TORONTO - Mayor Rob Ford says Toronto's proposed 2012 budget holds a property tax increase to 2.5 per cent due to a number of savings.

Ford says the city has reined in spending to the point where it will spend less money next year than this year.

He says it's the first time that has happened.

City departments were asked to cut their budgets by 10 per cent each, and Ford says the city found $355 million in savings. There will also be 2,300 fewer employees.

Ford says a much larger tax hike would have been needed without the savings.

The mayor says while there were fears libraries would be closed, that will not happen after other efficiencies were found in the system.

Precise budget numbers will be released by officials later today.

"Our 2012 budget is a smart budget, it's a responsible budget, it's a budget that slams the door on out-of-control spending," Ford told a news conference.

"That's what the taxpayers want."