Regular Meeting – RESCHEDULED (Budget Report)

The financial performance of the Township of Kasson from April through December 2023 reveals a significant variance between budgeted and actual figures across various income and expense categories. The total income for the period was $177,447.43, which is only 33.2% of the budgeted $534,870.00, resulting in a shortfall of $357,422.57. Key revenue streams such as taxes, state shared revenue, and landfill waste fees fell short of expectations, with taxes at 22.1% of budget and state shared revenue at 64.9%. Conversely, certain revenue accounts like cemetery revenue and interest on investments exceeded their budgeted amounts, with cemetery revenue at 660% and interest on investments at 210.8% of budget. On the expense side, the total expenses amounted to $212,826.07, which is 39.8% of the budgeted $534,870.00, indicating a significant underspend of $322,043.93. Major expense categories such as the Township Board and Township Hall were well below budget, with the Township Board at 7.9% and Township Hall at 76.7% of their respective budgets.

The Township’s other income and expenses, specifically related to fire revenue and fire & rescue operations, also showed notable variances. Fire revenue was at $72,154.41, which is only 21.1% of the budgeted $342,500.00, leading to a shortfall of $270,345.59. Fire & rescue expenses were at $294,837.67, representing 86.1% of the budgeted $342,500.00, with a minor underspend of $47,662.33. Within the fire & rescue category, operating expenses and capital outlay were almost fully utilized, at 100% of their respective budgets. The net other income resulted in a deficit of $222,683.26, contributing to the overall net income deficit of $258,061.90 for the period.

Overall, the Township of Kasson experienced a significant net income deficit of $258,061.90 for the nine months ending December 2023. This deficit is primarily driven by the shortfall in revenue, particularly in taxes and state shared revenue, coupled with lower than expected expenses across various categories. The Township’s financial management will need to address these variances in the coming months to align actual performance closer to the budgeted figures and mitigate the current deficit.