Toronto City Council will need to discuss how to spend $285 million in surplus money.
The surplus is about $130 million higher than an earlier projection, which was originally slated at $154 million last January.
According to the city's budget chief, Mike Del Grande, three quarters of the surplus will be allocated towards the purchase of new streetcars. The rest will be put into a reserve fund.
Del Grande says there is still a lot of work to do as the city still faces a $700 million shortfall in its capital budget.
Mayor Rob Ford says he intends to dump the land transfer tax, but insists it's too early to give a date.