Taxpayers in the Horsham district are likely to face a hike of 8.9 per cent in their bills after a council meeting today.
Tony Higgins, director of finance for Horsham Council, said: "It is lower than originally expected."
The council will use some of its reserves to keep bills down.
Mr Higgins said: "The Government has assumed we have to put up council tax by 7.1 per cent just to stand still.
"The reason it is more is because we rely on interest income and interest rates are so low at the moment."
Mr Higgins said the council was spending more on services, including recycling and litter collection.
He said: "The figure of 8.9 per cent is the minimum we need given the interest rates, the growth in services and the Government settlement."
The proposed rise has sparked a mixed response from residents.
Peter Little, of The Brook, Southwater, said: "It is a big con when you look at inflation rates. You are not getting value for money, it just gets lost.
"For the amount of money, you don't really get the amenities you should."
Dave Tribble, of Sorrel Road, Horsham, said: "Obviously you need to have some sort of rate to pay for services. On the whole I don't think we do too badly.
"It does seem a lot but I think at the end of the day what people want is value for money and in Horsham we just about break even."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article