Regular Meeting (Budget Report)

**Executive Summary**

**Overview**
This report outlines the financial performance of the Township of Kasson for April 2025, detailing the profit and loss statement by comparing budgeted income and expenses against actual results. The analysis reveals significant deviations from the anticipated financial benchmarks, particularly in revenue generation and expense management.

**Income Analysis**
Total income for the reporting period reached $1,480.74 against a budgeted figure of $448,370.00, leading to a variance of $446,889.26, and resulting in a mere 0.3% utilization of the budgeted income. Notably, all primary revenue sources, including taxes and shared revenue, reported zero income, indicating a concerning shortfall that requires immediate attention and mitigation strategies.

**Expense Management**
Total expenses amounted to $20,628.83 with the budget set at $448,370.00, producing an under-expenditure of $427,741.17, which represents a utilization of only 4.6% of the intended budget. Despite this apparent under-spending, critical operational areas such as fire and rescue services have exceeded their budgets by substantial margins, highlighting potential risks in funding allocations and necessitating a comprehensive review to ensure long-term fiscal sustainability.

**Net Position**
The township reported a net loss of $123,165.42, without any offset from other income, illustrating the urgent need for a revised budget strategy and revenue improvement plan. Moving forward, the township must prioritize fiscal discipline and explore alternative revenue avenues to stabilize its financial position and support essential community services.