Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Personnel Policy topic
No spam. Unsubscribe anytime.
Council approves 2026 pay plan; recommends 2.5% COLA and step increases
Summary
The council approved the 2026 employee pay plan effective with the first paycheck in January 2026. Staff recommended a 2.5 percent cost-of-living adjustment (COLA) and continued step increases; estimated fiscal impact under $450,000.
The Andover City Council unanimously approved an updated 2026 pay plan for city employees that incorporates a recommended 2.5 percent cost-of-living adjustment (COLA) and continued longevity/step movements within new job-grade ranges.
Human resources staff said the pay structure was developed with the Arnold Group following a comprehensive 2024 pay study; the current recommendation uses the previous year’s CPI (2.5 percent) as the COLA for 2026. The revised pay tables were adjusted to exact-dollar values (to the cent) rather than rounding, to facilitate accurate future adjustments.
Staff explained the pay plan includes step movements for tenure (steps range from 1% to 3% depending on grade) and the combination of COLA plus step increases could result in total increases for some employees of up to about 5.5 percent. The plan includes market adjustments and potential grade changes for some employees who are promoted. The estimated total fiscal impact of implementing the COLA, step movements and potential grade adjustments for 2026 is just under $450,000, including about $21,000 estimated for overtime.
The council approved the pay plan to take effect on the first paycheck in January 2026, and staff noted supervisors must provide solid performance evaluations for employees to receive full increases. The council also voted not to include a merit bonus pool this year; staff said they intend to return to a multi-year approach to pay maintenance and market competitiveness.
