This article is adopted pursuant to applicable provisions of Kansas law for the purpose of establishing an annual adjustment to municipal electric, sewer, and water rates based on the Municipal Cost Index (MCI).

(Ord. 1530)

Each February 1st, the City’s electric, sewer, and water utility rates shall be automatically adjusted by applying the applicable Municipal Cost Index (MCI), as determined by the City or its designated source, to the rates then in effect, unless the City Council acts to modify, suspend, or decline such adjustment in accordance with this article.

Each February 1st, the City’s water utility rates shall be automatically adjusted by applying the changes to the rate from the City of Lawrence Kansas for the cities cost to purchase water, unless the City Council acts to modify, suspend, or decline such adjustment in accordance with this article.

(Ord. 1530)

(a)      Prior to February 1st of each year, City staff shall calculate the automatic MCI adjustment and provide notice of the calculated adjustment to the City Council.

(b)     Prior to the February 1st of each year, City staff shall notify the City Council of the increase of the purchase water rate from the City of Lawrence.

(c)      Unless the City Council takes affirmative action by resolution or ordinance prior to February 1st to modify, suspend, or decline the adjustment, the calculated MCI adjustment shall take effect automatically on February 1st.

(d)     If the City Council elects to modify, suspend, or decline the MCI adjustment, such action shall be documented by resolution or ordinance, as determined by the City Council.

(Ord. 1530)

Nothing in this article shall be construed to limit the authority of the City Council to:

(a)      Modify, suspend, or decline to apply the automatic MCI adjustment in any given year; or

(b)     Adopt additional ordinances or resolutions establishing utility rates different from those calculated using the MCI, as deemed necessary and in the best interest of the City.

(Ord. 1530)