History of Toronto
In 1998, the six municipalities comprising Metropolitan Toronto – East York, Etobicoke, North York, Scarborough, York, and the old City of Toronto – and its regional government were amalgamated into a single City of Toronto (colloquially dubbed the "megacity") by an act of the Government of Ontario. This was despite a municipal referendum in 1997 that was overwhelmingly against amalgamation. Subsequently, Mel Lastman defeated Barbara Hall to become the first elected mayor of the megacity.
Municipal government of 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 new regional government built highways, water systems and public transit, while the thirteen townships, villages, towns, and cities continued to provide some local services to their residents. To manage the yearly upkeep of the new infrastructure, the new regional government levied its own property tax, collected by the local municipalities.