Josephine and Magnolia MUD to negotiate new public‑safety contract after fee jump to $77.40

City of Josephine leaders and representatives of the Magnolia Municipal Utility District (MUD) met in a special work session on Sept. 15 to address a disputed increase in the monthly public‑safety charge for MUD residents, the scope of police enforcement outside city limits, and the terms of the contract that governs those services.

The city has set a new public‑safety fee, which will appear on utility bills starting Oct. 1, raising the MUD portion to roughly $77.40 per household. Mike Phelps, president of the Magnolia MUD, said the district and many residents are struggling to understand both the size of the increase and what they will receive in exchange. “Cost for service is kind of the number 1 bucket that we're looking at — we would like a better explanation around the cost for service,” Phelps said.

Why it matters: the charge is billed to thousands of households in the MUD and is intended to recover police, fire and related public‑safety costs. MUD leaders said they are paying a large share of the service burden while lacking some enforcement powers inside the district because it lies outside Josephine’s corporate limits.

City staff traced the increases to a combination of factors including personnel, dispatch and equipment. City attorney…