Correction: The actual mill rate increase is 1.3%.  That’s because the properties are assessed at a higher rate.  End result for us homeowners is same.  3.24% increase on a $350,000 house or a 1.3% increase on a house that’s assessed much higher. 
Milton had a budget meeting last night. I wasn’t able to make it (I e-mailed my comments to different councillors), but Mike Cluett was there, sending play-by-play. 

If I understand it correctly (will edit it as details become clearer), then the extension of Louis St Laurent to Tremaine is added in the 2010 Capital Budget.  I couldn’t be more excited.  Scott neighbourhood (HVE) is completely grid-locked with construction on Derry and Tremaine.  Another exit off the community will help a great deal.  Since it’s part of the Capital Budget, the money comes from developers.

In addition, the Transit budget got approved as well. That is another good news, because now Scott can get an express bus service.

All-in-all, it came down to a 3.24% increase in Mill Rate, a major part of which will go towards increases in staff salaries (personally, I think it’s insane to give salary increases in this climate, but what do I know).  Someone should tell them that there’s a bad recession out there.  3.24% translates to $8.39 for every $100,000 in assessment.  For a $350,000 house, it means an increase of about $30 / year, or just under $2.50 per month. 

No one will deny the need to handle the current economic crises. However, it seems like Harper and Company are choosing to ignore the long term future of the country. Here’s an article from the Globe and Mail that shows what I’ve been saying for months has actually started happening :-

One of Canada’s top AIDS researchers is moving to the United States, taking as many as 25 scientists on his team with him.

The University of Montreal’s Rafick-Pierre Sékaly says he is leaving in part because of federal cuts in science funding and hopes his departure will be a wake-up call.

“I hope it will trigger some kind of movement that will foster a deep soul searching and investment,” he said in an interview.

He expects to more than double his $3.5-million research budget in his new position as scientific director of the Vaccine and Gene Therapy Institute in Florida, but will also keep a lab going at the University of Montreal.

The move to the U.S. was motivated in part by his concern for the talented young researchers who are part of his team. They are starting their careers and are anxious about their futures here, Dr. Sékaly says. The young scientists, he adds, will have far more opportunity in the U.S., where President Barack Obama included $10-billion for medical research in his economic stimulus package.

Prime Minister Stephen Harper’s government, on the other hand, cut funding for basic research in its stimulus budget, trimming $148-million from the three agencies that fund university-based research.

Those cuts exacerbated a funding crunch that had left many scientists scrambling to find money to keep their research programs running. Young scientists are hit particularly hard, says Dr. Sékaly.

“Right now, the funding is not there. They are going to fund you, but they are going to fund you at levels that will not allow you to be highly competitive. If you are not highly competitive, you are done,” he says.

As well, many universities have instituted hiring freezes, which makes it difficult for young scientists to get jobs. Canada risks losing almost a complete generation of fresh talent to the United States, where Mr. Obama’s commitment to science is a dream come true for researchers, Dr. Sékaly says

“This is something we would like to have our government here follow with the same vision.” ….

[Full article: here ] This is sad. The government is spending tens of billions of dollars trying to protect yesterday’s manufacturing and construction jobs. What about tomorrow’s knowledge-based jobs? But then again, what do you expect from an administration that appoints a science minister who isn’t much of a believer in science and evidence in the first place. Sad indeed.

If you’re an Ontarian then you likely already heard about the plans to harmonize the Provincial Sales Tax with GST (resulting in another acronym: HST). This means new homes costing more than $400,000 will be subjected to at least some sales tax (those costing > $500K will be subjected to full 13% tax, instead of 5% like today). On top of that the government still plans to charge these poor souls Ontario Land Transfer Tax. At least they could’ve gotten rid of this, but they decided not to.

I think it means builders will keep the house costs below $400K by building smaller, simpler homes (before taxes and stuff). After all, a $400,000 house will cost you $400,000 but a $500,000 house will suddenly cost $565,000 (yes, you aren’t just taxed on incremental amount about $400,000. The tax is on the entire amount!) This translates to a tax increase of $40,000 due to HST.

So basically expect more postage stamp sized lots and smaller houses with tiny, tiny driveways. Likely narrowed roads as well. If a family needs four bedrooms and at least some backyard then they may just have to look at the resale market.

This may somehow become a good news for existing homes that cost > $500K. Over time market will get saturated with cheaper, smaller homes. A buyer looking for a larger house in GTA (aka, expensive area) with some amenities like hardwood, taller ceilings etc may have very few homes to choose from.

It may be good news for contractors as well. Selling your home and buying a new one suddenly became a lot more expensive (with an additional 8% tax on top of existing expensive taxes and selling costs added.) This means people may just spend money upgrading their existing homes instead of starting over, provided that they wanted to buy a house that costs more than the threshold.

For the record, I am not celebrating this change and don’t see it as a positive, especially in this time. However, I am trying to have a positive attitude by finding a silver lining :-).  Personally it seems unacceptable for the Ontario government to charge HST and land-transfer tax.