CITY OF LAGUNA NIGUEL MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2024 FINANCIAL PERFORMANCE (Continued) Government-Wide Financial Analysis (Continued) The City’s total revenues were $65.7 million in fiscal year 2023-2024, while the total cost of all programs was $60.8 million. Total revenues increased by $2.4 million, or 3.8%, from prior year levels and total expenses increased by $3.5 million. The current fiscal year program revenue decreased by $0.3 million from the prior year, primarily due to a decrease in capital grants, and general revenue increased $2.7 million from the prior year, and can be primarily attributed to an increase in property tax revenue based on the continued strength of the housing market, along with gains on City investments. The cost of all governmental activities this year was $60.8 million. However, as shown in the Statement of Activities, the amount that Laguna Niguel taxpayers ultimately financed for these activities through City taxes was $46.0 million as portions of those expenses were paid by those who directly benefited from the programs ($6.2 million) or by other governments and organizations that subsidized certain programs with contributions and grants ($9.6 million). The following chart graphically depicts the amount of general revenue used in relation to program revenue in funding governmental activities. Approximately 70.0% of all revenues this past year came from some form of tax, which is slightly lower than the 71.1% taxes represented of total revenues in fiscal year 2022-2023. Property tax revenue, the City’s largest revenue source, accounted for 43.2% of total City revenue, compared to 42.8% last year. Sales tax revenue was the second largest revenue source at 21.6% of total revenues, down from 23.4% last year. While the tax revenues continued to increase ($1.0 million), the investment earnings and other revenues increased $1.7 million representing 5.8% of total revenues, up from 3.3% in the prior year. The following chart graphically depicts the City’s governmental revenue sources. (10)