Surpluses expected to end

FORT RECOVERY — Budget surpluses are projected to end in coming years.

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

Fort Recovery Local Schools finished fiscal year 2025 on June 30 with a year-end cash balance before encumbrances of $8.141 million, about $446,000 more than May estimates.

The school district is projected to finish fiscal year 2026 with a budget surplus of $615,685, bringing its year-end cash balance before encumbrances to $8.757 million. That's down approximately $622,000 from projections in May.

Budget surpluses for the school district are currently projected to end in coming years, with the year-end cash balances before encumbrances decreasing accordingly. Estimates show fiscal year 2027 ending with an $8.198 million cash balance, 2028 ending with a $7.09 million cash balance, 2029 ending with a $5.62 million cash balance and 2030 ending with a $3.69 million cash balance.

“Overall, we still have a healthy cash balance throughout the forecast,” said Fort Recovery Local Schools treasurer Deanna Knapke.

She noted the state’s contribution to schools is expected to decrease, with local shares to increase in fiscal year 2027. Estimates are that state foundation funding, which currently accounts for about 50% of district revenue, will drop to about 44%. That amounts to about $300,000 less than the current year. (This year’s unrestricted state funding came in at $6.6 million, about a $100,000 decrease.)

Knapke also pointed to unknowns throughout the forecast, including income tax changes as well as the state biennium budgets beginning in 2028.

Fort Recovery Local Schools’ five-year financial forecast for the fall came a month earlier than usual this year. Fort Recovery Local Schools treasurer Deanna Knapke explained Ohio House Bill 96 changed requirements for school districts filing financial forecasts, which are required twice a year. One of those changes requires financial forecasts to be filed by Oct. 15 and the end of February. (They were previously required in May and November.) 

Also Monday, school board members informally voiced support for the village’s plans to establish a Community Reinvestment Area across the entire village.

Fort Recovery assistant village administrator Aaron Rengers attended the school board’s meeting in July to explain the tax incentive program for building new and remodeling existing structures.

Plans are to offer 10-year, 100% abatements for new homes, 15-year, 100% abatements for residential remodels and eight-year, 75% abatements for industrial projects.

He said the project wouldn’t decrease the money the school district is currently receiving in real estate taxes, saying it would be a deferral for future dollars. Hopes are to begin the Community Reinvestment Area in January.

School board member Greg LeFevre asked about the impact, with Rengers estimating there have been an average of three new houses built annually in recent years. Answering a question from school board member Sean Kahlig about whether companies have shown an interest in communities with a Community Reinvestment Area, Rengers said the goal is to promote residential growth.

School board members took no vote on the matter but said they would be in favor of the idea.

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

•Approved spending up to $15,000 on a feasibility study through architectural firm Garmann Miller of Minster, Ohio, for upgrades at Barrenbrugge Athletic Park. The project would be a collaboration with Fort Recovery Athletic Boosters.

•Authorized extending a contract with IGS Energy through Southwestern Ohio Educational Purchasing Council for one year, with the contract to terminate no later than December 2028.

•Approved the district’s gifted education plan for the current school year.

•Accepted the following as volunteer assistant coaches: Lucas Acheson, Corey Gerlach, Nate Bonifas and Jerry Vogel (all boys bowling); Ava Bubp and Teigen Fortkamp (swimming); and Shannon Osterfeld (diving).

•Approved various policy additions and amendments, including policies about attendance. Superintendent Tony Stahl noted changes are in line with requirements recently imposed by the state. He noted plans to address the cell phone policy at the November meeting.

•Accepted full-time custodian Kimberlie Jarrett’s resignation effective Oct. 8.