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Cafeteria posts December loss; district weighs price increases and use of reserves
Summary
Food services reported a $28,947 December loss and a year-to-date deficit of $88,157; low participation and rising costs led staff to flag possible price increases tied to federal 'paid lunch equity' rules and to propose reporting planned capital spending from the cash balance.
The Wallingford School District's cafeteria operations reported a December revenue shortfall and falling participation during the operations meeting on Jan. 21.
Food-service director Mr. Bondi told board members December revenues were $232,030 against expenses of $260,977, producing a $28,947 loss and bringing the year-to-date loss to $88,157. "We incurred a loss of $28,947," he said, and attributed part of the drop to elevated costs and a surge of student illness in late December that reduced participation.
Bondi reported an ending cafeteria cash balance of $1,598,269 and provided participation rates: breakfast participation overall at 13.7% (elementary 20.3%, middle 7%, high 7.8%) and lunch participation at 46.1% districtwide (elementary 43.8%, middle 53.3%, high 44.8%). He added that the first 10 days of January showed overall participation at 42.3 percent.
Board members asked whether the cash balance could be used to backfill operating deficits. Bondi said it could be used but cautioned it was not sustainable as a permanent solution and that he was spending some reserves on equipment to improve operations. Board members requested Bondi include in the district's regular Friday update a list of recent capital purchases and planned purchases to make clear how the cash balance is being drawn down.
The meeting also covered federal rules that influence pricing decisions. Bondi explained the federal "paid lunch equity" requirement, which sets a weighted-average price target to ensure paid-meal prices cover production costs without relying on federal funds for free/reduced meals. "Paid lunch equity requirement is to fill the gap between the cost of production for a paid lunch and price charge for a paid meal without relying on federal funding designated for free and reduced price meals," he said. Bondi noted the district previously saw a weighted-average amount near $4.06 and that the official target for the coming year typically posts in March or April.
Board members and staff discussed whether to raise prices in the next budget season and noted sensitivity to family hardship. Bondi said state and federal programs for local-produce reimbursement and federal commodity allocations may partially offset costs; he said the state program recently announced would pay about 70% of local-produce spending, and that he would compare the new state and federal guidance for the strategic planning committee.
The operations committee agreed to move the cafeteria report to the full board agenda for next week for further review and any formal action.
What happens next: Bondi will provide the board with a list of planned and already-purchased capital items and will report updated participation and pricing guidance as federal/state guidance is released.
