The Council of the Isles of Scilly must save more than £400,000 next year.
Members were told at this morning's Full Council meeting that the Authority will have to save £415,000 in 2018/19 in order to cover the structural deficit (the ongoing shortfall between income and expenditure).
The figure includes the assumption that council tax will once more increase by 4.99% next year - a 1.99% general rise plus 3% adult social care precept.
This will bring in a total extra income for the Council of approximately £75,000.
Council tax also rose 4.99% last year, bringing the total rise to 10% in two years. It is expected to revert to 1.99% from 2019/20 onwards.
Chief Finance Officer Andy Brown said that the savings plan for future years set out at the March 7 2017 meeting would form the basis of future planning, adding the caveat that these savings were set at a "moment in time" and that "time has moved on, things have changed".
However, he said there would still be an estimated shortfall of around 160,000 even with the listed savings.
He also reminded Councillors of the current situation, that "we are still in crisis management for budget monitoring".
Members will formally set council tax and next year's budget in February.