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4 Q4 F I N A N C I A L H I G H L I G H T S FY 2025 C A RY, N O RT H C A R O L I N A F Y 2 0 25 4 T H Q U A R T E R R E P O R T E X E C U T I V E S U M M A RY This financial snapshot provides a high-level overview of Cary's financial operations through the fourth quarter of fiscal year 2025, ending June 30, 2025. It includes comparative year-to-date revenue and expenditure data for both the General Fund and the Utility Fund, benchmarked against the same period last fiscal year. These results are unaudited and may differ from the final figures that will be published in the FY 2025 Annual Comprehensive Financial Report (ACFR), scheduled for release to Council in December. Please note that a complete revenue and expenditure picture will not be available until later in the summer, once all receipts and disbursements for the year have been finalized. B U D G E T S N A P S H O T One of the major milestones in Q4 was the adoption of the FY 2026 budget on June 26. The new $510.9 million budget allocates $420.3 million for operations and $90.7 million for capital projects, representing a modest 2.7% increase over the current FY 2025 budget. It keeps the property tax rate the lowest of all municipalities in Wake County by limiting the increase to 1.5 cents, increasing the property tax rate from $0.325 to $0.34 per $100 of property value. The solid waste fee increases by $3 to $26 per month to recover the full, actual cost of the service. The adopted budget also increases water/sewer rates by 4% to support ongoing infrastructure needs and service delivery. As a part of the budget process, the Cary Council comprehensively reviewed 391 existing general capital projects in response to two key financial pressures: rising operating/construction costs and flattening revenue. This review reflected the challenging balance between maintaining important initiatives and ensuring long-term financial sustainability. The review resulted in categorizing the 391 general capital projects as follows: ■ 198 projects were determined to be complete with no work outstanding. ■ 125 projects were under construction and continue moving forward. ■ 68 projects were paused and placed in a "Reassess" category. "Reassess" projects are worthy initiatives that can no longer be completed within the project's available funding because of rapidly escalating costs. These 68 projects will have the remaining funding removed effective the end of FY 2025 as part of the year-end closeout process. The project information and work thus far on the 68 projects will be retained for potential future reassessment as changing conditions warrant. A DA P T I N G T O E C O N O M I C C H A N G E S Cary continues to navigate a shifting economic landscape characterized by slower growth, flattening revenues, and rising costs. The net results reflected in this report demonstrate the organization's ongoing commitment to managing financial pressures with care and responsibility.

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