"Difficult decisions" are needed to tackle a Norfolk council's financial situation, the leader has said.
The warning comes as Great Yarmouth Council seeks to balance the books amid a deficit of nearly £3m with critics describing the situation as "dire".
But efforts already under way to save money appear to be "slipping", according to the latest budget report.
READ MORE: Council faces black hole of nearly £3m
At a scrutiny committee meeting this week, Carl Smith, leader of GYBC, said: "We have some really difficult decisions to make.
"Hopefully we can work together across the council to look at every aspect to see where we can save money and make these choices together."
Trevor Wainwright, leader of the Labour group, criticised the Conservative-led cabinet, saying: "It seems like some members have taken their eye off the ball.
"The situation is dire now but there is a big deficit which looks like it will be worse next year."
The council has been forced to dip into its reserves in order to cover a black hole of nearly £3m in its general fund budget and housing stock revenue.
There have also been losses of £182,000 due to the running costs of a number of facilities such as Gorleston's Splashpad, events like the Easter Fayre and the market - which has already cost £137,000 this last quarter, before it is even completed.
And plans to save money by selling off the Greyfriars council building have been hit with delays, meaning the predicted savings have dropped by £58,000.
Bernard Williamson, chairman of the committee, added: "My main concern is that there are things that look on paper like savings but will they come into fruition?"
Fears were also raised over the future, with Michael Jeal worrying that the council would be unable to use big chunks of money from the reserves, which must be kept at a minimum of £3.5m.
Chief finance officer Karen Sly said the council will "look at all our commitments" to find where it was possible to reallocate earmarked reserves in order to maintain this fund if needed.
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