Lincolnshire County Council has voted to increase its share of council tax by 4.95 per cent.
The amount- equivalent to a £58 increase on a Band D property - is just shy of the maximum five per cent allowed by central government without triggering a referendum.
With such properties paying £1,231, this means Lincolnshire has the third lowest council tax in the country.
In his budget speech, council leader Martin Hill cited continued falls in core funding from central government.
Revenue Support Grant was to drop £14 million a year over the next two years. Since the start of the decade, it had dropped 90 per cent from £211 million to an expected £20 million in 2019.
Government is to allow councils a greater share of business rates revenue, but more savings are still needed.
Coun Hill said: “The council intends to spend £455 million on services in 2018/19 and just slightly less the following year.
“We intend to find savings of £4 million over the next two years on top of the £290 million already achieved since 2011.”
Such savings would help the council meet “unavoidable cost pressures of about £52 million” to help it meet rising social care needs and funding the higher National Living wage without extra government support.
The council has received £1.7 million from the government’s Pothole Action Fund - enough to tackle an extra 30,000 potholes.
Full details can be downloaded from the council website, including a video presentation from Coun Hill.