Leeds council leader Judith Blake says a huge loss of income at the authority as a result of Covid-19 is not being recognised by the government.
The city council is facing a financial black hole of almost £200m related to the pandemic and has launched a cost-cutting review of all of its services.
A meeting the authority's executive board was today told it had so far received just £44m in funding support from the government to help plug the shortfall.
The authority has already said it may be forced to take "draconian" measures like shutting down libraries, galleries and museums, to save cash.
The council estimates it has lost just over £107m in income normally generated from business rates, council tax and fees such as car parking charges.
It has also spent an extra £93.4m on PPE, social care and emergency services as part of its response to the emergency.
Speaking at today's executive board, Cllr Blake said: "There is a real concern with the income situation that it does not seem to be recognised by the government as an issue.
"However, the stark reality is that 80 per cent of local authorities have very serious concerns about their future viability."
Officials have warned that unless further grant support is made available from Whitehall, it could result in a Section 114 notice being served by the council.
That could trigger a series of cuts to non-statutory services with the council effectively declaring itself bankrupt.
Deputy council leader Cllr James Lewis: "We are continuing to supply the Ministry for Communities, Housing and Local Government with data on our financial position.
"We believe further grants will be made to local authorities although whether that will cover the remaining budget shortfall remains to be seen.
"We are in constant communication with government and we are really trying to make them understand the need for the council to be able to support the economic recovery of Leeds as well as being able to fund essential services both in the short and long-term to get us through the difficulties we are facing."
He said a series of possible measures, including the government writing off historic debts, could ease the pressure on the council's finances.
