Proposed tax increase too high says mayor
By ALAN LICZYK Staff Reporter

A proposed 7.6 per cent tax increase in the Town's 2008 draft budget is too high and will definitely come down, says Caledon Mayor Marolyn Morrison.

This was her initial reaction as Caledon council began its budget discussions last week.

Morrison told the Citizen one of the problems is they were expecting the Mayfield West development to come on quicker. She explained the provincial government has made the Town assessment-growth dependent and right now the Town doesn't have assessment growth. The Town, though, is trying to get everything back on schedule.

"We're working hard on employment," she said, but noted it's probably a couple of years away.

The buildings aren't up and it takes a couple of years for the Municipal Property Assessment Corporation to get these on the tax rolls, she explained.

"Well have to be frugal," she said. The mayor doesn't know at this point how much the proposed tax increase can be reduced. They will have to look at the tax rate, she said.

She observed Milton is facing six to seven per cent tax increase even though it receives millions of dollars from its casino. She also pointed out Mississauga and Brampton are looking at nine per cent increases, and other municipalities in the area are considering six to nine per cent increases.

"We're trying very hard to get it down," she said.

Morrison added council wants Town staff to come back with areas to economize in. She wants to maintain the same service levels and pointed out the Town has had a staff hiring freeze for years.

Treasurer Sam Jones explained the 7.6 per cent increase equals $25.30 more for every $100,000 of market value assessment.

The draft current operational budget totals $43.8 million. Jones said he couldn't provide a total for the capital budget at this time because final numbers are still being finalized. Staff provided council with a list of capital items for consideration and that list will be refined before the next budget meeting.

In his presentation to council, Jones explained the challenges they're facing include some 2008 revenue estimates being lower than 2007 actual totals, low assessment growth, maintaining current service levels and some nondiscretionary increases being higher than original estimates.

He added the tax impact is subject to the determination of final assessment growth, budget changes/assessments still being made.

A few factors have led to the tax impact. These include interest on internal borrowing forgiven last year now included in 2008, revenues decreases to be recovered through 2008, increases in salaries, wages, benefits, materials and suppliers, and the addition of new facilities.

The senior management team is still reviewing if 2007 estimates are reasonable, further 2008 base adjustments, 2008 projected revenues, finalization of the 2008 capital program, municipal

nfrastructure repairs/deficiencies and efficiency reviews.

Among the highlights Jones noted for 2008 include the Town having no external debt, having money in reserves and reserve funds, one of the lowest tax rates in the Greater Toronto Area and the potential for controlled growth.