Peabody mayor pushes $200 trash fee; finance committee advances ordinance with five‑year freeze

Mayor Bettin Court told the Peabody Finance Committee on June 2 that steep health‑insurance increases and a $648,000 prevailing‑wage hit to the city’s Republic trash contract have squeezed the municipal budget and left few options. “This was always kind of a last option for me,” Court said, describing the proposed $200 annual trash fee as a tool to avoid an abrupt Proposition 2½ cliff and buy several years to stabilize finances.

The mayor said the city pays roughly $3 million per year for curbside trash and recycling and that recent cost drivers — including double‑digit health‑insurance cost growth and state‑set prevailing wages — have created a budget gap the administration cannot close by cuts alone. Court proposed the fee would be billed in installments (semiannually or quarterly), with owner‑occupied households eligible for reduced charges: $100 for age‑65+ owners and $100 for veterans; standard abatements for people who already qualify under city rules would apply.

The proposal drew more than three hours of public comment. Residents at the podium described the fee as an added tax on homeowners, urged the council to pursue alternatives such as pay‑as‑you‑throw programs, greater enforcement of code and traffic fines, or municipal collection, and pressed for stronger protections for seniors and low‑income households. “We can call it a fee, but a fee from the city or any other government is a tax,” said Larry Roberie, who said residents deserved clearer guarantees about how long the charge would remain in place.

Committee members disputed several of the suggested alternatives. Councilors said pay‑as‑you‑throw can shift waste to illegal dumping or increase rodent problems, and they noted the city remains bound by its Republic contract until expiration and by state prevailing‑wage rules. Several councilors and the mayor described active work to trim personnel and program costs as part of the broader budget; Court said the administration has cut roughly 20 positions and will present additional reductions in the budget process.

After debate, the finance subcommittee voted 4–1 to report a revised ordinance favorably to the committee of the whole. The version advanced by the committee keeps the $200 annual fee for residential structures of up to four units; adds owner‑occupied discounts (a $100 reduction for owners age 65+ and for veterans), vacancy credits for unoccupied units, and a $100 abatement option for households that contract for private composting; and authorizes existing city abatements (veterans, disability, income‑qualified programs) to apply to the fee. The ordinance also includes penalties for false abatement claims, a procedure for liening unpaid balances, and a five‑year freeze on fee increases from July 1, 2026 through June 30, 2031.

The committee recorded its vote on the trash ordinance as 4 in favor, 1 opposed; members who supported the motion said it is a temporary, targeted revenue source intended to buy time for other budget adjustments and to avoid immediate, deeper cuts to schools, public safety and essential services. Opponents argued the measure is an end run around Proposition 2½ and urged the council to return to the mayor for further study before moving forward.

Next steps: the ordinance advanced out of the finance committee and will be taken up by the committee of the whole and later the full council for final readings and votes. The finance director and administration said additional details — including final billing methods (water bill passthrough vs. separate billing) and precise abatement procedures — will be published with the ordinance and on the city web portal before the council’s next consideration.

What to watch: whether the committee of the whole retains the five‑year freeze and the scope of abatement rules; how the administration chooses to bill (water‑account surcharge versus separate invoice); and whether the full council narrows or expands the exemptions for low‑income and disabled residents.