Sunderland City Council agreed to raise council tax as councillors approved the official budget for the next financial year.
The council met from 4pm on Wednesday at the newly constructed City Hall, and after a four-hour meeting, secured an agreement on the budget, with 33 votes for plans to 28.
The announced budget falls in line with the continuing City Plan, in a bid to bring a more dynamic, healthy and vibrant city to Sunderland, the council said.
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New investments of £134m was backed in the 2022/23 budget, with boosts for housing, community and culture as part of the capital budget, including developing the business case for a proposed £80m arena on the old Crowtree site in the city centre.
Day-to-day spending such as waste and recycling or care services will be implemented through a council tax rise of 2.99% and an adult social care precept to assist the elderly and most vulnerable.
The demand for social care in the adult sector continues to grow, with the one per cent social care precept anticipated to raise around £1m in total.
Leader of Sunderland City Council, Councillor Graeme Miller said: "We have worked very hard to ensure this is a positive budget, which allows us to continue with our ambitious social and economic regeneration plans for the city of Sunderland whilst ensuring we continue to protect and support those residents most in need.
"It continues to be an unprecedented time in our history, as we recover from the most difficult period in living memory and the impacts of the Covid-19 pandemic.
"We have remained steadfast in our commitment to maintain as our top priority, the welfare and wellbeing of our most vulnerable residents and to deliver the highest quality support and services they need whilst at the same time dealing with the financial and operational challenges presented by the pandemic."
Sunderland households as a majority will pay less than £1 per week extra next year to fund city services in the tax rise.
In total, £24m will go towards the ongoing regeneration of the up-and-coming Sunniside district in the east of the city centre, while £4.5m will be used for updates and improvements to city parks.
The South Hylton day centre project will be awarded £2.6m in further investments, while the Washington Art Centre will receive £200,000.
Washington and Houghton libraries have also had a £500,000 investment earmarked.
Finally, Hendon's Raich Carter Centre will also receive around £250,000 in improvements for those who use the fitness centre to enjoy.
To find out more information about the latest budget, visit Sunderland City Council's official website, here.
