Toronto's Budget Committee spent Friday pouring over next year's operating budget which features property tax increases, staff reductions and service cutbacks.

But the $930-million police budget, which has been a contentious issue, captured the attention of committee members as meeting a reduction target with the force is proving difficult, since a collective agreement still in effect.

"The only way to save money is to change the way we do policing," said Coun. Adam Vaughan. "The only way to do that is through the collective agreement."

Toronto's police board approved a new operating budget in October, after striking a deal with Chief Bill Blair to avoid layoffs next year. The deal sees the force cut 4.6 per cent from its 2012 budget, according to the Toronto Police Services Board, bringing total spending to $936.3 million.

Blair raised concerns after he asked for a budget of $944.7 million -- a 1.5 per cent jump from the 2011.

About 85 per cent of the police budget is allotted to salaries and employee benefits, making it difficult to reduce the budget without reducing the workforce.

"We work in a collective agreement environment and those collective agreements have been signed, and they just set the terms of reference in how we do our work," Blair told reporters Friday.

The detailed recommendations for next year's budget were released earlier this week, 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 said on Monday that the proposed operating budget was a victory for city taxpayers who were frustrated by wasteful spending by previous administrations.

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 also features millions of dollars in savings through service reductions, the closure of nearly two dozen pools, and reduced hours at public skating rinks.

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.

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.