cStorm Lake’s utility rates are officially on track to rise over the next several years.
The city council on Monday held two public hearings and approved the first readings of ordinances increasing both sewer and water service rates.
City Finance Director Tyler Gibbins opened the discussion — which first focused on sewer rates — noting that the changes were already built into the city’s approved budget and will take effect July 1. He told the council the increases are designed to prevent larger jumps later, especially as the city prepares for state‑mandated wastewater nutrient‑reduction requirements.
During the public hearing, Gibbins emphasized that the sewer utility is self‑supporting and funded entirely by user rates, not taxes. He said a new capital improvement fee is intended to help the city keep up with maintenance and prepare for future projects.
Gibbins explained the purpose of the new fee structure, saying it will help spread costs over time and reduce the need for borrowing.
Under the proposal, the base sewer rate will be set at $31.56 per month, with a usage charge of $6.07 per 1,000 gallons. A new capital improvement fee of $1 per month — plus 50 cents per 1,000 gallons — begins in July. For the average household, the increase for fiscal year 2026 is estimated at $4.86 per month, generating roughly $389,000 in additional annual revenue.
No public comments were submitted, and the council unanimously approved the first reading of the sewer‑rate ordinance.
The second hearing addressed water rates, which are also scheduled to rise beginning July 1. Gibbins outlined the findings of the Water Ad Hoc Committee, a volunteer group that studied long‑term water needs, including the aging water treatment plant, wells and storage capacity.
He told the council the committee concluded that grants are limited for a community Storm Lake’s size, and relying heavily on bonding would cost more in the long run.
Under the proposed water‑rate plan, the base monthly fee will rise to $21, with a usage charge of $6.52 per 1,000 gallons. A new system improvement fee of $6 per month — plus 50 cents per 1,000 gallons — will also be added. The average household is expected to see an increase of $12.17 per month in fiscal year 2026, followed by additional increases in the following fiscal years.
The only public comment came from a representative of the Lake Creek Homeowners Association, who asked how the increases would apply to communities outside Storm Lake that purchase water under separate agreements. Gibbins clarified that those areas fall under existing water‑use agreements and will continue to do so until those agreements come up for renewal.
After closing the hearing, the council approved the first reading of the water‑rate ordinance on a unanimous vote.
Both ordinances require three readings before they can take effect. If approved, the new sewer and water rates will begin appearing on bills this summer.
