LISBON — An increase in village water rates took effect Nov. 1, and now sewer rates are scheduled to do the same Jan. 1 following action taken this week by village council.

Council passed on a third and final reading legislation increasing the sewer rate from a flat $7.09 per 100 cubic feet to $8.09 starting in 2021. This was done at the request of the Board of Public Affairs (BPA), which oversees both water and sewer operations but only has the authority to set water rates.

This will increase costs by $2 per month for households using 400 cubic feet, or 3,000 gallons, which officials say is the average. Customers are billed for a minimum of 200 cubic feet.

The BPA also recommended council reinstate an automatic 3 percent annual sewer rate increase that was in effect between 2015-19, and that increase was also included in the legislation passed this week.

Council contracts with the county sewer district for use of the county sewage treatment plant in Elkton, but the village must still charge a fee to maintain and operate its sewer lines and pump stations.

The water and sewer usage increases were recommended by the Rural Community Assistance Partnership (RCAP), a non-profit agency that helps local governments assess its water and sewer needs and assist them in seeking state grants to address those needs.

RCAP determined Lisbon’s rates needed to be at 1.7 percent of the village’s median household income to qualify for grants and other assistance, and both rate increases are supposed to get them to that level.

In other action, council decided to stick with a health insurance plan that provides coverage only to employees and not their spouses or children because the village is still not in a financial position where it can resume offering the benefit.

At a prior meeting, the village’s insurance broker presented several options for new coverage in 2021, and she was also instructed to look into what it would cost if the village resumed offering coverage for employee dependents.

Village Fiscal Officer Tracey Wonner, who also serves as council clerk, reported if they offered a plan in which employees paid 30 percent of the monthly premiums and coverage was extended to include dependents, it would cost the village an additional $157,000 per year.

Instead, council approved a new plan in which the village would continue to pay 100 percent of the monthly premiums but continues to exclude coverage for dependents. The new plan includes a health savings account in which the money deposited in the account can only be used to pay health bills tax-free. The village will also deposit $1,000 on behalf of any employee who opens an account.

This plan is expected to save the village $29,000 a year.

Wonner said employees have the option of retaining current coverage but would have to pay the $110 per month difference in costs between both plans.

Under both plans, employees can add dependents but must pay 100 percent of the cost. Twenty-one employees use village insurance.

Council also decided at the urging of Mayor Peter Wilson to resume holding its meetings remotely via Zoom because of the increased number of people testing positive for Covid-19. Council resumed holding meetings at village hall this summer but last month moved to the St. George Hall for more space because too many people continued to show up for meetings at council chambers.

tgiambroni@mojonews.com