Staying steady

Medford to keep meal prices the same for 2023-24 school year

Meal prices for breakfast and lunch at Medford Area Public Schools will remain the same next year despite an increase in the amount the district is going to pay food service provider A’viands.

On the flip side, district families could see increases and volatility in the price of a la carte items in the coming school year as school leaders note that the company needs to maintain an adequate margin to continue to offer these extra and snack items.

At Monday’s board meeting, members voted unanimously, with Jodi Nernberger absent, to keep the meal prices unchanged next year. A major driver for this is that the district has a food service fund balance of close to $1 million. State rules limit what the district can spend money from this fund on. It is generated from the difference between what the district receives in payments and federal reimbursements for meals compared to the district’s cost to purchase each meal through A’viands.

See MEDFORD on page 4 According to school finance director Audra Brooks, the district has spent a significant amount in the past year to upgrade and replace older equipment in the school kitchens and while this has reduced the balance some, the fund balance still remains high. Last month the district had voted to extend free lunch to all students who qualify for reduced lunch.

While the district has routinely maintained a fund balance in the food service fund, it skyrocketed in recent years due to COVID-era rules that extended free breakfast and lunch to all students in the district. That program went away at the beginning of this school year. The district has also seen an increase in across the board per meal aid payments which was a relief measure from the state to address high food prices experienced.

Under the federal school lunch program, the district receives 85 cents in aid for every student meal served, the district receives $4.01 for reduced lunch meals and $4.41 for every free lunch meal served. A similar aid program exists for school breakfast with the addition of if a school district qualifies for a need status based on having over 40% of students qualifying for free and reduced lunch. Previously Medford Area Senior High School (MASH) was the only district school that did not qualify for that higher reimbursement, but according to Brooks this coming school year MASH will qualify.

Brooks had presented two options to the district. The first was to keep meal prices the same, the second was to impose a 5 cent increase on all meals. Board president Dave Fleegel reacted strongly against the suggestion to raise the prices while the district is sitting on a large balance. He noted that the only times the board has voted to increase prices was when the state has told them they have to.

During the finance committee held prior to the school board meeting on Monday, district administrator Pat Sullivan made the argument for increasing as a way to avoid a large jump being needed in the future. Brooks noted that the largest increase the state will allow is 10 cents in one year.

Board member Steve Deml said that while he doesn’t want families to get hit with a jump eventually, he would rather them have that money in their pocket now.

Other board members agreed and voted to keep the meal prices unchanged.

In related action, board members approved renewing the contract with A’viands to run the district’s food service operations. The district is on year three of the agreement which can be renewed for up to 5 years before the district must seek requests for proposals and go with the lowest bid option.

Board members expressed support for continuing to work with A’viands. “I want to be fair to these guys. We have to do something for these guys,” said Brian Hallgren during the finance meeting.

Under terms of the contract, they may seek increases of up to 3% or the December Consumer Price Index (CPI). The CPI in December was over 8%. A’viands representatives noted that within the food service industry the prices have gone up over 13% in the past year as major suppliers focused more on retail product rather than institutional customers.

A’viands had requested an increase of 7% for the coming contract year.

While objecting to being forced to negotiate in open session, at the finance meeting Hallgren said he didn’t see giving A’viands that large of an increase.

Brooks recommended the district look at a 5% increase. She said they came up with that number by looking at increases the district is giving to staff members. “We are not giving staff 7-8% either,” she said.

At the finance meeting, Fleegel proposed a 7% increase, but it died for lack of a second. The committee then voted to go with a 5% increase.

When it came time during the regular board meeting to act on the contract, Hallgren reversed his position and called on the board members to reject the recommendation of the committee and instead go with the higher 7% increase.

“I am not in the business of giving more money than they need to have,” Hallgren said, however he noted that A’viands has been willing to work with the district to bring in local produce and other items.

One of the things that sets Medford apart from some of the other districts in the area is that the contract for Medford sets a fixed price per meal for the contract term rather than being cost-based. What this means is that A’viands has had to absorb the cost of supplies rather than being able to pass that along. In terms of being able to budget for expenses, Brooks said this is the “Cadillac” of plans and advised against changing it.

“They are a good partner for us,” Hallgren said. “We want to be fair to them.”

On a roll call vote, Deml was the only vote in favor of staying with a 5% increase with the seven other board members opposed. A roll call vote at a 7% increase passed unanimously.

In other business, board members:

  Received an update on the potential to have a YMCA lease school district owned property near Medford Area Elementary School. Sullivan said he met with the local director who is working to get one located here and said the district would want a dedicated 4K classroom at the building, that the YMCA would be responsible for building a driveway connecting the elementary school to CTH Q, that the building revert to school district ownership if the YMCA were to close in Medford, and they would rent the land for $1 per year for 25 years. The school district would maintain the driveway for snow removal. It was suggested to add that repair or replacement of the driveway could be a shared expense in the future. Sullivan said he has given the district’s attorney direction to draft an agreement with these terms which will then go to the YMCA board before coming back for action by the school board.

  Reviewed the budget plan for the coming school year. Brooks noted that she is hearing from other finance directors around the state that more money will be coming to schools in the state budget and that she felt comfortable putting in $200 per pupil increase and 35% reimbursement for special education costs. This does not change the bottom line of the budget because Brooks was planning to balance it using federal grant dollars. She said the change will allow them to use the grant funds elsewhere.

  Approved reorganization matters reelecting Fleegel as board president, John Zuleger as vice president, Hallgren as treasurer and Nernberger as clerk. The board also set The Star News as the official district newspaper and approved financial depositories.

Students in the industrial arts classes at Medford Area Senior High School took school board members on a tour of the new concession stand and bathroom building at Raider Field. Class members are building the structure which is expected to be put into use by next fall.Brian Wilson/The Sta r News