Watford Council will consider freezing council tax for the seventh year in row following a recommendation from Watford's cabinet meeting on Monday (18 January).
The budget for the next financial year will now go to council for consideration at its meeting on 27 January.
Council tax receipts provide just under half of the council's funding (48.8%), the rest is made up of government grants and other income. The government has announced that as part of a four year funding settlement, the council's revenue support grant will end in financial year 2019/20.
Despite Watford Council freezing its share of the council tax, bills are still set to rise this year as Hertfordshire County Council is expected to increase its share of the bill by 3.99%. The Police Commissioner's precept is expected to be cut slightly. Funding for Watford Borough Council makes up just 16 pence from every one pound collected in council tax.
Dorothy Thornhill, Elected Mayor of Watford, said: "We have come through some difficult times but by being flexible and with our strong approach to partnership working we have protected the services that we know you value.
"We will have some challenging times ahead of us as the government changes the way we are funded but by planning early we are in the right place to respond to those changes. We will build on our strong partnerships, become more entrepreneurial and innovate so that we can continue to deliver high quality services."