The Region of Waterloo is reporting a deficit of almost a $1 million for the year so far.

The deficit is being attributed to a loss of revenue at the region’s landfill — commercial and industrial waste is being shipped by businesses using private operators to Michigan, along with the fees waste producers pay to dispose of it.

The total shortfall is $971,000 and that is projected go up to $3 million by the end of the year.

Council assured residents it would present a balanced budget in 2014. Tom Galloway, the region’s budget committee chair, told CBC News staff cuts through attrition and an expected tax increase of around 2.8 per cent are likely needed.

"Things like, somebody retires and doesn't get replaced. Not immediately," said Galloway in an interview with Craig Norris on The Morning Edition Friday.

"But I don't believe we're anywhere near the point where we're into layoffs, or anything of the sort."

Galloway says another way to offset the loss is to cut the number of residential garbage pick-up days.

"Recycling every week, green bin every week, but maybe your green garbage bag would be only every second week and that would save us significant amounts of money and try and bring to bring this back into line," he said.