If Toronto is anything like many American municipalities, a large chunk of that cost is pensions. Pension funds are often not fully paid up, and payments into the fund are often subject to rosy predictions about future earnings that lead to shortfalls if the fund manager underperforms. Additionally, public pensions often have a large 'defined benefit' overhang meaning that many beneficiaries are contractually entitled to fixed payouts. Finally, many public pensions are also based on final salary at retirement or in a short (1-3 year) period leading up to retirement, so it's common for in the US (and likely elsewhere) for police to work ridiculous amoutns of overtime in their last few years on the force in order to puff up their pension. Since the administration of a pension fund can involve payment obligations that reach back for many decades, the burdens of past financial or contractual mismanagement are often cumulative and ultimately fall upon the taxpayer.

This is not as exciting or scarifying as police spending too much money on military toys, but it's a much more likely explanation for budgetary increases. One other possible problem which has recently been an issue in San Jose, California is that police academies sometimes spend a lot of money training new officers, only to see them leave immediately after graduation for other cities/counties that offer better pay or benefits. In the US many municipalities run their own police academies and there are no contractual obligations on graduates. San Jose has been strenuously trying to reform its pension system, so (unsurprisingly) new entrants to the force get a much worse deal than senior members whose benefits are locked in and have to be paid for by cuts to the benefits that can be earned by new members. So graduates train up in San Jose and then take off for some other city in the area that's offering a sweeter deal, possibly with the encouragement of of the police union that is not enthused about pension reform.