Wayne council approves MERS amortization extension to ease FY27 budget pressure

Wayne City Council on April 21 approved an amortization extension agreement with the Municipal Employees’ Retirement System (MERS) that city staff say will reduce the city’s FY2027 pension payment burden by about $1.2 million.

City staff presented the agreement as a reamortization—“kind of like refinancing your house and lowering your payments,” said Katie Sample, who briefed the council on the change, explaining that three closed divisions would move their 100% funding date from 2041 to 2053. “This is going to save $1,200,000 for our fiscal year ’27 budget, which is already included in the budget that we gave you,” Sample said.

City Manager (name not provided) told the council the reamortization gives the city breathing room to invest in services and positions: “So this way we can invest in inspectors. We can invest in ordinance officers. We can invest in police and fire,” the manager said, adding the extension will avoid deficit spending.

Council members moved and unanimously approved the amendment to the MERS amortization schedule. No motion details or roll-call dissent were recorded in the public portion of the meeting.

Why it matters: The change reduces near-term pension payments by spreading costs over a longer period, lowering FY2027 budget pressure but extending the city’s funding obligation by roughly 12 years. City staff told council the savings are already incorporated into the recommended FY2027 budget and characterized the move as necessary to maintain core services and avoid severe budget cuts.

What’s next: The amortization extension was approved by motion; staff will reflect the change in the final FY2027 budget documents and present the proposed budget for public hearing on May 19, 2026.