Storm Lake approves three-year water rate increases for new plant

Storm Lake water bills are heading higher again, and the city is not presenting the change as a one-time adjustment. The City Council unanimously approved the second reading of an ordinance that sets a three-year rate schedule to help finance a $110 million water plant planned north of Storm Lake Middle School.

Beginning July 1, residents will pay $27 a month for the first 1,500 gallons, then $7.02 for each additional 1,000 gallons. A household using 3,000 gallons a month would see its bill rise from $25.32 under the current schedule to $37.53 under the new one. Finance Manager Tyler Gibbins said residents should expect another $12 to $15 per month next year as the city moves into planning, design and the revenue set-asides needed to support bond financing.

The increase lands on top of a system the city says is already stretched too thin. Storm Lake’s plant, built in 1978, can treat about 5.6 million gallons per day, while the city says it needs about 8 million gallons per day to meet residential and business demand. Committee testimony also showed the plant was running at least 90% capacity every day of the year. Former Mayor Mike Porsch told the committee the plant has outlived its useful life by more than 20 years.

City officials and engineers have said the current site southwest of Storm Lake Middle School is too cramped for a renovation that would get the city to its needed capacity. A new site north of the highway and railroad is meant to leave room for growth, especially as ISG projected Storm Lake could grow at least 23% over the next 20 years. In earlier financial modeling, Piper Sandler projected the residential base rate could climb to $29.50 over five years in one renovation scenario, or to $37.50 by 2030 if the city builds a new plant at a new site.

The city’s 20-person ad hoc water committee, created in July 2025, helped shape the rate structure after meetings began in September and included a plant tour on Sept. 10. The effort also drew outside-user concerns, especially from Lake Creek, Lakeside and Truesdale, where water-use agreements add surcharges of 10% to 50%. Terry Bauer, president of the Lake Creek homeowners association, pressed city officials on how the burden would be divided and whether Tyson Foods would also pay its share. Gibbins said Tyson operates under a proportional agreement tied to consumption limits. Kolby Struchen, the city’s treatment superintendent, has described parts of the plant as "dinosaur technology," underscoring why Storm Lake is moving ahead with a long, expensive rebuild.