1. 2012-13 Report Timberlane Food Service Program

2. Program’s Financial Status As of 2/28/2013 the program has a loss of ($94,652) Whitson’s Original Projection for SY 2012- 2013 was a Profit of $81,042

3. Reasons for Loss Enrollment is down by approximately 120 students. (3.21%) Meal sales are down an average of (8.38%). New USDA Guidelines of more vegetables, more fruit, more whole grains and beans. Fewer products available for sale at the HS and MS level.

4. Food Service Management Contract TRSD is obligated to pay the following: Admin Fee $75,000 Management Fee $25,000 Business Insurance $10,000 Printing/Office Supply $2,500 Whitson Software License $7,500

5. Options to Address Loss: Increase price of Lunch to offset loss and to remain compliant with USDA Lunch Price Equity. This year we have a $42K Fund Balance in the Food Service Fund to offset some of the loss. The General Fund surplus would need to be used to offset the rest of the loss.

6. Proposal to go Self Op We have the expertise in our staff to run the program without paying all the fees associated with a management company. All staff will remain in their current position but will be paid by Timberlane School District. Additional savings will be found by using local vendors and taking advantage of the “specials” from a variety of vendors.

7. Overview of Finances for Self Op Payroll & Benefits $744,403 Food Costs $528,053 Paper/Cleaning Supplies $ 36,658 Ach Fees $ 20,000 Substitutes $ 10,000 Total Expense $1,339,114 Total Revenue ESTIMATE $1,347,484 Net Profit $8,370