HomeMy WebLinkAboutDocumentation_Regular_Tab 8D_8/10/2000 VI IL4b
Memorandum UTM#00.113
To: Joann Manganiello, Acting Village Manager Village of Tequesta
From: Josef F. Grusauskas, Utilities Director 94_ AUG = 1 2000
Date: July 31, 2000 Village Manager's Office
Subject: Annual Price Index Rate Resolution for Water Charges
Agenda Item; August 10,2000 Village Council Meeting
Attached, is the Annual Water Rate Resolution pursuant to Village of Tequesta Ordinance No. 529
adopted November 13, 1997. The FY 2000/2001 Water Rate Index is calculated to be 1.72%
The price index adjustment is included in Section (I) of the Ordinance. The purpose of the
automatic annual price adjustment clause is to ensure the recovery of the increased cost of utility
operations due to the effect of inflation. The Price Index allows for rate adjustments based on the
Consumer Price Index (CPI) for the previous year applied to the cost of utility operations less the
cost of purchased water from the Town of Jupiter. The CPI from the Bureau of Labor Statistics
Southeastern Regional Office for last year ending in May 2000 was 3.1%.
Staff recommends the Annual Price Index Rate Resolution be placed on the August 10, 2000
Council agenda for consideration. Upon adoption, the rates are to be effective October 1, 2000.
If you have any questions, please advise.
JFG/mk
Attachments
c: Richard Diamond
AgendaPricelndexRatesResolution
RESOLUTION NO. 74-99/00
A RESOLUTION OF THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY,
FLORIDA, APPROVING AN ANNUAL PRICE INDEX
RATE ADJUSTMENT OF 1.72% FOR THE RATES AND
CHARGES INCLUDED IN CHAPTER 18 OF THE
VILLAGE CODE OF ORDINANCES, SAID RATE
ADJUSTMENT TO BE EFFECTIVE ON ALL BILLS
RENDERED ON OR AFTER OCTOBER 1, 2000, TO BE
ADJUSTED EACH FISCAL YEAR; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, on November 13, 1997, Village Council adopted
Ordinance No. 529 providing for an automatic annual rate
adjustment to the charges and fees enumerated in Section 18-3
of the Code of Ordinances of the Village; and
WHEREAS, this automatic annual rate adjustment becomes
effective with bills rendered on or after October 1, 1999,
and will be adjusted in each subsequent fiscal year; and
WHEREAS, the annual price index rate adjustment is directly
related to the consumer price index as generated from the
Bureau of Labor in May of each year.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, as follows:
Section 1. Section 18-3 of the Code of Ordinances of the
Village provides that water rates, charges and fees shall
be amended by an automatic annual rate adjustment. The
amount of 1. 72% shall be effective October 1, 2000.
Section 2. The annual price index rate adjustment
referenced above is calculated using the consumer price
index as follows:
A. Fiscal Year Operating Expenses - Cost of Water Produced =
Net Operating Expenses
Index Adjustment Amount = Price Index Rate Adjustment
Fiscal Year Revenue From Monthly User Charges
B.Applying these formulas for fiscal year 2000/2001
(summarized in the table below) , the annual price
index rate adjustment effective October 1, 2000, is
1 . 72%
Fiscal Year 2000 Operating Expenses $ 2, 613, 593
Cost of Purchased Water ( 667, 950)
Net Operating Expenses $ 1, 945, 643
,
Consumer Price Index (May 2000) 3 .1%
Index Adjustment Amount $ 60,315
Fiscal Year 2001 Revenue (User Charges) $ 3, 510, 000
Price Index Rate Adjustment 1.72%
Section 3 . This Resolution shall become effective
immediately upon passage.
THE FOREGOING RESOLUTION was offered by Councilmember
, who moved its adoption. The
Resolution was seconded by Councilmember
and upon being put to a
vote, the vote was as follows:
FOR ADOPTION AGAINST ADOPTION
The Mayor thereupon declared the Resolution duly
passed and adopted this loth day of August, A.D, 2000 .
MAYOR OF TEQUESTA
Joseph N.Capretta
ATTEST:
Joann Manganiello
Village Clerk
Resolution\Pricelndex Resolution
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