Market Rasen Town Council is planning to increase its annual precept by five per cent next year.
The precept is the amount the council needs to cover its financial obligations.
In 2016/17, the council set its precept at £106,406.87.
At a town council meeting last Wednesday, Rasen mayor Coun John Matthews revealed they are asking for £115,000 in 2018/19.
Speaking after the meeting, a spokesman from the town council’s finance department said: “The increase is to cover public sector staff pay awards and build in a small capital reserve each year to protect our playing field equipment.”
Any increase would have to be ratified by West Lindsey District Council.
It is not known yet by how much council tax bills will increase for householders.
Apart from town and parish councils, it is widely expected district and county precepts will also go up.