The City of Danville is looking into service reductions, changes in employee benefits, and revenue enhancements.
Council will also be considering not to fill vacant city positions and even closing one of the city's seven fire stations in Danville.
City Manager Ken Larking said cuts will happen in the next five years, and that city council has a lot to consider.
"There is a long term structural deficit and it needs to be addressed," Larking said.
Danville City Council received a five-year financial report this week from Natural Resource Network showing that the city is facing a projected deficit of $22.3 million.
"We're in great financial shape now, rather than waiting until the future when we're not in great financial shape, which is what it's pointing to, we have the time now to gracefully deal with this issue and make choices that make the best sense," Larking said.
The Natural Resource Network recommended several ways the city can cut costs.