The town of Canso is holding the line on tax rates.

In April, town council approved a budget that would have increased the residential tax rate by 50 per cent and the commercial rate by 30 per cent.

Shortly after, the town started working with the province to come up with a more reasonable rate.

Mayor Frank Fraser tells The Hawk the town is in better shape than first thought.

"I think our utilities, our water and electric utilities are in good shape, we have reserves,” he says.

“We are able to borrow from our own sources and use a little more creative budgeting."

There is also more than $90,000 in funding from the province to help stabilize the tax rate.

Fraser tells says they found money in a number of areas, but that doesn't mean anything has changed in terms of dissolving the town.

"We have gone beyond the point of no return the application is in process,

The only one who could change that is the Nova Scotia Utility and Review Board."

The town’s residential rate will stay at $2.35 per $100 of assessment; the commercial rate remains $4.08.