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8 Q2 F I N A N C I A L H I G H L I G H T S FY 2026 C A RY, N O RT H C A R O L I N A F Y 2 0 26 2 N D Q U A R T E R R E P O R T S A L E S TA X R E V E N U E Sales tax revenue is included in the Other Taxes and Licenses category and is the second-largest revenue source, representing 21% of total budgeted revenue. When combined with property tax revenue, these two sources account for 82% of the General Fund's total revenue. The first sales tax payment for the fiscal year was received in October, and year-to-date collections are approximately 6% higher than in the same period last year. For FY 2026, Cary projected a modest 1% growth in sales tax revenue compared with FY 2025. This estimate was based on historical growth patterns, recent trends, and guidance from organizations like the North Carolina League of Municipalities. Recent fluctuations in sales tax performance have made it challenging to predict year-end results with certainty. However, if current collection trends continue, Cary may exceed the budgeted sales tax estimate. S O L I D WAS T E R E V E N U E Solid waste revenue in the Sales and Services category increased by 12% primarily due to the adjustment in the solid waste fee, which rose from $23 to $26 this fiscal year. This change was implemented to better align revenues with the actual cost of providing solid waste services. At the revised rate, the solid waste program is expected to achieve full cost recovery, ensuring that service costs are covered by user fees rather than subsidized by other General Fund revenues. S A L E S TA X U P DAT E 4.0 4.5 5.0 5.5 6.0 JUL AUG SEPT OCT DEC NOV JAN FEB MAR APR MAY JUNE Dollars (Millions) 2 0 24 – 2 0 2 5 2 0 2 5 – 2 0 26

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