Council tax bills on Anglesey will go up by 5.1% after the local authority signed off its annual budget for next year.
Anglesey Council said a "better than expected" settlement from the Welsh Government still left a "significant funding gap" for the next financial year.
Council chiefs said frontline services - particularly social care and education - were still facing strong demand and inflationary cost pressures.
The tax hike means the average Band D household on the island will pay another £87.03 a year - or around £1.67 a week.
Around £1.68m of reserves will also be spent to balance the budget in an effort to avoid deeper cuts.
But the council stressed that the tax rise remains lower than the national average in Wales and was the lowest in the North - with the percentage increase broadly in line with other local authorities.
Following Thursday's meeting, council leader Gary Pritchard said: "This budget is about protecting what matters most - our schools, our care services, and our communities."
"We understand the pressures facing households but also have a responsibility to protect those essential frontline services that residents of Anglesey depend on every day."
"Without this council tax increase, deeper cuts to essential local services would have been unavoidable."
"I believe this is a responsible budget which ensures we can meet rising costs, safeguard the most vulnerable and keep this Council on a stable financial footing for the future."
The council's resources director, Marc Jones, described as the approved budget as "robust" and ensured services had sufficient resources to meet current demand.
The 2026-27 budget includes a £1.2 million investment in smaller critical services struggling to meet demands while schools will get additional funding to help cope with an increase in the number of children with additional learning needs.


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