Regular Meeting (Budget Report)

**Executive Summary**

**Overview**
The Township of Kasson has provided a detailed budget report for the period of April to May 2024, highlighting significant variances in both income and expenses against the set budget. Overall, the budget analysis exhibits a net loss of $82,711.89 against a target of zero, indicating substantial overspending relative to revenues collected during this two-month period.

**Income Performance**
The total income for the reported timeframe amounted to $39,196.94, falling significantly short of the budgeted amount of $535,919.00, resulting in a variance of $496,722.06 or 7.3% of the budget. Key revenue sources such as taxes and state-shared revenues demonstrated particularly low collection rates, with taxes accounting for only 0.8% of the targeted budget. Other income streams, including licenses and permits, contributed minimally to the total income.

**Expense Assessment**
Total expenses reached $54,230.90 against a budget of $494,744.00, leading to an under-expenditure of $440,513.10, representing 11% of the budget. Major expenditures were recorded in various departments, with notable overspending in the fire and rescue operations, which incurred expenses of $81,805.97 against a budget of $408,175.00 (20% of budget). This level of spending has amplified the financial strain observed in the income section, ultimately resulting in a net loss for the period.

**Conclusion**
The budget report for April to May 2024 underscores significant challenges facing the Township of Kasson, particularly in generating revenue. The alarming discrepancies between expected and actual figures necessitate a thorough review and potential corrective measures to ensure financial sustainability moving forward. Strategic adjustments must be considered to enhance revenue generation and manage expenditure effectively in subsequent budget periods.