The authority’s Full Council on Wednesday (March 4) approved a 3.49% increase in its share of the council tax as part of its budget.
The move equates to an increase of £4.95 for an average ‘Band D’ property, taking the annual yearly cost to £146.79.
Councillor Richard Fry said: “I am content we understand both our income and expenditure and therefore have confidence in our estimation of delivering a balanced budget while maintaining service levels.
“However, there is a word of caution as in the following year, the loss of Government grants really bite.”
The council needs to balance a budget of £79.599 million but bosses estimate it will face a deficit of £1.507 million by 2022/23 due to the changes in Government funding which will see grants decrease but income from business rates increase.
It is hoped the authority will bring in £6.601 million from council tax and estimated that £10.028 million will come in from business rates.
It proposes a capital programme of £9.515 million, while the authority will have £17.777 million in reserves.
Council bosses were keen to promote projects including new house building, investment in coastal infrastructure, plans for a new home for ELDC, along with Boston College, in Horncastle, and plans to tackle climate change.
A Labour amendment focusing on rough sleeping, food safety and electric vehicles as well as creating “pride in place” around the district, was voted down.
Lincolnshire County Council has approved a 3.5% rise – an extra £45, taking its share for a Band D property to £1,337.58.
Lincolnshire Police and Crime Commissioner Marc Jones has increased his share by 4.1% – an extra £9.99 for a Band D property. It takes the police share of tax to £217.44.
It is estimated the average ‘Band D’ property will pay £1,800.57 in total, including parish precepts.