Councillors are set to recommend that there be no increase in council tax bills for the second year running in Croydon.
With the Mayor of London's proposed 1% reduction in the GLA council tax precept, council tax bills in Croydon will be less that they were last year.
The proposed 2012/13 budget follows an extensive borough-wide consultation where residents were asked to give their views on which services should be protected from the reductions necessary to balance the reduced funding from central government.
The areas highlighted included school education, children's social care, support for special needs education and reducing crime.
Croydon's central government grant settlement for 2012/13 reduced by a further 8.3% on top of the 11.2% reduction in 2011/12, which means that in the past two years the council has been given almost 20% less in central funding.
That means reductions have had to made in some areas, and the budget being presented to cabinet includes details of increases in some fees and charges.
But savings have also been made by cutting management and back office costs.
The council's Step Change Efficiency and Transformation Programme is targeting to achieve additional savings of more than £8 million for 2012/13 on top of the £9 million achieved in 2011/12.
Residents also identified those areas which the council should continue to invest in including increasing school places, expanding existing schools and investing in facilities for children with special education needs (SEN).
Ten more forms of entry are to be added to Croydon's secondary school network to meet the demand for additional places.
A new swimming pool and leisure centre in a Waddon regeneration scheme that also includes affordable homes and private family housing.
Major regeneration work on the public realm in Croydon town centre is planned and £36 million is to be invested in the borough's roads, while every street light in the borough will be replaced.
Fairfield Halls will be given a £25 million makeover to help secure its future and secure its place as a major centre for the arts and entertainment.
Councillor Dudley Mead, Croydon Council's cabinet member for housing, finance and asset management, said: "These are undoubtedly difficult times for all councils and we have been forced to make some decisions that will be unpopular. However, a great deal of effort has been made to reflect residents' priorities and we have protected those areas and services which are the priority of our residents."
Proposed council tax bands for 2012 to 2013
Band A £971.22 -£2.07
Band B £1,133.10 -£2.41
Band C £1,294.95 -£2.76
Band D £1,456.83 -£3.10
Band E £1,780.57 -£3.79
Band F £2,104.31 -£4.48
Band G £2,428.05 -£5.17
Band H £2,913.66 -£6.20