Council tax bills in Solihull are to rise by 4.4 per cent.
The decision by the borough council means that the annual bill for Band D properties will remain fractionally under the symbolic £1,000 - at £999.68.
The increase, £42.52 a year, is the equivalent of 82p a week.
The Conservative-controlled council agreed a programme of savings, totalling £6.7 million.
Ted Richards, the leader of Solihull Council, said the borough suffered by being allocated the lowest amount of Government grant of any metropolitan authority.
Coun Richards added: "The likes of Manchester and Liverpool get what is approaching £700 per head of population, while Solihull gets £238. The average is £449.
"We now face making savings and are using and additional £550,000 from balances.
"We must be honest - difficult decisions have had to be made, and it has not been easy. "