Councillors warned that virtually no department would be immune to the cuts although social care and children’s services will be protected.
The authority was given a provisional settlement of £163 million for 2012/13 by the Welsh Government which represents a 1.2% increase.
However, head of finance Mark Owen said that due to inflation levels which are currently above 5% cuts to the tune of £3.5m would be necessary.
One area which he said would be hit is adult social care, with others including legal, finance, human resources and IT.
According to a report which is due to go before the executive board, even with the draft budget savings for 2012/13 the council will still have a shortfall of £140k.
Also included in the provisional budget is an assumed council tax increase of 3%.
There are staffing implications across several departments too such as the deletion of certain posts and non replacement of staff who retire.
The executive board will be asked to approve the savings in principle for consultation with businesses, trade unions and the public at their meeting next Tuesday.
The final settlement will be known by December 6th and the budget is due for final approval on 29th February 2012.
Deputy Council Leader Cllr David Bithell said: “There is still a lot more work to be done and things may change during consultation.
“We will await the final settlement in December which will then go to the executive board.
“From our point of view we are well prepared for these savings and our officers have been working hard.”
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