Storm Lake Council Unanimously Approves Piper Sandler for Water Plant Replacement Financing

The Storm Lake City Council voted unanimously to retain Piper Sandler & Co. as financial advisor for the long‑planned replacement of the city’s 1978 water treatment plant and expansion of well capacity, formalizing the role of longtime adviser Tim Oswald and approving $100,000 in advisory fees. Council members had no questions, and the motion passed unanimously at the March 4, 2026 meeting.

City Finance Manager Tyler Gibbins told the council the $100,000 flat fee will be payable in two installments, with half due at the end of 2027 and the remainder at the end of 2028. The service agreement also obligates the city to pay a one‑percent issuance fee on the gross proceeds of any debt issued and $1,500 per scenario for major changes to the financial plan, according to the meeting materials Gibbins presented.

Gibbins outlined the advisory scope in the council packet and in remarks to the council: “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.” That scope covers modeling Storm Lake’s water utility revenues, preparing bond documents, and coordinating closings as the city moves toward issuing debt for construction.

Oswald’s early work has already produced large cost estimates for replacement and capacity expansion. “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,” the meeting materials state, reflecting projections attributed to Oswald’s financial modeling. The existing treatment plant dates to 1978, and the project has been described by city staff as a multi‑year, multi‑million‑dollar undertaking.

Council action on March 4 followed a short agenda item with no council questions, and the unanimous vote sends the city into the next phase of financial planning. Under the agreement, Piper Sandler and Oswald will develop the timeline for proposed securities and model alternative debt retirement schedules that will feed into rate and budgeting decisions for Storm Lake households and businesses.

With the service agreement in place, Storm Lake’s finance office will move from early projections to structuring actual bond issuances and rate scenarios. The council’s approval signals an accelerated push to secure financing, prepare bond documentation, and coordinate the closings necessary to fund the replacement of the 1978 plant and the planned expansion of well capacity.