In 2007, Costas defeated 4th District Republican City Councilman Robert McCasland with 65% of the vote in the May 8, 2007 Republican primary. No Democrat challenged Costas, and he was re-elected on November 6, 2007. Costas continued to enjoy the support of the local labor, even though the city passed no significant union-friendly ordinances. Costas was endorsed by both major newspapers, with the Times noting that Costas "whipped the city's finances into better shape" and "created a spirit of cooperative enthusiasm in the city".