North Kesteven councillors have backed a 3.10 per cent increase in council tax for 2019/20.
The move is estimated to bring an additional £184,600 to North Kesteven District Council and equates to an increase of £4.95 for a band D property.
Senior councillors on the council’s executive approved the measure.
The budget will now go to a full council meeting later this month for final backing.
A document before councillors said: “The council will continue to face difficult times over the next three years, particularly due to the level of grant receivable from government.
“However, the council has balanced the next three years budget to 2021/22 through good budget management and the work of its Transformation and ExCITe programmes.”
The council also agreed a number of new savings, including a new pay award and structure, staff turnover, £200,000 revenue from developments and moving its utility and fuel costs.
Like many others, the council will have to deal with a number of central government changes, including a loss of business rates and revenue support grants.
However, it will continue to receive its New Homes Bonus and its Rural Service Delivery Grant – the latter receiving an extra £359,500.