Denbighshire's Cabinet has approved the budget proposals which will now go before full council for final agreement at the end of the month.
The Draft Local Government Settlement indicates the cuncil will have to find in the region of £8.5m in savings for 2014/15.
The budget process so far has resulted in savings of £1.7m, which were approved by members in September plus a further £4.7m, which again was approved in December.
This latest phase identifies a further £2m in savings.
Cabinet Lead Member for finance, Councillor Julian Thompson-Hill said: "Denbighshire really has had a tight budget settlement from the Welsh Assembly Government - the lowest in Wales for 2014/15.
"At all times we have attempted to protect frontline service and jobs whilst minimising the impact of council tax increases to our residents.
"We will continue to look at all services to see if we can be more efficient in the way in which we work, whilst maintaining the best possible services for the people of Denbighshire."
Cabinet has agreed to recommend to Full Council an increase in Band D Council tax of 3.5% for 2014/5. The exact amount will be formally approved by Full Council on 27th January.