capital budget and plan for 2019–2028 is . Under the City of Toronto Act, the Toronto government cannot run a deficit for its annual operating budget. The city's revenues include 33% from property tax, 6% from the land transfer tax, subsidies from the Canadian federal government and the Ontario provincial government, and the rest from other revenues and user fees. The council has set the limit of debt charges not to exceed 15% of the property tax revenues. The city has an AA credit rating from Standard & Poor's, and an Aa1 credit rating from Moody's. Toronto's debt stood at $3.9billion at the end of 2016. Capital expenditures are 39% funded from debt. History 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 by-law passed was An Act for the preventing & extinguishing of Fires. The first mayor directly elected to the post was Adam Wilson, elected in 1859. Through 1955 the term of office for the mayor and the 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. Toronto levied personal income taxes until 1936, and corporate income taxes until 1944. 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