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Peabody faces budget pressure from rising insurance costs; candidates discuss revenue options
Summary
Peabody’s proposed FY2026 budget, described at the candidates forum as about $208 million, is under pressure from rising health insurance costs and depleted ARPA funds, prompting discussion of revenue alternatives.
Peabody’s proposed FY2026 spending plan — cited at the forum as about $208,000,000 — is facing upward pressure from rising insurance and personnel costs and the exhaustion of pandemic relief funds, panelists and candidates said. The budget picture prompted audience questions about how the city would maintain services without large tax increases.
"We have a $208,000,000 budget, and this year, in particular, was a very difficult year, for health insurance," Mayor Ted Bettencourt said at the forum, adding that health insurance increases were a major driver behind this year’s tax change.
Why it matters: operating budget drivers such as insurance and staffing affect the property tax levy and decisions about revenue generation, service levels and capital priorities.
A member of the audience summarized the budget concern: with a $208 million proposed budget, rising insurance and staffing costs and depleted ARPA funds, residents could face a roughly $450 to $500 increase in property tax bills, the questioner said at the forum. Candidates were asked to describe alternatives to raising taxes.
Responses discussed a range of revenue options, many tied to redevelopment of large vacant industrial properties. Mayor Bettencourt and several council candidates said zoning decisions and redevelopment at sites including the former Analogic property, the Russo site and Centennial Park would be critical to the city’s revenue outlook.
Bettencourt noted other possibilities, such as landfill opportunities, air rights work with the state Department of Environmental Protection, and selling or acquiring water rights related to the Russo property. He said some of the cost pressures result from health insurance increases — "our health insurance went up nearly 15% this year" — and that until larger health‑care cost drivers are addressed, the city will continue to face pressure.
Candidate Rochelle Agneta emphasized investment in revenue‑generating amenities such as a performing arts center or a museum and said the city should consider starting services (she mentioned investigating an ambulance service) that might create revenue or reduce costs over time. "We need to have a good 10, 20, 30 year plan out," she said.
Clarifying details given at the forum included a mayoral statement that closing of the Russo facility reduced water and sewer billing revenue by "hundreds of thousands of dollars per year" (figure not precisely specified) but did not reduce property tax receipts while a new owner would likely increase real‑estate tax revenue.
No formal fiscal decisions were made at the forum. Candidates framed options that would require later study, zoning changes and negotiations with private developers and state agencies.
