Tax hike of 3% will help meet 300,000 population goal in Caledon, mayor says

Home owners will pay more next year now that a 3 per cent tax hike has been approved in Caledon on top of a potential 5.5 per cent spike coming from the Region of Peel.

The town officially rubber stamped its 2025 budget on Tuesday, with a total of $205 million made up of a $147 million operating budget and a $58 million capital budget.

The Caledon budget also includes a 2 per cent property tax increase and a new 1 per cent annual infrastructure levy to generate “dedicated funding for critical infrastructure projects” to help support future growth and meet a lofty population target of 300,000 by 2051.

With a population of a little more than 76,500 according to the 2021 census, the town’s population would need to explode to nearly four times that number to meet the target.

But more increases are possible in Caledon as the Region of Peel is also looking at a hike of 5.5 per cent on property tax bills.

That increase would lead to an increase of around $321 on the average residential property tax bill, while the average commercial property tax bill would increase by $564.

Of the 5.5 per cent hike, 1.3 per cent is for regionally controlled services and 4.1 per cent is for the Peel Regional Police.  Peel residents saw a 4.5 per cent hike to property taxes in 2024.

Mayor Anette Groves said the budget “reflects the priorities of our residents,” balancing “growth with fiscal responsibility” while investing in the infrastructure and services.

She says the 2025 budget “ensures we continue to remain a vibrant, forward-thinking and an inclusive place to live, work and do business in.”

The province has set a target of building 1.5 million new homes in Ontario by 2031, with Caledon expected to start 13,000 builds.

A lawsuit is looking to block a dozen bylaws that would allow for 35,000 new units and homes in Caledon – a legal challenge the town says are “scare tactics” and “completely without merit.”

Some 778 new housing units were started in Caledon in 2023 accounting for 82 per cent of a 953-unit target.

Property taxes help fund everything from community events, library services, municipal enforcement and animal control officers, to planning new communities, park and trail maintenance, fire and emergency services and more.

Caledon says its 2024 Asset Management Plan showed an annual funding gap of $22.7 million. The 2025 budget will “address the gap” with the annual 1 per cent capital levy, the town says.

The $147 million operating budget will fund services like fire and emergency services, recreation and roads, while the $58 million capital budget will go towards funding porjects like road and transportation network improvements, vehicle and equipment upgrades, and more.

The budget also includes a projection of around $88.6 million in reserves for 2025.

– With files from Ryan Rocca