Rates set by Onchan Commissioners are going up by just over 10 percent in the new financial year.
The local authority says the increase to 411 pence in the pound is rooted in 'economic challenges', including high inflation, escalating utilities and rising refuse costs.
Onchan Commissioners believe the rate increase will ‘sustain’ its essential services, maintain ‘financial flexibility’ for the next year and support continued maintenance in its properties.
It also says increases to staff wages, inflated material and subcontractor costs, and loan repayments for the Eastern Civic Amenity Site have all had an impact.
Fenella Logan, lead member for finance, says the decision to draw into reserves is to ‘alleviate’ the ‘financial strain’ on residents in the village for infrastructure projects.
Ms Logan said: 'In essence, the rate increase to 411 pence in the pound is not just a response to current financial pressures, but a forward-looking strategy that positions Onchan for sustainable growth, prudent financial management and the ability to seize opportunities as they arise.
'Our decision to increase rates by 38p is motivated by the need to address challenges head-on and to ensure that the services our community depends upon continue to be available.
'We extend gratitude to our dedicated team for their diligent financial management in navigating these unprecedented times and we express our gratitude to the community for their understanding and support as we work together to build a prosperous future for Onchan.'