San Marcos Unified board approves new facility rental rates and phases in cost recovery after churches and nonprofits object

SAN MARCOS, Calif. — The San Marcos Unified School District Board on March 12 adopted an updated Board Policy 1330 (Use of School Facilities), approving a two‑year phase‑in to full cost recovery of operating and capital direct costs and removing a proposed 5% surcharge on religious organizations after board amendment.

Presenters said the updated fee schedule is a cost‑recovery mechanism based on operating costs and an amortized replacement value for district facilities. "This is not a revenue maker for the school district," consultant Ted Norman told the board. "It's really a cost recovery mechanism that the state has implemented for school districts to recoup the cost to maintain facilities."

What the policy does: Staff recommended phasing in full cost recovery over two years beginning July 1, 2026. Year‑one would recover 100% of operating direct costs and 50% of capital direct costs; year two would move to recovery of 100% of both operating and capital direct costs, using 2024–25 budget data to set rates for the two‑year freeze. The policy also reorganizes user groups into categories (school‑sponsored, school‑connected, school‑related, community nonprofits, religious organizations, for‑profit partners) and sets different cost responsibilities for each group.

Public pushback and board response: Faith‑community speakers said the increases would be unaffordable for long‑standing partners. Pastor Brian Jones of Hills Community Church told the board that under the proposed increases "the increase next year in 2027 would lead to us paying $66,000 next year, which is just beyond what we can pay." Pastor Greg Barnes and other faith leaders urged the board to delay or reduce increases so churches can remain community partners.

Staff and legal context: Ted Norman explained the calculations are driven by the Civic Center Act and AB 503 (noted by staff as a 2025 law change enabling recovery of capital direct costs), and pointed to utilization and replacement‑value data as the basis for per‑hour rates. Staff also noted custodial overtime and other fees are charged separately from the base facility rental rate.

Board action and amendment: Following discussion about outreach, statutory obligations and phased implementation, the board moved to adopt Board Policy 1330. During debate board members proposed and approved an amendment to remove the proposed 5% surcharge for religious organizations (group 8), effectively leaving those organizations at the direct‑cost rate established for their category under the phased approach. The motion to adopt the amended policy carried by voice vote; one board member had earlier recorded a nay before the amendment was added.

Examples cited: Staff illustrated the effect on commonly used spaces, saying a middle‑school performing arts center rate that had been $75 per hour would increase and — with the year‑one phase‑in and chosen parameters — result in a roughly 38.6 percent increase for some multipurpose rooms in year one, per the presentation. Staff emphasized the phased approach was intended to limit an immediate full increase and give community groups time to adjust.

Next steps and communication: Staff said they will communicate the new fee schedules, updated rules and implementation timeline to community users and the city; they also noted a dissolution of a prior MOU that had allowed free use for some city youth sports groups, which will now be subject to the new fees.

Votes at a glance: The board adopted the amended Board Policy 1330 (Use of School Facilities) by voice vote after approving an amendment removing the 5% surcharge for religious organizations.