• Budget Overview

    Revenue

    • Student Lunch and Breakfast Revenue –These categories remain at $0 due to continuation of CEP.
    • Adult Meals – Proposing no change in both adult lunch and breakfast prices since both were increased in FY 2020 to stay in line with VDOE recommended pricing levels. We expect adult breakfast and lunch participation to hold fairly steady or increase.
    • Other Food Sales – Sales in this category are projected to be around $235,000 for FY 2020. We expect this category to remain static or slightly decrease in FY 2021.
    • Other Sources – Rebates and catering remain static, but contract feeding of head start programs for Pittsylvania County Community Action increased in 2018-19 and we have added contract Meals on Wheels feeding for seniors. Projected revenue for FY 2020 is $225,000.
    • Federal/State Reimbursement –No increase in budgeted Federal Reimbursement as we expect participation at the high schools to “level off” this year and remain static. Projected revenue for FY 2020 is $4,480,000.
    • USDA Funding of the SFSP/CACFP Program – These programs are both under VDOE oversight as of FY 2019, but will continue to be tracked separately from the National School Lunch and Breakfast Programs. Participation in both programs continues to grow slowly.
    • Fund Balance Transfer – We continue to build the fund balance. The State recommends retention of three months operating expense in the fund balance.  That amount, based on FY 2019 expenses, is now $1,328,895.
    • Overall projected revenues for FY 2021 are in line with expected inflationary increases in the reimbursement rates and current participation levels in the Community Eligibility Program.

    Expenditures

    • Personal Services – We have budgeted to include a two-step increase for all school nutrition employees and to move starting hire rate from step 02 to step 03 for new employees with no experience. An increase in substitute rate to $8.95 per hour and to $9.75 for retired subs is also included.
    • Retirement – VRS-1 based on 15.58%, additional 5% paid by employees. VRS-1 hybrid is based on experience from the 2019 FY and taken as a percentage of total VRS-1 cost. VRS-2 based on 6.28%, with an additional 5% paid by employees. VRS-2 hybrid also based on 2019 FY experience and taken as a percentage out of total VRS-2 cost.
    • RHCC based on 1.20% of VRS-1 personnel salaries.
    • Hospital/Medical Insurance – Coverage for 40 employees at $7,495 each, no increase over FY 2020. FY 2019 actual was $270,794.
    • Food – Budgeting 43.45% of total revenues. Food cost percentage of revenue for FY 2019 was 44.75%.  USDA entitlement monies are based on the number of lunch meals served in previous years, our dollar amount received will increase again slightly for 2021 as we continue to increase lunch meals served.
    • Other Operating Costs – Technical Services Contract, Contract Maintenance, and Outside Maintenance Services are in this category. This category also covers paper and janitorial operating supplies and small wares. The budgeted amount is in line with the previous two years expenditures and will cover an increase in the Technical Services Contract as we expand the capabilities of the Nutrition Software.
    • Equipment – Capital Improvement Plan – we continue to focus on rebuilding the fund balance, while also replacing the most obsolete equipment and purchasing equipment to create new sales opportunities for the efficient running of the department. (See separate CIP document).

    Revenue Narrative

    Description

    2019-2020

    2020-2021 Proposed

    Change

    Comments

    Student Lunch

    0

    0

    0

    This category remains $0 due to CEP continuing district-wide. This revenue moved to Federal / State Reimbursement.

    Student Breakfast

    0

    0

    0

    CEP breakfast programs (universal-free). 

    Adult Lunch

    65,000

    85,000

    20,000

    Adult meal price will remain at $3.75 per lunch.Expect adult participation to remain static.  History: FY 2019 actual - $83,092; FY 2020 projected - $85,000.

    Adult Breakfast

    2,800

    3,600

    800

    Adult meal price will remain $2.50 per breakfast meal.  Expect adult participation to remain static.  History: FY 2019 actual - $3,000;  FY 2020 projected - $3,800.

    Other Food Sales

    225,000

    230,000

    5,000

    A la Carte items: daily entree, fruit snacks, baked chips, fruit juice, ice creams, sherbets, cookies, etc.   Less a la carte sales have been made as more students take the reimbursable meal with CEP.  History:  FY 2019 actual - $229,015;  FY 2020 projected - $235,000.

    Other Sources

    160,000

    250,000

    90,000

    Rebates, catering, contract feeding, head start, etc. History:   FY 2019 actual - $144,713; FY 2020 projected $225,000, with a new Senior Meals on Wheels Contract.

    Interest Income Allocated

    0

    10,000

    10,000

    Receiving some interest income on our savings account since move to Carter Bank. FY 2020 projected - $10,500.

    Federal/State Reimbursement

    4,811,044

    4,811,044

    0

    Combined Federal and State reimbursement.  History: FY 2019 actual - $4,525,857; FY 2020 projected - $4,480,000.

    SFSP / CACFP Funding

    385,000

    425,000

    40,000

    Tracking of USDA programs for Summer Food Service and CACFP (At-Risk Supper/Snack Program).  These programs are separate and additional to the National School Lunch and Breakfast Programs.  History:  FY 2019 actual -  $476,713 (if June '19 is included); FY 2020 projected $445,000.

    Fund Balance Transfer

    (12,392)

    (12,392)

    0

    Fund balance needs to build toward the Department of Education Guidelines.  (two to three months of operating expenses recommended)

    Cafeteria Operating Revenue Total

     $            5,636,452

     $              5,802,252

    $         165,800

    History: FY 2019 actual - $5,337,538; FY 2020 projected - $5,484,300

     

    Expenditure Narrative

     

    Description

    2019-2020 orig.

    2020-2021 Proposed

    Change

    Comments

    Personal Services           

    1,976,319

    1,989,919

    13,600

    Increase to all employees pending fiscal year end '19-'20 financial status. Also in plan: increase in special rate for subs retired from SN to $9.75, and raising sub hourly rate to $8.95/hr.

    Employer FICA Tax

    122,532

    123,375

    843

    Rate of 6.2%

    Employer Medicare Tax

    28,657

    28,854

    197

    Rate of 1.45%

    Retirement -VRS 1

    71,550

    73,051

    1,501

    Total VRS1 FY 2019 amount $95,364 + 2% increase

    Retirement -VRS 1 hybrid

    20,500

    24,220

    3,720

    24.9% of total VRS 1 retirement (based on actual usage in FY 2019)

    Retirement -VRS 2

    8,119

    5,046

    (3,073)

     Total VRS2 FY 2019 amount - $19,767 + 2% increase

    Retirement -VRS 2 hybrid

    12,043

    11,829

    (214)

    70.1% of total VRS 2 retirement (based on actual usage in FY 2019)

    Retiree Healthcare Credit (RHCC) VRS-1

    8,133

    8,220

    86

    1.20% of VRS-1 personnel salary (FY 2019 actual - $7,298)

    Hospital/Medical Plans

    299,800

    299,800

    0

    40 employees covered @ $7,495 each (no increase over last year)                        F

    Y 2019 actual=$270,794

    Group Life Insurance-VRS 1

    8,879

    8,973

    94

    1.31% of VRS-1 personnel salary

    Group Life Insurance-VRS 2

    2,903

    2,993

    90

    1.31% of VRS-2 personnel salary

    Long-Term Disability Insurance Plans

    1,972

    1,825

    (147)

    History: FY 2019 - Total disability plans -  $3,083

    Disability Insurance Plans- Hybrid

    1,228

    1,320

    92

    42% of total disability ins. based on history. ($1,295 in FY 2019)

    Unemployment Compensation

    1,000

    1,100

    100

    Cafeteria pays pro-rated amount based on claims.

    Worker's Comp-Common Carrier

    33,000

    34,000

    1,000

    Cafeteria pays an amount based on current MOD factor. (FY 2019 actual - $29,804)

    Professional Services-Audit

    6,850

    6,950

    100

    Completed by county designated firm.

    Contracted Refuse Collection

    75,000

    75,000

    0

    Estimate based on county charge for service. (FY 2019 actual - $68,847)

    Contract Exterminator Service

    3,850

    4,850

    1,000

    Monthly treatments, plus "out of zone" expenses when necessary.

    Contracted Water/Sewer Services

    13,500

    13,700

    200

    Contracted services to pump grease traps twice annually, plus enzymatic drain treatment and annual pumping at eight locations.

    Telecommunications

    4,800

    5,000

    200

    Monthly telephone bills for middle schools and Central Office.

    Travel Expenses

    23,000

    30,000

    7,000

    Mileage reimbursement for oversight of multiple locations, SFSP & CACFP meal delivery, attendance for CEU's at conferences, training expenses.

    Food Supplies

    2,454,360

    2,526,398

    72,038

    Budgeting 43.45% of expected revenue. (Budgeted 43.45% for FY 2019, FY 2019 actual 44.75%)  (Total revenue includes expected transfer to fund)

    Repair and Maintenance-Supplies

    22,000

    22,000

    0

    Replacement parts for existing equipment. Replacement of small equipment.

    Other Operating Costs

    285,410

    295,410

    10,000

    Paper and cleaning supplies, small wares, Outside Equipment Repairs, Tech. contract, Maint. Contract,  etc. (FY 2019 actual - $280,731)

    Equipment Purchased

    151,047

    208,418

    57,371

    Capital Improvement Plan.  See separate document.

    Cafeteria Operating Expenses Total

     $            5,636,452

     $              5,802,252

     $            165,800

    increase of 2.94% over budget.

     

    Capital Short List

    1

    Fieldale Colinsville - Replace shelving in dry storage room with Metro-Max Q rack system

     

    $18,500

    2

    Fieldale-Collinsville - Replace steamer with double stack Combi Oven-Steamer

     

    $25,000

    3

    CC-Collinsville - Replace old dish machine with Champion DH6000T (Allow for Fabrication of SS Counter)

     

    $16,500

    4

    Replace steamers in three to four elementary schools with double stack Combi Oven-Steamers

     

    $95,000

    5

    Replace some ice machines purchased in ’01-’02 and prior years:  replace w/ Hoshizaki KM-300BAJ or KM-350MAJ. 

    ($3,650 to $4,250 per machine)

    (Four machines purchased in 2000 - GWCE, FC, LP, STE)

     

    $17,500

    6

    Replace some milk boxes, purchased prior to 2000 (LP-1, MVH-3, CCE-1, GWCE-2, MOE-1, STE-2)

     

    $16,000

    7

    Replace Buffalo Choppers, Model # 84145-1 – (GWCE, CCE)

     

    $15,500

    8

    Replace some reach in refrigerators – CCE – two 2-door, RAE – two 2-door

    $18,400

     

     

     

     

    Total List

    $222,400

     

    Five-Year Capital Improvement Plan (FY 2020-2024)

    Bassett High School

    1

    Provide reimbursable meal vending machines and café tables in hallway outside cafeteria

    $15,500

    2

    Replace current 36-year old Market Forge (obsolete) Braising Pan w/ Groen Braising Pan

    $19,000

    3

    Replace the last serving line in the dining rooms with updated model to increase participation

    $62,500

     

    Fieldale-Collinsville Middle School

    1

    Replace serving lines, parts obsolete.  Install Low-Point serving lines for marketability.

    $95,000

    2

    Replace steamer with double stack Combi Oven-Steamer

    $25,000

    3

    Replace ice machine, purchased in 2000.  Replace w/ Hoshizaki KM-350MAJ

    $ 4,250

     

    Laurel Park Middle School

    1

    Replace serving lines, parts obsolete.  Install Low-Point serving lines for marketability.

    $95,000

    2

    Replace one 16-crate milk box

    $ 5,500

    3

    Replace ice machine, purchased in 2000.  Replace w/ Hoshizaki KM-350MAJ

    $ 4,250

     

    Magna Vista High School

    1

    Provide reimbursable meal vending machines and café tables in hallway outside cafeteria

    $15,500

    2

    Replace serving line #1 to make it more marketable to customers

    $65,000

    3

    Replace steamer with double stack Combi Oven-Steamer

    $25,000

    4

    Replace one 16-crate milk box and two double-door upright beverage boxes (with merchandising boxes)

    $29,000

    5

    Replace shelving in dry storage room with Metro-Max Q Rack System

    $18,500

     

    Axton Elementary

    1

    Replace steamers with double stack Combi Oven-Steamer

    $22,000

    2

    Replace shelving in back door area with Metro-Max Q Rack System

    $12,500

     

    Campbell Court Elementary School

    1

    Replace steamer with double stack Combi Oven-Steamer

    $22,000

    2

    Replace walk-in freezer on porch to increase space/efficiency

    $30,000

    3

    Replace two 3-door fridges w/ 2-door Hoshizaki

    $ 8,800

    4

    Replace one 16-crate milk box

    $ 5,500

     

    G.W. Carver Elementary School

    1

    Replace steamer with double stack Combi Oven-Steamer

    $25,000

    2

    Replace two 16-crate milk boxes

    $11,000

    3

    Replace ice machine, purchased in 2000, with KM350MAJ

    $ 4,250

     

    CCL-Collinsville

    1

    Replace old dish machine with Champion DH6000T (allow or counter fabrication)

    $16,000

     

    Meadow View Elementary

    1

    Replace shelving in dry storage area with Metro-Max Q Rack system

    $18,500

     

    Drewry Mason Elementary School

    1

    Replace steamer with double-stack Combi Oven-Steamer

    $22,000

    2

    Replace Insinger dish machine with Champion 44 D-series w/ Heat recovery

    $28,950

    3

    Replace obsolete Hobart meat slicer with current Hobart Edge 12 slicer

    $ 3,350

     

    Mt. Olivet Elementary School

    1

    Replace steamer and Convection ovens with double stack Combi Oven-Steamer

    $22,000

    2

    Replace one 16-crate milk box

    $5,500

     

    Rich Acres Elementary School

    1

    Replace steamer and Convection ovens with double stack Combi Oven-Steamer

    $22,000

    2

    Replace Insinger dish machine with Champion DH5000T (Allow for Fabrication of SS Counter)

    $15,500

    3

    Replace stove with 30 gallon braising pan

    $16,800

    4

    Replace one 3-door refrigerator with 2-door Hoshizaki

    $ 4,400

     

    Sanville Elementary School

    1

    Replace steamer and Convection ovens with double stack Combi Oven-Steamer

    $22,000

    2

    Replace wooden shelving in dry storage room.

    $ 2,900

     

    Stanleytown Elementary School

    1

    Replace steamer and Convection ovens with double stack Combi Oven-Steamer

    $22,000

    2

    Replace ice machine, purchased in 2000, with Hoshizaki KM-300BAJ

    $ 3,850

    3

    Replace one 16-crate milk boxes

    $ 5,500

     

    Total List

    $851,300