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Story County plans replacement of six furnaces at group homes; rent increase for FY27 anticipated
Summary
Story County facilities staff told supervisors at a Feb. 5 work session that the county’s three group homes — Hazel, Calhoun and Duluth — have aging heating systems that require replacement and that the county plans to raise rents for those properties after the work is complete.
Story County facilities staff told supervisors at a Feb. 5 work session that the county’s three group homes — Hazel, Calhoun and Duluth — have aging heating systems that require replacement and that the county plans to raise rents for those properties after the work is complete.
Facilities staff said each group home houses two furnaces, for a total of six units that are more than 20 years old and due to be replaced. The county pays for annual HVAC inspections at the group homes by a certified third‑party contractor, as required under state mandates for those facilities, staff said. Joby Brogdon, facilities management director, described the inspections and the need to hire certified contractors for performance checks at the group homes.
Staff framed the replacement work as part of a multi‑year effort: after installing new furnaces and completing recent upgrades — new flooring, interior work and roof replacement at some homes — facilities staff said they intend to increase rents beginning in Fiscal Year 2027 to reflect the updated condition of the properties. Brogdon said the county has not raised rent since leasing the homes and that he did not anticipate pushback once the units are modernized.
On operations, staff said utilities and some services (for Duluth and Calhoun) are billed back to the tenant operator (Optime). Facilities staff said in a typical year the three properties combined generate roughly $100,000 in net revenue after bills are paid; staff noted this year’s draft budget shows elevated expenses related to planned capital work and parking-lot repairs, meaning the group-homes budget could show a year-to-year increase in expenses.
Discussion versus decision: staff described the furnace replacements and the intention to raise rents; supervisors did not take a formal vote on rent changes during the work session. Staff said they would return with final cost figures for the furnace replacements and with proposed rent adjustments for inclusion in future budget discussions.
