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2 <br /> Economic Data from NC State University and UNC-Charlotte: <br /> The NC State University full April 2025 report can be accessed here NCSU Index April 2025 <br /> [Dr. Walden's April 2025 edition of the NCSU Index of North Carolina Leading Economic Indicators reports a 2.1% <br /> decline in March, following a modest increase in February. This downturn was primarily due to a significant drop <br /> in building permits and a continued decrease in the national leading index. However, there were positive signs, <br /> such as a reduction in initial unemployment claims and slight increases in manufacturing hours and earnings. Dr. <br /> Walden notes that ongoing tariff discussions are a key factor influencing the state's economic outlook, with <br /> potential negotiations possibly shifting the sentiment from "concern" to "optimism." ] <br /> The UNC-Charlotte University report can be accessed here Belk College Economic Forecast Q1 2025 <br /> [Dr. Connaughton's First Quarter 2025 North Carolina Economic Forecast was presented on March 4, 2025. He <br /> projects a 2.53% increase in the state's real GDP for 2025, with all 15 economic sectors expected to grow. The <br /> sectors with the strongest projected growth rates include agriculture (9.3%), information (5.9%), and retail trade <br /> (4.0%). However, he also highlights uncertainties, such as the potential return of inflation and the impact of <br /> recent fiscal policies. Dr. Connaughton estimates a 60% chance of inflation returning and a 30% chance of a <br /> recession in 2025.] <br /> General Fund <br /> General Fund revenues are 84.7% of budgeted revenues are the same percentage rate the prior fiscal year. This <br /> is further indication that the risk pertaining to the Intergovernmental revenue category has not been a <br /> detriment to the County's revenue base through March 31, 2025. Property taxes and interest income have been <br /> strong and provides an offset to slower sales tax growth. Sales Tax Medicaid Hold Harmless will have a major <br /> adjustment in mid-August and that revenue stream is expected to meet the budget unlike Article 39, 40 and 42 <br /> due to higher than anticipated sales tax refunds from the North Carolina Department of Revenue. <br /> • Property Tax collections include Real, Personal and Motor Vehicles. Real and personal taxes collections <br /> peaked at the end of December prior to the January assessment of penalties and interest and has met <br /> the budgeted revenues. Property tax revenues have met the budget projections for the fiscal year. The <br /> Tax Administration Office billing and collection rate will meet the 99.2% budgeted amount. Real and <br /> Personal tax revenues are $198.3 million. The remaining property taxes represent the last three <br /> months of motor vehicle tax revenues to meet the overall property tax budgeted amount of$201.9 <br /> million. The State remits motor vehicle tax revenues to the county monthly. Motor Vehicle billing <br /> versus collection are at 71.2%throughout the third quarter representing the monthly timing variance <br /> of the remaining revenue from the State. <br /> Tariffs Impact on Motor Vehicles <br /> This revenue stream has remained stable to date. The imposition of a tariff on imported vehicles and <br /> parts is expected to have a measurable impact on vehicle pricing and consumer purchasing behavior. <br /> Preliminary reports from automotive dealers across the state indicate an uptick in pre-tariff vehicle <br /> purchases, followed by growing consumer hesitation in response to rising vehicle prices. This revenue <br /> 2 <br />