City used to account for all revenues and expenditures of the City not legally restricted as to use.

SPECIAL REVENUE FUNDS: These funds are separately administered because revenues are restricted by the State of California, the Federal government, or other governmental agencies as to how the City may spend them.

MODIFIED ACCRUAL BASIS: Revenues are recognized when both measurable and available to the City. Expenditures are recorded as they occur.
cityoflagunaniguel.org 01
City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30. 2024

INTRODUCTION
To the Citizens of Laguna Niguel:

Welcome to the City of Laguna Niguel's first Popular Annual Financial Report (PAFR). The PAFR is intended to provide residents and stakeholders of Laguna Niguel with information in an easy-to- read format, simplifying complex financial data and using less technical language. This report contains condensed and simplified financial information from audited results contained in the City's Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2024. The PAFR provides an overview of the City's financial condition and brief descriptions of other areas of interest.

We hope you enjoy reading the City's PAFR and find its contents helpful and interesting. For more information on the City's various financial reports or other financial information, please visit the Finance Department page on the City of Laguna Niguel website at www.cityoflagunaniguel.org. cityoflagunaniguel.org 02
City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024

ABOUT LAGUNA NIGUEL
Laguna Niguel is a 14.72 square mile planned community in South Orange County, California and is located approximately halfway between Los Angeles and San Diego. Laguna Niguel is a General Law city with municipal elections held in November of even numbered years.

The City is known for fostering a strong retail and commercial environment. Over one-third of Laguna Niguel is designated as open space; making this one of the key features defining the character and urban form of the City. Approximately seventy two percent (72%) of Laguna Niguel's 26,187 housing units are owner occupied.

The name "Laguna Niguel" is derived
from the Spanish word "Laguna."
which means lagoon, and the word
"Nigueli," which was the name of a
Juaneno Indian village once located
near what is now known as Aliso
Creek. In 1821, California became
Mexican territory, and many rancheros
were formed in Southern California,
including Rancho Niguel.

Originally, Rancho Niguel was primarily used as a sheep ranch. The first private landowner of the area was Juan Avila, a resident of San Juan Capistrano, who obtained land through a Mexican land grant in 1842. Juan Avila was also successful in re-establishing his title to the land after California became a US territory in 1848 and remained the owner of "Rancho Niguel" until 1865. In 1895, the "Rancho Niguel" land became part of the Moulton Company, a company that would eventually control over 19,000 acres of local ranch land.

In 1959 the Laguna Niguel Corporation was
formed, and Laguna Niguel became one of
the first master planned communities in
California. Land sales started to occur in 1961
in the Monarch Bay and Laguna Terrace
subdivisions. The City was officially
incorporated on December 1, 1989, becoming
the 29th city in Orange County.
cityoflagunaniguel.org 03
City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024

ORGANIZATION CHART

LAGUNA NIGUEL RESIDENTS

CITY COUNCIL
Council Member Mayor Pro Tem Mayor Council Member Council Member Stephanie Winstead Stephanie Oddo Kelly Jennings Ray Gennawey Gene Johns

COMMISSIONS & COMMITTEES CITY DEPARTMENTS
Parks & Recreation City Attorney
Commission
Planning City Manager
Commission
Traffic & Transportation
Commission Administration
Investment, Banking & Audit Community Development
Committee
Finance
Military Support
Committee
Parks & Recreation
Senior Citizens
Committee Public Safety
Youth Public Works
Committee
cityoflagunaniguel.org 04
City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024

DEMOGRAPHICS AND KEY STATISTICS
POPULATION TREND COMMUNITY DEMOGRAPHICS*

70.000
66,689 White 66.5%
66,748

66.142 I Hispanic/Latino 16.3%
67,000
65,377 65.316 65,168

64.702 i Asian 9.8%
64,316 64,291
65,000 # Black 1.2%
64,000 *: Other 6.2%

2.000
62,000
2016 2017 scia J01S 2021 2012 2023

56.6% $140,605
64,291 47 44,811

BACHELOR'S DEGREE MEDIAN HOUSEHOLD

POPULATION' MEDIAN AGE' OR HIGHER' REGISTERED VOTERS'

INCOME'

HOUSING TREND

30.000
27,822 27,827 28,136 28,136

HOUSING UNITS

28.000
26,774
26,235 26,236
27,000 25,88425,888
25,458

26.000 66%
OWNER-OCCUPIED?
25,000
73,000
L $1,327,500
22,000 MEDIAN HOME VALUE*
2016 2017 2010 2019 2020 2021 2022 2023 2024

EXISTING & PLANNED LAND USE
• Residential 46%
Commercial 4%
Mixed Use 2%
El Public Facilities 2% 141 MILES 31 PARKS
I Parks & Open Space 46% MAINTAINED 80 MiLES

CITY STREETS
1 Cal State Fullerton - CDR
2 US Census Bureau
3 State Department of Finance
4 HdL, Coren & Cone
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City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024

NOTABLE COMMUNITY EVENTS
SUMMER CONCERT SERIES 4TH OF JULY CELEBRATIONS

JUNE - AUGUST JULY

SEA COUNTRY FESTIVAL HAUNTED TRAILS

AUGUST OCTOBER

VETERANS DAY CEREMONY HOLIDAY PARADE

NOVEMBER DECEMBER
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City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024

STRATEGIC PLAN EXECUTIVE SUMMARY
LAGUNA NIGUEL 2050: STRATEGIC PLAN
2024 UPDATE

EXECUTIVE SUMMARY
The City of Laguna Niguel adopted its first-ever strategic plan in 2020, which included a planning City's mission statement, vision statement, and guiding values. The City has accomplished a great deal in the first four years of the Strategic Plan, and with the City moving into year five of the plan important updates were made to the strategies and timelines to reflect current priorities.

CITY OF LAGUNA NIGUEL

STRATEGIC PLAN GOALS
GOAL 1: PUBLIC SAFETY GOAL 2: FISCAL SUSTAINABILITY
GOAL 3: OPEN SPACE AND GOAL 4: INFRASTRUCTURE

ENVIRONMENTAL PRESERVATION AND TECHNOLOGY
GOAL 5: ECONOMIC AND GOAL G: COMMUNICATION AND

COMMUNITY DEVELOPMENT COMMUNITY OUTREACH
A collaborative process was used to update the Strategic Plan. Throughout the process, a variety of stakeholders were involved, including City residents, business owners, Council Members, commissioners, committee members, department heads, and staff. The process included the preparation of an environmental scan, a strategic plan survey, and a workshop to discuss the City's goals for the future. The City's continued success in implementing the identified priorities outlined in the Strategic Plan has furthered the achievement of the goals established by the City Council.

This 2024 Strategic Plan Update reflects new and modified strategies and timelines to ensure those goals are achieved.

The 2024 Laguna Niguel Strategic Plan contains the following elements:
• Organizational mission, vision, and values.
• Six goals
• Strategies for each goal
• Implementation action plan
cityoflagunaniguel.org 07
City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024

STRATEGIC PLAN EXECUTIVE SUMMARY
GOAL 1: PUBLIC SAFETY
• Maintain current service levels
• Enhance neighborhood watch programs
• Share resources with surrounding communities
• Enhance community-wide public safety public relations campaign • Conduct CPR training education in partnership with the OCFA • Business watch/business enhancement team
• Leverage technology to enhance public safety and emergency preparedness GOAL 2: FISCAL SUSTAINABILITY
• Analyze and monitor current fee structure
• Implement efficiencies for City payments
• Maximize returns on investments on City investments
• Review financial procedures to ensure efficiency
• Implement Laguna Niguel Aquatics Center operational enhancements GOAL 3: OPEN SPACE AND ENVIRONMENTAL PRESERVATION
• Take inventory of all components of open space
• Develop a 10-year trails and open space maintenance plan • Enhance open space education
• Obtain a Tree City USA designation
GOAL 4: INFRASTRUCTURE AND TECHNOLOGY
• Conduct an energy efficiency evaluation for all City facilities • Evaluate the City's infrastructure and maintenance needs • Develop and implement smart cities solutions
• Conduct an active transportation study
• Complete Citywide bus shelter improvements
• Complete the restoration of La Paz Road with mobility enhancements • Embrace emerging technologies to enhance community experience • Develop a spring street banner design
GOAL 5: ECONOMIC AND COMMUNITY DEVELOPMENT
• Update and implement the Gateway Specific Plan
• Complete comprehensive General Plan update
• Business attraction/retention/education
• Update: local coastal program, trail master plan, town center area specific plan, municipal code, subdivision codes and manuals, discretionary design guidelines, sign code, and triennial local building code
• Coordinate with the General Services Administration (GSA) for the federal building property • Conduct HOA engagement and education programs
• Implement code amendments in response to new state legislation • Implementation of the housing element
GOAL 6: COMMUNICATION AND COMMUNITY OUTREACH
• Continue to enhance public education through social media • Utilize new and existing technologies to expand community outreach • Update the Citv's audio/visual production services and quality • Enhance existing partnerships and regular communication with key stakeholders • Leverage data analysis to curate Citywide messaging
cityoflagunaniguel.org 08
City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024

FUND BALANCES
MAJOR GOVERNMENTAL FUNDS = $55,225,664

CAPITAL MISCELLANEOUS GRANTS

GENERAL FUND PROJECTS FUND
$(315,152)*
$53,308,706 $2,232,110 The Miscellaneous Grants
Fund accounts for revenues
The General Fund is the primary account
The Capital Projects Fund accounts for
for the City's money, used to support most the City's capital projects. including the City operations. Revenue in this fund can be
spent on a variety of programs and services construction, repair, and upgrades of facilities, streets, storm drains, sewers.
without specific restrictions.
and parks.

NONMAJOR GOVERNMENTAL FUNDS = $6,416,748

SENIOR AQMD FUND
MEASURE M2 FUND TRANSPORTATION FUND $113,365
The AQMD Fund is used for
$2,491,040 $524,532 air quality improvement
The Senior Transportation Fund projects supported by
accounts for the proceeds and revenue from AB 2766. The The Measure M2 Fund is used for street
eligible expenditures as designated South Coast Air Quality improvement and maintenance, supported by Management District the Citys share of County Measure M2 funds. in the Senior Mobility Program. funded through the Orange distributes the funds to local County Transportation Authority. goverments based on
population

SUPPLEMENTAL

COMMUNITY

GAS TAX FUND LAW ENFORCEMENT DEVELOPMENT

SERVICES FUND BLOCK GRANT FUND
$3,200,448 $89,845 $(2,482)*
The Community
The Gas Tax Fund is used for general street The Supplemental Law Development Block Grant maintenance, with money coming from the City's share Enforcement Services Fund is (CDBG) Fund accounts for of state gasoline taxes. Most of this revenue can be used used for specific law revenues received and for street maintenance and construction, but a portion enforcement and crime expenditures made for CDBG is specifically reserved for street engineering activities. eligible grants and capital Police Services Department.
projects.

PROPRIETARY FUND = $439,047

VEHICLE REPLACEMENT FUND
$439,047
The Vehicle Replacement Fund collects payments from City Departments that use the Fleet Services Division for vehicle and equipment maintenance. It also includes rental fees for vehicles assigned to specific departments. Maintenance costs are based on the vehicle's past expenses, and rental fees are set to cover the vehicle's future replacement costs. * Grant-related negative balances reflect pending reimbursements, in accordance with accounting rules requiring revenues to be recognized only when received. cityoflagunaniguel.org 09
City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024

GENERAL FUND REVENUES
General Fund Revenues have continued to remain stable and resilient from the period of time preceding the pandemic through the most recent period of heightened inflation. While the City has experienced growth in the revenue categories of property tax, sales tax revenues have remained relatively flat. The Fiscal Year 2023-24 General Fund Revenues were $55.8 million.

ALL OTHER SOURCES
REVENUE FISCAL YEAR 7%
COM. DEV. REVENUE
SUMMARY 2023-24 8% -
SALES TAXES $14,209,464 INTEREST INCOME
4% - SALES TAX
PROPERTY TAXES $28,371,584 FRANCHISE FEES 25%
5% —
FRANCHISE FEES $2,657,013
INTEREST INCOME $2,462,778
COM. DEV. REVENUE $4,554,662
ALL OTHER SOURCES $3,572,203

PROPERTY TAX
TOTAL REVENUE $55,827,704 51%

MAJOR SOURCES OF REVENUE
Property Tax:

Property Tax revenues remain the City's largest source of funding, representing over 50% of total General Fund revenues in Fiscal Year 2023-24. The City received $28.4 million in property taxes in Fiscal Year 2023- TAX
24, representing an increase of 4.8% over the prior year.

Sales Tax:

While Sales Tax revenue has steadily increased over the past five years, the City saw a reduction in revenues in Fiscal Year 2023-24. Total sales tax revenues were $14.2 million, down 4.1% as compared to the prior year. The City anticipates a 2% increase in sales tax in Fiscal Year 2024-25.

REVENUE TRENDS - LAST 5 YEARS"N MILLIONS)
sco $55.8
— Total Revenues & Transfers In $53.4
ssu $48.3
$44.2 $45.8
Other Revenues
Community Development Revenue
Interest Income 550
Franchise Fees s2c
Property Taxes sIe
Sales Taxes
20192020 Actual 2820-7021 Actuat 2021-2022 Acto 7022-2023 Aclual cityoflagunaniguel.org 10
City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024

GENERAL FUND EXPENDITURES
The Fiscal Year 2023-24 activities included the continuation and implementation of many mportant projects and programs that positively impacted the community and met the goals anc objectives set forth in the updated Strategic Plan. Additionally, the FY 2023-24 General Func expenditures supported the City's building and facility maintenance, street and traffic signal maintenance, maintenance, trail maintenance, landscaping, engineering. environmental services.

FISCAL YEAR
EXPENDITURE SUMMARY - 8% TRANSFERS OUT
2023-24
- 7%
GENERAL GOVERNMENT $6,599,799
PUBLIC SAFETY $17,643,906 GENERAL

GOVERNMENT
COMMUNITY DEVELOPMENT $4,473,842 → 12%
PARKS & RECREATION $4,186,111 PUBLIC
SAFETY
$15,453,835 CAPITAL OUTLAY
PUBLIC WORKS 33% - 3%
CAPITAL OUTLAY $856,064
TRANSFERS OUT $3,625,099

COMMUNITY DEVELOPMENT
PUBLIC
-: 8%

TOTAL EXPENDITURES & WORKS
$52,838,656 29%

TRANSFERS OUT

SUMMARY OF FULL TIME PERSONNEL
(LESS CITY COUNCIL)
TOTAL FULL TIME POSITIONS - LAST 5 YEARS
ADHINISTRATION 69
a 7 70 66
62 63 64

CITY CLERK
60 PARKS & FINANCE
RECREATION 50
18 40
66 30

COMMUNITY

TOTAL DEVELOPMENT
- 12 20
PUBLIC 10
WORKS
21 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FISCAL YEAR 2023-24 Parks & Recreation Public Works # Community Development Public Safety FULL TIME POSITIONS Finance • City Clerk • Administration cityoflagunaniguel.org 11
City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024

GENERAL FUND RESERVES
The City of Laguna Niguel's Financial Reserves Policy requires maintaining a reserve for financial and economic uncertainty of at least 50% of General Fund operating expenditures. Based on the $53.3 million reserve balance on June 30, 2024, the City has 108.3% of General Fund operating expenditures in reserves, easily meeting the policy. Net changes to fund balance was $3.0 million, representing a 5.9% increase over the prior year total. The City has also designated portions of its fund balance for other categories, as identified below. Each of these categories are identified in the Financial Reserves Policy. The City Council reviews the Financial Reserves Policy annually.

FISCAL YEAR

DESCRIPTION OF RESERVES/FUND BALANCE
2023-24
NON-SPENDABLE - DEPOSITS AND PREPAID ITEMS $173,938
RESTRICTED FOR SECTION 115 PENSION TRUST $2,179,843
ASSIGNED FOR DEPARTMENTAL OPERATIONS $222,223
COMMITTED:

FINANCIAL AND ECONOMIC UNCERTAINTY $26,289,809
108.3%
COMPENSABLE ACCRUED UNUSED VACATION AND SICK LEAVE $148,916

F GENERAL FUND OPERATIN
OTHER POST-EMPLOYMENT BENEFITS (OPEB) $1,154,625 EXPENDITURES IN RESERVE INFRASTRUCTURE REPLACEMENT AND DEFERRED MAINTENANCE $23,139,352 TOTALS $53,308,706
5-YEAR RESERVES TREND IN MILLIONS)
$60
$53.3
$48.5 $50.3
$50 $46.3
$41.7
$40
$30
$20
$10
$-
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Non-spendable - Deposits and Prepaid Items Restricted for Section 115 Pension Trust Assigned for Departmental Operations Financial and Economic Uncertainty I Compensable Accrued Unused Vacation and Sick Leave Other Post-Employment Benefits (OPE) • Infrastructure Replacement and Deferred Maintenance — General Reserves Totals cityoflagunaniguel.org 12
City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024

CAPITAL IMPROVEMENT PROGRAM
The City of Laguna Niguel invested $9.8 million in Fiscal Year 2023-24 towards maintaining and improving the City's infrastructure, as identified in the Strategic Plan. It is critical that the City continues to provide appropriately designed and well-maintained infrastructure and amenities. A variety of funding sources support the capital plan, including funds such as Measure M2, AQMD, Gas Tax, CDBG, other grants, the General Fund, and the City's infrastructure reserves.

NOTABLE COMPLETED CAPITAL IMPROVEMENT PROJECTS

ACTIVE TRANSPORTATION STUDY & MARINA HILLS PARK

BICYCLE GREEN ZONE PILOT PROJECT LA PAZ ROAD LONG-TERM PHASE II PLAN IMPROVEMENTS PROJECT

CAPITAL IMPROVEMENT PROGRAM FUNDING SOURCES
OTHER
FISCAL YEAR 3% CDBG FUND
FUNDING SOURCES - 3%
2023-24
CDBG FUND $274,740
MEASURE M2
MEASURE M2 $2,234,899 AMERICAN 23%
RESCUE

PLAN ACT
GAS TAX $2,560,490
25%
AQMD FUND $175,168
GENERAL FUND $1,788,948

GENERAL
AMERICAN RESCUE PLAN ACT $2,475,599 FUND GAS TAX
18% 26%
OTHER GRANTS $315,153
TOTAL $9,824,997 AQMD FUNE
201
cityoflagunaniguel.org 13
City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024

INVESTMENTS
The City of Laguna Niguel's Investment Policy provides a framework for managing its investment portfolio. The policy's primary objectives, in order of priority, are: 1) Safety - the City intends to preserve its investment; 2) Liquidity - the portfolio should remain liquid enough to meet all operating needs; and 3) Return on Investment - the portfolio should be designed with the objective of attaining a market rate of return, while taking into account investment risk constraints and cash flow characteristics. The average return of the State Treasurer's Local Agency Investment Fund (LAIF) is used as benchmark for the City's portfolio. $68.3 3.1% $2.9

MILLION AVG YIELD MILLION

TOTAL PORTFOLIO FOR THE YEAR EARNED FOR THE YEAR
CITY & LAIF PORTFOLIO YIELDS - 5 YEAR HISTORY
The Local Agency Investment Fund 5.0%
(LAIF), managed by the State 4.5%
Treasurer, serves as an alternative 4.0%
investment pool for public agencies. 3.5%

3.0%
The LAIF yield is used as benchmark

2.5%
for the City's portfolio. The graph on

2.0%
the right compares the City's portfolio

1.5%
yields with the LAIF portfolio yields 1.0%
over the past five years. 0.5%

0.0%
— City Q1 Q2 Q3 Q4 Q1 / 02 Q3 04
— LAIF FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 PORTFOLIO DIVERSIFICATION 5-YEAR PORTFOLIO SIZE TREND (IN MILLIONS) $80
$67.1 $65.7 $68.3
$70
$59.3
$60 $51.3
Agency Securities 52% $50
I US Treasuries 26% $40
Certificate of Deposits 7% $30
Money Market 15% $20
$10
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
cityoflagunaniguel.org 14

Laguna Niguel City Hall
30111 Crown Valley Parkway
Laguna Niguel, CA 92677

Laguna Niguel City CouncilFebruary 18, 2025

Laguna Niguel City Council
February 18, 2025