Magdalena preparing for first water‑rate increase since 2018

Residents in the Village of Magdalena should expect higher water and wastewater rates in the coming months as officials confront rising costs and a utility system that according to reports no longer pays for itself.

Mayor Michael Thompson said the village has been operating both systems at a deficit, a situation he described as unsustainable after years of inflation and stagnant rates. The last increase was approved in 2018.

“We aren’t even breaking even on water and wastewater,” Thompson said in an interview. “We buy chemicals, we pay people, and prices have gone up since 2018. It has to at least break even.”

The village is awaiting a formal rate study from its contractor, expected to arrive in mid‑February. Thompson said the report will include low, medium and high rate‑increase options for the board to review. He confirmed the contractor is still on schedule and that the board will not know the exact numbers until the study is delivered.

During the most recent village meeting, Thompson warned residents that the increase is coming and emphasized that the village must stabilize its utility finances before it can qualify for state or federal funding to repair aging infrastructure.

Magdalena recently submitted a draft engineering report on its wastewater system to the state, but Thompson said funding agencies expect the system to be financially sound before awarding grants.

“We won’t get funding for it if our water system doesn’t even break even,” he said. “If it brings in a little more than break‑even, that will help us refurbish the water and wastewater systems, which we’re already working on.”

Thompson said he plans to meet with contractors next week for updates on ongoing projects. He added that Magdalena is not alone in facing rising utility costs. A councilor from Silver City told him that their community has raised water rates five times in the past three years.

Thompson said he hopes early communication will prevent residents from feeling blindsided once the proposed rates are released. Any changes will require approval from the Village Board at a public meeting.