Dundee City Council was over-budget by £2.25 million last year, latest figures have revealed.
Councillors will learn from finance director Marjory Stewart next week that by February, the local authority had overspent.
A report later this year will show whether or not the council managed to claw that money back by the end of March.
Ms Stewart revealed that the increased number of young people remaining in care after the age of 16 is partly responsible for the figure.
Mrs Stewart said there was underspending of £60,000 in staff costs, £200,000 in contracting activities and £1m saved due to low interest rates.
She added: “We will take every reasonable action to ensure that the final revenue budget figure is below or in line with the adjusted budget.”
In her report to go before the policy and resources committee, Mrs Stewart said that there was an overspend of £4.95m in the children’s and families services department.
She added: “The service is anticipating an overspend in relation to residential schools and secure care, fostering and adoption and special transport provision.
“Increased costs in residential and foster care are associated with ongoing pressures on the children’s services budget from previous years.”
She said those pressures, combined with the implications of the Children and Young Person Scotland Act 2014 and the new provision for continuing care, had led to more young people choosing to remain in care than was forecast.
This has resulted in an over demand for inhouse residential placement.
Mrs Stewart added: “The act introduced the concept of continuing care which enables young people to remain in their current residence until they are 21.
“The number of over-16s remaining in care is therefore increasing the workload and is on-going to increase the capacity of the service.”
There was also a £200,000 underspend in general contingencies.