Regular meeting (Budget Report)

**Executive Summary**

**Budget Overview**
The budget report for the Township of Kasson from April 2023 to February 2024 indicates a significant discrepancy between planned expenses and actual income. The total income for this period is $278,200.46 against a budgeted amount of $534,870.00, resulting in a negative variance of $256,669.54, which is approximately 52% of the budget. Various income sources, such as taxes and grant funds, have shown mixed performance, particularly noting a 31.5% shortfall in state-shared revenue and a complete absence of deferred revenues and ARPA funds. On the other hand, some revenue areas, like Cemetery Revenue and Interest on Investments, have performed well beyond expectations.

**Expense Analysis**
The total expenses incurred during the same period amount to $242,309.13, which is considerably below the budgeted expenses of $534,870.00. This results in a variance of $292,560.87 or approximately 45.3% of the total budget. Various departments, including the Township Board and Clerk’s office, have under-spent significantly, while expenses such as legal services have come in well below budget predictions. The Township Board, for instance, spent only 8.6% of its allotted budget, showcasing potential areas for financial adjustments or budget reallocations.

**Net Income and Conclusion**
Despite the shortfall in revenue, the net income for the township stands at $51,325.53 due to lower expenditures. Furthermore, other income sources like fire revenue also showed a modest shortfall compared to their budgeted amounts. The overall financial strategy moving forward may need a thorough review to address the significant variances in income and optimize future budgeting efforts to enhance financial resilience. Continued monitoring will be crucial to ensure that revenue sources align more closely with expenditures moving forward.