SOUTH POINT — South Point water and sewer rates are going up to offset increases in other village expenses.

The village council voted 5-1 Tuesday to raise rates by $4 from $40 to $44 monthly for residents with fixed utility bills.

The rate increases — $2.50 a month for water and $1.50 a month for sewer — are needed to keep the village operating in the black, said village administrator Pat Leighty.

“We cannot possibly stay in the black at the rates we are at now. The only way would be to lay off (employees) and we can’t do that. We don’t have enough help as it is now.”

Mayor Ron West noted the increase is the first utility increase in two years and is necessary to create a small surplus in the village’s accounts.

Village leaders also voted unanimously to give employees a 3 percent annual cost of living raise at the regular December meeting. Leighty said the village gives its employees a cost of living raise each year.

According to figures provided by the village, the utility rate increases are expected to raise an additional $59,250 annually from 1,975 water customers and $74,934 annually from 4,163 sewer customers.

Most of those gains will be offset by increases in the cost of salaries, benefits, gasoline and village electric and gas bills, according to next year’s projected budget. However, the increases are expected to provide a combined $29,404 cushion in South Point’s 2012 annual budget.

Council members voted to suspend the rules, declaring an emergency to exist so the increases in rates and employee pay can take effect immediately next month.

David Classing was the only council member to vote against the utility rate increases. He said he voted no for political reasons, saying during his recent mayoral campaign his opponent’s supporters alleged that he would raise rates when he became mayor.

Leighty said he anticipates even with the increase that the village will continue to have the lowest utility rates in the State of Ohio, as recognized recently by an Ohio consulting firm. He said the village does not have the lowest rates “because we are lucky. It’s because we manage our money.”