The Scarborough borough element of council tax was frozen last year but an increase has been put forward for 2022/23.
It is the final time the council will set a budget ahead of the introduction next year of a single unitary authority to provide all local services in North Yorkshire.
A balanced budget had been proposed thanks to the careful management of the council’s financial resources despite the challenges presented by the ongoing Covid-19 pandemic.
In reaching its balanced spending plans, the council put forward ways of saving another £1.5m in the coming year.
Now that the budget proposals have been approved by cabinet there will be a period of
Cabinet will review the responses at its meeting next month before full council discusses the budget and sets the council tax for 2022/23 when it meets on February 25.
Cllr Steve Siddons, Scarborough Borough Council leader, said: “There has been further pressure on our finances in the last year, not least because of Covid-19.
“However, by making careful savings, being prudent with our money and managing our resources effectively, we are able to set a balanced budget for our final year.
“This means we can leave things in a great position for when the new unitary council takes over."