Dundee City Council has warned it will have to make savings of up to £14.7 million to achieve a balanced budget in the next financial year.
Bosses also warned of a possible hike in council tax to limit the impact to key services in the city.
A report is set to be considered by the Policy and Resources committee outlining the task ahead on Monday.
Councillors will be told that the local authority is facing a “significant challenge” to deliver a balanced budget in 2022/23.
The warning comes against the continuing impact of Covid-19, Brexit, government grant support, pay awards and inflation.
The report states: “There is a real risk that the actual grant reductions could be more severe than those currently being assumed.”
Council Finance spokesperson, Cllr Willie Sawers, said: “There are a number of options we will need to consider, which includes the prospect of a rise in council tax to bring down savings.
“We are facing a unique position and the council is working hard to limit the impact on services to the people of Dundee.
“I will be watching the Scottish budget closely on December 9 and a further report will come before councillors in January outlining our actual grant settlement.
“These are tough times, and we will no doubt have to take tough decisions.”
Councillors will hear that the current estimate of savings required to achieve a balanced budget in 2022/23 is in the range £10.4m to £14.7m.
A meeting is planned for next February to set the council’s revenue budget and council tax for the year ahead.
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