Page 14 - The Wayne Dispatch

Community faces increased winter tax bill

By Carolyn Marnon “We still have a significant imbalance between retirees and full-time the totality of the contribution that
It’s no secret that the City of the City has to make, the employee
Wayne has had financial problems employees paying into the system, and that’s been a lot of the problem.” portion is really a drop in the bucket.
for the past 10 years or so. While the City Manager Lisa Nocerini It is a small fraction of the total
City once was a shining gem with amount that has to be paid in,” said
summer festivals and fireworks, all sons, the City’s pension obligation lected from the City’s taxpayers will Camiller. “At the end of the day,
of that, and more, has been cut from rose significantly in the last 12 years, be paid directly to MERS. MERS still needs a significant
the budget to the point where there from approximately $1.8 million in The judgment levy is only for the amount of money.” He went on to
really isn’t anything more to cut. Rev- 2010 to a projected $7.2 million for current fiscal year. In January 2021, say that the employee contributions
enues have fallen drastically as a re- 2022. the City will begin evaluating the are a factor, but they aren’t the pri-
sult of the Great Recession of 2008, The recession caused the City to budget for the next fiscal year begin- mary factor. “The primary factor is
and now residents are paying a price. lose close to 45% of its tax base ning July 1, 2021. the benefits that were given to re-
The City Finance Department re- which it has not recovered from. The “If you want to stop this from hap- tirees back in 2008 or 2009 when
cently sent out a Winter 2020 Judg- Michigan state legislature has cho- pening again,” advised Brian the City left its old pension system
ment Tax Levy Notice to residents sen not to pay local governments bil- Camiller of Plante Moran at the De- and joined MERS.”
and businesses. Back in April, the lions of dollars of revenue sharing cember 1 city council meeting, “you In 2009, 30 individuals took the
city council held a special study ses- that’s been owed over the past 20 could do a 345 (millage). It could be early retirement that was offered.
sion where they discussed the City’s years. for a couple 2, 3, 4 mills and that The city council that was in place at
retirement pension obligation with a The City of Wayne was unable to would bolster your budget every year that time had voted unanimously in
representative from the Municipal pay 100% of what was owed to going forward and possibly stave off February 2009 to increase the retire-
Employees’ Retirement System MERS this year. The City does not the situation from happening again.” ment multiplier from 2.7 to 2.8.
(MERS). have a choice whether to make the “We still have a significant imbal- That increased multiplier cost the
During the Great Recession of payment or not. It is an obligation ance between retirees and full-time City, according to Nocerini,
2008, city employees were offered a mandated by law in Michigan. employees paying into the system, $1,231,648. She said newly hired
higher pension if they would retire MERS sued the City for breach of and that’s been a lot of the problem,” employees are now accepting a 1.5
early. As a result of the added re- contract in Wayne County Circuit said City Manager Lisa Nocerini. multiplier.
tirees into the retirement system, Court for $4,753,409. The court “When it comes to your pension
long-term investment returns being mandated that the judgment be system, the employee contributions, If you have any questions, you are
lower than expected and longer life placed on the Winter tax rolls. 100% while they are significant to the indi- encouraged to call the City for more
expectancies, as well as other rea- of the 13.1399 millage revenues col- vidual employee, no question, but in information at 734-722-2000.

14 · December 2020 · The Wayne Dispatch