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Committee digs into 2026 payroll schedule; 27th pay could affect 31 management-level salaries and city costs
Summary
Maumee’s finance committee discussed options to handle a calendar-driven 27th pay period in 2026 affecting salaried management and director employees, estimated net city cost scenarios, and next steps for employee outreach and ordinance changes.
The Maumee City Council Finance & Economic Development Committee spent substantial time reviewing the budget and personnel implications of an unusual payroll calendar in 2026 that would create a 27th biweekly pay date for salaried employees in certain pay classifications.
Finance staff told the committee that calendar and holiday timing in 2026 would, unless the city changes the scheduled pay date, create a 27th biweekly pay for some salaried staff. Hourly employees would be paid as usual; the issue affects salaried employees whose compensation is stated as an annual salary and then converted to biweekly checks. Staff presented three principal options: 1) divide the annual salary across 27 pays (which reduces each biweekly check but keeps annual pay unchanged), 2) authorize a separate 27th pay so employees receive an extra paycheck that year (increasing annual spend for the city), or 3) authorize the extra paycheck but offset the cost by eliminating scheduled 2026 raises for the affected group.
Finance staff gave numerical estimates during the meeting: the extra paycheck for management and director-level employees was described as having a gross cost in one cited estimate of about $133,000, and a total cost including employer PERS and Medicare contributions of roughly $155,000. The staff also estimated a comparative net impact to the city of roughly $57,000 under a scenario that authorizes a 27th pay but foregoes 2026 raises. Committee members asked for historical precedent and requested staff research prior years' responses to similar calendar situations.
Committee members and staff said the decision would need to be made before the first pay period of 2026 (staff repeatedly said the decision must be made by the end of the year/December) so payroll systems and any ordinance changes can be implemented. Staff indicated roughly 31 employees in management and director classifications would be affected; those in collective-bargaining units were expected to receive the 27th pay based on union language and would not be covered by a unilateral management change.
Committee members generally supported collecting feedback from the affected employees before making a final recommendation and asked staff to run scenarios showing 2027 implications (for example, whether future raises would be applied to a 2025 base or include the 27th pay). Finance staff said they would circulate individualized calculations to the impacted employees and return to the committee for further discussion within a month.
No final committee vote on the 27th-pay choice was taken at this meeting; members set a timeline for additional outreach and scheduled follow-up to consider employee feedback and model scenarios before deciding what to recommend to council.
