City of Laguna Niguel Popular Annual Financial Report | Year Ended June 30, 2024 GENERAL FUND RESERVES The City of Laguna Niguel’s Financial Reserves Policy requires maintaining a reserve for financial and economic uncertainty of at least 50% of General Fund operating expenditures. Based on the $53.3 million reserve balance on June 30, 2024, the City has 108.3% of General Fund operating expenditures in reserves, easily meeting the policy. Net changes to fund balance was $3.0 million, representing a 5.9% increase over the prior year total. The City has also designated portions of its fund balance for other categories, as identified below. Each of these categories are identified in the Financial Reserves Policy. The City Council reviews the Financial Reserves Policy annually. FISCAL YEAR DESCRIPTION OF RESERVES/FUND BALANCE 2023-24 NON-SPENDABLE - DEPOSITS AND PREPAID ITEMS $173,938 RESTRICTED FOR SECTION 115 PENSION TRUST $2,179,843 ASSIGNED FOR DEPARTMENTAL OPERATIONS $222,223 COMMITTED: FINANCIAL AND ECONOMIC UNCERTAINTY $26,289,809 108.3% COMPENSABLE ACCRUED UNUSED VACATION AND SICK LEAVE $148,916 OF GENERAL FUND OPERATING OTHER POST-EMPLOYMENT BENEFITS (OPEB) $1,154,625 EXPENDITURES IN RESERVES INFRASTRUCTURE REPLACEMENT AND DEFERRED MAINTENANCE $23,139,352 TOTALS $53,308,706 5-YEAR RESERVES TREND (IN MILLIONS) $53.3 $50.3 $48.5 $46.3 $41.7 Non-spendable - Deposits and Prepaid Items Assigned for Departmental Operations Restricted for Section 115 Pension Trust Compensable Accrued Unused Vacation and Sick Leave Financial and Economic Uncertainty Other Post-Employment Benefits (OPEB) Infrastructure Replacement and Deferred Maintenance General Reserves Totals cityoflagunaniguel.org 12