Regular Meeting (Budget Report)

**Executive Summary**

**Overview of Financial Performance (April – July 2024)**
The financial report for the Township of Kasson covering the period from April to July 2024 reveals significant discrepancies between the budgeted amounts and actual figures. Total income reported during this timeframe is $86,896.59 against a budgeted amount of $535,919.00, resulting in a budget shortfall of $449,022.41. This represents only 16.2% of the budgeted income. Major contributing factors to the shortfall include significant underperformance in tax revenues and deferred revenues.

**Expense Analysis**
On the expense side, the Township has incurred a total of $93,519.86 against a budget of $494,744.00, which results in an overage of $401,224.14 or 18.9% of the budget. Key areas of expenditure include the Township Board and associated support, along with salaries and operational expenses across various departments. While some departments stayed within their budget allocations, others saw significant overruns, particularly in areas like Fire & Rescue, indicating a broader need for reassessment of budgeting practices.

**Net Income and Conclusion**
The net ordinary income for the reviewed period stands at a negative $6,623.27, while net income overall is reported at a loss of $156,109.37. These figures represent a stark contrast to budget expectations, emphasizing a potential financial strain on the Township’s resources. Recommendations for future budgeting cycles would include enhancing tax collection efficiency, revisiting revenue-projection methodologies, and strategic cost-cutting measures to manage expenditure more effectively.