PEABODY – After a ceremonious start to the Mid-Term Inaugural City Council meeting Monday night, Peabody Mayor Michael J. Bonfanti highlighted his annual speech with an emphasis on community teamwork to get the city through uncertain fiscal times.Bonfanti gave his talk after a performance by the Peabody High School’s chorus, a walk through by dozens of veterans, a pledge of allegiance to the flag led by Police Chief Robert Champagne and Fire Chief Steve Pasdon and a prayer by Rev. Raymond Van De Moortell of St. Adelaide’s Church.The first call of business was the election of a Council President. Ward 6 Councilor Barry Sinewitz was elected unanimously.In addition to public safety being a top priority, Sinewitz said revitalization is an important topic.”I’d like to see real social and economic opportunities to the residents of Peabody, especially in the downtown,” Sinewitz said.He also said citizens need to remain positive in the face of tough times – a lesson he said was learned by his former boxing coach, Charlie Bonfanti, who is the mayor’s uncle.”We need to stay focused on the issues and we need to stay positive,” Sinewitz said.Mayor Bonafanti gave a similar message during his 25-minute address.”No one should expect a bailout,” the mayor said. “The only bailout we receive will be through our own hard work.”Despite warnings of decreased local aid from the state, Bonfanti said the city’s budget remains “fiscally strong” with a $10 million cash reserve and a $3.5 million levy capacity, calling it, “The largest on the North Shore.”However, he said, “We too are just a paycheck away from fiscal instability.”Cutbacks in staffing and programs, deferral of purchases, the imposition of user fees and other avenues will be used again to cut costs just like the last economic downturn, Bonfanti said.”There will be some pain and the pain will be shared by all,” he said.Bonfanti emphasized efficiency across municipal levels to save the city money.The mayor said the school committee would have to take a serious look at their budget because 50 additional school department employees were hired last year, resulting in a three percent budget increase, despite the fact that 400 fewer students enrolled in Peabody public schools since 2003. He also said that even though MCAS scores overall improved in 2008, “I’m still not satisfied with our present scores.”Bonfanti also took aim at the city’s 14 municipal worker unions, asking them to be a part of the process to reduce government spending. The police department came under national criticism this autumn when its union successfully bargained to use Sept. 11 as a holiday – a perk even New York City police officers don’t get because it’s not officially a holiday.”We need municipal unions to realize that we are in this together and give as well as take,” Bonfanti said.The mayor said he was happy that successful changes were made last year to the city’s health care costs and hopes costs can be reduced again in 2009.”The cost of health insurance for the city of Peabody and its taxpayers is astronomical at $24.2 million and 18 percent of the fiscal 2009 budget,” Bonfanti said. “We have successfully negotiated a change in the percentage share of the cost of health premiums and the cost of co-pays. Going forward, we will continue our efforts to reduce costs in this area.”Other goals in 2009 included bringing more businesses to the downtown area and making use of outdoor areas, including the scheduled building of a trail connecting Sydney’s Pond to the Meadow Golf Course.