06-17-2008 Regular School Board Meeting
Agenda Item #18


Title
School Meal Price Increase

Discussion

The Office of Food and Nutrition Services (FNS) has reached that point in time when we must recommend raising meal prices for the 2008-09 school year.  As a reminder, Brevard's lunch prices have been the same for the last 17 years. The state average price for lunch meals is currently:  $1.68 elementary, $1.91 middle and $1.93 high school.   Many school districts have already notified FNS that they are increasing their meal prices this fall.  FNS has maximized every available resource and has worked diligently with every vendor to cut costs to avoid raising the price of school meals.  Unfortunately, we continue to struggle with escalating costs.

FNS takes great pride in offering our students a wide variety of nutritionally balanced meals.  Learning to eat right and exercise is as important to lifelong success as reading, writing and arithmetic. However, promoting healthy eating choices now comes with a higher price.  As a point of reference the federal reimbursement rates far exceed what the District is currently charging while the non-reimbursable meal price no longer covers the cost of the meal.  The Florida Buying Group, which consists of 36 school districts, has notified us that our major food distributor, US Foodservice, is estimating that the overall food cost could increase 10-12% for the 2008-09 school year. 

It is for these reasons FNS will be implementing a multi-year comprehensive plan to further examine meal prices. The 2008-09 school year will be used to re-adjust the type A (reimbursable) meal price along with the non-reimbursable meal price to cover the cost of the meal and for FNS to continue to research ways to improve the meals nutritional content.  Due to the volatility of the economy, meal prices will be reviewed annually and adjustments will be requested when necessary. 

Three options for a price increase are summarized below.  Details of all three options are attached (see spreadsheets) which provide an overview of the differences between the anticipated revenues and the impact on the fund balances.  Information has also been shared which indicates some projections for future price increases during the 2009-10 and 2010-11 school years.

Option A:

  • Elementary type A lunch meal:  $1.90  (current price $1.40);
  • Secondary type A lunch meal:  $2.00  (current price $1.50);
  • Non-reimbursable lunch meal (adult or second student meal):  $3.00  (current price $2.25)
  • Non-reimbursable breakfast (adult or second student meal):  $1.50  (current price $1.00)

Option B:

  • Elementary type A lunch meal:  $1.70  (current price $1.40);
  • Secondary type A lunch meal:  $1.80  (current price $1.50);
  • Non-reimbursable lunch meal (adult or second student meal):  $3.00  (current price $2.25)
  • Non-reimbursable breakfast (adult or second student meal):  $1.50  (current price $1.00)

Option C:

  • Elementary type A lunch meal:  $1.75  (current price $1.40);
  • Secondary type A lunch meal:  $2.00  (current price $1.50);
  • Non-reimbursable lunch meal (adult or second student meal):  $3.00  (current price $2.25)
  • Non-reimbursable breakfast (adult or second student meal):  $1.50  (current price $1.00)


Recommendation

Approve Option B to increase meal prices effective with the 2008-09 school year.

Meeting Date(s)
Information - 5/27/2008
Consent after Information6/17/2008

Authority for Action
FS 1001.42

Involves Expenditure of Funds Directly in the Classroom
No

Source of Funding
Agenda Item will not Require the Expenditure of Funds

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Contact
Judy Preston, Extension 600 or Kevin Thornton, Extension 690


Attachment:  Projected Price Increase Option A.pdf
Attachment:  Projected Price Increase Option B.pdf
Attachment:  Projected Price Increase Option C.pdf
Attachment:  Lunch Price Increase Memo May 14 2008.pdf
Attachment:  2007-08 Lunch Prices Attachment 1.pdf
Attachment:  Recurring Expense History Attachment 2.pdf
Attachment:  Capital Expense Attachment 3.pdf
Attachment:  Item Cost Comparison Attachment 4.pdf
Attachment:  Projected Price Increase Samples Attachment 5.pdf