Greenwich Council has asked residents to help decide how to spend its 2025-2026 budget.
The council spends more than £332 million each year on services such as children's support, health needs, and council homes.
However, it has said that more than a decade of underfunding and a rise in service costs due to inflation have created "unprecedented challenges" for councils across London.
The council is also under "extraordinary financial pressure" to meet housing needs, with around 2,000 households in temporary housing.
On one night, the council spent more than £24,000 on emergency hotel rooms for families.
A council spokesperson said: "Our council is well-managed, but we’re facing a combination of historic underfunding and escalating demand on our services.
"Following the tough and sensible decisions that we’ve made to get a grip on our finances, we saved £33.7 million last year and are in a much better position than other councils.
"However, we’re still predicting a budget gap of at least £27million next year."
The council said it wants to continue to put funding where residents feel the impact the most.
Before any decision is made, the council wants to hear residents' views on how the budget should be set for the coming year.
The council spokesperson added: "Council services affect everyone in one way or another and we’re dedicated to ensuring residents, businesses, and partners stay informed and have their say about the council's finances and current challenges.
"We will continue to engage with you on where we can make savings and how we can continue to support you."
Residents can share their views on the council's website until December 24.
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