Marown Commissioners say a £20 hike in rates is necessary to cope with changes in waste management.
It's after government pulled a £5 million waste subsidy.
The authority claim the changes will cost an extra £20,000 a year and is subsequently raising rates from 122 pence in the pound to 134.
Chairman Paul Craine claims it's impossible for the increase to be absorbed by the commissioners.
He also warned of further rate hikes for the next four years if the authority is to avoid a deficit budget, but says Marown's rates remain below the Island average.
Mr Craine's comments come after the leader of Douglas Borough Council called for the government to 'name and shame' any local authorities suspected of raising rates above the waste levy.
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