St Albans City and District Council have passed a balanced budget, after previously announcing a budget gap of £2.3 million.
Increased charges to services such as parking and waste management has been complemented by a further £1 million cost-saving programme.
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The Liberal Democrat-led local authority confirmed that the budget gap had been caused by rising inflation.
The council's leader, Cllr Chris White, said: "I am delighted that, within this very difficult budget, we have been able still to deliver on our commitments to improve the size and quality of our social housing, take further steps to decarbonise our operations and to continue to promote fairness and inclusion in our community.
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"Under our watch, the district will remain one of the best places in the country to set up business and bring up families and enjoy leisure and cultural pursuits."
Cllr Paul de Kort, who led the budget, added: "The decisions we have chosen to make come against the background of years of cuts to council funding by Conservative governments in Westminster - as well as the Conservative economic disaster of autumn 2022 which, at short notice, made a challenging situation much worse for all local authorities.”
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