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The municipal government of Toronto consists of 44 elected councillors (representing around 55,000 people each), who along with the mayor, make up the Toronto City Council. Torontonians elect a new government every four years, in November. The City of Toronto represents the fifth largest municipal government in North America, and has an operating budget of $7.1 billion. The most recent operating budget was comprised of $2.5 billion dollars of funds from the Government of Ontario for purposes they mandate such as Toronto Public Health, $2.0 billion for special purpose bodies including the Toronto Public Library and Toronto Zoo, $1.7 billion of directly controlled money, and $900 million for capital financing and other programs ^[1].

The current municipal government is rooted in the creation of the Municipality of Metropolitan Toronto (known more popularly as "Metro") in 1954. This new regional government, which encompassed the smaller communities of East York, Etobicoke, Forest Hill, Leaside, Long Branch, Mimico, New Toronto, North York, Scarborough, Swansea, Toronto, Weston, and York, was created in light of the need for more coordination of city services. The postwar boom resulted in suburbanization, and it was felt that a coordinated land use planning strategy, as well as shared services, would be more efficient.

These thirteen townships, villages, towns, and cities continued to exist independently of the regional government, and continued to provide some local services to their residents. Gradually, the Metro government began taking over management of services that crossed municipal boundaries, most notably highways, water, and public transit.

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 the six municipalities (Toronto, Etobicoke, North York, East York, York, and Scarborough) were amalgamated into a single municipality or "megacity". Many people criticised this change, which came on top of a massive "downloading" of provincial services to the municipal level, with little to no new revenue available. A plebiscite indicated that a majority of the citizens of Toronto opposed amalgamation, but criticisms were raised about the leading nature of the question asked. In Canada (and Ontario), plebiscites are not legally binding. The Province of Ontario under Premier Mike Harris had the power to ignore the result and did so. Mel Lastman, the long-time mayor of North York before the amalgamation, was the first mayor of the new "megacity" of Toronto.

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• Government of Toronto website
• Toronto municipal budget, 2006 website