TORONTO, Ont. – Toronto’s budget committee has launched the 2013 capital and operating budget Thursday afternoon, and it reveals just how much taxpayers may have to shell out to balance the books.

While the entire operating budget adds up to $9.42-billion, city manager Joe Penachetti is recommending an inflationary level residential increase of 1.95 per cent and non-residential of .65 per cent.

“Those two taxes combined are approximately $46-million. For the residential average home of $474,000 of assessed value, that would mean a $48 increase,” Penachetti said.

“We have balanced the budget and most importantly, I believe we are approaching very close to fiscal sustainability in the City of Toronto operating budget,” he added.

The numbers are in line with what Mayor Rob Ford has said in the past, about wanting to limit any tax increase to under two per cent.

However, Penachetti said the numbers all hinge on Police Chief Bill Blair freezing police spending – one of the city’s biggest spenders. Blair is requesting almost $950-million for 2013, which is $21-million over the target.

The Police Chief has already said reaching the city’s zero per cent increase target will result in nearly 200 layoffs – 137 officers and 52 civilians.

Meanwhile, the city’s fire department will see $6-million in staff cuts.

As for the capital budget, $626-million has been set aside to fix the Gardiner and $535-million to fix the TTC, the city’s other biggest spender, over the next 10 years.

Further discussion will continue next week.

The budget committee will start out with the easier-to-manage departments, including public health, economic development and parks on Monday. The zoo and transportation services are up next, on Tuesday, while the library will be discussed on Wednesday.

The TTC and police will be discussed in more detail next Thursday.

To view budget details, click here.