City of Lincoln councillors are expected to approve a 1.91% increase in their share of council tax for the 2016/2017 financial year.
The council’s executive will consider budget proposals which the authority claims are “aimed at protecting services that are most important to Lincoln’s residents”, at a meeting on Monday, January 25.
For the second successive year, council tax is predicted to rise by 1.91%, meaning a £3.60 rise for some 80% of city households (Band D).
While the council collects council tax from residents in the city, it keeps only 16% of it.
The rest goes to Lincolnshire County Council, which plans to raise council tax by 3.95%, and the Police and Crime Commissioner.
The city council has pointed to “unprecedented financial challenges” following Chancellor George Osborne’s Spending Review in November 2015 as a reason for the rise.
The council claims its government grant will drop by 99% over the next four years from £2.585 million to £22,000 in 2019/20.
In response to this, further savings of £1 million on top of the current target will need to be identified by 2018/19.
Jaclyn Gibson, Chief Finance Officer at the city council, said: “After delivering the further savings required this will take our total savings achieved since 2008 to £8 million, a significant reduction in comparison to the size of our overall net expenditure budget.
“Our ambitious savings programme has already been successful, and will continue to help this reduction be delivered.
“The authority will do all it can to minimise the impact of these reductions and prioritise the services that are needed most by the people of Lincoln.
“While not being an easy task, it is a challenge that will be faced constructively and making sure that at the heart of this decision making there remains a focus on the four main priorities of being a fit-for-purpose authority, protecting the poorest people in the city, increasing the supply of affordable housing and growing the local economy.”
If the proposals are approved by the executive, an online consultation will get underway on Tuesday, January 26 and will close on Monday, February 15.
It will then go before full council on Tuesday, March 1 for approval and implementation.