The council is currently in the process of setting its budget for the 2022/23 financial year, with revised proposals agreed by the Executive on Tuesday 8 February.
Cllr Martin Hill OBE, leader of Lincolnshire County Council, said: “Despite an increase in our government funding, the council will continue to face significant financial challenges over the next few years.
“Although we expect to be able to balance the budget in 2022/23, revised estimates show we face a shortfall of around £22m over the following three financial years
“We know this is also a difficult time for many families, with rising inflation and energy prices. However, it’s important that we protect the frontline services our residents rely on.
“We estimate our adult care costs will increase by around £13.5m in 2022/23. Therefore, we are proposing a 3% increase in our adult care precept to help cover this.
“Meanwhile, it seems unlikely that government will reverse last year’s £12m cut in highways funding. We know that good roads are a priority for residents, so we have little choice but to step in again and plug the gap.
“We’re disappointed that local taxpayers are again being left to foot the bill, especially when the government raises billions each year through fuel duty and road tax. So, we’ll continue our fight to ensure Lincolnshire gets fairer funding in future.
“As a result, we are now proposing a 2 percent increase in general council tax to help make up the shortfall. However, Lincolnshire will still have the second lowest council tax of the shire authorities.
“Even with the rise in council tax, we will still need to use £2.3m from our reserves to balance the books in 2022/23.
“Over the next four years, we expect to save around £25m through measures such as home working, increased use of digital technology, a reduction in administrative posts and the disposal of surplus buildings.
“This approach will allow us to maintain and invest in frontline services at a time when other councils are having to reduce theirs.
“Local councils play a huge role in supporting our communities, and we hope that moving forward we are given the money we need to provide the services our residents rely on.”
The proposals will be discussed at the meeting of the full council on Friday 18 February, where the final budget will be agreed.