Dundee’s council chiefs will have to cut spending by more than £3.5 million to achieve a council tax freeze in 2015-16.
The council’s accountants have identified £3.6m that can be saved by streamlining, but will have to find £3.7m more to balance the books.
Discussions are under way to decide where the axe could fall this year, with the administration expected to announce their proposals on February 12.
Director of corporate services Margaret Stewart, who wrote the report that will go before councillors on Monday, said: “Officers have already identified administrative and technical budget savings totalling £3.6m and these savings are reflected in the Provisional 2015-16 Revenue Budget.
“The council therefore now requires to identify further budget savings totalling £3.7m in order to achieve a council tax freeze in 2015-16.
“In the event that the council does not agree to the full package of measures related to the Local Government Finance Settlement, then the loss of grant would be circa £1.755m in 2015-16, which equates to a council tax increase of 3%.”
The total savings of £7.3m are part of £30m the council will need to save over the next three years, Ms Stewart said.
She added: “Regardless of the outcome of the general election, it is very likely that the new government will continue to pursue an austerity agenda to drive down the annual budget deficit and return the UK public finances to a balanced position.
“Current projections from the UK Office for Budget Responsibility suggest that economic growth will not return to ‘normal’ levels until at least 2019.
“Notwithstanding all of the variables and uncertainties, it can be stated with some confidence that local government in Scotland will experience funding cuts in both cash and real terms for the remainder of this decade.”