A debate on next year's city of Toronto budget has begun at city hall.
Staff presented the preliminary 2017 expenses and revenues to the budget committee on Tuesday morning.
City manager Peter Wallace revealed that they were able to bring a $731-million operating budget shortfall down to $91-million.
The rest of the gap will have to be found by council through policy changes.
The numbers are based on a 3.48 per cent property tax increase - 2 per cent for the budget increase, at the rate of inflation; 0.5 per cent for the City Building Fund approved last year, with funds going to housing and transit; and 0.98 per cent for current value assessment and regulation changes.
That tax hike would be an increase of $96 for the average household that paid $2,745 in property taxes in 2016.
Councillors will spend the next few weeks debating how to fill the remaining gap in the budget. Mayor John Tory has said he wants to keep the property tax increase related to the budget at or below inflation, or the recommended 2 per cent.
Other councillors say the tax will have to be increased by more than that.
Budget chief Gary Crawford spoke to reporters after the meeting:
WATCH: Budget chief Gary Crawford says he rejects any higher property tax increase than at inflation pic.twitter.com/pgCEI4fQqA
— NEWSTALK1010 (@NEWSTALK1010) December 6, 2016
Councillor Gord Perks, meanwhile, calls the preliminary budget unfair and unsustainable.
WATCH: Councillor Gord Perks says the preliminary 2017 budget is unfair and unsustainable pic.twitter.com/KLXm7yf27a
— NEWSTALK1010 (@NEWSTALK1010) December 6, 2016