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Exhibit 3. Calculation of Rate Adjustment <br />One Hundred percent (100%) of the rate adjustment shall be based on seventy five percent (75%) of the change in <br />the Consumer Price Index (CPI) between the month of January in the prior year (CPI1) and the month of January in <br />the current year (CP12). The CPI shall be the South Urban Region, All Items - All Urban Wage Earners and Clerical <br />Workers, published by the United States Department of Labor, Department of Labor Statistics (Series ID = <br />CW U R0300SAO ). <br />If the designated index is discontinued or substantially altered, SWDD may select another relevant price index <br />published by the United States Government or by a reputable publisher of financial and economic indices. <br />The total rate adjustment is rounded to the nearest hundredth of a percent and in any given year shall not exceed <br />five percent (5%) of the previous rate. <br />EXCEL FORMULA FOR CALCULATING RATE ADJUSTMENT <br />Rate Adjustment (%) = ROUND (((((CP12 — CPI1) / CPI1) * 0.75) * 100),2) <br />Where: <br />"CP11" = published CPI average for the month of January of the prior year <br />"CP12" = published CPI average for the month of January of the current year <br />SAMPLE CALCULATION OF RATE ADJUSTMENT <br />Current Rate = $8.00 CP11= 225.838 <br />CP12 = 230.195 <br />=ROUND (((((230.195-225.838)/225.838) * 0.75) * 100), 2) = 1.93% <br />Rate Adjustment of 1.93% is less than 5%, the maximum allowed. <br />New Rate = ROUND ($8.00 * (1 +0.0193),2) _ $8.15 <br />36 <br />ACTIVE: 38438749.1 <br />