City of Laguna Niguel Annual Comprehensive Financial Report 2024

CITYCITY OFOF LAGUNALAGUNA NNIGUELIGUEL CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT FiscalFiscal YearYear EndedEnded JuneJune 30,30, 20242024

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CITY OF LAGUNA NIGUEL, CALIFORNIA 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 TABLE OF CONTENTS YEAR ENDED JUNE 30, 2024 INTRODUCTORY SECTION (UNAUDITED) LETTER OF TRANSMITTAL I GFOA 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) 5 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 77 SCHEDULE OF CONTRIBUTIONS – PENSION 78 SCHEDULE OF THE CHANGES IN TOTAL OPEB 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 Jennings Phone: (949) 362-4300 Fax: (949) 362-4352 Mayor Pro Tem Stephanie Oddo 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 independent auditors’ report and provides a comprehensive and detailed narrative introduction, overview, and analysis of the basic financial statements. The MD&A is 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. i

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 fiscal 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. ii

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://cityoflagunaniguel.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 iii

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 x Enhanced Laguna Niguel Police Services on social media platforms to increase awareness in the community. x Increased e-bike education and the You Are Not Alone Program. x Quarterly Police Services and OCFA presentations at City Council Meetings. x Reconfiguration of the Special Enforcement Team Unit deployment for daily coverage and directed enforcement. x Implemented PACT Bike Patrol to amplify trail and retail visibility and deterrence. x Conducted a 12-week Citizen’s Academy x Conducted CERT Team training. x Implemented the monthly Chief’s Brief and monthly video messages to the community. x Hosted and provided training and community education forums, including, but not limited to: Neighborhood x Watch, Stop the Bleed, Car Seat Installation, Emergency Preparedness, and numerous public safety/crime prevention presentations. iv

Continue enhancing neighborhood watch Complete & Ongoing x 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. x Continued outreach efforts to the HOA’s. Monitor implementation of the trail safety Complete & Ongoing camera pilot program x 12 cameras installed along the Colinas Bluff Trail. x Evaluation of pilot program is ongoing. Continue implementation of the Business Complete & Ongoing Enhancement Team x The Business Enhancement Team has been established and will be completing their contact with the last set of businesses in the next several months. x 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 x Provided a “clean” financial audit for FY 22- 23 with no audit findings. x Ended the fiscal year with $1.8 million surplus. Present a balanced budget for FY 24-25 Complete x Presented a balanced budget to the City th 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 x 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). x Implemented various cost-saving measures via early payment discounts. Awards Complete x Obtained the award for our Annual Comprehensive Financial Award from the Government Finance Officers Association. x 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 Budget. v

Strategic Plan Goal 3: Open Space & Environmental Preservation Strategy Status Complete open space inventory Ongoing x The first phase of this project (trails) is 25% complete. x Phase 2 (the remaining open space components) will be completed by December 2024. Complete the Trail & Open Space Maintenance Ongoing Plan x RFP released in FY 23-24 and no responses were received. x The RFP will be recirculated in 2025. Continue open space and environmental Ongoing preservation public education. x Enhanced the City’s website to provide critical information to the public regarding the City’s environmental programs. x 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 x 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 x Plans developed and approved for both short Road and make the permanent repairs and long- term La Paz Road Repair. x Construction on the short term plan is underway and will be completed in Fall 2024. x $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) x Parks inventory completed. x Facilities inventory will be completed in 2024. x Streets inventory will be completed in 2025. Begin the Active Transportation Study In Progress x Study is underway. x Community engagement and outreach is in process. x Study is expected to be completed in 2025. Complete the Crown Valley Park Outdoor WiFi Complete Project x Outdoor WiFi enhancement project is complete. x WiFi is now available for all visitors throughout Crown Valley Park. vi

Strategic Plan Goal 5: Economic & Community Development Strategy Status Complete the Gateway Specific Plan Update In Process x Assessment of the current plan is complete. x Studies have been commissioned to address areas under review. x Projected completion date is 2026. General Plan – Award contract to consultant to In Progress assist with the public engagement, draft General x Studies have been completed. Plan documents and Environmental Impact Report x Consultants retained and public engagement has been completed. x Vision Plan is in progress. x Estimated General Plan Update completion – Summer 2025. Complete the Trails Master Plan In Progress x Trail inventory and trail design standards complete. x Draft document is in the process of being completed. x Estimated completion date 2026. Municipal Code – Begin implementation of the In Progress update of the Municipal Code x Consultant retained and municipal code review underway. x Estimated completion 2025. City Center – Continue working with the developer In Progress for City Center x Regular meetings with City staff and developer continue. x Developer is committed to the project. x Developer is hopeful that they will break ground in approximately 2 years. Federal Building – Continue working with the In Progress Federal General Services Administration x Staff regularly meets with GSA regarding the sale of this property and the future representatives and potential bidders. development of this site x Auction begins in June 2024. Implement the new online permitting system Completed x Successfully launched the new online permit system. x Customers can schedule inspections, access the inspection results, and view permit status information online. x 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 x The City received Housing Element certification by HCD in February 2024. vii

Continue Economic Development Efforts to Complete & In Progress Attract New Businesses to the Community x 15 new notable restaurants & retail opened in the City in 2023. x Two new residential developments opened in 2023: Blu II & Watermark Strategic Plan Goal 6: Communication & Community Outreach Strategy Status Continue enhancing community education and Completed & Ongoing outreach through various forms of social media, x Launched the new quarterly City videos and printed materials newsletter – The Beacon. x Implemented successful community outreach campaigns, including: City Council events, the City’s mobile app, Laguna Niguel Restaurants Summer Contest, Sea Country Festival, Organic Waste, Economic Development, E-Bike Education, La Paz Road and the Laguna Niguel Trolley. x Surpassed over 5,000 downloads on the City’s mobile app. x Significantly increase in social media outreach on all platforms. Continue enhancing HOA community Ongoing education and outreach x Continued to provide in person HOA educational opportunities. x Continued to prepare HOA quarterly newsletters and HOA Board Education roundtables. Additional Items/Projects Completed Human Resources x Completed compensation study. x Streamlined the employee new hire process. x Conducted numerous employee training programs. x Conducted numerous leadership, employee development and engagement trainings and programs throughout the year. Information Technology x Provided bi-annual staff training on ransomware, spyware & virtual threats. x 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. x Implemented Multi Factor Authentication for all City employees. viii

Planning/Building x Continued to coordinate the Coastal Fire Rebuild. x Obtained entitlement approvals for the Village Shopping Center. x Obtained entitlement approvals for the Griffin Senior Living/Grace Church. Parks & Recreation x Hosted numerous events for participants of all ages with record attendance. x Crown Valley Community Center record revenue achieved - $150,000 from July 1, 2023, through May 1, 2024. Capital Improvement Projects Completed x 7 Park modernization projects. x Citywide Sports Field Grass Turf Rehabilitation Program – 3 natural grass soccer fields and two natural grass baseball fields. x Residential Annual Resurfacing Program – Zones 3 & 4. x Chapparosa Park Soccer Field Synthetic Turf Replacement. OTHER INFORMATION Awards. Government Finance Officers Association of the United States and Canada (GFOA) 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 th 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 GFOA to determine its eligibility for another certificate. ix

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: x

xi

CITY OF LAGUNA NIGUEL ORGANIZATIONAL CHART JUNE 30, 2024 xii

CITY OF LAGUNA NIGUEL ELECTED OFFICIALS AND MANAGEMENT STAFF JUNE 30, 2024 xiii

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CliftonLarsonAllenLLP 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 accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that my raise substantial doubt shortly thereafter. CLA(CliftonLarsonAllenLLP)isanindependentnetworkmemberofCLAGlobal.SeeCLAglobal.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 fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: x Exercise professional judgment and maintain professional skepticism throughout the audit. x 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. x 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. x 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. x 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 financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor 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. 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 overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024. Our intent is to assist the reader of these financial statements in better understanding the impact of financial decisions made by the City. This analysis will focus on the significant changes from the prior year and in relation to the current budget in an effort to explain the City’s overall financial condition. We encourage readers to consider the information presented here in conjunction with the additional 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: x 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. x 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. Government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant 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 compliance with finance-related legal requirements. All of the funds of the City are divided into two categories: governmental funds and one proprietary fund. The fund financial statements provide detail information about each of the City’s most significant funds, called Major Funds. The concept of Major Funds, and the determination of which are Major Funds, was established by Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments (GASB 34) and replaces the concept of combining like funds and presenting them in total. Instead, each Major Fund is presented individually, while all Nonmajor Funds are summarized and presented in a single column. (5)

CITY OF LAGUNA NIGUEL MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2024 OVERVIEW OF FINANCIAL STATEMENTS (Continued) Fund Financial Statements (Continued) x Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. A reconciliation of both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances with the government-wide 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. x 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 Required supplementary information includes budgetary information on the General Fund, Miscellaneous Grants Special Revenue Fund, the budget process, the City’s share of net pension liability and related ratios, the schedule of pension contributions and schedule of changes in net OPEB 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 nonmajor governmental funds, which are added together and presented in single columns in the fund financial statements. Supplementary schedules can be found behind the tab section titled Supplementary Schedules. The following table summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. 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 x Statement of Net x Balance Sheet x Statement of Net Position statements Position x Statement of Revenues, x Statement of Revenues, x Statement of Expenditures and Expenses and Changes in Activities Changes in Fund Net Position Balances x 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 outflow 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 x 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. x 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. x 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 nd million is available for spending at the government’s discretion (the sum of the committed, assigned, and unassigned fu 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.  Of the total fund balance of the General Fund at June 30, 2024, the City Council has committed $23.1 million for capital asset replacement, $26.3 million for economic contingencies, $0.1 million for compensated absences, and $1.2 million for Other Postemployment Benefits (OPEB). $2.2 million has been restricted for the unfunded pension liability. The remaining amount of fund balance is either classified as non-spendable or assigned and consists of previously obligated items. 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 in the Government-Wide Statement of Net Position and Statement of Activities. As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceed liabilities and deferred inflows of resources by $629.5 million at June 30, 2024. 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 2.2 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 9.5 13.8 (4.3) Other liabilities 11.9 13.5 (1.6) Total liabilities 21.4 27.3 (5.9) Deferred pension related items 2.7 0.8 1.9 Deferred OPEB 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 City’s net position increased by $4.9 million, or 0.8%, during fiscal year 2023-2024, primarily due to increased property taxes, returns on City investments, and sales taxes. The most significant reduction to liabilities this year is in the City’s Net Pension Liability, which decreased by $4.0 million. This was primarily the result of $4.8 million in additional discretionary payments the City made to CalPERs, the City’s defined benefit pension plan provider. Those payments were made during the prior fiscal year and reduced the Net Pension Liability in fiscal year 2023-2024. 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: Charges for services $ 6.2 $ 5.5 0.7 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 3.1 0.3 Investment earnings 2.8 1.3 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) Beginning net position 624.6 618.6 6.0 Ending net position $ 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. Total revenues increased by $2.4 million, or 3.8%, from prior year levels and total expenses increased by $3.5 million. The current fiscal year program revenue decreased by $0.3 million from the prior year, primarily due to a decrease in capital grants, and general revenue increased $2.7 million from the prior year, and can be primarily attributed to an increase in property tax revenue based on the continued strength of the housing market, along with gains on City investments. The cost of all governmental activities this year was $60.8 million. However, as shown in the Statement of Activities, the amount that Laguna Niguel taxpayers ultimately financed for these activities through City taxes was $46.0 million as portions of those expenses were paid by those who directly benefited from the programs ($6.2 million) or by other governments and organizations that subsidized certain programs with contributions and grants ($9.6 million). The following chart graphically depicts the amount of general revenue used in relation to program revenue in funding governmental activities. 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) 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 for 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. (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. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. Under GASB Statement No. 54, Fund 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 million, an increase of $4.4 million, or 7.8%, in comparison to the prior year. Of the total combined ending fund balance, $50.6 million, or 82.1%, is available for spending at the government’s discretion. Of the remaining $11.0 million, $0.2 million is classified as non-spendable, indicating that it is not in spendable form and previously obligated, and $10.8 million is restricted, indicating that its use is constrained by externally imposed limitations to be spent for public safety, public works, community 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: x 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%. x Miscellaneous Grants Special Revenue Fund – This fund accounts for revenues and expenditures made for various City projects 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. x 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%. The primary reasons for this variance were higher property taxes ($1.6 million), investment income ($1.2 million), licenses and permits ($0.7 million), which all came in stronger than budgeted. The City intentionally budgets conservatively. The original adopted General Fund expenditure budget for fiscal year 2023-2024 was $51.9 million. Actual expenditures came in at $49.2 million, a positive variance of $2.7 million. The variance was due to actions the City took to continuously monitor 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 The table below presents all City capital assets, net of accumulated depreciation, including infrastructure. Infrastructure includes roads, sidewalks, traffic signals, bridges, storm drains, and similar assets used by the entire population. 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 Swimming pool 1.6 1.7 (0.1) 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 $9.7 million to improve its parks and infrastructure during the year. The change in capital assets was partially offset by total annual depreciation for the current fiscal year in the amount of $8.6 million. For more information on the City’s capital assets, refer to Note 5 of the Notes to the Basic Financial Statements. DEBT ADMINISTRATION As of June 30, 2024, the City had the following outstanding liabilities related to its vehicle leases, subscriptions payable, as well as compensated absences: 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 The FY 2024-2025 adopted General Fund budget includes revenues of $55.3 million, operating expenditures of $52.8 million, and Transfers Out of $2.3 million. The budget includes approximately $10.1 million from a variety of funding sources for the Capital Improvement Program (CIP). The CIP for FY 2024-2025 includes improvements to the City streets, playgrounds, parks, senior center, city hall, and technology infrastructure. The adopted budget can be found on the City’s website at www.cityoflagunaniguel.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 (15)

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GOVERNMENT-WIDE FINANCIAL STATEMENTS (17)

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CITY OF LAGUNA NIGUEL STATEMENT OF NET POSITION JUNE 30, 2024 Total Governmental 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 2,150,938 Capital Assets, Not Being Depreciated 277,895,464 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 66,326 Total Current Liabilities 11,904,081 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 Year 148,916 Net Pension Liabilities 7,365,509 Other Postemployment Benefits Liabilities, Due in More Than One Year 1,858,049 Total Noncurrent Liabilities 9,514,741 Total Liabilities 21,418,822 DEFERRED INFLOWS OF RESOURCES Lease Related Deferred Inflows of Resources 2,288,129 Pension Related Deferred Inflows of Resources 2,716,404 OPEB Related Deferred Inflows of Resources 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 Public Safety 89,845 Community Development 842,166 Public Works 11,667,794 Unrestricted 44,674,514 Total Net Position $ 629,482,112 See accompanying Notes to Basic Financial Statements. (19)

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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 Governmental Functions/Programs Expenses Services and Grants and Grants Activities PRIMARY GOVERNMENT Governmental Activities: General Government $ 7,658,664 $ 7 75 $ 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) ublic Works 22,934,310 370,717 1,962,866 6,212,388 (14,388,339) P Interest Expense 18,251 - - - (18,251) Total Governmental Activities $ 60,805,770 $ 6,162,872 $ 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. (21)

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FUND FINANCIAL STATEMENTS Governmental Fund Financial Statements Proprietary Fund Financial Statements (23)

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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 $ 5,469,850 $ 6,301,890 $ 65,960,969 Restricted Cash and Investments 2,179,843 - - - 2,179,843 Receivables: Accounts 498,997 - - 99 499,096 Taxes 2,391,665 - - 444,408 2,836,073 Interest 368,747 - - 38,377 407,124 Lease Receivable 2,449,243 - - - 2,449,243 Prepaid Items 171,978 - - - 171,978 17,684 - 19,644 Deposits 1,960 - 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 1,039,289 Unearned Revenue 182,091 857,198 - - 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 388,312 1,025,488 Unavailable Revenue 322,024 315,152 - 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 (315,152) - (317,(2,482) 634) Unassigned (Deficit) - 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. (26)

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: OPEB Related Deferred Outflows of Resources 331,378 Other Postemployment Benefits Liabilities (1,924,375) OPEB 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 6,594,717 65,393,218 Total Revenues 55,660,616 3,137,885 - EXPENDITURES Current: General Government 6,599,799 - - - 6,599,799 Public Safety 17,643,906 - - 150,000 17,793,906 Community Development 4,473,842 366,206 - 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 10,690,432 Capital Outlay 856,064 9,369 9,824,999 - Total Expenditures 49,213,557 375,575 9,824,999 1,703,058 61,117,189 EXC ESS (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) OPEB 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. (29)

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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 Vehicle Replacement Fund ASSETS Current: Cash and Investments $ 202,594 Interest Receivable 1,251 Total Current Assets 203,845 Noncurrent: Vehicles, Net of Accumulated Depreciation 419,501 Total Noncurrent Assets 419,501 Total Assets 623,346 LIABILITIES Current: Lease Payable, Due Within One Year 86,222 Total Current Liabilities 86,222 Noncurrent: r 98,077 Lease Payable, Due in More Than One Yea 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. (34)

NOTES TO BASIC FINANCIAL STATEMENTS (35)

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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. Reporting A. Financial Entity The City wa s 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- ides manager form of government and currently prov public safet street y, animal control, planning, building, code enforcement, engineering, and park maintenance, street lighting, parks and recreation programs, and general administrative services. ll fund types of the City (the primary government). The City This report includes a does any component units for the fiscal year ended June 30, 2024. Compone not include nt tities for which the City is considered to be financially accountable. Th units are en e City is considere s a d to be financially accountable for an organization if the City appoint voting majority of that or e City is able to impose its ganization’s governing body and th will on that ecific organization, or there is a potential for that organization to provide sp financial be also nefits to, or impose specific financial burdens on, the City. The City is considered t ependent (i.e., it o be financially accountable if that organization is fiscally d 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 ts of the City are organized on the basis of The accoun funds, each of which is a separate accounting entity. The operations of each fund are account considered ed for arate set of self-balancing accounts that comprise its assets, liabilities, with a sep fund nues, and expenditures or expenses, as appropriate. Fund accoun equity, reve ting segregates f unds according to their intended purpose and is used to aid management in 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 The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental activities for the City. (37)

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) Government-Wide Financial Statements (Continued) These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in 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. Certain types of transactions are re ree ported as program revenues for the City in th categories: x Charges for services x Operating grants and contributions x 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: x Due to/from other funds x 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 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) al Fund Financial Statements (Contin Government ued) Revenues are recognized as soon as they are both “measurable” and “available”. Revenues are considered to be available when they are collectible within the current period as soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, sales tax, intergovernmental revenues, and other taxes. Expenditures are recorded in the accounting period in which the related f und liability is incurred. cial The reconciliations of the Fund Financial Statements to the Government-Wide Finan Statements is provided to explain the differences. 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 ral and state grants. funding provided by fede 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 nts. The City’s Internal Service Fund includes one government-wide financial stateme 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, e recognized in the period in which they are earned while expenses are revenues ar 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 amounts. 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 fo r interdepartmental operations where it is the stated intent that costs of or replacing vehicles to the departments of the City on a continuing basis be financed 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 defined 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 rates. Cash equivalents generally have an original maturity dat of changes in interest e 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 invest ment orted for that fiscal year. Investment income includes interest earnings, income rep changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of in vestments. (40)

CITY OF LAGUNA NIGUEL NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Investments (Continued) d investments of all funds. Each fund’s share in this pool The City pools cash an is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various fu nds 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 value, establishes a framework for measuring fair value and U.S. GAAP defines fair establishes disclosures about fair value measurement. Investments, unless other wise 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: nputs are unadjusted, quoted prices for identical assets or liabilities in Level 1 – I 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: x Quoted prices for similar assets or liabilities in active markets; x Quoted prices for identical or similar assets or liabilities in markets that are inactive; x Inputs other than quoted prices that are observable for the asset or liability; x 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 su es, charges for ch items as taxes, intergovernmental revenu service No allowance for s, miscellaneous accounts receivable, and interest receivable. doubtful accounts has b ered een established, as the City believes all amounts are consid to be colle ctible 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 about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability 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. The City used the estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the 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 al assets are valued at historical cost or estimated historical cost if actu All capit al l cost is not available. Contributed capital assets are valued at their acquisition historica value on the date of acquisition. The City’s policy is to capitalize all assets with an initial, individual 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 improvements, 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 ements. financial stat The costs of or normal maintenance and repairs that do not add to the value of the asset materially e xtend 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 charged to expense each year until the asset is fully depreciated. result is 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 Shorte r (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) lated to changes in total pension liability and fiduciary net po Gains and losses re sition sion expense systematically over time. The first amortized are recognized in pen amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and inflows of resources related to pensions and are to be recognized in further pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over five years. All other amounts are amortized straight-line over th all e average expected remaining service lives of members t ctive, and retired) as of the hat are provided with benefits (active, ina the measurement period. The net pension liability is generally liquidated by beginning of the General Fund. L. Other Postemployment Benefits Plan For the purpose of measuring the s of resources Total OPEB liability, deferred outflow and deferred inflows of resources related to OPEB, and OPEB expense, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. The following timeframes are reported OPEB reporting: Valuation D ate 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 levied providing they become available. Available means due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities 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 secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on 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: Net investment in capital assets. This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets and retention payable. (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. Unrestricted net position. This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of the net position. 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) Unassigned fund balance. Unassigned fund balance is a residual (surplus) classification used for the General Fund only and includes amounts not contained in the other classifications. Unassigned amounts in the General Fund are available for any purpose. If a governmental fund, other than the General Fund, has a fund balance deficit, it will be reported as a negative amount in the unassigned 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 needed. 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: x Restricted x Committed x Assigned x Unassigned P. Use of Estimates The preparation of basic financia uires l statements in accordance with U.S. GAAP req managemen ported amounts t to make estimates and assumptions that affect certain re and disclosures. Accor dingly, actual results could differ from these estimates and s. assumption 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 Governmental 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 first 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 elow identifies the investment types that are authorized for the City by the The table b California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds he ld by bond trustees that are governed by the provisions of debt agreements nia Government Code or the of the City, rather than the general provisions of the Califor City's inve stment 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 Section 115 Pension Trust N/A 20% None C. Fair Value Measurement Disclosure At June 30, 2024, investments are reported at fair value. The following table presents e measurements of investments on a recurring basis and the levels with the fair valu 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 $ - $ 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 OCIP - - 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 Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter-term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City’s investments 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 13-24 25-60 Investment Type or Less Months Months Total 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 17,934,360 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 N/A - 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 throughout the fiscal year. ment policy of the City contains no limitations on the amount that can be The invest 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 represe nt 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 Government Agency Securities 8, 248,470 Federal Home Loans Banks Federal Government 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 The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is 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 reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. 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 accompanying 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 Laguna Niguel. The interest rate for each lease is 1.65%. The initial lease agreement term is five years with the option to extend for three additional terms of five years. The total amount 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: Balance Balance July 1, 2023 Additions Deletions Reclassification June 30, 2024 Capital Assets, Not Being Depreciated: Land $ 271,068,667 $ - $ - $ - $ 271,068,667 Construction In Pro gress 6,892,132 9,736,579 - 6,826,7(9,801,914) 97 Total Capital Assets, Not Being Depreciated 277,960,799 9,736,579 - 2(9,801,914) 77,895,464 Capital Assets, Being Depreciated: Infrastructure 351, 245,927 - - 6,687,764 357,933,691 Buildin gs and Building Improvements 80,772,411 - - 1,184,482 81,956,893 Improvements Other Than Buildings 1,904,458 - - 1,904,4- 58 Park Improvements 48,187,802 - - 1,929,668 50,117,470 Swimmin g Pool 2,408,558 - - 2,408,558 Furniture and Equipment 1,808,375 41,484 - - 1,849,859 Software 424,269 - - - 424,269 Ri ght-to-Use Subscription Assets 527,508- - 527,5- 08 Vehicles 561,299 - - - 561,299 Ri ght-to-Use Lease Assets - Vehicles 460,727 - - 460,7- 27 Total Capital Assets, Being Depreciated 487,773,826 568,992 9- 4,801,914 98,144,732 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) - - (28,973,929) Swimming Pool (736,859) (99,923) - - (836,782) 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- 2,801,914 95,748,629 Governmental Activities Capital Assets, Net $ 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 $ 708,65 0 Public Safety 78,202 Community Development 72,633 Parks and Recreation 2,172,921 Public Works 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) balances are short-term in nature and are expected to be repaid within one All interfund year. The Community Development Block Grant Special Revenue Fund had a negative ce at June 30, 2024. This amount has been reclassifi cash balan ed 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 fr om 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 Balance Due Within Due in More July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Governmental Activities: Subscription Payable $ - $ 167,088 $ 167- $ ,088 $ 122,898 $ 44,190 Leases Payable 270,521 - 184(86,222) ,299 86,222 98,077 Compensated Absences 795,561 428,589 647(576,710) ,440 498,524 148,916 Total Governmental Activities $ 1,066,082 $ 595,677 $ (662,932) $ 998,827 $ 707,644 $ 291,183 (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 (SBITA) 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 under the SBITA agreement is as follows: Fiscal Year Ending June 30, Principal Interest Total 2025 $ 122,898 $ 2,496 $ 125,394 2026 44,190 1,980 46,170 Total $ 167,088 $ 4,476 $ 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 Each member pays an annual contribution at the beginning of the coverage period. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. 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 LIABILITY, WORKERS’ COMPENSATION PLAN, AND PURCHASED INSURANCE (CONTINUED) B. Primary Self-Insurance Programs of the Authority (Continued) orkers’ Compensation Program (Conti Primary W nued) For 2023-24 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members. C. Purchased Insurance gal Liability Insurance Pollution Le The City participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $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 acco y to rding to a schedule of covered property submitted by the Cit the Authorit y. 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 one of the above programs of protection experienced During the past three fiscal years, n settlements or judgments that excee ded pooled or insured coverage. There were also no eductions in pooled or insured liability coverage significant r 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 - 191,622 Rest ricted: Pension 2,179,843 - - - 2,179,843 Public Safety - - 89,84- 5 89,845 Community Development - - 524,53- 2 524,532 Public Works - - 2,214,426 5,804,853 8,019,279 Total Restricted 2,179,843 - 2,214,426 6,419,230 10,813,499 Committed: Compensated Absences 148,916 - - - 148,916 Capital Asset Replacement 23,139,352 - - - 23,139,352 OPEB 1,154,625 - - - 1,154,625 Economic Uncertainty* 26,289,809 - -- 26,289,809 Total Committed 50,732,702 - -- 50,732,702 Assi gned: Continuing Appropriations: Communit y Development 222,223 - -- 222,223 Total Assigned 222,223 - -- 222,223 Unassigned (Deficit) - -(315,152) (2,482) (317,634) Total Fund Balance $ 53,308,706 $ (315,152) $ 2,232,110 $ 6,416,748 $ 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 s. City Council approval shall be required before expending any portion expenditure of the for Financial and Economic Uncertainty. Unforeseen circ committed fund balance umstances that may require an expenditure of such amounts include, but are not limited to natural unforeseen deficiencies of a major revenue source, or unexpected opera disasters, ting 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 CalPERS, a cost-sharing, multiemployer defined pension plan, for its’ miscellaneous employees. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS 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 CalPERS’ 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 CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A first tier classic CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least five years of credited service. A second tier classic CalPERS 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: x Classic Tier 1: 2.0% (at age 55) of the average final 12 months compensation. x Classic Tier 2: 2.0% (at age 60) of the average final 36 months compensation. x 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 service, up to a maximum of six months' salary. For purposes of this benefit, one month'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 survivor(s) 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 2.0%. (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 that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following the notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount o finance the costs of benefits earned by emplo necessary t yees during the year, with an mount to finance any unfunded accrued liability. The employer is required to additional a contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contributions for the fiscal year ended June 30, 2024 were $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 r power applies, 2.30% thereafte (1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS 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 ate Discount R The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based he Plan’s fiduciary net position was projected to be available to on those assumptions, t make all projected future benefit payments of current plan members. Therefore, the e of return on plan investments was applied to all periods of long-term expected rat 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, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the classes, expected compound (geometric) returns were calculated over the funds’ asset next 20 years using a building-block approach. The expected rate of return was then account for assumed administrative expenses of 10 Basis points. adjusted to The expected real rates of return by asset class are as follows: Assumed Asset Asset Class (1) Allocation Real Return (1,2) Global Equity - Cap-Weighted 30.00 % 4.54 % Global Equity - Non-Cap-Weighted 12.00 3.84 Private Equity 13.00 7.28 Treasury 5.00 0.27 Mortgage-Backed Securities 5.00 0.50 Investment Grade Corporates 10.00 1.56 High Yield 5.00 2.27 Emerging Market Debt 5.00 2.48 Private Debt 5.00 3.57 Real Assets 15.00 3.21 Leverage (5.00) (0.59) Total 100.00 % 1 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 As of the fiscal year ended June 30, 2024, the City reported a net pension liability for its proportionate share of the collective net pension liability of the miscellaneous plan of $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, actuarially determined. 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 pension liability in the year ending June 30, 2025. Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: 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-percentage-point higher (7.90%) than the current rate: 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 CalPERS’ financial report and can be obtained from CalPERS’ 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 CalPERS 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 CalPERS 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 Total 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 measured as of June 30, 2024, and the total The City’s total OPEB liability was OPEB determined by an actuarial valuation as of June 30, 2022, rolled forward to liability was June 30, 2024, using standard updated proced ures. (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 OPEB 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 CalPERS 2000-2019 Experience Study Mortality Improvement Mortality Projected Fully Generational with Scale MP-2021 Salary Increases Aggregate - 2.75% Annually Merit - CalPERS 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 PEMHCA 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 OPEB 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 OPEB 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 - 6.65% to 4.75%) than the current healthcare cost trend rates: 1% Decrease to 1% Increase to Current Trend Current Trend Current Trend Plan's Total OPEB Liability $ 1,608,743 $ 1,924,375 $ 2,333,182 (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 . At June 30, 2024, the City reported deferred outflows and inflows of of $150,153 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 expected average remaining service lives of all Amounts are amortized over the 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 2025 $ (62,363) 2026 (62,363) 2027 (58,395) 2028 (61,493) 2029 (90,149) Thereafter ( 290,245) Total $ ( 625,008) NOTE 13 CONTINGENCIES The City is involved as a defendant in various legal proceedings. While it is not feasible to predict or determine the outcome in these cases, it is the opinion of the City that the outcome of the majority of these cases will have no material adverse effect on the financial 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 Prior to the end of the fiscal year, the City awarded several consulting and capital project contracts. At June 30, 2024, the unspent balance of the significant contracts is as follows: 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) 38,705 - (38,705) Transfer In - T ransfers Out (200,000) (3,625,099)(3,644,217) 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 year. (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% Cit y'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 City's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll 84.70% 90.17% 118.52% 135.15% 125.61% Plan's Proportionate Share of the Fiduciary Net Position as a Percenta ge of the Total Pension Liability 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 Cit y's 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% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 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 (a.k.a. Golden Handshakes). 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, demo graphic assumptions and inflation were changed in accordance to CalPERS 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 Actuarially Determined Contribution: Miscellaneous Tier 1 Plan $ 496,258 $ 342,524 $ 322,907 $ 260,533 $ 777,461 Miscellaneous Tier 2 Plan 52,805 81,27258,843 88,913 82,534 Miscellaneous PEPRA 27,511 52,055 73,523 122,796 82,944 Total Actuarially Determined Contribution 576,574 453,422 477,702 472,242 942,939 Contribution in Relation to the Actuarially Determined Contribution 576,574 453,422 710,160 768,939 920,585 Contribution Deficiency (Excess) $ - - $ (232,458) $ (296,697) $ 22,354 $ 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% 12.65% 14.99% Fiscal Year 2019-20 2020-21 2021-22 2022-23 2023-24 Actuarially Determined Contribution: Miscellaneous Tier 1 Plan $ 862,885 $ 790,976 $ 1,025,893 $ 1,067,671 $ 628,010 Miscellaneous Tier 2 Plan 118,559 119,672 88,169 119,663 118,743 Miscellaneous PEPRA 116,294 210,519 199,567 241,197 331,396 Total Actuarially Determined Contribution 1,097,738 1,121,167 1,313,629 1,428,531 1,078,149 Contribution in Relation to the Actuarially Determined Contribution 1,035,270 1,120,667 1,275,264 6,181,424 1,078,149 Contribution Deficiency (Excess) $ 62,468 $ 500 $ 38,365 $ (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. Mortalit y Based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS 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 Total OPEB Liability: Service Cost $ 164,308 $ 159,580 $ 177,199 $ 238,974 $ 249,137 Interest 52,069 60,500 64,566 59,282 63,322 Changes of Assumptions (62,212) 90,002 423,242 22,375 (605,217) Differences Between Expected and Actual Experience - - 172,569 - (599,226) Benefit Payments, Including Refunds of Employee Contributions (36,705) (44,487) (48,040) (75,178) (88,151) Net Change in Total OPEB Liability 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 $ 2,481,094 $ 2,726,547 $ 1,746,412 Plan Fiduciary Net Position as a Percentage of the Total OPEB Liabilit y 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 of Covered Employee Payroll 24.06% 27.55% 38.81% 42.10% 24.60% Measurement Period June 30, 2023 June 30, 2024 y: Total OPEB Liabilit Service Cost $ 139,830 $ 140,189 Interest 65,606 71,671 Chan ges of Assumptions (29,346) (77,706) Differences Between 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 $ 1,924,375 Plan Fiduciary Net Position as a Percentage of the Total OPEB Liabilit y 0.00% 0.00% Covered Employee Payroll $ 7,430,446 $ 7,845,576 Plan Net OPEB Liability as a Percentage of Covered Employee Payroll 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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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: s9 9 - - - Account Taxes 444,408 - - - 13,908 881 628 Interest 20,038 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 $ 2,907,390 $ 165,428 $ 102,345 Resources, and Fund Balances $ 3,759,702 (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 $ 508,923 $ 6,301,890 Cash and Investments $ - Receivables: Accounts - - 99 Taxes - - 444,408 Interest - 38,3772,922 Deposits - -- Due from Other Governments 36,984 17,111 716,031 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 etentions Payable - - 7,261 R Total Liabilities 36,984 4,424 695,745 DEFERRED INFLOWS OF RESOURCES 388,312 Unavailable Revenues 2,482 - Total Deferred Inflows of Resources 2,482 - 388,312 FUND BALANCES Restricted for: Public Safety - - 89,845 524,532 524,532 Community Development - Public Works - - 5,804,853 Unassigned (Deficit) (2,482) - (2,482) Total Fund Balances (2,482) 524,532 6,416,748 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 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 Use 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 89,037 Community Development 89,037 - nd Recreation - 80,861 80,861 Parks a 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) (5,245,297) Transfers Out (274,740) - otal Other Financing Sources (Uses) (274,740) - (5,245,297) T 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 Use of Money and Property 50 50 4,110 4,060 Total 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 d Balances (Deficit) - Beginning of Year (2,482) (2,482) (2,482) - Fun 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 (38,705) - 38,705 Transfers Out - 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 Final 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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STATISTICAL SECTION (UNAUDITED) (95)

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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 required 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 Demographic and Economic Information – These schedules offer demographic and economic indicators to help the reader understand the environment within which the 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 20152016201720182019 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 67,4 49,901 50,029,493 Total governmental activities net position $ 631,430,763 $ 642,900,170 $ 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 20202021202220232024 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 84,2 85 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 43,8 26,907 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 governmental 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 Public safety 266,612 297,386 334,475 353,257 456,443 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 government 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 (44,998,838) Net (expenses)/revenues (47,121,786) (47,566,600) (45,360,360) (41,197,478) 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 Restricted 941,924 1,238,087 964,646 1,465,968 4,834,624 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 1,372,862 618,870 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 20,474,312 14,406,858 23,223,090 10,752,057 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 Payable - - - - - Total other financing sources (uses) - - - (21,430) (25,887) Net change in fund balances (3,620,379) 8,654,492 (7,088,282) 2,218,832 (13,165,268) Debt service as a percentage of noncapital - - - - - 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 5,587,512 8,347,853 10,690,432 5,069,588 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 1 Total Other Taxes Year Actual % Change Actual % Change Actual % Change Actual % Change Actual % 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 -44.4% 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% 1 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 84,698,416 144,285,367 013,270,794,965 .13463% 2016 12,908,323,391 748,131,051 133,378,348 92,189,497 136,727,885 014,018,750,172 .13463% 2017 13,476,324,468 810,527,445 106,755,978 89,220,631 143,473,801 014,626,302,323 .13463% 2018 14,170,189,583 828,023,757 130,240,687 80,636,282 153,767,064 015,362,857,373 .13463% 2019 14,772,757,911 848,077,767 111,794,126 108,077,098 149,085,955 015,989,792,857 .13463% 2020 15,400,702,974 871,787,891 115,436,254 335,849,810 209,118,079 016,932,895,008 .13463% 2021 16,007,464,645 897,926,358 125,099,940 351,139,057 172,712,600 017,554,342,600 .13463% 2022 16,460,566,082 903,240,811 122,824,193 373,231,982 163,547,376 018,023,410,444 .13463% 2023 17,395,760,387 929,649,358 113,043,157 376,558,228 170,068,561 018,985,079,691 .13463% 2024 18,445,311,904 960,659,628 142,275,923 351,788,867 182,835,131 020,082,871,453 .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 beingtaxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximumof 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% 0.00665% 2017 1.00000% 0.00843% 0.01371% 0.09377% 0.02688% 0.00207% 2018 1.00000% 0.00800% 0.01287% 0.05179% 0.02365% 0.00000% 2019 1.00000% 0.00786% 0.01285% 0.06644% 0.02392% 0.00000% 2020 1.00000% 0.00745% 0.01266% 0.03072% 0.02295% 0.00000% 2021 1.00000% 0.00756% 0.01012% 0.00000% 0.02336% 0.00000% 2022 1.00000% 0.00727% 0.01018% 0.00000% 0.02200% 0.00000% 2023 1.00000% 0.00691% 0.00971% 0.00000% 0.02227% 0.00000% 2024 1.00000% 0.00633% 0.00883% 0.00000% 0.02037% 0.00000% (Continued) 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 taxrate 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 (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% 0.09997% 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: 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 taxrate 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 SPE LLC $ 2166,347,400 23,954 1 0.84% BRE-FMCA LLC 126,878,044 170,816 2 0.64% 75,194,038 101,234 2 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 7 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 6 0.31% Ocean Ranch II 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 Realty LP (Pending appeals) 38,002,191 51,162 10 0.29% Total $ 1,1889,971,302 4.98,168 50% $ 660,490,261,269 $ 3.71039 % 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% Notes: Tax ledgers do not identify the taxyear 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 a Capita b 2015 0- .00000% - 2016 353,262 0.00252% 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. a 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. b 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% 1,63 4,112 Laguna Beach Unified School District 9,940,000 0.022% 2 ,187 Saddleback Valley Unified School District 74,370,000 0.050% 37,185 City of Laguna Niguel - 100.000% - 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% $ 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% 3,32 3,228 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 -2 $ 37,417,748 (1) 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 district'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 & Analytics 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 $ 52497,655 $ 5465,703 $ 57,443 $ 5973,609 $ 63,132 $ 654,984 $ 68,288 $ 7175,878 $ 7531,940 $ ,108 Debt applicable to limit - - - - - - - - - - Legal debt margin 497,655 525,703 546 ,443 573,609 597 ,132 634,984 65 8,288 675,878 658,288 753 ,108 Total debt applicable to the limit as a percentage of debt limit - - - - - - - - - - Note: Thegeneral 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 FY1981-82, 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 limit. (114)

CITY OF LAGUNA NIGUEL DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS (UNAUDITED) Personal Per Taxable Median Fiscal Income Capita Sales Registered Housing Home Unemployment Year Population d (in thousands) d Income d Per Capita a Voters c Units e Value b Rate 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 a Taxable sales is based upon sales tax revenue reported by the City on the modified accrual basis of accounting. b Median home value includes both single family and condo/townhouse units. Data obtained from HDL. c Data obtained from OC Registrar of Voters. d Data obtained from Hdl, Coren & Cone. e 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) 2024 2015 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% United States Government - Chet Holifield Federal Building * 500 2 1.47% Capistrano Unified School District 356 3 1.05% 367 2 1.05% Whole Foods Market 244 4 0.72% 238 6 0.68% Wal-Mart Stores, Inc. 240 5 0.71% 305 4 0.87% Mercedes-Benz of Laguna Niguel 216 6 0.64% 230 7 0.66% The Home Depot 170 7 0.50% 185 8 0.53% Albertsons, Inc. (2 locations) 155 8 0.46% 170 9 0.49% Vons 143 9 0.42% Confluent Medical Technologies (previously Interface Associates, Inc.) 133 10 0.39% Life Time Fitness 330 3 0.94% YMCA 297 5 0.85% Moulton Niguel Water District 120 10 0.34% Total 2,776 8.16% 2,806 8.02% Note Source:AvenuInsights&Analytics,FY2015,CityofLagunaNiguelͲͲACFRPublicatio (1)TotalCityLaborForceprovidedbyEDDLaborForceData. Notes: Resultsbasedondirectcorrespondencewithcity'slocalbusinesses. *ChetHolifieldFederalBuildingwillbeclosedby3/31/2025.TheZigguratBuildinghasbeensold. (116)

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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 1.0 0.5 0.5 0.5 0.5 City Manager 4.0 4.5 6.2 4.2 6.1 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 2.0 1.5 Emergency Preparedness 1.0 1.0 1.0 1.0 1.0 Community Development Administration 4.0 2.8 4.0 4.0 4.1 Planning 8.2 9.8 8.0 9.0 9.0 Building and Safety 1.0 1.0 1.0 1.0 1.0 - - - - Code Compliance - Public Works Administration 2.0 3.0 3.3 2.3 3.6 Engineering / Water Quality 6.0 8.3 9.0 10.5 11.4 - - - - Street Maintenance - Median Maintenance 0.8 0.8 0.8 0.8 - Park Maintenance 3.0 2.0 3.0 4.0 5.2 Slope Maintenance 0.8 0.8 0.8 0.8 - Building and Facility Maintenance 1.5 1.5 1.5 1.5 1.5 Parks and Recreation Administration 2.5 4.0 4.0 3.5 4.0 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 - - - - - 11.9 15.0 13.0 13.2 Sea Country Senior & Community Center 14.0 Totals 84.8 93.1 96.0 97.5 97.3 Note: For part-time employees, full-time equivalent employment is calculated by dividingpart-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 followingservices: Police and Fire Services; Street Maintenance, includingStreet Sweeping; Park, Slope and Median Landscape Maintenance; Metrolink Station and Park BuildingMaintenance, 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 Year 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 6.4 6.0 6.0 6.0 6.0 Public Safety Police Services 1.0 1.0 1.0 1.0 - Emergency Preparedness 1.0 1.0 1.0 1.0 - Community Development Administration 3.2 3.2 4.1 3.3 3.9 Planning 5.1 5.0 5.0 7.0 7.0 - - - - Building and Safety - Code Compliance 2.0 2.2 2.8 2.5 2.3 Public Works Administration 5.0 10.6 13.4 11.5 11.5 - - - Engineering / Water Quality 6.6 - Street Maintenance 1.0 1.0 1.0 1.0 3.0 Median Maintenance - - - - - Park Maintenance 6.5 4.0 4.0 4.0 3.0 Slope Maintenance - - - - - Building and Facility Maintenance 1.5 3.0 3.1 3.4 4.3 Parks and Recreation Administration 3.7 3.5 2.6 2.2 2.1 Recreational Programs 13.2 9.5 11.1 12.7 11.8 Aquatics 9.1 7.2 7.6 7.2 4.2 Skateboard Park 4.7 3.3 4.6 4.6 1.6 Sports 4.3 3.9 4.3 3.9 4.0 4.6 7.6 9.5 6.4 Sea Country Senior & Community Center 12.5 Totals 93.4 76.7 87.6 89.4 80.3 Note: For part-time employees, full-time equivalent employment is calculated by dividingpart-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 followingservices: Police and Fire Services; Street Maintenance, includingStreet Sweeping; Park, Slope and Median Landscape Maintenance; Metrolink Station and Park BuildingMaintenance, and Building and Planning Inspection Services. Source: Finance Department (119)

CITY OF LAGUNA NIGUEL CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (UNAUDITED) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 Public Safety: Patrol motorcycles 3 3 4 4 4 4 5 5 5 5 PACT units 2 2 2 2 2 2 2 2 2 2 Public Works: Street miles 140 140 140 140 140 140 140 140 140 140 Traffic signals 78 78 78 78 78 78 78 78 78 78 Traffic signals - shared 2 2 2 2 2 2 2 2 2 2 Parks and Recreation: Acreage 135 135 135 135 135 135 135 135 135 135 City parks 29 29 29 29 29 29 29 29 29 29 Playgrounds 20 21 21 21 21 21 21 21 21 21 Swimming pool 1 1 1 1 1 1 1 1 1 1 Skateboard park 1 1 1 1 1 1 1 1 1 1 Baseball/softball diamonds 16 16 16 16 16 16 16 16 16 16 Soccer fields 16 16 16 16 16 16 16 16 16 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. 1 The City contracts with the Orange County Sheriff's 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 4,57,029 4,40 6998 6,778 6,52,906 4 Parking citations 2,449 2,975 3,405 3,747 2,23,099 2,03 3836 4,922 3,30,016 5 Community Development: Permits issued 3,406 3,755 4,139 3,735 3,14,106 3,05 3258 3,665 3,26,798 8 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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