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Some council tax payers will see their bills go up by £80.
Medway councillors approved plans to raise council tax by 4.994% meaning the average band D household will be paying £1.52 more a week, or £79.49 a year.
The precept for Medway Council is split into 3% for general services, and 2% to fund adult social care.
The chancellor made a provision within his Autumn statement last year for councils to increase council tax by up to 5% from April 2023 without the need to hold a referendum.
During the authority's budget meeting last night, council leader Alan Jarrett (Con) said he felt the rise was necessary.
He explained: "Almost every council in the country, so far as I'm aware, will be applying the maximum increase in council tax, which is permissible.
"It's important to know that the government expects us to use the maximum flexibility, and when it comes to calculating core spending power in the future, it will start from the assumption that we have fully used that flexibility.
"To fail to take the maximum now will see Medway penalised financially in future years, and that's a very important consideration."
Council tax will contribute £148.9 million to the authority's £532.4 million budget.
Cllr Jarrett – who is leaving after the election on May 4 – explained adult social care and childrens' services continue to present the greatest areas of financial pressure on the authority's budget.
The authority is due to spend £82.7 million and £59.5 million respectively on these areas of service.
The council's children's services department is currently rated 'Inadequate' by Ofsted who have been carrying out frequent monitoring visits.
The most recent visit was carried out this week and the results will be published next month.
Cllr Jarrett added: "Pressures within Special Educational Needs and Disabilities (SEND), and SEND transport continue to provide a real challenge for us.
"When we have out-of-area children's placements costing as much as £500,000 per year each, then we can easily see why we have such massive in-year pressures.
"It's been very difficult to balance the budget and to actually bring forward some measures that will help people all across Medway, I think this budget achieves that."
Medway Labour Group proposed scrapping a £338,000 member's priorities fund, which is spent on ward improvements and subject to a bidding process.
Its members suggested using the money to fund defibrillators in community centres, giving funds to town centre forums, creating a green space at Strood Waterside, and setting up a Covid memorial for the residents of Medway who have passed away from the virus, the number of which has now topped 1,000.
Medway Conservative Group rejected the amendments.
During the meeting, Cllr Jarrett announced the authority will spend £50,000 to celebrate the Coronation of King Charles III.
Charges in 10 car parks across the Towns will also be scrapped on Mondays. These are:
The authority is also going to reinstate free bulky waste collection; this service currently costs £22.50 or £41 depending on the day you book it.
However, the council is also going to stop running the Bonfire Night display at the Great Lines Heritage Park in Gillingham to save £40,000.
The event was called off last year on the evening it was due to go ahead due to high wind speeds.
Last night a protest was staged outside the council meeting at the St George's Centre in Chatham.
It comes after UNISON, which represents the council workers, had submitted a claim for a £2,000 wage increase for the 2023/24 financial year.
