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)