Charnwood Borough Council is raising its share of council tax by 9p a week for a Band D property.
The proposed increase sees the annual charge for an average Band D property rise £5 (4.46 per cent) to £117.09 from April 1, 2018.
The Loughborough Special Rate, paid by residents of Loughborough and the equivalent of a parish precept in villages, will remain at the same rate of £74.97.
The proposals were accepted at a meeting of the full council on February 26.
Councillor Tom Barkley, Lead Member for Finance and Property Services, said: “We do not want to raise council tax but we feel it is necessary in order to protect frontline services.
“The increase alone will not make up for the reduction in government funding as we are also planning to use our reserves to protect and invest in services.
“We work hard to make sure we run an efficient and effective organisation and get as much as we can for every £1 we spend.”
Charnwood Borough Council has the 22nd lowest council tax charge out of 201 district councils in the country.
The total borough revenue expenditure budget for 2018/19 is around £18.2 million, not including maintenance and investment in council homes which is covered by rental income.
Council tax pays for a range of services provided Charnwood Borough Council, Leicestershire County Council, Leicestershire Police and Leicestershire Fire and Rescue and the parish council where you live (or Charnwood Borough Council for people in Loughborough).
The Charnwood element accounts for less than 10 per cent of the total bill.
For more information about the budget, see the February 26 report to Council.