2021-100A - Laserfiche WebLink

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APPENDIX F CALCULATION OF RATE ADJUSTMENT One Hundred Percent (100%) of the rate adjustment shall be based on seventy-five percent (75%) of the change in the Consumer Price Index (CPI) between the month of June in the prior year (CP11) and the month of January in the current year (CPI2). The CPI shall be the South Urban Region, All Items — All Urban Consumers, published by the United States Department of Labor, Department of Labor Statistics (Series ID = CUUR0300SA0) If the designated index is discounted or substantially altered, SWDD may select another relevant price index published by the United States Government or by a reputable publisher of financial and economic indices. The total rate adjustment is rounded to the nearest hundredth of a percent and in any given year shall not exceed three percent (+/- 3.0%) of the previous rate. FORMULA FOR CALCULATING ANNUAL RATE ADJUSTMENT Annual Adjustment (as a Percentage) AA = (((CPI2 - CP11) / CP11) * 0.75)); New Rate = Round ((Current Rate + AA*Current Rate), 2) Where: "CP11" = published CPI average for the month of January of the prior year "CPI2" = published CPI average for the month of January of the current year SAMPLE CALCULATION OF ANNUAL RATE ADJUSTMENT INCREASE Assumptions: Current Rate = $10.00 CPI1 = 226.618 CP12 = 227.955 Annual Rate Adjustment =.((227.955-226.618)/ 226.618) * 0.75) = 0.44% Annual Rate Adjustment of 0.44% is less than 3.0% the maximum allowed. New Rate = ROUND ($10.00 * (1 + 0.0044), 2) = $10.04 SAMPLE CALCULATION OF ANNUAL RATE ADJUSTMENT DECREASE Assumptions: Current Rate = $10.00 CP11= 226.618 CPI2 = 225.618 Annual Rate Adjustment = ((225.618-226.618)/ 226.618) * 0.75) = -0.33% New Rate = ROUND ($10.00 * (1 + (-0.0033), 2) = $9.97 Annual Rate Adjustment is subject to the approval of the County Administrator or his designee. Page 32 of 32