Council tax payers in the Vale are facing a 6.9% rise under budget proposals for the next financial year.
Cabinet members will meet on Thursday to discuss how to balance the books at Vale Council - including plans to save over £9 million.
But council leader Lis Burnett wanred the extra cash would not solve the problem of "significant financial difficulties" facing the Vale and other local authorities in Wales.
Earlier this week, a Senedd committee heard the 22 Welsh councils were facing an overall shortfall of £559 million - the equivalent of a 26% council tax hike or the loss of 14,000 jobs.
In the Vale of Glamorgan, the expected total budget for 2025-26 stands at £331.4 million - including just £223 million from the Welsh Government, around two thirds of the council's income.
The rest is made up of council tax, charges for services and a share of business rates from across Wales.
Once again, most of the council's budget (71%) is set aside for schools and social care - both of which will see an increase in funding by £8.9m and £10.3m respectively.
The council says it's a larger proportion of the budget than ever before - as part of its financial strategy "to protect the services used by the Vale's most vulnerable citizens."
The initial proposals for the forthcoming budget have been created in a financial context that sees demand for certain 'critical' services growing rapidly, particuarly social care for both adults and children, provision for school pupils with additional learning needs and providing school transport.
Cllr Burnett said: "We have now been operating within incredibly challenging financial constraints for several years. Despite this we have a track record in the Vale of continuing to deliver our most vital services to a very high standard."
"Prioritising investment in social care in recent years means that the Vale has the fewest delays in hospital discharge in Wales and we are able to source home care for those who need it in an average of three days."
"Continued investment in our schools means our pupils learn in some of the most modern facilities and those that need additional support can access excellent provision."
The leader of the Labour-led council added: "This year's increased settlement from Welsh Government is better than we had expected. It is encouraging to see the pressures on local authorities being recognised by both the Senedd and Westminster governments."
"However, the additional resources whilst appreciated fall well short of what is needed to sustain essential local services."
"It is also the case that the Vale is one of the lowest funded councils in Wales. We are actively lobbying ministers to address this."
"As leader, I have always tried to be very clear with residents about the seriousness of the situation and the issues we must balance when spending public money."
"The reality is that our costs are increasing much faster than our funding. This makes it impossible to maintain services at current levels."
The proposed council tax hike of 6.9% would generate an extra £8.5 million, according to a report to be discussed by the cabinet on Thursday.
It also sets out higher charges for certain services and implementing new ways of working to cut costs and generate income.
But Cllr Burnett insists the planned tax increase "is one that offers the best balance between increasing what we are asking residents to contribute and protecting the services we know matter to them."
"If any additional funding becomes available, we will prioritise reducing the proposed council tax increase alongside investing in critical services."
"Once again this year we will be taking difficult and unpalatable decisions in order to reach a balanced budget for the year ahead. To enable this we will continue to find new and innovative ways to deliver our services and better serve our residents.
"In line with recent years our absolute priority will be maintaining services for those in our communities that need them most."
The report also sets out plans to rent office space at the Dock Office following the successful Levelling Up bid for create a new marina at Barry's waterfront.
More sports and community groups could be allowed to take over their facilities - an arrangement which, according to the council, has already proved popular among bowls clubs and other organisations.
There's also a proposed review of how some social care services are delivered while a number of unused buildings could be put up for sale or transferred to community groups.
A four-week public consultation on the budget proposals is expected to begin on 20th January alongside scrutiny committee meetings before a final decision is reached in March.
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