1060.10 The Bureau of Labor Statistics (BLS) is the principal fact-finding agency for Special Districts and the Federal Government in the broad field of labor economics and statistics. BLS is an independent national statistical agency that collects, processes, analyzes, and disseminates essential statistical data to the American public, Congress, other Federal agencies, State and local governments, business, and labor. BLS also serves as a statistical resource to the Department of Labor.

1060.20 The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumer for a representative market basket of consumer goods and services. User fees (such as for water) and the sales and excise taxes paid by the consumer are included; however, income taxes and investments (like stocks and life insurance) are not included.

1060.30 The CPI-U include expenditures by urban wage earners and clerical workers, professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, retirees and others not in the labor force. The CPI-W includes only expenditures by those hourly wage earnings or clerical jobs.

 The Manager or Finance Director accesses the Consumer Price Index by either phoning the Hotline (415) 625-2270 or utilizing the website (www.bls.gov/cpi) in January or February and requests the CPI-U for San Francisco, Oakland, San Jose, “All Urban Consumers.” The BLS collates this data as a monthly index, for U.S. city average in the 3 largest metropolitan areas, 4 geographic regions, 3 population size classes, and 10 region-by-size class groupings. At the end of the calendar year, the following formula shall be used to determine the overall CPI for the calendar year. Employee cost of living changes for the purposes of salary negotiations shall be based on this formula.

The CPI Formula:

((December CPI Current Year – December CPI Previous Year)/December CPI Previous Year) x 100 = CPI

Issued: July 10, 2002

Reviewed: April 15, 2008

Reviewed: September 2016

Board Approval: October 19, 2016