South Holland District Council members last week unanimously agreed to approve the 2016/17 budget and four year financial plan.
The agreed changes will see Band A council tax increase by 6p per week, Band B by 7p per week and Band C by 9p.
The Band D charge will increase by £5 per year (10p per week), although 84.1 per cent of residents pay council tax bands A to C.
The increases are the first introduced by the council in the last six years,
Cllr Peter Coupland, portfolio holder for finance, said that the move will ensure weekly refuse and recycling collections, and that environmental services will continue.
He said: “This rise goes against my instincts but we simply won’t lose essential services that our residents rely on.
“We are in financially challenging times and have seen our annual Revenue Support Grant reduced by 30 per cent compared to last year, putting us under heavy pressure to find efficiency savings.”