The city will not have to repay $1.2 million to the water and sewer enterprise fund. Medford borrowed the money from the fund, which has a $6.5 million surplus, to avoid laying off 20 public works employees in 2011. The state Legislature approved a home-rule petition from the city to allow the one-time transfer, but an amendment to the bill required the city to repay money into the account. Governor Deval Patrick recently signed a bill, filed by the city’s legislative delegation, relieving Medford of the debt. In a statement, Mayor Michael J. McGlynn said repaying the surplus funds would not benefit ratepayers. “This was [done] in order to save approximately 20 jobs and secure city services,” he said. “To raise rates in order to replenish the account doesn’t make any sense.”