The city's budget committee will meet this afternoon, where the unexpected surplus will be put at centre stage.
Despite being told there was an opening budget shortfall of $774 million for 2012, Toronto has already posted a surplus of more than $70 million.
City staff estimate that number could grow to roughly $90 million by years end.
Sources quote that most of the savings came from labour deals recently negotiated with the city, which worked out to $27 million saved, along with $8 million from the TTC budget, thanks to lower fuel costs, and higher ridership numbers.
The committee will also debate the land transfer tax, a tax that has brought in more than $1 billion since it was started up during the Miller era.
Budget staff say the tax can't be erased in one sitting, but the percentage points coule be rolled back slowly.