Council bosses say a £1m government grant intended to help the authority cope with the impact of coronavirus is "devastating" and up to £4m short of what is needed.
City of Lincoln Council has been awarded £1,050,718 out of a £3.6 billion government pot.
However it predicts it will need between £4-5 million to recover from the pressures on income, including car parking, rents, planning and leisure, and a predicted drop in council tax and business rates.
Council leader Ric Metcalfe said without further funding some council services may be stopped.
"To be allocated little more than £1 million at this difficult time is truly devastating for the city," he said.
“If more funding does not become available, we will be forced to look closely at the services we provide and it is inevitable that some of these will have to stop in order for us to balance the books."