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)