Chesterfield Borough Council's leader has said the authority takes 'no pleasure in having to raise council tax'.
Councillors met last night and approved the council's budget for the coming year.
During 2018-19, the Labour-led council needs to make another £200,000 in savings.
Most Chesterfield households will pay an extra 6p a week in council tax to the Labour-led authority in the next year.
Since 2010, the council has faced a reduction of almost £6million or 60 per cent in the amount of funding received from the Government.
By 2020, this funding will cease altogether.
'We will continue to provide more than 50 services'
The council tax increase will see bills for those in a band A property rise from £103.26 to £106.59 a year. Most residents in Chesterfield are in a band A property.
Properties in band D will see charges rise by 9p per week from £154.89 to £159.89.
Councillor Tricia Gilby, leader of the council, said: "We take no pleasure in having to raise council tax but, given the level of cuts we continue to face from the Government, we have decided on a small increase, which will be 6p per week for the majority of people in Chesterfield.
"We remain committed to delivering value for money services and we will continue to provide more than 50 services to our residents for £2.05 per week and, on top of this, we will also make £200,000 in savings."
Where does your council tax go?
Chesterfield Borough Council receives only 10 per cent of council tax paid by residents.
Derbyshire County Council receives 74 per cent, Derbyshire Constabulary gets 11 per cent and Derbyshire Fire and Rescue Service receives five per cent.
Residents in Staveley and Brimington also pay for services provided by their town and parish councils.