Householders in Bicester will not be asked to pay any more for town council services.
Town councillors have decided to levy the same council tax charge as last year.
That means houses in council tax band D will pay £70 towards town council services on their final bills.
Councillor Rose Stratford, chairman of the finance committee, said: "We are very pleased.
"It had to be put up in the last two years, but tight house-keeping has paid off, which we are delighted about."
The town council's overall budgeted expenditure for the next financial year, which runs from April 2002 to March 2003, is about £600,000.
That includes £50,000 for repairs and maintenance of children's playgrounds around the town and £5,000 for extra CCTV. Bicester cemetery has been allocated £12,000 for improvements and an extension.
Grants to voluntary organisations in the town have been increased by £9,500 to £43,000.
A one-off payment of £3,000 is being given to the twinning association to help with the cost of this year's 20th anniversary celebration with Neukirchen, Germany, and the tenth anniversary of the twinning with Canton des Essarts, France.
Mrs Stratford said repayment of a loan from Cherwell District Council and several unexpected grants had enabled the authority to keep its precept level down.
She said: "We have cut down as far as we can and we have not spent anything we didn't need to. We have changed our accounting system and that has helped and we are also hoping to put a bit into our reserves as well."
Town councillors are due to agree the budget at a full council meeting on January 24.
The town council's precept will be added to district and county council charges, which are not yet known, to make up this year's council tax bill.
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