East Lindsey District Council approved its budget for the 2014/15 financial year with an increase to council tax of 1.99 per cent.
Most homes in the district will pay £1.79 per week for council services, which amounts to eight per cent of the council tax bill.
The remaining 92 per cent is divided between Lincolnshire County Council and Lincolnshire Police, and some town and parish councils.
Despite the increase people in East Lindsey will continue to pay the lowest rate of district council tax in Lincolnshire and one of the lowest in the country.
Portfolio Holder for Finance Councillor John Upsall said: “This budget has been developed at a time of significant financial challenge nationally, with local implications.
“In the 2014/15 financial year we have had to identify £1.63m of savings, this is on top of those we’ve made in the current and previous years.
“As we look to the future the challenge becomes even greater with more savings required for at least the next three years.
“Like families and businesses, we have had to take tough budgetary decisions to ensure we can deliver a balanced budget - which is a legal requirement.
“The focus of the council remains on protecting services to local people and leaving no stone unturned in finding new and more efficient ways to deliver our services.”
ELDC said it is still committed to investing heavily in affordable housing, improved broadband provision for residents and businesses, flood alleviation, upgrading public toilets, disabled facility grants and grants which support business and create jobs.