Toronto Mayor David Miller has introduced a balanced budget for the city — one he calls "a tremendous achievement."

For a city that was facing a financial crisis of gigantic proportions less than six months ago, Miller's announcement is a relief, but does come with a property tax hike.

Toronto mayor David Miller, seen in June, called the balanced budget a 'tremendous achievement.'
(Paul Chiasson/ Canadian Press)

Toronto homeowners will face a 3.75 per cent property tax increase this year, as well as the city's new land transfer tax, which is expected to raise $175 million for city coffers. There will also be a non-residential property tax increase of 1.25 per cent.

According to the city, the property tax increase will result in an additional $80.70 in taxes on a residence worth $365,000, which is thought to be the average Toronto house price.

The city's budget committee will begin its review of the $8.2-billion operating budget next week.

In a statement Monday, Miller said, "This is a tremendous achievement for the city.

"Building a city that is livable and provides prosperity and opportunity for everyone is the most important role of local government. This budget allows us to start to make the kinds of investments Torontonians want and deserve. As a government, we have made difficult decisions over the past several months and are now starting to turn the corner." 

During a mid-morning news conference at city hall, Miller was keen to emphasize the fact that city taxes will go toward funding a long list of services.

According to the mayor, there will even be small increases in service, mainly at the Toronto Transit Commission.

Miller's opponents on council are not impressed.

They say the 2008 budget is just as unsustainable as the ones in previous years, the only difference being that the provincial bailout came early in the process instead of late.

Some councillors say the budget is a reflection of just how expensive it is becoming to live in Toronto with increased property taxes, land transfer fees, vehicle taxes and a new garbage fee.  

The budget will go to a final vote at council at the end of March.