District proposes higher facility rental rates to cover utility and staffing costs; board asks for breakeven analysis

The Fairbanks North Star Borough School District on March 4 presented a proposal to raise hourly rental rates for school facilities to better reflect utility and staffing costs for community events.

Executive Director of Facilities Jahanara Carreon and Chief Operations Officer Andy DeGraw told the board the district still subsidizes most community rentals and that current rates have not kept pace with rising utilities and staffing needs. Carreon said the district’s calculations indicate average utility costs of about $59.84 per hour for secondary schools and $24.75 per hour for elementary facilities; average custodial service cost estimates run about $41 per hour and theater technician costs about $55 per hour. The administration said it used a compromise approach—charging roughly 25% of breakeven for some user groups—rather than full breakeven rates, to limit the cost shock to community nonprofits.

Under the proposal, example changes would include primary gym rentals rising from $3 to $6.50 per hour and secondary gym rentals from $5 to $15 per hour for nonprofit youth groups; classrooms and special rooms would move from $1–$3 to $5 per hour. Theater rental formulas would shorten a base rental block from 12 hours to 8 hours and add a weekend operational fee; additional staffing charges (technician and custodial overtime) would apply for extra hours.

Board members asked for further analysis before administration finalizes rates. Several said they support keeping low prices for youth nonprofit users but want breakeven options for adult nonprofits and commercial users. "There could be some room to increase rates, but my response, based on experiences, there's been an animated discussion in the past," Superintendent Dr. Minor said, noting community sensitivity and the district’s desire to keep facilities available for students. Board members requested a clear estimate of potential additional revenue under both the proposed phased increase and full breakeven rates, and some asked administration to reach out to frequent nonprofit renters (for example, youth sports and pickleball organizers) to assess impacts.

Administration said revised revenue estimates will be provided before budget decisions; the district currently projects roughly $260,000 in rental revenue for FY26 and does not expect a revenue windfall from the proposed increases but expects to reduce the subsidy. The administration also said expanding custodial staffing could make more rental hours available.

The board did not vote on rates March 4; members gave direction to return with breakeven scenarios, estimated FY26 revenue impacts, and proactive outreach to affected nonprofits.