Hepburn Shire Council will seek approval for a significant rate increase to shore up its financial position.
The council will ask the Essential Services Commission to approve a 10% rate increase next financial year, 7% above the state-mandated cap.
Mayor Don Henderson says the average impact would be $2.20 per property per week, generating $1.36 million for essential services.
The Council has implemented $1.5 million in operational savings but warns further cuts of $2.6 million will be needed.
It ranks among the lower-rating municipalities in Victoria.
Hepburn joins Alpine Shire as the second council known to be seeking a higher rate cap this year.
The Commission is expected to release its decision by late April.