Toronto will have lower taxes, better services and a balanced budget in 2011, Mayor David Miller said at a Wednesday morning news conference.

Miller said the city has a larger surplus -- about $100 million more -- than what was originally believed. The surplus was believed to be about $250 million a couple of months ago when the city released its 2010 budget proposal.

"The numbers a few months ago were an estimate," he said.

The money will be allocated to a property tax stabilization reserve which will reduce taxes for Torontonians, he said. Miller also said the funds will go towards improving city services and ensuring Toronto has a balanced budget next year.