Finances continue to look strong

FORT RECOVERY — The school’s finances continue to trend in a positive direction.

Although inflation and building repairs impact the budget, it’s still looking healthy in the long-term.

Fort Recovery School Board heard its five-year financial forecast Monday.

The school district is projected to finish fiscal year 2024, which ends June 30, with a budget surplus of more than $1.48 million, bringing its year-end cash balance before encumbrances to just over $11 million. That’s an increase of $1.8 million from projections made in May.

Fort Recovery Local Schools’ budget surpluses are now expected to continue years into the future, with the forecast projecting the district’s income will outpace its spending in 2025, 2026, 2027 and 2028 by approximately $1.6 million, $1.1 million, $728,000 and $232,000, respectively.

High inflation continues to impact the state, country and globe, Deanna Knapke wrote in her five-year forecast document handed out at the meeting. Inflation as of August is at 3.4%, affecting prices for goods, fuel, building materials and other items. (She has built in rising costs to the budget, including for the purchase of textbooks in coming years.)

Additionally, Ohio has grown economically in the last three years, with the state’s current rainy day fund at $3.7 billion, a record high.

Inflation is expected to continue through 2024, although Knapke noted the United States Federal Reserve projects inflation to shrink to closer to 2% sometime next year.

During the meeting, Knapke walked school board members through each aspect of the district’s revenues and expenditures. 

Mercer County is expecting an increase in residential/agricultural values, which is estimated between 20% to 30%. (Knapke incorporated a 10% valuation increase into the budget. Real estate taxes make up approximately 18% of the school district’s revenue annually.)

Fort Recovery Local Schools is also seeing an increase in its state funding, jumping from $5.9 million to $6.7 million, or about $790,000 additional dollars, explained Knapke. The district will also receive another $185,000 on top of that amount.

Superintendent Tony Stahl and Knapke noted plans to save some funding for permanent improvement repairs at Fort Recovery Elementary/Middle School in the next few years. The building is approximately 23 years old with original doors, windows and other amenities installed when it was first constructed. Recent work on the building has included replacing the gym roof and the school’s chiller system.

In other business, school board members Anne Guggenbiller, Sean Kahlig, Jake Knapke, Nick Wehrkamp and Don Wendel:

•Recognized instructional aid Jill Ranly, who was awarded as an Ohio Middle Level Association Regional staff member recently at the group’s conference in Sandusky, Ohio. Ranly launched Fort Recovery Local Schools’ Beyond the Books program, which has offered free transportation for students to the library over the last two summers.

•Learned the elementary and middle school together raised more than $9,400 for the Sawyer Overman Ninja Park project.

•Heard student appreciation night will be hosted during the basketball game Friday, Dec. 15, at Fort Recovery High School.

•Approved a resolution authorizing Southwestern Ohio Educational Purchasing Council to seek bids for natural gas services. The school district’s current contract ends in June 2025.

•Approved contracts with several athletic department staff members, including Carrie Schoen as high school girls softball coach and Bob Heitkamp as junior high track coach.

•Accepted donations, including $500 from Midwest Electric Community for the cheerleading team. 

•Established the compensation for each board member in 2024 at $80 per meeting, with a maximum of 20 meetings per year.

•Accepted part-time cook Sheri Kerns’ resignation, effective Nov. 8.