Commencing January 1, 2016, and on the first day of January each successive year thereafter, the minimum monthly rates for water supplied through meters to users within the city limits and the water usage rate shall be increased from the previous year in accordance with the following formula:
[Wholesale Costs as % of Total Costs] x [Wholesale Cost Increase] + [Other Operating Costs as % of Total Costs] x [Increase in Average Annual Consumer Price Index for Seattle (CPI-U: All Urban Consumers)] + [Rate-Funded Capital Costs as % of Total Costs] x [Increase in Average Annual Engineering News Record (ENR) Construction Cost Index for Seattle] = Indexed Rate Adjustment |
The January 1, 2017, increase shall be the indexed rate adjustment percentage plus five percent.
The January 1, 2018, increase shall be the indexed rate adjustment percentage plus five percent.
The January 1, 2019, increase shall be the indexed rate adjustment percentage plus four percent.
The January 1, 2020, increase shall be the indexed rate adjustment percentage plus four percent.
The January 1, 2021, increase shall be the indexed rate adjustment percentage plus three percent.
The increase on the first day of January each successive year thereafter shall be the indexed rate adjustment percentage.
For purposes of this formula:
"Total Costs" shall consist of the following percentages:
Wholesale Costs | 41.6% |
Other Operating Costs | 58.4% |
Rate-Funded Capital Costs | 0.0% |
Total Costs | 100.0% |
"Wholesale Cost Increase" shall be the increase in the Tacoma wholesale water rate paid by the city over the previous year.
"Increase in Average Annual Consumer Price Index for Seattle (CPI-U: All Urban Consumers)" shall be measured for the 12-month period ending in June of the previous year as published by the U.S. Bureau of Labor and Statistics.
"Increase in Average Annual Engineering News Record (ENR) Construction Cost Index for Seattle" shall be measured for the 12-month period ending in June of the previous year.
The city manager shall cause to be prepared a rate worksheet setting forth the future minimum rate amounts for each meter size and the water usage rate, based on the percentage increases set forth herein, and said worksheet shall be available to the public.