City council tax bills will rise by six per cent in April, more than double the national inflation rate.
But the rise is the lowest in Brighton and Hove Council's short history and projections are for lower rises in the years to come.
The authority plans a five per cent rise next year and a four per cent rise after that.
Council leader Lynette Gwyn-Jones said big increases were planned in investment for education, social care and health.
She added: "This is an excellent, forward-looking budget for the council, something of which the administration can be justly proud."
Opposition Tory leader Geoffrey Theobald proposed a 2.9 per cent rise in council tax, less than half the Labour rise.
He said council tax had risen by 37.5 per cent since the council had started and yet there were still big cuts in services.
Tories proposed more spending on subsidised bus services and kerbside recycling but less on public relations and a free bus service taking council staff to and from main buildings.
Deputy Tory leader Brian Oxley said: "If the choice is between more copies of Brighton and Hove News and clearing graffiti, I know what people will want."
The budget was approved by 42 votes to 24 after a debate lasting more than two hours. Brighton and Hove's council tax is still likely to be the lowest in Sussex.
The bills, including an additional sum for Sussex Police, will be: Band A £551.83, B £643.81, C £735.78, D £827.75, E £1,011.69, F £1,195.64, G £1,379.58, H £1,655.50.
Nearly 80,000 of the 113,000 households in Brighton and Hove are in bands A to C.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article