A one-year contract with Olentangy Local School District’s teacher is expected to reduce the balance for the school’s budget over the next five years, according to a financial forecast.

The district’s Board of Education approved the forecast on the second reading that included adjustments of the contract with the Olentangy Teachers Association, which represents 1,268 teachers.

The new contract includes no increase for base pay,a return on experience credit for teachers employed during the fiscal year 2013 and a 2.25 percent stipend for teachers not employed at that time.

The fiscal year 2017 is unaffected by the new contract as an extension of the three-year agreement in 2013 expires June 30, 2017. From the fiscal years 2018 to 2021 the budget’s unencumbered ending balance will drop by an average of about $2.58 million dollars each year when comparing the first and second readings of the financial forecast.

The district is expected to have a unreserved fund balance at $19,589,964 for the fiscal year 2021.

Olentangy interim treasurer Emily Hatfield said the contract is a fiscally responsible way for the district to recognize its teachers’ efforts.

“It’s a win-win for our employees,” she said.

Preliminary enrollment projections show the pupil/teacher ratio to increase during the fiscal years from 2018 to 2021. Final enrollment projections will be available in November.

In other business, the board recognized the 39 students who performed well 2015 Preliminary SAT/National Merit Scholarship Qualifying Test including 14 students that have been named semifinalists for the 2017 National Merit Scholarship Program. These students are among 16,000 others that now have an opportunity to compete with for some 7,500 National Merit scholarships worth more than $33 million.

The board will meet in executive session for a special meeting at 5:30 p.m. Nov. 3.