Council Signs $100K Finance Deal as New Water Plant Planning Advances

The Storm Lake City Council has taken another step toward building a new water treatment plant, approving a service agreement Monday night with Piper Sandler & Co. to steer the city through the financial side of the multi‑year, multi‑million‑dollar project.

City Finance Manager Tyler Gibbins said the agreement formalizes the role of longtime financial advisor Tim Oswald, who will model the city’s water utility revenues, outline debt options, and help structure the borrowing needed for the plant and new wells.

Oswald has already produced early projections showing the scale of the investment ahead. A plant and well system capable of meeting Storm Lake’s long‑term needs could cost around $200 million, with water rates expected to rise steadily as debt is issued later this decade.

Gibbins told the council the scope of work is extensive, covering everything from financial modeling to bond preparation and closing.

1 (14:30–15:08) “He’s going to be an agent for the U.S. Treasury securities on the project, develop a financial plan for the project, provide alternative debt retirement schedules… develop a timeline with respect to the proposed securities… and coordinate the closing of all the transactions.”

Under the agreement, the city will pay $100,000 for Oswald’s services—half due at the end of 2027 and the remainder at the end of 2028. The city will also pay a one-percent issuance fee on the gross proceeds of any debt issued, along with $1,500 per scenario for major changes to the financial plan.

Council members had no questions, and the motion passed unanimously.

The approval keeps Storm Lake aligned with the timeline laid out by the Water Treatment Plant Advisory Committee, which warned earlier this year that financing decisions must begin soon to avoid delaying construction. 

The city expects to issue major debt before the end of the decade as it prepares to replace the aging 1978 plant and expand well capacity for the next generation.