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Canterbury City Council is planning to increase its portion of the council tax by 1.99% in the next financial year.
The proposed rise will go out to public consultation - but if approved will mean an extra £3.70 per year for band D residents.
Council leader John Gilbey (Con) says the rise reflects efforts to save money without reducing services.
The authority will need to find £5.1 million in savings over the next three years.
Cllr Gilbey said: "Our plans for council tax may not be popular with some people and we will be interested to hear what residents have to say in the consultation.
"But I would ask them to consider what services they would cut, or increase the price of, if they want us to freeze council tax – especially in light of the future funding challenges we face.
“Nobody should be in any doubt as to how difficult the financial challenges ahead
of us will be to tackle.
"There will be some very tough decisions required in the next few years, and people should brace themselves for cuts in services and increases in charges.
“We took a decision to increase parking charges last year, having put up the price
of park and ride the year before last.
"These changes have now settled down and we believe we have got the balance between park and ride, use of which is increasing, and city centre charges right."
The draft budget for 2015/16 contains no proposals to raise parking charges, but the council is scrapping free parking in Watling Street on Thursday nights.
It says the scheme did not attract extra trade.
The council has calculated that it will need to save £5.1million up to spring of 2019.
Council spokesman Rob Davies added: "In order to achieve this level of saving, the council will be taking a fundamental look at how it operates, which services it provides and how it provides them.
"It will consider commissioning services to other organisations to provide if it proves cost effective, and will seek to move more services online, both to save on costs and to improve access to services for residents through the use of technology.
"We will continue to look for ways to save money without having an impact on services, but with the savings that will be required, cuts in services and further increases in charges are highly likely in the years to come."
The draft budget will be discussed at meetings of the council’s overview committee
and executive on Thursday, November 6 with consultation likely to start on Monday
17 November. Full information will be available on the council’s website.