MUNICIPAL COST INDEX SHOWS TWELVE-MONTH DECLINE

The Municipal Cost Index (MCI), developed exclusively by American City and County magazine, shows the effect of inflation on the cost of providing municipal services. The MCI is used to study price trends, make informed government contract decisions, and facilitate sound budget planning. The MCI measures changes in the cost of providing local government facilities and services.

In calendar year 2007, the MCI rose in ten of the twelve months; its change for the year was +3.7 percent. During 2008, the MCI again rose steadily through October; the increase for that 10-month period was 6.7 percent.

Then in November 2008, the picture changed dramatically. The MCI has fallen by 4.7 percent since that time, and even though the index climbed slightly for July 2009, it has fallen by 3.7 percent in the past 12 months.

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Texas Municipal League.

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