Goshen council fixes effective date for 2026 COLA after payroll timing confusion

On Dec. 29 the Goshen City Council moved to correct conflicting implementation dates in the recently approved wage ordinance so all employees receive the 2026 cost-of-living adjustment (COLA) at the same time.

The chair said the appropriate date “should have been December 12,” and explained that the city’s historical practice was to implement COLA with the first paycheck of the pay period rather than automatically on Jan. 1. Council members described challenges in past years caused by split payroll dates and said the change is intended to make implementation consistent across departments.

Councilors also discussed payroll-system limitations and special pay calculations for public-safety employees. One councilor noted the complexity: “When I first came to work for the city, I was told that no two city employees were paid the same,” and described complications such as incremental pay that interacts with overtime and recent federal tax changes affecting overtime treatment. City staff said a team of CPAs is working to ensure the changes and tax treatment are handled correctly.

The council voted unanimously to pass Ordinance 52‑51 to set the implementation practice consistent for the 2026 wage change. Councilors said they will give employees advance notice and consider an informational session for payroll complexities in the future.

What’s next: ordinance passed on second reading; staff will coordinate payroll implementation and employee notice before the first 2026 pay period.