Sefton Council is facing an estimated £18million shortfall due to the "devastating" impact of the coronavirus pandemic.
The local authority is set to receive another £2.5million from the government but it warns this isn't nearly enough to fill the hole in its budget.
The struggling council lost 51% of government funding between 2010 and 2020, the equivalent of £722 from every household in the borough.
Its response to the pandemic has been estimated as costing a further £44.8million.
At a cabinet meeting last month, council officer Stephan Van Arendsen said the key financial pressures for the local authority included supporting those most vulnerable, a reduction in fees which the council charges residents for things such as the use of leisure centres and car-parking, and less council tax being received.
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He also said the council would take a huge hit due to the reduction of income from business rates, as companies were forced to close and some are struggling financially.
Council leader Ian Maher said: "We welcome the Government announcement of additional funding for the Council, however, although we have been clear with government like all authorities have, on the level of support that is required, the funding allocated remains significantly lower than what is needed.
“Sefton Council continues to face financial pressures on services for our vulnerable children, families, disabled people and communities, and for all our income losses.
“The Council now needs to take steps to tackle the in-year shortfall and the impact this loss of funding will have on the budget next financial year, and beyond, meaning our communities are again being asked to compensate for a lack of government support.”
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In May, Sefton Central MP Bill Esterson and Bootle MP Peter Dowd penned a letter asking the government to make sure the local authority would be "fully funded to cope" with the crisis.
Since the pandemic began, Sefton Council has received an £20.1million. from the Government - less than half of what it says it needs to balance its budget.
