COUNCIL taxpayers in East Lindsey may have to pay slightly more towards services by the district council from April.
East Lindsey District Council's proposed budget, which has been approved for consultation by the Executive Board, will be considered by Council in February.
The council needs to find £1.6million to balance the books in 2013/14 because of reduced Government funding and cost rises in utilities.
For 2014/15, the council needs to find a further £1.75m due to a further 13 per cent reduction in Government funding.
The budget for 2013/14 proposes an increase in council tax – around seven pence per week for the majority of homes in East Lindsey.
This is the first increase for three years and the council said it will protect services to local people.
People living in East Lindsey will continue to pay the lowest council tax rate in Lincolnshire and one of the lowest in the country.
Portfolio holder for finance, Councillor John Upsall, said: "Developing our budget proposal for 2013/14 has been challenging, but 2014/15 will be even tougher. Like families and businesses, we have reducing amounts of money to provide our services.
"Rural councils have been hit hard by the Government's recent funding announcement.
"As a council, we remain focused on protecting services to local people and we will leave no stone unturned in identifying opportunities to do things more efficiently."
The budget also proposes an investment of £350,000 into the district's events programme to boost the economy, including Wolds Words, the district-wide SO Festival and Beach Sports.
Over the next few years the council will continue with its planned investments of £2.5million into new housing schemes; £300,000 into flood relief schemes in communities; £3.2million to provide Disabled Facility Grants to help people continue living in their homes; a £500,000 public toilet improvement programme and the £1.5million Rural Development Grants.
The council has also allocated £1million to a countywide broadband project that will support business growth and £1million has been put aside to support the Environment Agency in developing flood alleviation schemes in Horncastle and Louth.
The council is currently consulting with the public on the proposed budget.
Visit www.e-lindsey.gov.uk/consultation where there is a feedback form with the provision of comments.
The consultation closes on January 30.