Peabody Mayor Proposes Trash Fee, Water, Sewer Rate Hikes Amid Budget Crunch

PEABODY, MA — A new trash fee, water and sewer rate hikes, municipal staff cuts, and the potential selling of city-owned property are all ways Peabody Mayor Ted Bettencourt said he is looking to propose to help close a pending budget gap and to delay the need for a Proposition 2 1/2 tax override.

Bettencourt told the City Council on Thursday that a $200 trash fee per housing unit would raise $2.7 million for the city at a time when health insurance costs, Essex Tech assessments, and salary costs involved with recent collective-bargaining agreements are escalating beyond the tax levy's ability to absorb them without an override.

"The whole goal of the work we've been doing is to push off Proposition 2 1/2 and potential override votes — nobody wants that," Bettencourt said. "That's the work we've been doing. That's why all cities and towns are looking at (trash fees) because it is outside of Proposition 2 1/2. ...

"It has been something that we, as a city, haven't had to tackle. But I think that is something that is necessary for our city operations as we prepare to hold off on Proposition 2 1/2 override votes in our future."

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He noted that North Shore communities average between $100 and $500 per household for trash and that he is aiming to be "on the lower end of that."

Bettencourt did not quantify the potential water and sewer rate hike or the exact number of municipal positions that will be reduced in his budget.

"We are taking a real, hard, critical look at positions where there are potential savings and where it makes sense," Bettencourt said. "The budget is primarily people. ... Without question, there will be a budget presented that has less people working, in budgeted positions, than the year before."

He said the city is in talks to contract with an auctioneer to examine selling off potential surplus property — including the Kiley School — and said he will advocate moving the school administration into the current public safety building after the new building is completed this fall, saving rent paid on the current administration office space.

He said he will also propose a senior citizen tax abatement program that could allow the city's seniors and veterans to work up to 100 hours per year to earn $1,500 in credits that can be put toward property taxes.

Bettencourt added the School Committee is still working to cut about $1.5 million from next year's proposed budget to close its gap.

Bettencourt said he is not looking to propose a Proposition 2 1/2 override this year, or next year at this time, but that future considerations for one will be based on "decisions that we make in the next couple of (City Council) meetings."

"The trash fee will play a major role in that decision and how long that is extended," he said.