1. CHILD NUTRITION (RATIONALE FOR RAISING SCHOOL MEAL PRICES) CAMBRIAN SCHOOL DISTRICT

2. Meal Price Comparison: Fiscal Year 14-15 DISTRICTELEMENTARY BREAKFAST ELEMENTARY LUNCH MIDDLE BREAKFAST MIDDLE LUNCH FREE & REDUCED Participate % Sunnyvale$2.25$3.50$2.25$3.5050.7% MVWSD$2.00$3.50$2.00$3.5043.2% Moreland$2.00$3.25$2.00$3.2537.2% Los Gatos$2.00$3.25N/A$3.503.9% Saratoga$2.00$3.00N/A$3.001.3% Orchard$1.75$2.75$1.75$2.7546.5% San Jose$1.75$2.75$2.00$3.2545.6% Cambrian$1.50$2.75$1.50$2.7520.7% Franklin McKinley$1.50$2.25$2.00$2.5077.4% Gilroy$1.25$2.40$1.50$2.6564.1% Prices are one of the lowest in the County

3. Meal Price History – Lunch Only 1995-96 $1.50 1996-97 $1.50 1997-98 $1.75 1998-99 $1.75 1999-00 $1.75 2000-01 $2.00 2001-02 $2.00 2002-03 $2.25 2003-04 $2.25 2004-05 $2.25 2005-06$2.50 2006-07$2.50 2007-08$2.50 2008-09$2.75 2009-10$2.75 2010-11$2.75 2011-12$2.75 2012-13$2.75 2013-14$2.75 Historically low prices despite the increase in food costs. Last 6 years no increase.

4. Meal Price History – Breakfast Only 1999-00 $1.25 2000-01 $1.30 2001-02 $1.30 2002-03 $1.30 2003-04 $1.30 2004-05 $1.30 2006-07 $1.30 2007-08$1.30 2008-09$1.50 2009-10$1.50 2010-11$1.50 2011-12$1.50 2012-13$1.50 2013-14$1.50 Breakfast started in 1999. Last increased in 2008-09

5. Previous Steps to Increase Revenues Healthier Food Options Serving healthier meals with more fresh fruits and vegetables Alliance for a Healthier Generation award for committing to offer healthier snacks and beverages Moved breakfast before school to breakfast at recess Approximately $159,000 of additional program revenue since implementation during school year 07-08 Certified for the Healthy Hunger Free Kids Act 2012 Additional $.06 Federal reimbursement for every lunch meal $19,992 additional Federal reimbursement revenue since October 2012

6. Previous Steps to Increase Revenues Build Your Own Bar at Price Middle School Weekly event that increases participation by 75-100 meals Approximately $14,500 of additional program revenue since implementation March 2013 Contracted with Learning Pathways to supply meals and snacks $8,865 in non program revenue for fiscal year 2013-14 Increased from 1 to 3 sites qualifying for especially needy breakfast programs Additional $.30 for every Free and Reduced breakfast meal at Price, Sartorette, and Farnham Approximately $14,000 additional Federal reimbursement revenue since August 2012

7. Cost Saving Measures Over the Years Eliminated foam serving trays Currently using washable red baskets Cost savings approximately $50,000 since school year 09-10 Limited equipment replacement $17,406 under budget since school year 09-10 Approved for 5 free salad bars Coordinated with the Let’s Move Salad Bars to Schools Organization and California Department of Education Estimated value $13,125

8. Cost Saving Measures Over the Years Offering locally grown foods 40% of produce is locally sourced 100% of milk is locally sourced Technology upgrades (eTrition, EZSchoolpay, EZMealApp) Saves staff time that can be used in other areas such as scratch cooking Used eTrition features to increase from 1 to 3 Especially Needy Breakfast sites.

9. Operational Costs Continue to Increase Reasons for the increased cost Food cost increase driven by whole grains and fruit/vegetable portions ½ cup of fruit or vegetable with every lunch (Effective July 2012) ½ cup of fruit or vegetable with every breakfast (Effective July 2014) More scratch cooking USDA estimates $0.10 increase in food cost for lunch CalSTRS and CalPERS contribution rates both increased (Effective July 2014)

10. TO REPLACE AN IMAGE: Click on the image and delete then click on the photo icon. Select your photo and insert Resize photo if needed by cropping and sliding it 11-1212-1313-1414-15 Revenues $770,159$754,549$762,337$764,131 Expenses $768,195$762,100$806,453$813,861 Excess / (Deficit) $1,963($7,551)($44,116)($49,730) Initial projection before State adopted budget Unaudited Actuals Financial History

11. Revenue per Meal vs. Cost per Meal Cannot support continued deficit spending with General Fund

12. Cambrian Will Be Forced to Increase Pricing in 2015-16 school year Per Paid Lunch Equity Language (Section 205) (Effective July 2011) Requires SFAs whose average paid lunch price that is less than the difference between the free lunch reimbursement rate and the paid lunch reimbursement rate (for school year 2013-14 the difference was $2.59) to be adjusted so that the total per meal revenue received for those lunches is equal to the per meal revenue provided by the federal government for free lunches. Sets forth the formula for setting the average price for paid meals. PLE estimated to be above $2.75 for school year 2015-16.

13. 2014-15 Pricing Projections Cambrian has an opportunity to avoid continued deficit spending and save for future enhancements

14. Staff Recommended Price Increase Increase breakfast meal prices from $1.50 to $2.00 Increase lunch meal prices from $2.75 to $3.25