Colchester residents will pay an extra 8.5 per cent council tax next year to fund borough services.
Councillors agreed to the inflation-busting increase last night but the final figure has to be agreed by the full council next week.
The rise will mean the average Band D household will pay £104.85 for Colchester Council services from April, an increase of £8.21on last year's figure.
On top of getting money from council tax payers the borough will have £10m from the Government, taking its budget to £15.9m.
Colchester Council's proportion of the total council tax paid by residents also has to be added to the amounts needed by Essex County Council, Essex Police Authority and parish councils.
The county council will have an increase of 8.3 per cent and the police 4.4 per cent.
Residents living in rural areas will also pay different amounts depending on the services and facilities their parish council wants to provide.
Chairman of the borough's policy and resources committee Colin Sykes said: "It's the first time this council has ever broken Government guidelines, so it just shows how serious this year is."
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