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Home My WebLink AboutDocumentation_Regular_Tab 09E_09/09/1999 � � Villa e of Te uesta Memora�.dum To: Thomas G. Bradford, Village Manager , From: Matthew J. Morrison, Utilities Director� Date: September 7, i999 Subject: Calculation Error in Resolution No. 52-98/99 Approving the Annual Price Indez Rate Adjustment for the Rates and Char�es in Chapter 18 of the Village Code of Ordinances I inacivertently miss calculated the Annual Price Index Rate Adjustment associated with Resolution No, 52-98/99. This enor was sent to the Village Council Members last week � for their review prior to consideration at the September 9, 1999 Village Council Meeting. The Annual Price Index Rate Adjustment of 0.95% is incorrect and should be 1.07%. Please discard all previous transmittals relative to this subject matter and replace with the . attached inform�ation. . I sincerely apologize for any inconvenience this may have caused. ' Thank you. i Villa e of Te uesta Memorandum � To: Thomas G. Bradford, Village Manager , From: Matthew J. Morrison, Utilities Director �/� Date; September 7, 1999 `� Su6ject: Resolution No. 52-98/99 Approving the Annual Price Indez Rate , Adjustment of 1.07 % for the Rates and Charges in Chapter 18 of the Viliage Code of Ordinances On November 13, 1997, the Village 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. This Automatic ,Annual Rate Adjustment becomes effective with bills rendered on or after October 1, 1999, and will be adjusted and applied in each subsequent new fiscal yeaz. The Annual Price Index Rate Adjustment is directly related to the Consumer Price Index that is generated from the Bureau of Labor in May of each year. The Annual Price Index Rate Adjustment is calculated using the Consumer Price Index as follows: Fiscal Year Operating Expenses - Cost of Water Purchased = Net Opera.ting Expenses (Net Operating Expenses)( Consumer Price Index) = Index Adjustment Amount .___ Index Adjustment Amount = Price Index Rate Adjustment Fiscal Year Revenue from Monthly User Charges Applying these formulas for Fiscal Year 1999/2000 (sumnaarized in the table below), the Annua.l Price Index Rate Adjustment effective on October 1, 1999, is 1.07 %. Fiscal Year 2000 Operating Expenses $2,561,93I Cost of Purchased Water � 667.950) Net Operating Expenses $1,893,981 Consumer Price Index ( May 1999) 1.8 % Index Adjustment Amount $ 34,092 . Fiscal Year 2000 Revenue (LTser Charges) $3,176,583 Price Index Rate Adjustment 1.07 % Results of the 1.07 % Price Index Rate Adjustment applied to our current rates are summarized in Attachment 1— Proposed Charges and Rates. . � Please place Resolution No. 52-98/99 approving the Annual Price Index Rate of 1.U7 % on the September 9, 1999, Village Council Meeting Agenda for consideration by the Members. � Thank you. . � ATTACHMENT 1 VILLAGE OF TEQUESTA PROPOSED CHARGES & RATES � (1) Monthly Service Charge: EXISTING RATES PROPOSED RATES 5/8 inch $ 10.20 $10.31 % inch 10.20 10.31 1 inch 25.50 25.77 1-1/2 inch 51.00 51.55 2 inch 81.60 82.47 3 inch 153.00 154.64 4 inch 255.00 257.73 6 inch 510.00 515.46 Consumption Charge (Per Unit) Block 1 0 to 12,000 gallons 1.62 $ 1.64 Block 2 12,001 to 25,000 2.72 2.75 Block 3 25,001 to 40,000 3.70 3.74 Block 4 Above 40,000 4.75 4.80 Non-Residential Village of Tequesta Account � 1.62 1.64 Emergency Bulk Water Service (Consumption Charge Per 1,000 Gallons) 1.40 1.42 Capacity Reservation Fee: Per Equivalent Residential Connection 7.25 7.33 (1) Reflects inside the Village rates. Amounts shown do not include the application of any taxes and surcharge adjustments. Correspondence.Proposed Charges.Rates �� ' I � . � � RESOLUTION NO. 52�8/99 . ; A RESOLUTION OF THE VILLAGE COUNCIL OF THE � VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, , I APPROVING AN ANNUAL PRICE INDEX RATE ADNSTMENT OF 1.07% FOR THE RATES AND CHARGES INCLUDED IN CHAPTER 18 OF THE VILLAGE CODE OF ORDINANCES, � SAID RATE ADNSTMENT T� BE EFFECTIVE ON ALL BILLS " RENDERED ON OR AFTER OCTOBER 1, 1999, TO BE ' � ADNSTED EACH FISCAL YEAR; PROVIDING AN EFFECTIVE DATE. ' WHEREAS, on November 13, 1997, the Village Council adopted Ordinance No. 529 : providing for an automatic annual rate adjustment to the charges and fees enumerated in Section 18- j 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. � i NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE � VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, as follows: � ! Section 1. The rates, charges and fees enumerated in Section 18-3 of the Code of � Ordinances of the Village shall be amended by an automatic annual rate adjustment in the arnount � � of 1.07%, effective October 1, 1999, and on each October 1 of each successive year. ; I � i 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 � I , ; ! (Net Operating Expenses){Consumer Price Index) = Index Adjustment Amount i i i Index Adiustment Amount = Price Index Rate Adjustment � i Fiscal Year Revenue From Monthly User Charges : I I I - � , !j . • I r � B. Applying these formulas for fiscal year 1999/2000 (summarized in the table below), the annual price index rate adjustment effective on October 1, 1999, is 1.07%. Fiscal Year 2000 Operating Expenses $2,561,931 Cost of Purchased Water 667 950 ! ; Net Operating Expenses $1,893,981 i I Consumer Price Index (May 1999) 1•8°/a � Index Adjustment Amount $ 34,092 I Fiscal Year 2000 Revenue (User Charges) $3,176,583 � Price Index Rate Adjustment 1.07% . Section 3. This Resolution shall become effective immediately upon passage. i 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 � � , � I I 2 I R � I r The Mayor thereupon declared the Resolution duly passed and adopted this day of September, 1999. MAYOR OF TEQUESTA Ron T. Mackail ATTEST: Village Clerk N:UCR\13153-011Resolution 51-98-99.wpd 3