Householders who live in Band D properties may have to pay £5 more on their council tax.
Lancaster City Council looks set to agree an extra increase for these households which would work out as an additional 95p on top of a £4.05 (1.99%) rise already suggested.
A final decision on council tax increase will be made at Lancaster City Council’s crunch budget meeting on March 2.
A city council spokesman said: “With the majority of properties being in Bands A-C, the actual increase will be less for most households.
“While as the billing authority Lancaster City Council collects council tax, it only receives around 13% of the total bill to spend on its services.
“Of the remaining bill, excluding parishes, the majority goes to Lancashire County Council (73%), with precepts from Lancashire Police Authority (10%) and Lancashire Combined Fire Authority (4%) making up the rest.”
The Government has given local authorities permision to raise council tax for Band D properties and this may apply until 2020.
A council report said: “Subject to no other budget changes arising, if council tax was increased by more than 1.99% then this would result in estimated balances increasing over the next two years.
“This means that more funds would be available to support the budget in subsequent years.”