Douglas Council rates will rise by 0.5% to 397 pence in the pound.
Leading Councillor David Christian presented the budget to a special meeting of the Council this morning.
After some debate, the increase was passed unanimously by 16 votes to nil.
Mr Christian says the budget is achieving savings while delivering more for less:-
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Investigation underway into fire station blaze
At the height of the incident nine fire appliances on scene
Thompson 'confident' in MGP/Classic TT adaptability
Clerk of the Course says there's 'wriggle room' in the event of disruption
Island on 'right track' to retaining biosphere status
However, chair of UNESCO Biosphere Isle of Man stresses no decision is made yet
Nominations open for Douglas Council's Community Award scheme
Mayor says it 'brings out the best' of the people of the city