The City of Saskatoon is projecting a year-end deficit of $1.17 million despite officials claiming they cut over $25 million in costs in 2014.

The shortfall estimate was outlined in a city media release Friday morning. Projected deficits in transportation costs — including snow removal, street cleaning and transit — and expected losses in the fire department’s budget were major reasons for the low estimate.

Transit operations are expected to ring in $1.755 million over budget due to decreased ridership and lost revenue from the lockout, while the street cleaning and sweeping budget is estimated to see a $1.08 million deficit.

The harsh winter combined with the formation of ice packs on residential streets and the removal of snow against freeway barriers likely means a $688,000 loss in the snow removal budget — though a $489,000 reserve balance will offset the shortfall.

The fire department is expected to see a deficit in salaries of $1.8 million, but with a reduction in the department’s expenses, the overall shortfall will likely land at $1.27 million.

The city said they’ve found over $25 million in savings — “in increased operational efficiencies, capital savings and service level enhancements” — so far in 2014, but that a spending freeze issued several weeks ago will continue.

“In an attempt to reduce our debt as much as possible by the end of the year, city administration has implemented a discretionary spending and hiring freeze,” said Kerry Tarasoff, the city’s chief financial officer.

“We continue to effectively meet service demands, but there are several additional factors affecting our bottom line.”

Saskatoon Light and Power is projecting a $703,000 shortfall due to decreased usage. Water and wastewater utilities could see a $200,000 deficit because of the high number of water main breaks during winter, and the city’s waste-handling service is estimating a $542,000 loss.

City council is expected to receive a full update on year-end projections Monday.