Tecumseh council is set to be presented with a report at Tuesday night's meeting showing the town is projected to end the year with a surplus.
After administration crunched the numbers, they are projecting a year-end surplus in the operating budget of $182,241.
Mayor Gary McNamara says there are a number of factors behind the positive numbers.
"Some of it is the interest income that we've invested some of our dollars, in particular, in our reserve funds, and some of it too obviously is trying to catch up on some of the unspent capital going forward."
He says normally funds are distributed into various surplus accounts, including for incase of an emergency throughout the year.
"One of them is what we call the rate stabilization fund, and usually those dollars are there for softening tax increases, or one off dollars over the course of the year sometimes."
McNamara says this is good news for tax payers.
"It's always easier to be on the black side of the ledger than on the red side, and we've been very fortunate over the last many years that we've come in with balanced budgets or surpluses that we've able to utilize to soften the blow in the next year."
At the end of September, the town was projecting a six per cent tax increase.