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Council adopts ordinance setting 2% cap for nonunion salaries after heated debate over retro raises
Summary
Peabody council on June 16 adopted an ordinance amending the compensation schedule for non‑union ("ordinance") employees, approving a 2% increase for FY27 after extended debate about retroactive pay and whether to rescind the mayor and council raises. The measure passed 8–3.
Peabody — The city council acting as the finance committee adopted an ordinance on June 16 that updates the compensation schedule for part‑time and full‑time positions not subject to collective bargaining, approving a 2% increase for FY27 for those positions.
Mayor: "I'm here tonight to ask for a 2% increase for our ordinance employees for fiscal year 2027," the mayor said in his opening remarks, asking the council to recognize behind‑the‑scenes city workers while pressing for fiscal restraint elsewhere.
Why it mattered: Councillors spent more than two hours debating whether the city should make the raises retroactive to last year, and whether the council and mayor should forgo raises the council adopted previously. Several councillors said employees had been promised raises in prior budget cycles and urged restoring them; others said the city faces tightening finances and recommended targeted cuts or delaying retroactive pay.
What the council did: Councilor Gamash moved to adopt the ordinance as advertised, with an amendment removing a business‑liaison position. After roll‑call, the motion carried by a vote of eight in favor, three opposed.
Votes at a glance: Dagel (yes), Gamash (yes), Hawkman (no), Turo (yes), Manning Martin (no), Rosnol (yes), Lad (yes), Corovo (no), Peach (yes), Higgins (yes). Motion carries, 8–3.
Mayor and council pay: The meeting also included a separate, disputed exchange about mayor and council raises. Members debated motions to rescind or reduce previously adopted raises for elected officials. After amendments and votes the council amended the city compensation plan for FY27 in a manner the council recorded during the session; the debate underscored broad council disagreement about whether elected officials should keep recently voted increases while many nonunion employees will not receive retroactive pay.
What happens next: The ordinance takes effect as advertised; the finance director said adjustments in the budget book reflect the 2% change and will be referenced when council votes on budget sections. The council directed staff to track any line‑item reductions proposed during later budget votes so the fiscal impact is auditable.
Reporting note: The citation for the ordinance reads as amendments to sections 18‑20 and 18‑21 (schedule of compensation for part‑time and full‑time positions not subject to collective bargaining) with the ordinance effective the first pay date in July 2026.
