North Norfolk District Council's share of council tax is set to rise for just the second time in eight years.
Cabinet voted on Monday, February 4 to raise its share for 2019/20 by £4.95, from £143.82 to £148.77, for a Band D property.
The final decision will be made at the Full Council meeting later this month.
The overall council tax bill for householders will also include Norfolk County Council and Norfolk Police Authority precepts, which are yet to be determined.
Eric Seward, NNDC portfolio holder for finance, revenue and benefits, said: 'There are rays of sunshine but also dark clouds ahead.
'There is little option in my view other than to raise council tax, and we will still be in the lowest quartile for raising council tax in the country.
'If this council does not raise council tax we would lose £200,000 this year and £820,000 in the following three years.
'Whatever we decide, householders in north Norfolk will see their council tax rise in April. The bulk of that rise will be down to the county council and the police authority.'
But Conservative councillor Duncan Baker said the Lib Dems had only been in office for two months, and they were already raising taxes.
He added: 'The Conservatives only put taxes up once in seven years.'
In reply, Mr Seward said the Lib Dems did not like council tax increases, and added: 'A Band C council taxpayer is looking at an overall rise of £60 to £70. 'Of that, about £50-55 is from the Conservative-led county council and Conservative police commissioner.
'We are not going to be like Conservative-led Northamptonshire County Council which ended up bankrupt.'
Mr Lee shot back: 'We have no control over county council and police rises. I am a low tax Conservative and would rather the money in my pocket be spent by me.'
Council leader Sarah Butikofer said: 'It would be disingenuous to say this council did not need to increase council tax.'
The council tax was raised by the same amount by the then Conservative-led district council for 2018/9, but it had been frozen before that.
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