The Public Services minister has urged local councils to 'think seriously' and find other savings before increasing council taxes.
Announcing a cut of £57m or 1.4% in the amount of money the Welsh Government gives to Wales' 22 authorities, Leighton Andrews said the settlement was better than expected by local government leaders.
He said he wasn't considering imposing a cap on council tax rises, but urged authorities to look at reserves and finding savings in administration before putting bills up.
Some of the cuts councils were expecting have been offset by extra money stemming from Welsh Government commitments to spend more on schools and social care.
Councillors who decide local budgets won't be obliged to pass on that increase, but the minister told Political Editor Adrian Masters that he thinks most will.
One of the minister's fiercest critics, the Labour deputy leader of Flintshire Council, Bernie Attridge, took to twitter to give Leighton Andrews credit for listening to the concerns of local councillors.
Can I personally thank Comrade Andrews for listening to LG, although a cut to our budget it's better than what was being peddled!
Councils in Wales will see their budgets cut by as much as 4% for 2016 - 2017.
Health services in Wales will receive almost £300million extra next year, but councils will lose around £88million from their budgets.
Prof Roger Scully from Cardiff University's Welsh Governance Centre gives his take on the latest Welsh Political Barometer poll.