A Staffordshire council is looking to make savings of £2.5m from its annual budget.
Simon Tagg, the leader of Newcastle Borough Council, said he hoped the cuts could be found through "driving out inefficiencies" and finding better ways of working.
He expected detailed proposals to be complete early in the new year.
The council is responsible for services, including leisure facilities, street cleaning, waste and recycling.
The cuts need to made following the government's spending review.
Mr Tagg said the council had been planning for a similar level of cuts before the review was announced in October.
"Over the last five years we've taken £4m out of the budget... so we're going to have to do more of that," he said.
Council funding was cut by 7.1% a year over four years in the spending review.
Chancellor George Osbourne announced £81bn cuts to public spending over four years in a bid to reduce the budget deficit.