Cabinet councillors at Lewes District Council have agreed a rise in the council tax of just over 9p a week for a Band D property.
The increase would result in a Band D monthly charge of £192.08.
East Sussex County Council receives 71% of the council tax paid by residents, while Lewes District Council gets 15%, Sussex Police 9% and East Sussex Fire & Rescue Service 5%.
The 3.99% increase planned by East Sussex County Council would mean their share of a Band D bill increases by £1.10p a week.
Councillor Zoe Nicholson, Leader of the Council and Cabinet Member for Finance, said:
“This is a good news for local residents and has been achieved despite the government putting an end to the grant funding that we used to receive.
“With prudent budgeting will now be able to get on with delivering our priorities, most importantly work to tackle the climate emergency and housing crisis.
“This is the Co-operative Alliance’s first budget and we’ve made an immediate £500,000 capital investment in decarbonisation measures. This follows the £100,000 that we agreed in September, shortly after taking control of the council, to kickstart the much needed upscaling of the council’s response to the climate emergency.
“We are also addressing the acute shortage of affordable housing by building 200 energy efficient and sustainable council homes over the next four years and spending an additional £500,000 on improving amenity, tackling anti-social behaviour, supporting social inclusion and improving tenant satisfaction.”
Full Council will consider the budget on February 24.