Three Rivers Local hears FY2026 forecast; treasurer warns of $1M public-utility revenue loss under new law
Summary
At the Oct. 14 board meeting the district presented an initial FY2026 budget and three-year forecast and warned that House Bill 15 and related changes could remove roughly $1 million in public-utility tax revenue beginning in 2029; board discussed negotiation options and monitoring state legislation.
The Three Rivers Local School District board reviewed an initial fiscal year 2026 budget and three-year forecast during its Oct. 14 meeting, where treasurer’s staff warned of a projected decline in public-utility tax revenue tied to recent state legislation and plant conversions.
Why it matters: The forecast projects that House Bill 15’s change to public-utility taxation and a planned tax exemption for a new or converted plant could reduce public-utility revenue by about $1 million starting in 2029, potentially creating a multi-year funding gap that the district must address through negotiations, county/township coordination or program adjustments.
Treasurer’s staff explained the assumptions behind the forecast and urged the board to prepare contingencies. The presentation noted the district’s revenue mix is roughly 47 percent local property tax, 30 percent state funding and 23 percent other local revenues (for example, TIF receipts). Staff said revenue growth is expected to be lower than the recent five-year average and that lobbying and negotiation may be required to stabilize revenue tied to a large local taxpayer.
On the public-utility issue, staff identified two courses of action discussed with legal counsel: seek a negotiated payment arrangement (for example, a multi-year prepayment or payment-in-lieu agreement) with the plant operator and coordinate with Miami Township and other local governments on a shared approach. The treasurer’s office said the district could also seek state assistance or legislative relief; staff said similar situations will affect other Ohio districts but that the conversion and exemption timeline is unique and likely to start in 2029.
Board members discussed the district’s enrollment trend — the treasurer’s report showed current enrollment near 1,878 students, down from 2,095 four years earlier — and the effect that declining enrollment has on the forecast and staffing needs. Trustees and staff agreed to pursue three workstreams: (1) refine revenue forecasts once updated state valuations are available; (2) explore negotiated payment options with the plant and township; and (3) identify near-term operations changes to reduce spending in response to lower enrollment.
Money in motion: staff reported the first TIF payment for the fiscal year arrived this fall (about $2.04 million), and the district received a one-time state bonus tied to its report-card performance (presenter cited roughly $105,000). The treasurer’s office said timing of several receipts makes monthly snapshots volatile and that detailed reconciliation will continue.
Motions and votes: The board approved the treasurer’s monthly report and the forecast items as presented and later accepted donation items (see “Votes at a glance”).
Ending: District staff said they will return with updated forecasts after final state valuations and as legislation advances; trustees directed staff to engage legal counsel and to meet with Miami Township and their state representatives to explore mitigation options.
