The City of Windsor is heading toward a budget surplus this year.

The projection is based on third-quarter results.

City treasurer, Onorio Colucci, is the city treasurer keeps a close watch on the budget numbers and he is projecting a surplus of almost $800,000 this year.

"There are some salary gappings that have taken place. There are also some savings in our social services area - the caseloads haven't materialized as budgeted," Onorio said.

Other factors that can affect the city's financial position include the weather, unemployment, tax appeals, interest rates and even lawsuits.

Another bit of good news is the city is issuing more building permits this year.

"We have rebounded this year in terms of the issuance of building permits related to residential, new construction, as well as renovations," said Lee Anne Doyle, the chief building official. "In addition to that, the commercial component."

City administration is in the process of preparing the proposed 2013 budget for council.

An update will be provided in a couple weeks.