A newly-released Toronto budget proposal recommends a "manageable" property taxes increase, thousands of staff reductions and a rise in transit fares.
Details for next year's recommended operating budget were being released Monday morning, outlining a plan that features $355 million in savings and a strategy that will see less money spent in 2012 than this year.
Mayor Rob Ford told reporters that it will be the first time that has happened in Toronto, describing the budget as a victory for city taxpayers and a model for municipal governments across Canada.
"They elected me to take action. I am doing exactly what they asked me to do. We were elected to make tough decision and fix the problem once and for all," Ford announced on Monday.
The budget proposal features a 2.5 per cent increase to property taxes, which Ford described as "manageable," and less than the rate of inflation.
The budget proposal also includes plans to reduce city staff by 2,300 positions and increase TTC fares by 10 cents.
It was expected that the TTC fare increase would generate $30 million in revenue next year, with another $88 million in savings coming from various "service level adjustments" at city hall.
Ford said that modest service reductions have also allowed the city to avoid closing any library branches and all but five wading pools.
"Our 2012 budget is a smart budget, it is a responsible budget and it is a budget that slams the door on out-of-control spending. That is what taxpayers want," Ford said.
With the Ford administration vowing to tackle a massive budget shortfall, it was expected that the budget would feature heavy service cuts.
Ford has mandated 10 per cent cuts across all city departments to offset the $774-million budget deficit.
During his election campaign last year, Ford – who vowed to get rid of the gravy train – promised to cut spending and balance the books without laying off workers.
The city offered buyout packages to eligible workers in July in a bid to pare down the massive budget shortfall. But since then, few workers have qualified for the buyouts.
City Manager Joe Pennachetti said earlier this month that he accepted about 230 buyout packages, falling short of the 700 anticipated applications.
The budget announcement comes just weeks ahead of the expiration date for the contracts that cover the city's 28,000 unionized workers. These contracts end on Dec. 31.
After the proposed operating budget is released, the public will have a chance to weigh in on the spending plan. An executive committee meeting and final debate will follow the public consultation, before city council votes on the plan in mid-January.
