Douglas council says it will invest ratepayers' money in a series of schemes to revitalise the capital.
Rates bills are to go up by 2.1 per cent in the next financial year, mainly as a result of increased waste disposal charges passed on by central government to the local authority.
At its budget meeting yesterday the council set a rate of 395p in the pound.
Leader David Christian says millions have been set aside to fund a new office, library and car park development at Cambrian Place on Lord Street where work is to start soon.
Spending plans for 2013-14 also include improvements to Hutchinson Square, new street lighting, and public housing upgrades.
Councillor Christian says it's a budget for responsible growth in difficult times:
Government issues clarification on proposed changes to public housing policy
DHSC 'considering policy options' as Hyperbaric Chamber calls for more funding
'Really special', says charity as historic furniture returns to Island
Government 'supporting' Strix after announcement of Ramsey factory closure
Minister acknowledges challenges facing hospitality industry