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Revere committee flags food‑services vendor for deficit despite $150,322 guarantee
Summary
At its Jan. 20 meeting the Revere School Committee reviewed a quarterly food‑services report showing a current $126,000 deficit on a guarantee‑only basis while the new vendor has contractually promised at least $150,322 back to the program; staff said it will monitor performance and report again in April.
The Revere School Committee heard a quarterly report on school food services on Jan. 20 that showed the district’s new food‑service management company has contractually guaranteed at least $150,322 to be returned to the program but, on a guarantee‑only accounting basis, the program is presently about $126,000 in deficit.
"When all that tallies out, regardless of how things went, if the surplus was not a 150,322 or more, we're guaranteed to have that baseline," said Matt Cruz, the district presenter on the financial report. "At this point, taking the guaranteed costs only into account, they're in a deficit, a $126,000." (presented by Matt Cruz)
The report, covering operations through Dec. 31, shows lower meal counts tied to declining enrollment and the vendor’s first‑year startup costs as key drivers of the shortfall. Staff said Minuteman and Essex bill semiannually, which can create the appearance of large periodic invoices, and that encumbered purchase orders are shown in the backup as "expended and encumbered," not as cash already spent.
Staff also described the program’s fund balance and a plan to reduce it gradually. "Because of good years during COVID the fund balance surged up to $2,700,000," the presenter said, noting DESE guidance prefers roughly three months of operating costs. The administration plans to charge some benefits and indirect costs to the food‑services account and to use surpluses over the next two to three years to bring the balance closer to target levels.
Committee members asked how the vendor would improve revenue and whether meal quality would suffer if the vendor trims offerings. Staff replied that first‑year onboarding costs and point‑of‑sale equipment can depress early profitability and that the vendor expects to increase profitability as operations stabilize. Members requested school‑level feedback on meal quality and voted to receive a follow‑up report in April.
The committee did not take formal action to change the contract at the Jan. 20 meeting; staff said they will continue conversations with the vendor and monitor the guarantee against actual performance and expenses. The next scheduled update is the April business‑office report.
