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Building services warns utilities, aging equipment will lift facilities budgets; new LEC flagged for potential major repairs
Summary
Woodbury County building services staff outlined projected utility cost increases and said aging rooftop equipment and variable-repair agreements at several properties create an unpredictable repair burden; staff urged the board to consider expanding operating budgets for routine capital needs to avoid frequent small CIPs.
Kenny, who oversees Woodbury County building services, told the board that utilities (natural gas and electricity) and aging equipment are the biggest drivers of the department's budgets and that several facilities have repair contracts or agreements that create variable and sometimes open-ended repair costs.
Kenny explained he projects natural gas costs using the Henry Hub benchmark and multi-year consumption averages; the department used 2023 and 2024 averages plus a margin to estimate 2026 costs. For electricity, regional projections are modest but also factored into…
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