Mayor presents $217.3M FY27 operating budget; health insurance and Essex Tech assessments top the list of drivers

Peabody — Mayor Bettin Court and Finance Director Mike Jingris presented the proposed FY2027 operating budget for the city side on June 16, asking the council to weigh rising employee benefit costs, contract increases and outside assessments against limited revenue growth.

Key numbers: The mayor proposed a FY2027 total operating budget of $217,335,439, an increase of roughly $9.47 million from FY2026. The city‑and‑school combined increase is about $9.4 million. Jingris highlighted major drivers: health insurance (+11.1% after negotiations), collective‑bargaining salary steps, a $1.3 million increase in the Essex Tech vocational assessment (an 18% jump) and trash/recycling contract costs tied to prevailing‑wage settlements.

Health insurance: "This year's budget driver is health insurance," the mayor said. Jingris said earlier projections for medical benefits were cut through negotiations with union leaders; what would have been a larger spike was partially mitigated by modifying benefit design and provider choices. The finance director said initial projections of a higher increase were reduced from about $6.2 million to roughly $4.1 million through talks with union leaders.

Revenues and tax impact: The plan relies on a mix of local receipts, state aid and available revenues (parking, CDA support for the Children's Museum, a proposed trash fee and limited land sales). Jingris presented tax‑impact scenarios. Using the administration's assumptions (1.5% residential value growth, CIP factors) the average residential tax bill increase was presented in scenarios ranging about $158 to $252 depending on CIP choices and market growth.

Council questions: Councillors pressed for details about CDA grants, hotel tax assumptions, new growth projections and specific line‑item increases (capital outlay, purchase of services, and professional services). Jingris said some numbers are placeholders until values are certified by the state, and that the budget team intentionally used conservative assumptions.

Children's Museum and enterprise accounts: The mayor said the Northshore Children's Museum will be moved off the general operating budget and funded through museum revenues and a temporary CDA grant; councilors asked finance to track revolving accounts and ensure transparency on transfers.

What happens next: The council will take section‑by‑section votes on the budget; the administration and councilors signaled more line‑by‑line debate to follow and potential reallocations before final adoption this summer.