§ 22-8.2. Annual Consumer Price Index (CPI) adjustment.

(1)

The city will adjust rates every year beginning October, 1 2013 (beginning of fiscal year 2014). The annual rate index adjustment should be based on: i) the percentage change in the Consumer Price Index for all Urban Areas (CPI-U) as published by the United States Department of Labor from July 1 of the preceding calendar year until June 30 of the current calendar year applied to the level of operating expenses as generally defined by commonly accepted accounting principles for the most recently completed fiscal year, divided by ii) the total sales revenues from monthly water and sewer rates for the most recently completed fiscal year, exclusive of wholesale water and wastewater purchases incurred during such fiscal year.

(2)

Calculations will be completed by applying the prior fiscal year operating expenses less actual cost of purchased water and wastewater equals the "Net Operating Expenses." The Net Operating Expenses times the percentage change in the Consumer Price Index for all Urban Areas as published by the United States Department of Labor from July 1 of the preceding calendar year until June 30 of the current calendar year ("CPI-U") equals the "Index Adjustment Amount." The Index Adjustment Amount divided by the prior fiscal year revenues from the sum of the monthly base charges and the consumption charges equals the "Price Index Rate Adjustment" (rounded and carried to the 1/100 place) to be applied to the applicable water and wastewater monthly user charges. The annual index rate adjustment is calculated as follows:

Fiscal Year Operating Expenses - Cost of Water and Wastewater Purchased = Net Operating Expenses

(Net Operating Expenses) × (CPI-U) = Index Adjustment Amount

Index Adjustment Amount Prior Fiscal Year Revenue From Monthly User Charges

=

Price Index Rate Adjustment

 

(Ord. No. O-2009-027, § 2, 11-18-09)