The city's executive committee will pour over Toronto's $1.6 billion capital budget tomorrow but councillors are urging their peers to be cautious about spending money on projects that are not essential to operations.

Among some of the projects on council's wish list include a $40-million renovation of Nathan Phillips Square and a $70-million plan to build new bike paths around the city. There are also plans to help finance a massive renovation of Union Station.

The capital budget only deals with one-time plans.

Coun. Michael Walker said considering the worsening economic conditions, spending money on these projects is a dangerous move. He compared the situation to when Bob Rae was in power and spending liberally put Ontario into deeper financial troubles.

"Anything that isn't an essential service should be put on hold," he told CTV Toronto on Monday.

"It may be a good idea to do these things but (not) when we don't have two nickels to rub together and when the city has no reserves to deal with increased unemployment and welfare claimants," he said.

However, Toronto budget chief Shelley Carroll says the plan is economically sound because it will help create jobs and stimulate the economy.

"Building transit, building major facilities, getting Union Station work underway, these are the types of things that can keep the economy going in our city and indeed the country," she said.

A report from the executive committee on the capital budget will be debated by all of council in December.

Walker also has a number of motions dealing with the economy to be discussed at next month's council meeting. He wants the city to officially support a bailout package for the auto industry and for council to urge McGuinty to speed up the process of uploading current costs incurred by Toronto taxpayers. He also wants council to push for a promise from Queen's Park to help the city in case Toronto's reserves empty out.

He said he will also urge council to plan a special meeting in the new year to discuss a plan in case the city goes into a recession.

With a report from CTV Toronto's Naomi Parness.