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)