Agenda 02-17-2026; 12-2 - Information Item - Memorandum - Financial Report - Second Quarter FY 2025-26

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3 for Article 40 (State per capita) based on the collections methodology. The table below indicates that County sales tax are consistent with budget assumptions to date. Note: Sales Tax has a three-month revenue lag from the NC Department of Revenue (NCDOR) with the first month of July collections received by local governments by October 15, 2025. The last month of sales tax for FY 2025-26 will be received by September 15, 2026. Three Months of Collections FY 2025-26 FY 2024-25 $ Change % Change Collections Basis Article 39 $ 4,731,529 $ 4,553,960 $177,569 3.9% Point of Sale Article 40 $ 3,184,212 $ 2,997,558 $186,654 6.2% State Per Capita Article 42 $ 2,369,503 $ 2,279,686 $ 89,817 3.9% Point of Sale • Charges for services are 42.86% of the budget as compared to 40.67% in the prior fiscal year. Emergency Medical Charges, which is the largest budgeted item for these cost recovery fees, has resulted in collections of $3.1 million or 55.5% of budget compared to the prior year collections of$2.5 million or 48.4% of budget. Charges for services category includes Register of Deeds Excise Stamps ($1 per $500 of value) paid on real estate transactions. In North Carolina, excise stamps are a state tax collected by the Register of Deeds when real estate is sold and a deed is recorded. This revenue stream is a good indicator of the local economy, increasing and decreasing with real estate sales activity. FY 2025-26 collections are $741,709 or 57.6% of budget as compared to the prior fiscal year collections of$623,821 or 48.5% of budget. • Intergovernmental revenue remains a key category given the legislative risk and Federal Bill HR 1 long-term implications over the next several fiscal years if there is no General Assembly intervention. As of December 31, 2025, Intergovernmental revenues are at $7.6 million or 33.2% of budget compared to $7 million or 33.3%the prior fiscal year. As noted previously, the percentage lag after six months is consistent with the historical reimbursement pattern, and not a financial concern. County staff are closely monitoring grant revenues including HOME revenue, Section 8 vouchers, Medicaid, SNAP and TANF. The County dashboard is regularly updated to track grant reimbursements' status and legislative impacts. Note: Finance has worked with Emergency Services to identify $128,920 in Tropical Storm Chantal expenses for submittal to FEMA for reimbursement. Additional updates will be provided. • Investment earnings to date are $862,610 or 47.9% of budget as compared to $952,322 or 30.1% of budget. The budget was reduced in this category reflecting interest rate decreases by the Federal Reserve. The County's investment policy emphasizes Safety, Liquidity and Yield in that priority order. The portfolio is within the North Carolina statutory permitted investments. The yield rate as of December 31, 2025, was 3.71%.compared to 4.34% on December 31, 2024. This decrease is commensurate with Federal Reserve Board actions. The portfolio composition is indicated below.