South Holland District Council leaders will approve a £4.95 rise in council tax for 2021/2022 on Tuesday.
The draft budget, which includes the 2.75% increase in the district’s precept, will go before the authority’s cabinet.
It is the higher of the two options available to councils before a referendum is set and will take band D tax in the district to £184.68.
Earlier this week, Lincolnshire County Council members unanimously rejected a 5% hike in council tax for 2021/22, but agreed on a 1.99% increase instead to plug budget holes.
South Kesteven District Council is also looking at a £5 increase in its precept.
Documents before the cabinet on Tuesday say the COVID-19 pandemic “had a profound impact across the world”.
“In setting this budget for the medium term we have had to make wider assumptions compared to previous years.
“The budget assumes for 2021/22 that impacts of COVID-19 remain with us and therefore some estimates for income have been reduced and then levels are assumed to recover to more normal values from 2022/23 onwards.”
The report notes savings targets for 2021/22 of £372,000 but says that future years “contain a high degree of uncertainty and assumptions and as such it is difficult to accurately forecast future years’ savings targets.”
The council predicts it will spend £36,088,000 during the next year, down from £37,298,000 in 2020/21.
But it hopes to bring in £23,557,000 in income from rents, fees, grants and investments – leaving a net expenditure of £12,531,000 which will come from areas such as council tax, business rates, and government grants.
If approved, the budget will go out to consultation before being a final seal by full council.