Financial outlook remains strong

FORT RECOVERY — The school district’s finances continue to look positive.

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

Projections shared Monday by treasurer Deanna Knapke estimate the school district will finish fiscal year 2025 — it ends June 30 — with a budget surplus of more than $2.73 million, bringing its year-end cash balance before encumbrances to $14.7 million.  That’s up roughly $900,000 from projections made in May.

Fort Recovery Local Schools’ budget surpluses have become a trend for the school district and are expected to continue throughout the next five years. Surpluses are projected at $1.75 million, $1.1 million, $557,400 and $149,400 at the end of fiscal years 2026, 2027, 2028 and 2029, respectively.

Knapke pointed in the forecast to changes in inflation rates and the potential for a recession in coming years, with inflation expected to continue impacting school districts through fiscal year 2025.

Discussing revenue, she explained this year is the first time she has seen local funding account for more of Fort Recovery Local Schools’ revenue than state dollars. She pointed out real estate and income tax and other local contributions amount to 51% of the district’s annual revenue as opposed to state funding making up 49%.

“We are seeing an increase in our local funding due to our increases in property taxes, and also a large increase in income tax,” she explained, noting the 2023 tax year reappraisal in Mercer and Darke counties led to a 44% ($52.9 million) increase for residential and agricultural assessed values.

Fort Recovery Local Schools’ funding from property taxes has increased nearly $1 million from fiscal year 2023, she continued. It also received significantly more from income taxes, receiving $3.2 million last year, or a 12% increase from fiscal year 2023. Knapke also said the district received a 23% increase in July payments.

Also Monday, school board heard about a new Ohio School Report Card component for high schools to meet moving forward. 

High school principal Ryan Steinbrunner explained the state’s College, Career, Workforce and Military Readiness Component requires graduating students meet one of 11 requirements demonstrating they are prepared for postsecondary education, the workforce or the military. Steinbrunner noted 62 out of 66 students who graduated from Fort Recovery High School in 2023 met those requirements. 

In other business, school board members Mitch Fullenkamp, Sean Kahlig, Greg LeFevre, Nick Wehrkamp and Don Wendel:

•Learned sophomores Tyler Dues, Cameron Muhlenkamp and Carter Fortkamp were selected as finalists for the annual $1,000 Carson scholarship.

•Approved the following: hiring Casey Steinbrunner as a substitute, Heather Addington as a van driver and Troy Grieshop as a substitute bus driver; hiring Carrie Schoen as high school varsity softball coach, Lauren Day as high school varsity assistant softball coach, Ben Homan as high school varsity baseball assistant coach and Ben Will as high school reserve baseball coach; several additions and revisions to Fort Recovery Local School’s policies, specifically related to Ohio legislative changes, such as Ohio House Bill 250 setting rules on student cell phone usage in schools; transferring $1 million from the general fund to the permanent improvement fund for building repairs and maintenance and $100,000 from the general fund to the termination benefits fund for fiscal year 2025; a memorandum of agreement for Fifth Third Bank to serve as the district’s public depository from Jan. 1, 2025, to Dec. 31, 2029.

•Learned from elementary principal Laura Brandt that students raised $8,775.67 during the school’s Cents for Sawyer fundraiser recently, with the dollars going toward developing Sawyer Overman Ninja Park.

•Rescinded approval from April for Scott Dilworth to serve as a volunteer high school basketball coach and agreed to hire him as high school boys basketball varsity assistant coach.

•Accepted high school boys basketball varsity assistant coach Darien Sheffer’s resignation for the current school year.

•OK’d the following to serve as volunteer coaches: assistant softball coaches Valerie Stammen, Haley Knapke, Kasey Froning and Ryan Thien, and assistant reserve baseball coach Ethan Schoen.

•Gave permission to not evaluate full-time teacher Karen Klosterman during the current school year. Klosterman plans to retire from Fort Recovery Local Schools in May after working for the district for 27 years.

•Reappointed Jose Faller as Fort Recovery Local Schools’ representative on Fort Recovery Park Board for another five-year term from Jan. 1, 2025, through Dec. 31, 2029. 

•Agreed to hold 20 meetings next year and keep board members’ pay at $80 per meeting.

•Accepted several donations, including $1,600 from Fort Recovery Athletic Boosters.