But while it features no tax increases, aligning with a promise made by Mayor Rob Ford, it did not receive unanimous support from councillors.
The $9.383-billion operating budget was approved by a vote of 31-14.
The budget features no increase to property taxes and includes no major service cuts. There are some proposed cuts to libraries, transit routes and community centres.
On Thursday, some critics questioned Ford on a decision to allocate a $3-million fund to study the budget. The money has been set aside to pay for an external review of spending at City Hall.
"We are the ones who are paid to figure out how we spend tax money efficiently and effectively on the service taxpayers want," Coun. Gord Perks told CTV Toronto. "Hiring consultants to tell us how to do that is wasteful, it's duplicative and it's a whole pile of gravy."
Other councillors suggested the money would be better spent funding recreational programs in the community.
Deputy Mayor Doug Holyday says the money will be well spent if it ends up saving the city in the long run. He suggested millions of dollars in inefficiencies could be saved by identifying unnecessary staff and services.
"Even if it is only $3 million it would be worth the exercise just to have done it. But I think it will be far more than $3 million," he said.
Some critics suggest the cost to hire consultants was hidden in the budget, but Holyday says it may have been better to keep it that way. Now that the cost is out there, those bidding on the budget know how much the city is willing to pay, he said.
With a report from CTV Toronto's Alicia Markson
