Issue link: https://townofcary.uberflip.com/i/1543212
7 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 O P E R AT I N G R E V E N U E S P R O P E RT Y TA X R E V E N U E Property tax revenue accounts for 61% of total operating budgeted revenue and is the largest revenue source for the General Fund. Property taxes are based on an ad valorem tax levy applied to both real and personal property. Real property includes land and buildings, while personal property includes items such as vehicles and commercial business equipment. For FY 2026, Cary adopted a property tax rate of $0.34. Real property taxes were billed in July 2025 and were due by Jan. 5, 2026. As a result, most real property tax revenue is collected during the second quarter. In contrast, personal property tax revenue is collected throughout the year through North Carolina's Tax and Tag program, which combines vehicle ad valorem tax collection with the state's vehicle license renewal process. As of the end of the second quarter, property tax receipts were approximately 9% higher than in the same period last year and were in line with budget expectations. The FY 2026 property tax budget totals $179.3 million. With the second quarter ending less than one week before the tax due date, Cary had collected about 80% of budgeted property tax revenue, consistent with prior-year trends. By Jan. 16, Cary had collected 94% of the budgeted property tax revenue, further bolstering confidence in year-end projections. Cary remains on track to meet its property tax revenue budget by the end of the fiscal year. Although property tax collections in FY 2026 increased compared with FY 2025, natural growth in the property tax base remains modest. Overall, property tax remains a strong and stable source of funding for Cary. However, the long-term trend of slow tax base growth negatively affects this revenue source and creates a need for rate increases to support service levels. This is a common scenario in maturing communities like Cary. P R O P E RT Y TA X U P DAT E 0 10 20 30 40 50 60 70 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