A standing-room-only crowd at Mono Council cheered Tuesday night at councillor Jean Castel's declaration that he will take no salary next year because of the current economic turmoil.

Mr. Castel's declaration came as council began the task of finalizing its 2009 budget. He told Mayor Lorie Haddock and his fellow councillors that the town should aim for decreases in taxes, rather than limiting increases, stating that "we are going through a global meltdown. ... Most of the people in Mono will find themselves in dire financial straits."

In the unheralded move that drew loud applause and caused one spectator to cry out, "Jean for mayor," Mr. Castel instructed town treasurer Les Halucha to strike his salary and any other benefits he receives as a councillor.

"I feel we all have to make sacrifices," said Mr. Castel, a retired York University law professor. "I'm not a wealthy person. I'm a pensioner. But we all have to do something."

He estimates that his action will save Mono taxpayers around $20,000. After giving up his honoraria for 2009, Mr. Castel mused, "I wonder what the council in Orangeville will think of me, now."

His decision to forfeit his salary is in stark contrast to Orangeville councillors' recent decision to give themselves pay increases in January ranging from $6,444 for councillors to $19,000 for Mayor Rob Adams.

Mr. Castel then introduced a motion that the town rescind its policy of setting tax rates by the Statistics Canada rate of inflation or deflation.

Deputy Mayor Dave Baldwin countered that the town's policy of adjusting tax rates to the rate of inflation is more or less a guideline and that a motion wasn't necessary to rescind it.

At that point, council took a draft of the 2009 budget and proceeded to slash $1.22 million. The bulk of that was achieved by eliminating plans to spend $1.1 million for road work on Five Sideroad between Airport Road and the Mono-Adjala town line.

The decision to put that capital project aside drew applause from the cost-conscious crowd rivaling that given Mr. Castel's gesture.

Mr. Castel told council that he attended a meeting of the Mono Mulmur Citizens Coalition, commonly known as MC2, on Saturday and said "it moved me deeply."

The meeting at Mono Centre drew 110 participants. Many were either of retirement age or close to it, contending with fixed incomes and/or retirement savings that have taken a substantial hit after the recent downturn adversely affected investments and financial funds.

They were also alarmed by the recent MPAC assessment of Mono properties which showed an average increase of 26 per cent.

Tuesday night, Mono CAO Keith McNenly assured the ratepayers that the assessment would be phased in over four years and that, in 2009, it would be an average of 6.5 per cent.

Those with assessment increases over 26 per cent would see their taxes increase, Mr. McNenly said, while those under that figure would likely see their taxes go down.

During question period, resident Ron Kirby asked: "For those of us who fall in excess (of the average) what can we anticipate?" He also felt that the MPAC assessments are flawed because they do not reflect current market conditions.

Mr. McNenly said increases would not exceed the rate of inflation, which the town has projected at 3.4 per cent in 2009.

Should Mono council decide to settle for a rate increase that coincides with the inflation rate, further budget cuts of just $13,000 would be required.

Since they made substantial cuts on reviewing just half the 29-page budget document, it is expected the council will aim for a minimal increase in the town-only tax rate, or none at all.