Regular Meeting (Budget Report)

**Executive Summary**

**Revenue Overview**
For the period of April to September 2024, the Township of Kasson experienced significant discrepancies between budgeted and actual revenue, generating a total income of $122,916.66 against a budget of $535,919.00. This resulted in an under-budget position of approximately $413,002.34, equating to just 22.9% of the expected revenue. The key contributors included a substantial shortfall in tax revenues, particularly regarding state-shared revenues, which fell short by $95,307.87, and a complete absence of deferred revenues totaling $4,000.

**Expenditure Analysis**
Total expenses for the same period amounted to $135,408.59, against a budget forecast of $494,744.00, yielding an under-spend of approximately $359,335.41 or 27.4% of the planned expenditure. Several departments demonstrated significant savings relative to their budgets, although the Township Board incurred expenses totaling $37,662.06, representing only 14.4% of its anticipated costs. Conversely, notable overspending was seen in the Fire & Rescue operations, which amounted to $245,420.09 against a budget of $408,175.00, marking a variance of -60.1%.

**Overall Financial Position**
The net result for the township was a loss of $244,072.68, heavily influenced by the shortfalls in revenues and exceeding expenditures in select operational areas. The combined result indicates that the township’s financial health requires immediate attention to enhance revenue generation and control expenditures more effectively. For future budgeting cycles, it will be crucial to reassess revenue expectations and identify new opportunities to bridge the significant budget gaps revealed by this analysis.