Peabody Council Approves FY27 Budget Sections, Cuts Own Raises and Several Line Items

PEABODY — June 16, 2026 — Peabody City Council approves FY27 budget sections totaling $217 million, trims pay raises across the board. Meeting as the Finance Committee of the Whole on June 16, Mayor Edward Bettencourt proposed a $217,335,439 operating budget — a $9.4 million increase driven by an $4.1 million jump in health insurance costs, a $4 million salary increase, an 18 percent rise in the Essex Technical High School assessment to $8.1 million, and a $648,000 trash contract increase from a prevailing wage settlement. The council voted 8-3 to approve a 2 percent FY27 raise for non-union ordinance employees with no retroactive pay for FY26, then voted 8-3 to cut the mayor's raise to 2 percent and eliminate the council's own 3 percent raise entirely. Finance Director Michael Gingras projected an average residential tax bill increase of approximately $189, with a range of $158 to $252 depending on the commercial property growth and the CIP tax classification factor set in December. Councilor Gamache's motion to cut $100,000 from the police overtime budget failed 5-6. The council approved general government, public safety, human services, culture and recreation, and employee benefits sections, including the Children's Museum's removal from the operating budget and funding through a $200,000 Community Development Authority grant plus an estimated $300,000 in ticket revenues.