Toronto council has decided to send a message to city departments - don't ask for any extra money in 2018.
Councillors voted in favour of a budget freeze target for next year.
Staff say the city will start with a gap of $343-million that councillors will have to find ways to fill.
That number is based on a 2 per cent property tax increase.
Some councillors are concerned that with inflation driving up costs, a freeze will mean cuts to services.
But mayor John Tory says this is just a target, and councillors will be able to go line-by-line during the budget process later this year to decide what needs to stay or what can go.
"I would say it is not leadership to avoid finding better ways to do things," Tory told council. "I don't think it's leadership to simply say that your job here is to add up everything everybody wants... make it into one big total... and then divide it up among the taxpayers."