GWYNEDD households will be hit with a three per cent council tax increase for 2013/14.
A full council meeting approved the increase, which amounts to 60p per week, as the authority tries to bridge a funding gap over the next four years.
Councillor Peredur Jenkins, Gwynedd Council’s cabinet member for resources, said three quarters of the authority’s funding came from central government.
He added: “The fact that this grant is not enough to cover the cost of funding our local services once again leaves the council with the responsibility for bridging the funding gap which is likely to be very significant over the next four years.
“However, Gwynedd’s track record of sound financial management, and our long-term approach to finding and delivering more efficient ways of working means that we are in a strong position to deal with the tough times ahead."
Gwynedd Council will also step up its savings drive to cover the shortfall.
The council will receive around £181 million from the Welsh Government, which equates to approximately 80 per cent of its funding.
The remainder is raised through council tax.
Council leader cllr Dyfed Edwards added: “As a council, we have been at the forefront in Wales in developing a comprehensive savings strategy to address the UK Government's public service cuts.
“As part of this wider savings agenda, the Council has for a number of years been working hard to deliver efficiency savings to avoid cutting services.
He added: “Taking a balanced approach with an increase of 3.5% in council tax will help us to protect key services for Gwynedd’s most vulnerable people and ensure that families are protected as much as possible from significant financial pressures.”
However Bangor councillors Nigel Pickavance and Chris O’Neal opposed the tax increase.