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ORDINANCE NO. 1554
AN ORDINANCE TO AMEND AND ADD TO CHAPTER 21
UTILITIES AND SERVICES, ARTICLE III, WATER,
FAIRHOPE CODE OF ORDINANCES
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF FAIRHOPE, ALABAMA, as
follows:
Section 1. The Code of Ordinances, City of Fairhope, Alabama, Chapter 21, Utilities and Services,
Article III - Water is hereby amended to reflect the following changes and additions:
Article III. —WATER
(c) Labor Cost Adjustment (LCA) Factor. The base rates set forth above may be adjusted periodically
to account for permanent changes in labor -related revenue requirements (e.g., salaries and wages,
pensions and benefits, etc.) that come about as a result of budget actions taken by the City
Council for a fiscal year. Such adjustment, when approved by the City Council, shall be
calculated as follows:
LCA = 1 + ((TLCB - TLCBR) / BRRR)
Where:
TLCB = The total annual labor cost, in dollars, that is reflected in the water utility budget for the
coming fiscal year, as approved by the Board.
TLCBR = The total annual labor cost, in dollars, that is reflected in the current base water rates.
BRRR = The total revenue requirement, in dollars, that is reflected in current base water rates.
The LCA factor so calculated shall be applied to each retail rate set forth above such that it will
result in new base water rates. Thus, when applied, a new TLCBR and BRRR will be
established for future LCA calculations. The following accounts shall be used in the
determination of total labor costs as reflected in TLCB and TLCBR:
Collection Costs / Revenue Department
Administrative Costs
Salaries
Payroll Taxes
Retirement Expense
Employee Retirement / Medical Insurance
Casualty / Workers Compensation Insurance
Section 2. All ordinances in conflict herewith be and the same are hereby repealed.
Section 3. The sections, paragraphs, sentences, clauses and phrases of this ordinance are severable,
and if any phrase, clause, sentence, paragraph or section of this ordinance shall be
declared unconstitutional by a court of competent jurisdiction, then such ruling shall not
affect any other paragraphs and sections, since the same would have been enacted by the
municipality council without the incorporation of any such unconstitutional phrase,
clause, sentence, paragraph or section.
Section 4. This ordinance shall take effect immediately upon its due adoption and publication as
required by law.
ADOPTED THIS THE 12TH DAY OF NOVEMBER, 2015
O 1 O Attest:
Asa A. H ks, M M C
City Clerk