Weare School Board approves new food-service prices as district weighs use of fund balance to cover shortfall

The Weare School District School Board on June 17 approved recommended food-service price changes proposed by its contractor, Fresh Picks, after staff told the board the meal program will not break even next year and will require a subsidy.

Board members heard that Fresh Picks projects the food-service operation will cost about $422,025 next year with a projected net loss of about $25,008 and that rising food and personnel costs — plus the end of short-term USDA pandemic-era grants — are the primary drivers of the shortfall. The board voted to accept the contractor’s recommended price change, which chiefly increases elementary breakfast prices, and to continue using the food-service fund balance to cover deficits for now.

The board’s business staff described the district’s options and the mechanics of subsidizing the program. Staff said Fresh Picks’ administration and management fees for next year total $22,128 (administration fee $16,596 and management fee $5,532) and that, under the contractor model, the district still pays personnel and food costs. A staff member said Fresh Picks’ larger purchasing power has mitigated some cost increases relative to in-house operations.

District staff told the board the district currently expects to subsidize roughly $29,000 in the coming year, drawn initially from the food-service fund balance; once that balance is depleted, the general fund would need to cover ongoing shortfalls. Staff also said the U.S. Department of Agriculture provided temporary support in prior years that is not available this year.

Board discussion focused on trade-offs among raising meal prices (which can reduce participation), continuing a contractor arrangement so the district retains lower per-unit costs, and the statutory requirement that the food-service fund maintain no more than about three months’ worth of expenses (state guidance requires reporting when the fund balance exceeds that threshold and a plan for spending the excess). A board member asked whether the district had modeled the percentage the projected subsidy represents of total food-service revenue; staff provided the contractor’s total and net-loss projections but did not provide an immediate percentage breakdown beyond the dollar figures presented.

The board approved the recommendation to change food-service prices and to continue the contractor arrangement with Fresh Picks; staff will present more detailed budget figures as part of next year’s budget process.

The approval came during the regular meeting after a presentation by district finance staff. The issue will be revisited in the FY27 budget cycle if the food-service fund balance declines and a general-fund subsidy becomes necessary.