HOUSEHOLDERS in Kirklees will pay 3.2% more on their council tax in 2007/08.
It's the first time in years that the rise has not gone above inflation.
And such rises can be achieved again in each of the next two years, says the council's Tory administration.
Also, an estimated 30,000 homes will get free insulation in a ground- breaking scheme to reduce energy bills.
The idea - put forward by the Greens and accepted by the budget meeting - is a first for any council.
Council leader Robert Light said: "We have created a new culture.
"It is one where everyone acknowledges that the council can continue to provide excellent services without the annual above-inflation tax hike."
The total council tax bill for band D householders for 2007/08, including money for the fire and police services, will increase by £40.40 from £1,246.17 to £1,286.57 this year.
But most people in Kirklees live in band A and B homes.
The charge for band A will rise by £26.93, increasing the bill from £830.78 to £857.72.
People in band B will have to pay £31.42 more, with their bill going up from £969.25 to £1,000.67
A pensioner discount scheme - the first in the country - means many over-65s will pay no increase.
Parish council precepts will be added in some areas.
The hung council agreed a compromise budget proposed by the Tories, with Liberal Democrat and Green Party ideas included.
Labour voted against.
Three children's day nurseries will be axed in Huddersfield as part of the new spending plans.
Clr Light said the budget provided for:
* An increase in police community support officers in Kirklees from 16 to 68
* Massive road improvements, with the initial thrust in Dalton, Greenhead Almondbury, Kirkburton, Lindley and Denby Dale
* Expansion of the Warmzone scheme, giving every home the chance of loft and cavity insulation
* New academy schools to drive opportunities for pupils up education standards.
The plans also include a new country park at Storthes Hall, Kirkburton, and an indoor crown green bowling centre of international standard.
Cash for these will come from the sale of Leeds-Bradford Airport in a move pushed by the Liberal Democrats.
Clr Light said: "This is a budget that is based on the efficiencies that the Conservatives have always said could be achieved.
"It is a budget which maximises cash savings, but protects front-line services and those who work so hard to deliver them.
"It is a budget which enhances the people's priorities."
Green Party leader Clr Andrew Cooper said the free insulation scheme would bring tremendous benefits.
He said: "The average household will save around £150 a year on energy bills.
"In total, this will put £4.5m back into the local economy each year and not into the pockets of utility companies."
The Lib-Dems said they were pleased they had got some of their ideas accepted.
Their leader, Clr Kath Pinnock, said compromise had been inevitable because no single party has an overall majority on the council.
She added: "There are clearly elements of the budget that do not have our wholehearted support.
"We believe that what has been worked out by the three groups, who have an open and honest dialogue, offers the best available solution."
Clr Mehboob Khan, the leader of the Labour group, said: "Political history was made when the unholy Lib-Dem and Tory alliance voted for Thatcherite policies designed to inflict maximum damage on the most needy and less well-off members of our society.
"Lib-Dem supporters will be appalled that Lib-Dem councillors have voted for Tory closures of three popular children's nurseries, abolition of the weekly general waste collection service, closure of residential care homes, cuts in essential home care services for older people, cuts in day care and meals on wheels and a massive increase in home care charges.
"Labour councillors had put forward costed and sustainable proposals to save council nurseries, freeze home care charges, reinstate home care, day care and meal on wheels, keep the weekly rubbish collection service and increase recycling, build four council-run residential homes, invest more in road safety and improve the condition of roads.
"Our council tax rise was identical to the others and savings would be made by slashing million of pounds of wasteful red tape and bureaucracy to fund these service improvements."