Horncastle Town Council will not be asking for any additional money from council taxpayers in the next 12 months - even though it could be handed responsibility for many services.
Lincolnshire County Council and East Lindsey District Council - who are looking to shave millions of pounds off their budgets - could transfer certain services to town and parish councils.
ELDC, for example, is considering whether to continue funding grass cutting, footpath/street lighting, public toilets and markets.
No decision has been made, with both ELDC - and the County Council - set to finalise their programme of spending over the next couple of weeks.
However, the Town Council - although aware of the possibility of greater responsibility - has decided to freeze its precept, meaning the amount it requests from local council taxpayers will not increase.
In a statement, the Town Council said: “Despite the withdrawal of the £7,698 Revenue Support Grant by ELDC, we have managed to identify savings that can be made in the current budget.
“The Town Council precept will increase from £98,331 last financial year to £100,990 this year but, because of the growth in the number of properties in the town, individual council taxpayers will actually pay the same amount as last year, which will be £47.48 for a Band D property.”
Tax bills, though, are almost certain to raise by around 10 per cent with increases in precepts submitted to the county council, ELDC and Lincolnshire Police.
At the same time, all three authorities are warning front-line services are under threat.