DURHAM -- The average Durham homeowner might get a bit of a break when it comes time to hike taxes for the 2009 regional budget, as councillors voted to reduce the property tax guideline to four per cent.

Region staff had originally proposed a 4.9-per-cent guideline to the Region's various departments to use in creating their budgets. The rate would mean an additional $94 in taxes on a home valued at $280,000. The drop to four per cent would mean savings of $18 for the same home.

On Wednesday, Oshawa Councillor Joe Kolodzie proposed dropping the guideline.

"I'm asking council to take a look at the economic times . . . the situation wasn't like this two months ago," he said.

But even before Coun. Kolodzie's motion passed, Oshawa Mayor John Gray one-upped him by asking for a three per cent guideline after finance committee chairwoman and Scugog Mayor Marilyn Pearce said to maintain services as they now are would require a three to 3.5 per cent tax increase. Rising wages, fuel prices and insurance costs are just some of the items driving up the base budget.

Finance commissioner Jim Clapp said the 4.9 per cent hike meant growth for funding priorities identified by council such as policing, roads and public transit.

He cautioned that dropping the guideline would mean there wouldn't be a lot of room in the budget for extras when it's presented early next year.

"I don't know if it's my place to say this . . . (but) when bike trails come forward and you want to stick in $200,000 or $500,000, now's the time you have to tell me," he said.

Each one per cent property tax increase in Durham represents about $4 million in the Region's budget. Following the meeting, Mr. Clapp said the new budget goal might mean public transit wouldn't see any service increases in 2009 or that certain road projects would be deferred, but it was too early to say exactly which projects would be cut.

While Mayor Gray's proposal failed, Coun. Kolodzie's had a wide range of support from councillors, passing 18-5.

Many also agreed that tough economic times would mean rising costs for the Region's social services. Durham funds 20 per cent of social assistance payments, including Ontario Works, in addition to contributions to other services like subsidized childcare spaces.

Oshawa Councillor April Cullen, the health and social services committee chairwoman, supported the lower guideline but also said council had to be careful it didn't cut down to the bone at a time when social services will face increasing pressure.

Although he also supported dropping the guideline, Pickering Mayor Dave Ryan said the Region doesn't have any choice in many of the services it provides since they're mandated by the Province.

"Anything beyond that, put it on a list, and then let's play," he said, adding that councillors should make sure they understand what they're doing when they advocate dropping the amount taxes will increase.

Whitby Councillor Don Mitchell was one of the five councillors voting against dropping the guideline. He said it was a false choice to be looking at cuts to police or conservation authorities or other services the Region provides because the federal government seems to have money to spend. He cited the Conservative Party's proposal for $700 million in tariff relief for manufacturers importing machinery as an example, but added all parties advocate spending.

"We're delivering all these core services and they have enough play money to be able to throw those dollars around at will when they want to get elected," Coun. Mitchell said.

Of the originally proposed 4.9-per-cent guideline, 1.5 per cent would have gone to police, one per cent to the rest of the Region's departments, including health and social services, one per cent to roads (half for growth and half for rehabilitation), one per cent for transit and 0.4 per cent for solid waste.