Laserfiche WebLink
REVISED EXHIBIT 4 — CALCULATION OF RATE ADJUSTMENT <br />One Hundred Percent (100%) of the rate adjustment shall be based on seventy-five percent (75%) of the <br />change in the Consumer Price Index (CPI) between the month of April in the prior year (CPI1) and the <br />month of April in the current year (CPI2). The CPI shall be the South Urban Region, All Items — All Urban <br />Wage Earners and Clerical Workers, published by the United States Department of Labor, Department of <br />Labor Statistics (Series ID = CWUR0300SA0) <br />If the designated index is discounted or substantially altered, SWDD may select another relevant price <br />index published by the United States Government or by a reputable publisher of financial and economic <br />indices. <br />The total rate adjustment is rounded to the nearest hundredth of a percent and in any given year shall <br />not exceed three percent (3.0%) of the previous rate. <br />FORMULA FOR CALCULATING ANNUAL RATE ADJUSTMENT <br />Annual Adjustment (as a Percentage) AA = (((CP12 - CPI1) / CPI1) * 0.75)); <br />New Rate = Round ((Current Rate + AA*Current Rate), 2) <br />Where: <br />"0I1" = published CPI average for the month of April of the prior year <br />"CPI2" = published CPI average for the month of April of the current year <br />SAMPLE CALCULATION OF ANNUAL RATE ADJUSTMENT INCREASE <br />Assumptions: Current Rate = $9.68 CPI1= 226.618 <br />CPI2 = 227.955 <br />Annual Rate Adjustment = ((227.955-226.618)/ 226.618) * 0.75) = 0.44% <br />Annual Rate Adjustment of 0.4496 is less than 3.0% the maximum allowed. <br />New Rate = ROUND ($9.68 * (1 + 0.0044), 2) _ $9.72 <br />SAMPLE CALCULATION OF ANNUAL RATE ADJUSTMENT DECREASE <br />Assumptions: Current Rate = $9.68 CPI1= 226.618 <br />CP12 = 225.618 <br />Annual Rate Adjustment = ((225.618-226.618)/ 226.618) * 0.75) _ -0.33% <br />New Rate = ROUND ($9.68 * (1 + (-0.0033), 2) _ $9.65 <br />