SWANSEA Council deal is to use savings to deal with the economic fallout of the coronavirus pandemic.
Cabinet members are being asked to approve the use of reserves to help offset additional spending, such as bolstering services to vulnerable people, at a meeting on October 15.
Councils have to balance their books every financial year, and Swansea Council is currently facing a £30.1 million overspend by its departments.
Throw in a council tax shortfall and the current estimated deficit rises to £33.6 million.
It is far more than anyone could have expected when the budget for 2020-21 was set early in the year, but money has been clawed back from the Welsh Government and more claims are expected to be reimbursed.
The council is plannign to reallocate money held in a contingency fund and other pots to bring down the overspend from £33.6 million to £10 million.
The report before cabinet recommends that this £10 million is covered from money held in reserves.
It also recommends that officers make no further spending commitments this financial year.
Finance chiefs say the coffers are in a pretty healthy state, all things considered.
Council leader Rob Stewart said: “The first quarter of the financial year is always the one where you have the most pessimistic view.
“Last year we were looking at a £7 million to £10 million overspend and we managed an £18 million surplus at out-turn (end of financial year).”
But things are different in 2020.