North Kesteven councillors backed a council tax hike of 3.01% as part of the authority’s budget plans for next year.
The proposal, which was approved at a full council meeting on the evening of March 3, will see an increase of £4.95 for the average Band D property in the district.
Council leader Richard Wright said the plan showed that the council was “robust” in its financial management.
Council officers estimate that the increase will bring in an extra £186,600 for the local authority.
The authority also allocated £100,000 to its environmental agenda, which was highlighted last year when it became the first authority in the county to declare a climate emergency.
Councillor Wright said the council had a robust plan for the forthcoming year, despite uncertainty over funding.
“This budget allows the council to continue its long history of providing frontline services,” he said.
“This does not mean that we are complacent. Part of the solution is to make sound decisions on council tax.”
He added that the council was prepared, despite uncertainty over funding from government, which is expected to be reviewed this year.
Meanwhile, last month county councillors backed a 3.5% hike in council tax.
The rise consists of a 1.5% general rise and 2% for adult social care.
It means an average Band D property would see a council tax bill of £1,337.58, a £45 rise on last year.
Council leader Martin Hill said he was optimistic about future funding despite the need to increase the rate.
“We’re looking for some certainty this year about how these things will roll out,” he said.
“So hopefully this time next year they’ll be a three or four year settlement so we can actually plan better for the future with some certainty.”
Lincolnshire Police and Crime Commissioner Marc Jones also saw his proposed 4.1% tax rise supported.
The county’s police and crime panel gave the go-ahead to increase Lincolnshire Police’s share of council tax in February.
The hike in the rate equates to £9.99 for a Band D property.
Mr Jones said the force was “in a better position” now than last year.
SUBSCRIBE TO LOCAL DEMOCRACY WEEKLY, our exclusive email newsletter with highlights from our coverage every week and insights and analysis from our local democracy reporters.