Wayzata Cafés reports revised FY24–25 budget, fund balance reaches three months of operating costs

Scott Lasage, executive director of finance and operations, and Michelle Saginaw, director of Wayzata Cafés, presented a revised FY24–25 food service budget to the board on March 24, reporting that the fund remains close to the preliminary estimate and that the fund balance has risen to cover roughly three months of operating expenses.

Jack Stearns, the district accountant, summarized the numbers: revised revenues were increased about $328,000 and revised expenditures about $331,000, leaving the revised bottom line “very much in line with the preliminary budget.” He said most changes were driven by additional meals served and higher federal reimbursement rates than assumed in the preliminary projection.

Why this matters: The food service fund is an enterprise fund separate from the general fund and supports daily meal service for all district schools. A larger fund balance allows planned facility investments but, per state practice, districts with sustained large balances may be asked by the Minnesota Department of Education for a spend‑down plan.

Presenters highlighted operational changes and upcoming capital work. Saginaw described infrastructure projects planned for 2025–26: a freezer expansion and new cooler at the high school, relocation of the high‑school salad and sandwich line with the addition of a hot panini option, and a rotating rack oven for Oakwood Elementary. She said the program has emphasized more vegan options, reduced added sugar at elementary breakfast and increased culturally responsive menu items tested with student taste groups.

Participation and revenue details presented by staff show average daily participation rates of about 80–85% at the elementary level, 81–83% at middle schools and about 76% at the high school. Staff reported average daily meal sales and a la carte revenue of roughly $9,150, up from about $7,500 last year. Stearns noted the increase in a la carte and second‑meal purchases as a key driver of higher sales.

Saginaw and Stearns explained expenditure drivers: finalized labor contracts increased salary and benefit costs beyond preliminary estimates (the revision reflected a roughly 3.6% aggregate increase from preliminary staffing assumptions), higher produce costs associated with quality items (including continued use of Revolve Greens), and added repair and maintenance spending tied to higher meal volumes and equipment use. They also reported the district received a Farm‑to‑School grant for approximately $30,000 for the coming year.

On fund balance, Stearns said the fund now holds about three months of operating expenses and that “once the fund balance is so healthy, there’s a lot of planned projects in the future” including the high‑school kitchen upgrades. He added that the Minnesota Department of Education will begin to follow up with districts that reach three months of operating reserves to discuss spend‑down plans or capital investments.

Board members asked clarifying questions about a la carte accounting, the impact of free meals on revenue, food waste, and how staffing increases were budgeted. Staff said the a la carte program includes many reimbursable grab‑and‑go meals (salads, sandwiches) and that increased a la carte sales often reflect students purchasing second entrees or additional items even when the first meal is provided at no cost. On food waste, staff said waste in student trays remains a concern tied to limited lunch periods and student schedules and that they are monitoring the issue.

No formal vote was taken; the board was reminded this was an informational revised budget presentation and that formal approval is slated for the April 14 regular meeting. Staff invited board members to submit follow‑up questions to finance and food service leads before that date.