Issue link: https://townofcary.uberflip.com/i/1538586
7 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 O P E R AT I N G R E V E N U E S General Fund revenues increased 8% year over year in Q4, driven primarily by the property tax rate increase adopted as part of the FY 2025 budget. The property tax rate of $0.325 per $100 of property valuation is the primary factor behind this growth. Property tax continues to be the General Fund's largest revenue source, accounting for 60% of the FY 2025 operating budget. Collections increased by 36% compared with Q4 of the previous year due to the adopted tax rate change. This revenue is derived from an ad valorem tax levied on both real and personal property, including land, buildings, vehicles, and business equipment. Real property tax bills were issued in July 2024 and were due by Jan. 6, 2025. As of the end of Q4, Cary has realized 100% of the budgeted property tax revenue. Sales tax revenue, reported under Other Taxes and Licenses, is the second-largest General Fund revenue source and composes nearly 21% of the total budget. As previously noted, Cary experienced a notable slowdown in sales tax growth this year. Revenue remained essentially flat compared with Q4 of last year. It is important to note that municipalities receive final sales tax distributions approximately two and a half months after the fiscal year ends. Due to this delay, final sales tax revenues are reported in the ACFR, scheduled for release in December. Nonoperating revenue includes one-time items such as transfers from capital or debt proceeds. This year's significant decrease of 89% in nonoperating revenue relates to the timing of various activities, including the reconciliation and closure of capital projects, as well as the subsequent and related fund transfers. In FY 2024, several fund transfers occurred prior to publishing the Q4 report. For FY 2025, these fund transfers did not occur prior to publishing the Q4 report and are anticipated as part of the year-end closeout process, which will be reflected in the ACFR.