East Lindsey district councillors have proposed a 3.75% increase in the authority’s share of council tax.
Councillors on the Executive committee supported the budget plans at a meeting in Manby on Wednesday, February 14.
The proposed tax hike equates to an almost £5 increase for Band D properties, rising from £131.94 to £136.89.
Councillor Richard Fry, portfolio holder for finance responsibilities, also revealed that the council has received a bonus £2 million from the government’s business rates retention pilot scheme.
Money from this will go to reintroducing councillors’ grants, where members will each receive £1,500 to spend in their communities.
£120,000 will be invested in revitalising shop fronts in the district and five apprentices will be recruited to improve the street scene at a cost of £50,000.
Councillor Fry said: “We want to deliver our services, protect the vulnerable and promote economic growth.
“We have no choice but to raise council tax. I’d love not to do it.”
Councillor Tom Ashton added: “We are delivering remarkable value for money.
“Just half of the council tax precept collected here is going to the drainage board.”
Remaining councillors will vote on the budget at a meeting of the Full Council on February 28.