Regular Meeting (Budget Report)

**Executive Summary**

**Overview**
The financial report for the Township of Kasson for the period of April through October 2024 presents a comprehensive review of the budget, covering both income and expenses across various departments. The total ordinary income reported is $131,373.90 against a budgeted $535,919.00, resulting in an unfavorable variance of $404,545.10, which represents about 24.5% of the expected revenue. This significant disparity indicates serious challenges in revenue generation.

**Income Analysis**
The income sources vary significantly in performance against their budget targets. Key highlights include a positive variance in “Current Personal Property Tax” at 173.4% and “Licenses & Permits” at 115.8%. However, substantial shortfalls are present in areas such as “Taxes,” which saw only 0.7% of the budget met, and “State Shared Revenue,” at 47.3%. The overall underperformance across the income accounts is a critical concern, leading to adverse implications on funding for township operations.

**Expense Overview**
Total expenses incurred reached $174,845.74 compared to a budget of $494,744.00, resulting in a favorable variance of $319,898.26 or 35.3%. Notable savings were observed in the Township Board and various administrative functions, which could alleviate some financial strain. However, the township continues to see negative net income at -$275,478.18, showing the importance of adjusting both revenue strategies and expense management practices moving forward.

**Conclusion and Recommendations**
The financial performance underlines the need for immediate attention to revenue enhancement strategies while maintaining strict control over expenses. It is recommended that the township explore alternative revenue sources, possibly reassess the efficacy of existing taxes, and improve budget adherence across departments. Continued monitoring and performance evaluation will be essential to develop a more sustainable financial path for the Township of Kasson.