Amber Valley Borough Council is to vote on increasing its share of Council Tax by 3.19 per cent for 2018-19 at a meeting on Monday March 5.
The change would equate to rises ranging from £3.34 per year for Band A properties to £5 per year for properties in Band D and £10 for those in Band H.
Council leader Kevin Buttery said: “When I became leader in 2016, I made it clear the council would look to increase Council Tax, allowing people time to adjust their finances.
“Despite achieving savings of £1.8million so far, and a further £1.6million identified in our budget deficit plan, we are still facing challenging times and difficult decisions are required to be made to balance our budget.
Reductions in the grant provided by central government have forced the council into considering the move.
Since 2009-10 the council has seen its spending power cut by £4million. In that time, it has increased its share of Council Tax once.
Further cuts of £666,600 are scheduled for the forthcoming financial year, and the council predicts budget pressures will build up on several fronts.
In the past year, the council has saved £330,000 on salaries and agency costs, reduced its legal costs and secured new income of £100,000 from its green waste scheme .
Coun Buttery said: “My aim is to make this council financially self-sufficient, so that in future we can invest in local priorities without government grant funding.
“We will continue to look at new ways of working and delivery of services.”