Regular Meeting (Budget Report)

The financial performance of Township of Kasson from April through November 2024 reflects a net loss of $255,651.57 against a budgeted net income of $0.00. Total income for the period was $165,937.27, which is significantly lower than the budgeted amount of $535,919.00, resulting in a shortfall of $369,981.73. This represents only 31% of the budgeted income. Key revenue streams such as taxes, state shared revenue, and transfers from previous years have underperformed, with taxes at 0.7% of the budgeted amount and state shared revenue at 65%. On the other hand, some revenue accounts like current personal property taxes and licenses & permits have exceeded expectations, achieving 173.4% and 141.2% of their respective budgets.

Expenses during the same period totaled $189,553.74, which is 38.3% of the budgeted $494,744.00, indicating a significant underspend of $305,190.26. Notable variances include the Township Board, which spent only 25.5% of its budget, and the Fire & Rescue department, which utilized 60.2% of its allocated funds. Specific expense categories such as legal services and professional development across various departments were underutilized, with many showing 0% expenditure against their budgets. However, certain areas like the Township Hall maintenance and Zoning legal fees exceeded their budgeted amounts, at 289.4% and 47.9% respectively.

The Other Income and Expense section shows a significant net loss of $232,035.10, primarily driven by the Fire & Rescue department’s expenses, which amounted to $245,874.44 against a budget of $408,175.00. The Fire Millage revenue was notably low at -0.1% of the budgeted $367,000.00, contributing to the overall negative financial position. The township’s financial health is further strained by the underperformance of key revenue streams and the high expenditure in critical areas like Fire & Rescue, necessitating a review of budget allocations and potential adjustments to ensure fiscal sustainability.