City councillors have started debating a $9.4-million budget filled with a property tax increase, service cutbacks and job losses.
When a draft 2012 budget was unveiled earlier this week, Mayor Rob Ford hailed it as a smart, responsible spending plan that slams the door on "out-of-control" spending during the previous administration.
City hall observers believe the budget debate and eventual vote will be a test of Ford's vision and an indicator of his support within city council.
During his first year in office, Ford has repeatedly stressed the need for tighter control on the city's finances because of a multimillion-dollar deficit, and warned services and jobs would have to be cut to find the savings.
The preliminary budget proposes a 2.5 per cent property tax increase, a 10-cent TTC fare hike, shedding more than 1,000 jobs and trimming library and public arena hours, among other things.
If the budget is approved by city council during a vote in January, the city will spend less in 2012 than it will in 2011, the first time the city has ever spent less in the following year than in the previous year, Ford said.
The budget contains $355 million in savings, including privatizing garbage collection in neighbourhoods between Yonge Street and the Humber River.
The city will save about $11.5 million annually by outsourcing garbage collection.
Some swimming pools and wading pools are also on the chopping block, and the city is deferring the hiring of police officer, firefighters and EMS staffers to save about $23 million.
The long-awaited spending plan follows months of controversy at city hall because of the deficit, a core service review to identify potential savings and the threat of widespread layoffs and cuts.
Now that the draft budget has been introduced, a series of public consultation meetings will take place before city council holds a final vote in mid-January.
