Town council now looking at a 5.7 per cent tax increase
By Bill Rea

Caledon councillors started their budget discussions Tuesday looking at an 8.1 per cent tax increase. By the time they adjourned, it was down to 5.7 per cent.

Town Treasurer Sam Jones said council is looking at deferring a payment the public works department owes to the Caledon Hydro Reserve Fund, freeing up about $586,000.

Councillor Nick DeBoer suggested that, and he received unanimous support from his colleagues. He added his motion included a provision that if the total value of Caledon's assessment base increases by more than three per cent in any year, that would be used to pay off that item sooner.

"We see and I see we can have it covered off by the end of our term (of council)," DeBoer commented. "We're not leaving it for someone else."

He also pointed out the component of property taxes going toward education is not changing this year. "That allows us a little bit of room."

If this tax increase is approved (the budget is slated to be finalized Feb. 19), Jones said it will mean the Town will be taking approximately $60 more for an average home assessed at $361,000.

He stressed during his presentation Tuesday to council that the Town is obliged to collect taxes for Peel Region, as well as the education component. That means while the Town sends out the tax bill, it only keeps about 31 per cent of what's collected. The largest chunk, roughly 41 per cent, goes to the Region.

The Region passed its budget late last year, with a 4.3 per cent tax hike. Assuming the 5.7 per cent proposal passes, Jones said Caledon residents will be looking at an overall increase (including the Region and education) of 3.3 per cent, or an additional $121 on a home assessed at $361,000.