Ratepayers in Douglas are likely to face higher bills next year.
The council says with inflation creeping up - last month to 3.1 per cent - it has to pass on rising costs.
Savings made across the council operation meant rates were frozen this year, while the rise was just half-a-per-cent the previous year.
Council committees drawing up plans for next year have been given a target two per cent rise in budgets.
Council leader David Christian says it's not clear what rate increase that will lead to:
Campaign group brands Summerland inquest decision 'deplorable'
No new evidence to justify fresh inquests, says Attorney General in Summerland ruling
Attorney General declines application for fresh Summerland inquests
Mountain Road closed following road traffic collision