INVERCLYDE Council's black hole could exceed £13 million, council chiefs have warned.
Chief financial officer Alan Puckrin had given elected members an update before appearing in front of a meeting of the full council.
The Scottish Government is due to announce the settlement Inverclyde will receive this week, but there are fears that the situation could be even more bleak than previously thought.
Council leader Stephen McCabe said: "Alan's presentation on what sort of budget deficit we will need to deal with, was a bit on the optimistic side.
"It depends on the amount of money the UK Government is willing to give the Scottish Government and the potential consequences for local government.
"Our expectations are that the Scottish Government will cut the grant and we will need to make more cuts to services and jobs as well."
Councillor McCabe says that ministers in Edinburgh should use the tax raising powers they were given to protect public services.
He said: "I advised the cabinet secretary to use his powers he has to protect local public services and the health service and to give public sector workers a pay award."
After the meeting indepndent councillor Ronnie Ahlfeld said the local authority faces 'very difficult times ahead'.
The Telegraph first revealed the huge scale of the budget crisis in September when Mr Puckrin confirmed the £13m funding gap.
A catalogue of major spending cuts and job loss proposals have been drawn up as a result — alongside a suggested hike in council tax bills of three per cent.
Cutbacks suggested include proposals to axe the district’s public CCTV system and cut community warden numbers in half from 28 to 14 in order to save a total of £545,000.
Meanwhile 126 local authority jobs could vanish, including a reduction of 16 frontline street sweeper and clean up staff.
Breakfast clubs in primary schools could disappear in order to make a total saving over two financial years of £257,000.
The withdrawal of free swimming for over-60s is also on the agenda, alongside the ‘potential closure of some facilities’ run by Inverclyde Leisure — which, along with the district’s museums, may also have to endure reduced opening hours to save £958,000 across the next two financial years.
Funding for Inverclyde’s Youth Connections service is also earmarked to be withdrawn in a £240,000 savings proposal.
Commercial waste charges could be increased and kerbside glass recycling removed, as well as a shift to bin collections every three weeks.
Roads, winter and verge maintenance services could be slashed too, in order to achieve a saving of £424,000 over the next two financial years.