A local government watchdog was critical of Brighton and Hove City Council when it undertook an inspection in March last year.
But the report of a follow-up visit a year later was much more encouraging.
The three-man team from the Local Government Improvement Programme originally made 15 recommendations for further improvements, including devoting cash to priority areas, making council meetings more open and ensuring consultation takes place.
The programme offers help to councils to assess their achievements.
Its report said Brighton and Hove's response to the earlier review had been highly positive.
The new leader, Ken Bodfish, and chief executive, David Panter, had provided vision and drive to make improvements.
It stated: "The advent of a new political and managerial leadership has resulted in a renewed sense of purpose in what is a sound authority."
The team praised the way in which the budget was approached and the success in finally sorting out the waste contract.
It gave a special mention to the ninelives campaign, designed to promote sustainable lifestyles.
Consultation had improved, particularly in the referendum last year on whether there should be a directly-elected mayor.
The report said: "An excellent start has been made.There is still much to do but the council understands this and has a leadership that has a good understanding of the complexity of what they are trying to achieve."
Councillor Bodfish said: "The report confirms what people are beginning to say - the council is getting better.
"I am pleased at the comments about strong political leadership linked to the council's top managerial team because, without that, the city would start to move backwards.
Mr Panter said: "There are some very strong messages here.
"I particularly liked the final sentence saying 'this is clearly a council that is striving to be one of the best'."
Residents can read the whole report by going to the council's web site at www.brighton-hove.gov.uk
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