Budget proposal with 2 per cent property tax hike proposed by Toronto city manager .

Peter Wallace,Toronto’s city manager tabled a draft operating and capital budget for 2017 on Tuesday.It includes a two per cent property tax hike .

Wallace said the proposed budget doesn't include major tax increases or serious service reductions, however city council still needs to find some $91 million in savings to balance the budget — something the city is required to do under the law.

For an average residential property in the city assessed at $587,471, the increase represents another $69 per year on the bill.

The proposed budget calls for the city to defer $72 million worth of capital spending and contributions to reserves for Toronto Community Housing, and draws $14 million from the TTC’s stabilization reserve.

It also calls for the city’s staff headcount to fall by the equivalent of 426 full-time positions over 2017.

To cover the $91 million shortfall, Budget chief Gary Crawford said that his priority is to find new spending cuts rather then new taxes or fees to cover it.