Pembrokeshire County Council's Cabinet is recommending a 1.7 per cent increase in council tax for the coming financial year.
The increase would mean a Band D payment of £717.93p - an increase of £12.03p a year - less than 24p a week.
The proposed rise was approved at a meeting of the cabinet on Monday.
Cabinet also recommended that the local authority go ahead with a massive school improvement programme over the next decade.
The 21st Century Schools Programme will see the rebuilding of some secondary and primary schools and the refurbishment of others.
The leader of the council, Clr. John Davies, said the council tax increase would ensure the council would continue to deliver reasonable services at reasonable cost despite the challenging economic times.
"We have a history of having the lowest council tax in Wales and it is our intention to continue with this. We aim to be as responsible as we can to fund the services that are required of us," he said.
Clr. Davies said the council faced considerable challenges from rising prices such as fuel costs and also from its recent 'standstill' local government settlement from the Welsh Government.
In addition, recent judicial review decisions on care home fees resulting in increased fees would have to be resourced from the existing budget which would also have an impact on services.
And while the education and social care budgets would see increases of more than one per cent above the settlement, the increases would result in a cash reduction for all other service areas of around 1.5 per cent.
"This will be my last and final budget and this has been by far the most difficult to date, although I am sure that whoever is my successor will have an even greater challenge to face."
At Monday's meeting, cabinet also decided to recommend that council rents be increased by £1.23p a week - a two per cent rise and well below the 7.8 per cent rise recommended by the Welsh Government.
Final decisions will be made at full council on February 23.




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