In the summer I agree. get wet, or wear a thin windvest.
In spring/fall/winter there is raingear that keeps you dry when cycling, even climbing hills.

As others have mentioned, showerspass elite is about the best, but out of your price range.
Stay away from goretex, its absolute crap for cycling. J&G has good stuff for a lower price also.

From Mtn equipment, get the whirlwind tights. http://www.mec.ca/Products/product_d...=1206311393839
They have windproof front, and spandex back, you'll get a bit wet on the back of the legs but stay warm.

For upper, get either the http://www.mec.ca/Products/product_d...=1206311322828

or one of the non cycling specific softshells which'll keep you dry for an an hour or 2. Like this one
http://www.mec.ca/Products/product_d...=1206311523680