Thousands of residents in Exeter will face higher council tax bills from April.
After a two-year freeze, Exeter City Council is proposing to put up its council tax for the upcoming financial year by £5 a year.
The increase would see the authority's part of the council tax bill rise from £124.84 to £129.84 for an average Band D property. Council leader Pete Edwards claimed the bill still represented "excellent value for money".
"Last year we froze our bills and for many previous years we have adopted a below- inflation rise in council tax. This has been recognised by the current government, who have allowed councils who set the lowest bills to make increases of £5," Councillor Edwards said.
"Government funding to Exeter has been severely cut again. We must increase council tax to protect essential services. Even with the increase, Exeter still sets one of the lowest district council tax levels in the country. The average household will pay just £2.49 per week for all of the City Council services next year if these proposals are carried forward."
Last year the authority set the fifth lowest district council tax in the country and, apart from East Devon District Council, the lowest in Devon.