Village income tax levy moves forward

Fort Recovery residents will have a chance to learn more about the proposed income tax levy next week.

Fort Recovery Village Council agreed Monday to host a public forum at 7 p.m. Tuesday to discuss raising the village’s income tax from 1% to 1.5%, a decision that would require referendum approval. Council also approved on a second reading declaring intent to proceed with the levy and directed fiscal officer Roberta Staugler to file a certified copy of the intent with the board of elections for placing the income tax levy on the ballot in November. (The decision will be voted into effect on its third reading July 21.)

The village's four real estate tax levies, totaling a 9.8 mills — in Ohio, property taxes are charged as millage, with one mill equal to one-tenth of a cent — and generating about $300,000 annually.

By creating an income tax levy, the village would begin collecting a 1.5% income tax, up 0.5 percentage points from the current rate. 

Diller has said that alone would generate between $200,000 and $400,000 more than the real estate tax levies.

If the income tax levy is approved, the village would decide not to collect on its real estate tax levies in the coming years. A Fort Recovery property owner would save an average of 14% each year on their total real estate tax bill without the levies, according to Diller.

On Monday, Diller talked about various projects the village will need to pay for in the future, including replacing a pump station on Wayne Street as well as water and wastewater facility upgrades, converting street lights, replacing outdated fire hydrants and various street projects. He proposed utilizing the additional funding for such projects or seeking input to see where community members would like to see tax dollars spent. 

Mayor Dave Kaup noted a recent conversation with local residents questioning why the village doesn’t bump the income tax rate to 2%, with Kaup pointing out it would be a “pretty big jump” to double the rate.

Diller said most of the communities Fort Recovery residents work in collect a 1.5% income tax.

“So if we go above that, they’re going to pay that 1.5% to there, and they’ve got to pay some back to us, whatever we go above it,” he said. “It’s a little more complicated.”

He asked council members if they’ve had discussions with residents about the levy. They responded that they haven’t heard much of a negative response from their constituents. Council member Luke Knapke noted one constituent pointed to the savings folks would make on their property tax bills.

Council then set the date for its public forum and approved legislation on a second reading.

Also Monday, village council approved its budget for 2026.

Next year’s budget shows plans for $2.8 million in expenditures and $1.43 million in revenue for the general fund. Fiscal officer Roberta Staugler pointed to 3% raises across the board, a new fiscal position and her and Diller’s retirement planned into the budget.

Diller highlighted a few permanent improvements to be made next year, the largest of which include the village’s match of $182,000 for the multi-use trail project to be constructed in summer 2026. The project, which is 90% funded through Ohio Department of Transportation’s Systemic Safety Funding grant, involves constructing a trail for pedestrians and biking traffic along Ohio 49, Sharpsburg Road and Flaler Road.

Diller noted the budget doesn’t factor in multi-million dollar estimates for improvements to water and wastewater treatment facilities or replacing the pump station on Wayne Street.

In other business, village council members Al Post, Luke Knapke, Scott Pearson and Greg Schmitz, absent Cliff Wendel and Erik Fiely:

•Learned Fort Recovery’s National Night Out is slated for 5 to 8 p.m. July 20 at Ambassador Pool.

•Heard about plans to replace the speaker system downtown along the brick portion of Wayne Street. Diller noted Fort Recovery Community Foundation granted dollars to Fort Recovery Merchants Association for the project.

•Were informed village representatives will attend Fort Recovery School Board’s meeting July 21 to discuss establishing a Community Reinvestment Area across the entire village.

•Learned Diller would like to hire local resident Kelly Jutte as a consultant for the village, with Jutte to be paid on an hourly basis via contract. He pointed to Jutte’s expertise in the water and wastewater treatment fields and shared hopes for her help amid planning efforts with the town’s utilities moving forward.

•Approved a $153,497.28 bill from Caldwell Tanks for work completed on the second water tower in the village and a $47,795.16 pay request from Tom’s Construction for work completed along Butler Street.

•Heard the new water tower failed its second bacteria test, requiring the village to drain and disinfect the tank again. Once the tower passes retesting, it will be ready to be put into service, with Diller estimating it should be complete by the end of the month.

•Learned about plans to convert one tennis court into two permanent pickleball courts at Community Park.

•Were reminded Schmitz, Fiely, Wendel and Knapke’s terms end in December. Diller noted council members hoping to be re-elected need to file petitions with the county prior to Aug. 6.