City of Toronto councillors have voted to pass an $8.7 billion dollar operating budget Tuesday night in a 27 to 18 vote.

The budget will also raise residential property taxes by 4 per cent, about twice the rate of inflation.

Mayor David Miller defends the increase, saying Torontonians pay less property tax then most people in GTA.

Miller urged council to approve the budget that includes plans to hire 1,300 new workers and provisions to not cut city services at a time when critics say people will need them most.