Municipal government of Toronto

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As the City of Toronto is constituted by, and derives its powers from, the province of Ontario, it is a "creature of the province" and is legally bound by various regulations and legislation of the Ontario Legislature, such as the City of Toronto Act, Municipal Elections Act, Planning Act, and others.[3]

The City of Toronto Act lays down the division of powers, responsibilities and required duties of the corporation. It provides that if the City appoints a chief administrative officer (the city manager), than that person shall be responsible for the administrative management and operation of the City.[4]

The Toronto Public Service By-law (TPS By-law), Chapter 192 of Toronto's municipal code, further strengthens the separation of the administrative components (the public service) and the political components (mayor and council) of the City of Toronto.[5]

In general, the mayor and council determines the services provided to residents and develops programs and policies, and the public service implements council's decisions.[3]

The City of Toronto represents the fifth-largest municipal government in North America. It has two budgets: the operating budget, which is the cost of operating programs, services, and the cost of governing; and the capital budget, which covers the cost of building and the upkeep of infrastructure. The City's capital budget and plan for 2019–2028 is CA$40.67 billion.[9]

Under the City of Toronto Act, the Toronto government cannot run a deficit for its annual operating budget.[10] The city's revenues include 33% from property tax, 6% from the land transfer tax, subsidies from the Government of Canada and the Government of Ontario, and the rest from other revenues and user fees.[9]

City Council has set the limit of debt charges not to exceed 15% of the property tax revenues.[11] The city has an AA credit rating from Standard & Poor's, and an Aa1 credit rating from Moody's.[12][13][14] Toronto's debt stood at $3.9 billion at the end of 2016.[15] Capital expenditures are 39% funded from debt.[15]

The City of Toronto was incorporated in 1834, succeeding York, which was administered directly by the then-province of Upper Canada. The new city was administered by an elected council, which served a one-year term. The first mayor, chosen by the elected councillors, was William Lyon Mackenzie. The first law passed was "an Act for the preventing & extinguishing of Fires".[16] The first mayor directly elected to the post was Adam Wilson, elected in 1859. Through 1955 the term of office for the mayor and council was one year; it then varied between two and three years until a four-year term was adopted starting in 2006. (See List of Toronto municipal elections.)

To finance operations, the municipality levied property taxes. In 1850, Toronto also started levying income taxes.[17] Toronto levied personal income taxes until 1936, and corporate income taxes until 1944.[18]

Until 1914, Toronto grew by annexing neighbouring municipalities such as Parkdale and Seaton Village. After 1914, Toronto stopped annexing bordering municipalities, although some municipalities overwhelmed by growth requested it. After World War II, an extensive group of suburban villages and townships surrounded Toronto. Change to the legal structure came in 1954, with the creation of the Municipality of Metropolitan Toronto (known more popularly as "Metro") in 1954. This new regional government, which encompassed Toronto and the smaller communities of East York, Etobicoke, Forest Hill, Leaside, Long Branch, Mimico, New Toronto, North York, Scarborough, Swansea, Weston and York, was created by the Government of Ontario to support suburban growth. This new municipality could borrow money on its own for capital projects and it received taxes from all municipalities including Toronto, which meant that the Toronto tax base was now available to support the suburban growth. The new regional government built highways, water systems and public transit, while the thirteen townships, villages, towns, and cities continued to provide some local services to their residents. To manage the yearly upkeep of the new infrastructure, the new regional government levied its own property tax, collected by the local municipalities.[19]

On January 1, 1967, several of the smaller municipalities were amalgamated with larger ones, reducing their number to six. Forest Hill and Swansea became part of Toronto; Long Branch, Mimico, and New Toronto joined Etobicoke; Weston merged with York, and Leaside amalgamated with East York. This arrangement lasted until 1998, when the regional level of government was abolished and Etobicoke, North York, East York, York, and Scarborough were amalgamated into Toronto the "megacity". Mel Lastman, the long-time mayor of North York before the amalgamation, was the first mayor (62nd overall) of the new "megacity" of Toronto, which is the successor of the previous City of Toronto.[19]

Existing by-laws of the individual municipalities were retained until such time that new citywide by-laws could be written and enacted. New citywide by-laws have been enacted, although many of the individual differences were continued, applying only to the districts where the by-laws applied, such as winter sidewalk clearing, and garbage pickup. The existing city halls of the various municipalities were retained by the new corporation. The City of York's civic centre became a court office. The existing 1965 City Hall of Toronto became the city hall of the new megacity, while Metro Hall, the "city hall" of the Metro government is used as municipal office space.

• Official website
• Toronto municipal budget