Torfaen councillors have agreed a council tax increase of 3.35 per cent for 2010/11, which will yield an extra £1.15m in council tax towards services.
This is the fifth consecutive year the level of council tax increase has reduced since a 4.9 per cent increase in 2006/07.
The increase will result in a Band D home paying £925.16 a year, an increase of £29.99 from last year or just 58p per week. The council must then add a precept for Gwent Police and Torfaen's community councils to this total to provide a final demand.
The reduced rise in the level of council tax coincides with funding from the Assembly significantly reducing and councils witnessing increased demand for local services and reduced income. Despite this potential strain on finances, the council has not sought to substitute any shortfall with increases in council tax.
The executive member for resources, councillor Marlene Thomas, said: "Councils across Wales are feeling the pinch of recession and Torfaen has received its worst budget settlement from the Welsh Assembly since devolution. Despite these pressures, a 3.35 per cent rise is a prudent position sought to protect citizens, communities and front-line services.
"The council has made £4.2 million of savings for 2010/11, which will require voluntary and compulsory redundancies plus innovative ways of delivering services. However, job losses are forecast to be more modest than in previous years."
The leader of Torfaen council, councillor Bob Wellington, said: "Despite the impression of many people, council tax represents only 11.3 per cent of our overall funding; the vast majority of the remainder comes from the Welsh Assembly.
"When the increase from the Assembly is not enough to meet core costs it can potentially put a strain on the council tax level we set which at present we are managing to avoid.
"During the past two years, we have removed more than £1million in costs at senior management level, to direct towards priority areas such as education, care of vulnerable people and front-line services.
"Future settlements indicate far greater pressure which is why we are working with public sector partners to ensure our citizens' needs are met. Quite simply, it is our duty to make sure that every pound is put to its best use to keep Torfaen a cleaner, greener and safer place to live.
"I would urge any resident having difficulty paying their council tax to get in touch with the council and make sure they are claiming all of the benefits to which they are entitled."