Lake Central closes fiscal year with higher cash balance; board approves food service rates and Coop contracts

Lake Central’s director of business services reported on July 14 that the district closed fiscal year 2025 with higher-than-expected cash balances, approved food-service rates unchanged for 2025–26 and reauthorized cooperative purchasing contracts for grocery, milk and bread items.

“Based on this year's calculation, we do not need to increase our prices for breakfast or lunch,” Director of Business Services Mr. James told the board, seeking approval for meal rates that remain the same as the prior year.

James said the education fund began the fiscal year (July 2024) with just over $10 million and closed with about $12.5 million — roughly $2.3 million higher. When combined with the district’s operations and referendum funds, the district’s combined cash balance rose from about $38 million to just under $44 million over the fiscal year.

The business office noted the district’s education-to-operations transfer rate is about 5.9 percent, well below the 15 percent cap cited by the state department of education, and said the current cash balance sits above 30 percent. James said some peers report that ratings agencies such as S&P are looking for districts to hold closer to 30 percent cash balances when they seek bond ratings; he said the district is “watching” any future debt decisions and does not plan a general-obligation bond this year but may consider one next year.

The board voted to approve staying with the Food to School purchasing cooperative contracts for grocery items (HPS, GFS, Commercial Food Systems), milk (Pleasantview Dairy) and bread (Alpha Bakery) for the 2025–26 year. The cooperative’s contracts were originally procured in 2021 and extended; the district must locally approve continuation because it pays vendors directly.

On staffing, James told the board the district filled most positions and made staffing adjustments tied to declining enrollment; those changes are projected to save about $1,300,000. He said some positions were moved rather than eliminated and that reductions reflect enrollment-driven decisions. Board members asked follow-up questions about paraprofessional counts and specific positions; James said he would check the detailed staffing sheet.

No new price increases for student meals were approved; the motion to adopt the same rates as last year passed by voice vote. The food-service contract renewals were also approved by motion.

Board discussion included caution about maintaining cash balances for possible future debt service and continued monitoring of average daily membership (ADM) and staffing needs ahead of the fall enrollment numbers. James said the district will continue to watch enrollment trends and staffing levels as the year opens and will present data as it becomes available.