Wage savings, a hiring freeze and higher revenue from land transfer taxes means the city can expect a surplus of $115 million in 2012.

The surplus, which will be put toward the 2013 budget, was boosted by the fact the city’s unions settled for no wage hike this year, while staff vacancies saved the city money in planning, parks and computer departments.

As of June 30, the city employed 48,451 people — 1,860 fewer than council had expected when it approved the city’s budget in January. The reduction is due to delays filling vacant positions.

“We’re delivering less service,” said Councillor Gord Perks, a critic of Mayor Rob Ford’s administration. “It looks like what’s happening is we’re delivering less service than council approved because of an informal hiring slowdown.”

On the revenue side, the Municipal Land Transfer Tax levied when homes are purchased is expected to bring in $330 million in 2012, or $41.7 million more than estimated at budget time.

However, finance staff warned that the take could come in at less than $330 million “if a major correction to the real estate market occurs.”

The surplus report, to be discussed when council’s budget committee meets next week, said the TTC expects to have higher fare revenue of $5 million, along with savings of $10 million due to reduced diesel and natural gas prices and lower Wheel-Trans demand.

The Toronto police service has a larger than expected number of officers on unpaid leave, contributing in part to a projected $2 million surplus in the 2012 police budget.