Oxfordshire County Council has agreed a tax hike as part of budget proposals.
The 1.99% council tax rise will come into force on April 1.
Had the council decided on a rise of 2% or more it would have to have held a public referendum on the decision.
The council is having to save £73 million between 2013 and 2017 following a 12% cut in Government grant funding.
A £100,000 fund has been set aside for the next three years to increase the council’s capacity to pursue growth opportunities with partners in the public and private sector.
Council leader Councillor Ian Hudspeth said the budget would protect the vulnerable while helping to promote economic growth.