Town staff proposes 2% to 3% property tax increase
By ALAN LICZYK

Town staff brought forward a 2007 budget to Caledon council last Tuesday that proposes a tax increase in the two to three per cent range.

Chief administrative officer Patrick Moyle called it a cost-of-living budget which he considered to be remarkable under the circumstances.

Treasurer Sam Jones called it a past, present and future budget.

He noted the Town will have only one per cent assessment growth this year, the lowest in 20 years, but it will return to normal in 2008 and beyond.

He added this budget will have no external borrowing, no reduction in the amount of tax dollars going to the capital program, no reduction in service levels, no hiring of additional permanent full-time staff except for limited staff for the new Caledon East arena and no automatic filling of vacancies without CAO approval.

The Town will also absorb utility and material cost increases estimated to be in the five to 20 per cent range.

Jones said the building of the budget began in August. It consists of two parts: a current operating budget and a capital program for projects such as buildings, roads and parks, etc.

Using a chart showing taxes levied in 2006 based on an average household assessment of $361,000, Jones pointed out the average Caledon homeowner paid $3,380.56 in property taxes compared to $4,950.39 in Orangeville, $4,814.82 in Clarington, $4,134.63 in Brampton, $3,907.64 in Newmarket, $3,733.90 in King and $3,600.52 in Halton Hills. Only Milton was lower than Caledon at $3,249.57, but Jones explained Milton receives $5 million to $6 million each year from the slot machines at Mohawk Raceway.

The plan is to adopt the 2007 budget in February. The draft current operational budget proposes $40 million in expenditures. The capital program is still under review.

In the draft current operational budget, some 2007 revenue estimates are lower than 2006 actual revenue. Budget pressures include energy increases of $91,000, fuel increases of $84,000, insurance premium increases of $152,000, contract and material increases of 290,000 and salary, wage and benefit commitments of $900,000.

Jones also provided council with an update on the Town's reserves and reserve funds as of Nov. 30, 2006.

Under reserves, there is $12.9 million in a working fund with $9.7 million of that committed to the Bolton arterial roads and $204,000 in aggregate funds held for road projects. There's also $72,000 in GO Transit money committed to Caledon Community Services for its para-transit system. The $216,000 set aside for tax rate stabilization is uncommitted. Other reserves include $31,000 for the Bolton Business Improvement Area contingency, $40,000 for building permit stabilization, $18,000 for supplies for the Caledon Animal Shelter and $1.4 million in the reserve for contingency.

Under reserve funds, $8.8 million in Caledon Hydro proceeds is uncommitted. Development levies of $1.9 million is committed to capital projects. The federal gas tax of $493,000 is committed to road projects. A five per cent in lieu reserve fund totalling $307,000 is committed to park development. The other reserve funds include $250,000 for storm drainage ponds, $32,000 for winter maintenance and $3,000 for the cash in lieu parking program for downtown Bolton.

Council's next budget meetings will be held Tuesday, Jan. 30 from 10 a.m. to 4 p.m. and Tuesday, Feb. 6 from 1 p.m. to 6 p.m. and 7 p.m. to 9 p.m.