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