North Kesteven District Council has announced plans to increase Council Tax for the delivery of local services by less than ten pence per week for most households from April.
If agreed by the Council on February 28, this will be the first increase to be made on the District Council element of the bill in three years.
As North Kesteven District Council maintains one of the lowest local charges of all councils in the country, the Government has allowed it to increase its charge by up to £5 at Band D.
By suggesting this option, the Council's Executive Board has chosen to build up the Council's resilience to future funding cuts and limit the extent of service cuts in the years ahead.
It was the preferred option of respondents to the Council's resident consultation.
For the past two years NKDC has frozen its charge at the 2010 level.
This was another option available for this year, in exchange for a Government grant of £52,000, but council leader Cllr Marion Brighton OBE said this would have merely delayed an inevitable 'cliff edge ' in the Council's finances when the three successive grants come to an end.
"By choosing to make a modest increase in our element of the Council Tax charge we will be able to build an extra £167,000 into the budget going forward, building up our future resilience and strengthening our position to invest in the communities, economy and homes of North Kesteven," she said.
"In the three years since Council Tax last went up, we've been able to ensure that residents have not lost essential services despite having to find savings of almost £3m in that time.
"We remain ever-mindful of our residents' situation but given their expressed satisfaction with the services we offer and the charges we make, it is clear that they appreciate our efforts to maintaining and developing services, which requires this modest increase for the first time since 2010."
This maintains the NKDC charge for a band D property at £140.04 for the year, reduced to £93.36 and £108.92 for the smaller band A and B homes most people occupy.