Regular Meeting (Budget Report)

**Executive Summary**

This report provides a financial overview of the Township of Kasson’s budget performance from April to August 2024. The report uses an accrual basis and compares actual income and expenses against the allocated budget, identifying variances. The overall financial picture reveals a net loss, driven by exceeding the budget in several expense categories.

**Income and Gross Profit Analysis**

Total revenue for the period was $87,551.72, significantly underperforming the budgeted $535,919.00, resulting in a negative variance of $448,367.28, or 16.3% of the budget. A substantial portion of the income shortfall is attributed to lower-than-anticipated revenue from various sources, including deferred revenues, taxes, and state shared revenue. Gross profit mirrored the total income performance, reflecting the same negative variance and percentage of budget.

**Expense and Net Income Review**

Total expenses amounted to $111,256.81, exceeding the budgeted $494,744.00, creating a deficit of $383,487.19, which is 22.5% of the budget. The Township Board, Clerk, Treasurer, and Zoning categories contributed considerably to overspending in expenses. Overall, the net ordinary income reflected a loss of $23,705.09, significantly lower than the budgeted $41,175.00. The fire revenue generated a net other income of $13,839.34, less than the original budget of $367,000.00. Net income saw a loss of $173,508.65 against a $0.00 budget.