I don't mind contributing to the cost of the educating the children who will be the taxpayers of the future, or social care for the elderly and disabled, which are the two biggest areas of local government spending.
I get irrationally annoyed though, when I put out my tiny bit of non-recyclable rubbish (really tiny - it could fit in a shoebox some weeks) and the woman over the road, who has 2 kids, has at least one massive black sack every week, sometimes two. She has 2 recycling bins that are always full, as well, I sometimes don't bother to put mine out for weeks. I don't see the point of dragging it down the drive if it's less than half-full.
But my rational self knows that only a very small amount of the council tax goes on waste collection and disposal, and I give myself a theoretical slap around the head.
I think local income tax would be fairer overall. Those most able to pay would pay the most. The household along the road with 4 working adults would pay according to their combined income, not the size of their house (which, incidentally, is twice the size it was as they've extended massively, but is still the same council tax band).
It would still be a lot of money though: council tax here is nearly £2,400 for a band C property. I really don't know what they do with it all.