PEABODY — Mayor Ted Bettencourt has informed the City Council that he will be bringing forward an ordinance change to implement a trash fee, which he believes could garner substantial revenue that could combat looming budget concerns.
“We are the only city and town in this area that does not have a trash fee, either a set fee or a pay as you throw,” Bettencourt said. “I believe that for our city to function with Prop 2 ½, not too far down the road, we need to insert and to consider a trash fee.”
He stated that he is considering a $50 fee to be paid quarterly, equating to $200 per year per housing unit. This decision was made after studying nearby municipalities to see what they charged their residents, which ranged from $100-$500.
“Salem, Beverly, Danvers, they’re all in the $100-$400 range, so I want us to be certainly in the lower end of that,” Bettencourt said. “But $200, that would be a $2.7 million receipt for the city, $2.7 million that would help with our budget, that would help with Proposition 2 ½.”
Bettencourt emphasized that, if the $200 trash fees and anticipated tax increases move forward, the “combination would be less than what the tax increase was last year.”
When considering the need “to pump up” the city’s water and sewer rates, which has not been done in three years, Bettencourt did not have an estimate at the ready, but he did disagree with the comment made by Finance Director Mike Gingras on April 23 that the average homeowner’s water and sewer bill could increase by “three or four or five times what they’re paying now.”
“A 300-400% increase is not in the cards for some time,” Bettencourt said.
He mentioned that both the potential trash fee and the water and sewer rate increases must be decided before the fiscal year 2027 budget is voted on in mid-June, since those discussions will affect the overall numbers.
As another way to ease the city’s financial strain — most notably due to health insurance rate increases, state assistance decreases, municipal salaries and overtime adjustments, and Essex Tech debt and tuition costs — Bettencourt also mentioned the potential for selling city-owned property. He noted that this is not necessarily feasible for this year, “but it is a discussion that we as a community have to have, and it starts with the School Committee.”
He explained that the School Committee has oversight of the Kiley School, and he projects the Committee will focus on the future of that property this fall. According to an appraisal done “right before COVID,” Bettencourt said the property went for “well over $2 million at that time, more if we included the park, which is not something that I’m ready to move on, but certainly something that we would have to discuss.”
Bettencourt continued that he will advocate for the school administration to move into the current police station once the public safety building project is finished this fall, which would save the city money by no longer renting the building where the school administration currently works from.
When it comes to other ideas for combating Proposition 2 ½, Bettencourt stated that he will be looking to cut positions before expenses, noting that 70-75% of the city’s budget is composed of salaries and health insurance.
“I am going to be presenting to you a budget that has reductions in personnel,” Bettencourt said, adding that he does not have a number solidified yet on how many positions will be cut, but one of those positions will be the business liaison, which is his chief of staff Chris Ryder’s other title, and the stipend associated with it.
Additionally, Bettencourt will be proposing a senior citizen tax abatement program that would allow the city’s seniors and veterans to work up to 100 hours per year, between the months of February through October, for $15/hour to earn a tax credit of up to $1,500.
