Dundee’s ruling SNP administration has proposed a near-maximum 4.8% council tax rise for the coming year.
The proposals would see the council tax bill for a band D property rise by about £63 per year.
The local authority was told in advance they have the flexibility to raise council tax by a maximum of 4.84%. The increase will bring in £2.5m.
A number of savings were also outlined to bring in a further £5m.
Council finance spokesman Willie Sawers said the budget gap could have been worse.
He said the SNP striking a deal with the Greens in the Scottish Parliament had provided more core funding.
“If we could freeze the council tax we’d be delighted to do so but it’s the economic reality we are in,” said Mr Sawers.
“Times are hard. Over the last decade Scotland’s annual budget has fallen by £1.5 billion due to the pursuit of austerity politics by this Westminster Tory government.”
Mr Sawers said the budget sees spending on the children and families service rise from £193m to £201m and the price of school meals will be frozen.
The budget for the Dundee Health and Social Care Partnership has risen from £77.3m to £80.1m.
Efficiency savings proposed include reducing the council’s overall headcount through early retirement and voluntary redundancies.
Savings of £250,000 are being assumed for 2020-21.
Mr Sawers said the workforce would likely continue to reduce going forward.
He said the council would continue to manage services with reduced staffing by “working smarter”.
“We will do as much as we can to minimise the impact on staff,” he said.
There will also be a staff structure review in schools to save £234,000.
The full year saving will have an impact on primary staffing budgets of between £13,000 and £36,000.
The removal of any teaching posts would be dealt with through the council’s workforce management procedures.
Burial fees will also go up while a review of parking charges is also expected to generate additional income of £87,000.
Residential parking permits in the city centre, Broughty Ferry and Menzieshill would all rise.
Grant funding for cultural organisations will also be cut by £57,000 including Dundee Rep receiving a 5% reduction of £17,000.
Third party project and grant funding will be cut by £150,000 and community safety payments will be cut by £114,600.
Budget savings of £79,000 will also be made by stopping supplying plants to Camperdown Park and discontinuing the provision of city-wide hanging baskets and barrier planters.
Liberal Democrat Group leader on Dundee City Council Councillor Fraser Macpherson expressed concern at the proposed hike in council tax.
He said less than 10% of people who responded to the council’s own consultation said an increase of any more than 3% was acceptable.
He said the Lib Dems will put forward an alternative budget on Thursday.
