Householders in Brighton and Hove will face council tax rises of just under nine per cent in April.
The figure is half the original 18 per cent proposed late last year. It is not possible to say exactly what bills will be faced in the spring because the East Sussex fire levy has not yet been fixed and a police levy also has to be added.
But people in a typical Band D property are paying £1,073 at present and this will rise to more than £1,150.
City councillors have spent three months finding ways to reduce the rise, the highest in the authority's history.
They have come up with a package of cuts and increased charges for various services.
The figure had been whittled down to 11.9 per cent in advance of a meeting of the policy committee last night.
Labour finance councillor Simon Burgess told the committee: "We are determined to bring forward further proposals to reduce the increase to less than nine per cent."
He got backing from the Liberal Democrat group so whatever the Greens and Tories decide at the budget council meeting on February 26, the increase will be approved.
It should also ensure the budget is not capped by the Government - which would mean Whitehall civil servants moving in to make further cuts.
Lib Dem leader Paul Elgood said: "We must make sure the right services are protected and that the council isn't capped.
"We will work with Labour on further budget proposals to get the council tax increase down."
Coun Burgess said: "The Government has put pressure on councils over tax and has set us a challenge to get the best possible deal for local people."
He did not give details of what would be done to shave a the rise but added: "We have the means of doing it."
Tory finance spokesman Brian Oxley welcomed moves to reduce the rise but said his party would try to cut it still further in proposals yet to be tabled. The Government had behaved appallingly to the council in giving it one of the lowest grants in England.
Now it wanted a low single figure percentage rise.
"If Gordon Brown needs to raise taxes he should go to the despatch box and do it honestly rather than handing over the job to local councillors."
Green convenor Keith Taylor said: "We are in deep trouble. To reach the new figure will need further savings of £2.5 million."
The council has been identifying what service cuts and price hikes it must introduce to fund its forecast £277 million budget for the coming financial year. This compares to a £259 million budget for 2003/04.
In December the council mooted a 16.5 per cent increase in the council tax. This was brought down to a suggested 11.9 per cent - but finance officers admitted there was still a risk of Government capping.
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