WHEREAS subsection 447.69(1) of the Municipal Act (the "Act") provides that the council of a municipality, other than a lower-tier municipality, may pass a by-law to establish a percentage by which tax decreases are limited for a taxation year in respect of properties referred to in subsection 447.69(2) of the Act which are in any property class subject to Part XXII.3 of the Act in order to recover all or part of the revenues foregone as a result of the application of section 447.68 of the Act to other properties in the property class; and

WHEREAS subsection 447.69(3) of the Act provides that such a by-law must establish the same percentage for all properties in a property class, but may establish different percentages for different property classes; and

WHEREAS subsection 447.69(4) of the Act requires that a tax decrease percentage for a property for a year shall be determined in accordance with paragraphs 1 through 4 of the subsection: and

WHEREAS subsection 447.63(4) of the Act provides that Part XXII.3 of the Act applies to the commercial, industrial and multi-residential property classes;

WHEREAS subsection 447.69(6) of the Act requires that adjustments shall be made between the upper-tier municipality and lower-tier municipalities so that no lower-tier municipality has a surplus or shortfall as a result of the application of the by-law;

WHEREAS subsection 447.69(7) of the Act provides that if the upper-tier municipality experiences a shortfall as a result of the application of subsection 447.69(6) the by-law made under subsection 447.69(1) shall provide that any shortfall shall be shared by the upper-tier municipality and the lower-tier municipalities in the same proportion as those municipalities share in the taxes levied on the property class for municipal purposes:

NOW THEREFORE, The Council of the Regional Corporation enacts as follows:

1. Tax decreases for the 2002 taxation year on properties in the Regional Municipality of Peel referred to in subsection 447.69(2) of the Act which are in the property class set out in Column I shall, in 2002, be limited by the percentage of the tax decrease set out in Column II in order to recover the revenues foregone as a result of the application of section 447.68 of the Municipal Act to other properties in the property class, so that the percentage of the tax decrease set out in Column III is the decrease received in 2002 by such properties:

2. Adjustments shall be made between the Regional Municipality of Peel and its lower-tier municipalities so that no lower-tier municipality has a surplus or shortfall as a result of the application of the by-law.

3. If the Regional Municipality of Peel experiences a shortfall as a result of the adjustments made in order to eliminate any surplus or shortfall at each of its lower-tier municipalities, the shortfall shall be shared by the Regional Municipality of Peel and its lower-tier municipalities in the same proportion as those municipalities share in the taxes levied on the property class for municipal purposes.

4. Nothing in this by-law shall prevent the Regional Municipality of Peel from assisting a lower-tier municipality in connection with its share of a shortfall experienced as a result of the application of Sections 3 and 4.

READ THREE TIMES AND FINALLY PASSED IN OPEN COUNCIL this 8th day of August, 2002.