Peabody City Council Finance Committee Meeting - June 16, 2026

The Peabody City Council Finance Committee convened on June 16, 2026, to begin reviewing the FY27 budget, including city operating, water and sewer, and recreation budgets. A key procurement-related discussion centered on the ordinance amendment for compensation schedules for part-time and full-time non-union city employees, with a council-approved 2% salary increase for ordinance employees for FY27, down from an initially proposed 3%. The mayor pledged to align his salary increase with the council's decision. The committee also discussed the need to fill a long-vacant senior city engineer position with a salary adjustment to attract qualified candidates. Budget presentations highlighted a $9.4 million overall increase, driven largely by employee benefits and payroll costs, with detailed revenue sources including state aid, local receipts, and a new trash fee. Several line-item reductions were approved, including a $100,000 cut to the financial administration reserve fund and a $1,000 reduction in mayoral postage. The council debated and ultimately approved the general government and public safety budgets, with a motion to reduce police overtime by $100,000 failing. Discussions also covered reallocating overtime funds to full-time staffing in police and fire departments, though legal constraints require formal budget amendments for such transfers. The Children's Museum budget was addressed, confirming funding through a Community Development Authority grant and ticket revenues, ensuring no impact on the operating budget. The meeting included motions to reduce or maintain various line items, reflecting efforts to balance fiscal responsibility with maintaining city services and employee support amid rising costs and limited state aid.