CITY OF LAGUNA NIGUEL MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2024 OVERVIEW OF FINANCIAL STATEMENTS (Continued) Supplementary Schedules Supplementary schedules provide budgetary information on the City Capital Projects Fund, as well as detail about the nonmajor governmental funds, which are added together and presented in single columns in the fund financial statements. Supplementary schedules can be found behind the tab section titled Supplementary Schedules. The following table summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. Major Features of the City’s Government-Wide and Fund Financial Statements Fund Financial Statements Government-Wide Financial Statements Governmental Funds Proprietary Funds Scope Entire City government The activities of the City that Activities the City operates are not proprietary similar to a private business Required financial x Statement of Net x Balance Sheet x Statement of Net Position statements Position x Statement of Revenues, x Statement of Revenues, x Statement of Expenditures and Expenses and Changes in Activities Changes in Fund Net Position Balances x Statement of Cash Flows Accounting basis Accrual accounting and Modified accrual accounting Accrual accounting and and measurement economic resources and current financial economic resources focus focus focus resources focus Type of asset/ All assets and liabilities, Only assets expected to be All assets and liabilities, both liability information both financial and used up and liabilities that financial and capital, deferred capital, deferred come due during the year or outflows and inflows of outflows and inflows of soon thereafter; no capital resources, and short-term and resources, and short- assets or long-term debt long-term debt term and long-term debt included Type of inflow/ All revenues and Revenues for which cash is All revenues and expenses outflow expenses during year, received during or soon after during the year, regardless of information regardless of when the end of the year; when cash is received or paid cash is received or paid expenditures when goods or services have been received and payment is due during the year or soon thereafter Financial Highlights x The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at June 30, 2024, by $629.5 million. The amount is referred to as the net position of the City. Of this amount, $44.7 million is unrestricted net position and may be used to meet the City’s ongoing obligations to citizens and creditors. x The City’s overall net position increased by $4.9 million in the current year. Total revenues increased by $2.4 million, or 3.8%, primarily due to increases in property taxes and investment gains. Expenses increased by $3.5 million, or 6.1% as compared to fiscal year 2022-2023 levels primarily due to an increase in spending on public works activities. x At the close of fiscal year 2023-2024, the City’s governmental funds reported combined ending fund balances of $61.6 million, an increase of $4.4 million compared to the prior year. Of the total $61.6 million fund balances at year-end, $50.6 nd million is available for spending at the government’s discretion (the sum of the committed, assigned, and unassigned fu balance categories reported on the accompanying financial statements). (7)