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)