
The City of Richland Center Personnel Committee is considering a proposed 2027 Cost-of-Living Adjustment (COLA) for municipal employees
The City of Richland Center Personnel Committee is considering a proposed 2027 Cost-of-Living Adjustment (COLA) for municipal employees. City Administrator Ashley Oliphant requested the review ahead of the upcoming budget cycle. Unlike step or merit pay increases, a COLA provides a general wage raise across positions to ensure worker compensation keeps pace with rising living expenses. Recommendations from the Personnel Committee will move to the Budget Committee to help establish wage baselines in the draft budget.
Recent economic indicators highlight persistent inflationary pressure across the region. National Consumer Price Index data shows prices increasing by 3.4 percent over the twelve months ending in August, while the Midwest regional rate reached 3.6 percent. National core inflation stood at 2.4 percent, with wage earners seeing a 3.5 percent CPI increase. Furthermore, Social Security estimates project a 2027 COLA of around 3.5 percent. For comparison, the City approved a 2.75 percent adjustment for 2026 and a 3.0 percent adjustment for 2025.
Municipal officials must balance pay adjustments against statutory financial constraints. Under Wisconsin state law, the City's property tax levy growth is limited by net new construction, which stands at 0.273 percent for the 2027 budget. Any proposed wage increase must fit within these levy restrictions or be offset through spending cuts or other revenue sources. Furthermore, wage raises incur additional municipal expenses, including mandatory employer contributions to Social Security, Medicare, and the Wisconsin Retirement System (WRS). Taking into account the 2027 WRS employer rate of 7.25 percent for general staff and 14.35 percent for police officers, every $1.00 pay increase translates to approximately $1.15 in total costs for general staff and $1.22 for police personnel.
The Department recommendation suggests setting the 2027 COLA between 2.5 percent and 3.5 percent for non-represented employees.
While police bargaining unit wages are determined through collective bargaining, utility and library employees fall under separate board authorities, with the Utility Commission having already approved a 3.5 percent COLA for 2027.

Adam Hess has been involved in radio broadcasting since 1990, with many of those years spent on the air at WRCO FM in Richland Center. Currently, Adam hosts the Weekend Wake-up and Prime Mover Saturdays on WRCO FM, jumps in and helps out with news duties, handles Social Media duties for WRCO and WRCE, and is the Director of Technology at a Southwest Wisconsin School District. Reach him at adam.hess@civicmedia.us.
