Falkirk Council has agreed council tax rises of 2.4% for 2007-08.
Falkirk's council tax rise is below the rate of inflation
The move means Band D council tax will be set at £1,070 for the coming year, an increase of £25.
The authority, which also approved average council rent rises of 2.5%, said it was under "enormous funding pressure" from the Scottish Executive.
Falkirk's decision came as Finance Minister Tom McCabe urged all local authorities to keep their council tax rises to a minimum.
Falkirk Council leader David Alexander said: "Despite the enormous funding pressure placed upon us by central government, achieving a rise of only 2.4%, below the current inflation rate, is a very positive achievement."
The local authority also approved a revenue budget of £277m, which it said would be used to improve services such as education, social work and housing.