Halifax has ended the 2015-16 fiscal year with a $5.4 million surplus, according to the audited year-end financial statements.

"On a budget of $850 million, that's only a half a per cent variance," said Amanda Whitewood, Halifax's director of finance.

Municipal officials say there are a number of reasons for the surplus, including higher than expected tax revenues and a milder winter.

They recommended that most of the extra money, $4.2 million, go toward paying for the Mount Hope interchange project.

A couple of councillors at the audit and finance committee, where the financial statements were tabled, had questions about that choice, given all the other possible projects.

Despite the concerns, the committee did not change the recommendations, which now need final approval from regional council.