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Cost-of-Living Adjustments

The Kentucky Constitution limits the compensation that elected city officials may receive as well as when they may receive it.  Since dollar amounts were put into the Constitution, courts have upheld adjusting those amounts each year according to inflation.  These adjustments are commonly referred to as cost-of-living adjustments (COLAs).

The Department for Local Government (DLG) annually uses the increase or decrease in the consumer price index (CPI) to determine the maximum COLA rate for city elected officers.  This provides cities a basis on which to determine pay for the mayor and legislators, which is set by ordinance and therefore unique to that city’s needs.  Although many cities incorporate the COLA from DLG in their annual budgets, the state-approved COLA is not mandatory for city employees.  

Calendar Year

COLA Set by DLG

2019

1.9%

2018

2.1%

2017

2.1%

2016

0.70%

2015

0.80%

2014

1.50%

2013

1.70%

2012

2.96%

2011

1.50%

2010

2.72%

2009

0.10%

2008

4.08%

 

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