Lancaster City Council is proposing to increase its share of Council tax by 2.99 per cent.
District councils are allowed, by law, to raise their proportion of Council tax by 3 per cent or £5, whichever is higher, without a public referendum.
A report published ahead of this Wednesday's meeting of the full council said they had considered three options, including to raise Council tax by £5 and not raise it all, but the 2.99 per cent rise is preferred.
This increase would push up a Band D property owners' annual payment to the council, to £272.20 from £264.30.
The council said it is facing forecasted budget deficits over the next five years. It is also proposing to increase selected off-street car parking fees across the District.
"A forecast budget gap still exists and it continues to be structural in nature, meaning that the council’s forecast spending exceeds the income it expects to receive," says the report.
"Officers are continuously working with Cabinet to address this issue and will continue to do so following on from the conclusion of the current budget process.
"This will ensure that the problem is addressed in a timely manner so that it remains manageable.
"In terms of the actual budget position, work is ongoing to provide a balanced budget.
"Public consultation/stakeholder meetings will be held over the coming weeks (including Budget and Performance Panel). The feedback from these meetings will be considered by Cabinet and incorporated into a final budget proposal which will be presented at the Cabinet meeting on February 10 and recommended to Council on February 25.
"Whilst the longer-term financial forecasts contain numerous estimates and assumptions, which will change over time, the forecasts clearly highlight potential annual and cumulative budget deficits over the next five years and the position the Council faces.
"Although this position is not unique to this Council, it is reflected nationally across many public sector bodies. The gaps identified for 2026/27, although are lower than previously forecasted, are still present."
As part of the 2026/7 budget, the council cabinet proposed freezing garden waste collection charges, and increasing selected charges for using Lancaster City Council-run pay and display car parks.
"Off-street car parking is a key council service which helps to support the Council’s statutory and extensive provision of discretionary services," says a council report, published ahead of a meeting of cabinet held on January 13.
"As part of the review of the fee structure for 2025/26, tariffs were frozen.
"Latest monitoring suggests that usage is down by approximately £50,000 per annum and the draft budget for 2026/27 has been updated to include this reduced amount.
"The request is to add 20p to the 30 minutes, 1 hour and 2 hours bands. The overnight tariff is to be increased by 30p but will now start from 5pm instead of 6pm to support the evening economy. All daytime tariffs above two hours are to remain frozen to encourage longer dwell time by visitors."
The report says there could also be "inflationary increases to fees and charges across all remaining areas as appropriate".
"Inflation means that the cost of delivering council services has also increased," it says.
"Charging for some local services, where appropriate, makes a significant contribution to council finances and the delivery of the Council Plan which in turn bring benefits to local communities."
The proposed increases were supported by the council cabinet, a coalition of Green, Liberal Democrat and Morecambe Bay Independent councillors.
Councillors are expected to vote on the proposed tax increase on Wednesday.
Lancashire residents pay the vast majority of their Council tax bill to Lancashire County Council, which is proposing a 3.8 per cent rise in its share.
Residents of the Lancaster and Morecambe District pay the rest of their Council tax bill to Lancaster City Council, the police and fire authorities, and their local parish council depending on where they live (ie Morecambe Town Council, Carnforth Town Council etc).
Wednesday's meeting will start at 6pm and will be held at Morecambe Town Hall, and is open to the public.
Read more: Lancashire County Council's share of Council tax proposed to rise by 3.8 per cent - Beyond Radio
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