Penetanguishene has seen a windfall through higher than expected growth in the town.
And now staff is recommending that the unexpected extra money be moved into a tax stabilization reserve to help decrease this year's tax-rate increase to zero.
Carrie Robillard, the town's director of finance/treasurer, said the reserve fund is a step the staff have wanted to implement in prior years.
"We felt now is a good time," she said. "All of these monies are being utilized to assist residents. This portion being put into the reserve is to be used by council in future budget cycles to assist residents by easing or reducing potential tax increase in the future."
The option was presented in the report included in this week's committee of the whole agenda.
If council committee chooses to vote for the option recommended by staff, in addition to putting a portion of that new assessment money back into the pockets of residents in the short-term, the move also reduces council's original 2.5% tax increase approved in December, according to Robillard.
"It takes it down to 1.3%," she said. "Again, reducing our requirements and giving it back to the residents and ultimately with the town, OPP, county and education overall all tax-rate increase would be zero per cent over last year."
According to the recommendation, council can take the total growth assessment amount of $431,100 down to $325,000 by transferring $193,500 to the new reserve.
All council members were in agreement with this option and voted in favour.
"It's a great initiative," said Coun. George Vadeboncoeur. "It's an opportunity and it's for the future. When we run into one of those year when the tax rate may seem a little bit high coming out of our budget process, we could always look at the tax stabilization fund to smooth that tax increase."
The decision still needs to be ratified by council at its June meeting.
