Stoke-on-Trent City Council plans to save £61m over the next three years with the loss of 200 jobs.
But the authority says a 3% increase in council tax will mean it can recruit 230 new frontline care workers to reduce demand on NHS services.
The proposed budget includes not filling a further 69 vacant posts and the new recruitment means there will be a total net loss of 37 jobs including four senior management posts.
A proposed £21.2m of the savings will be made in 2017/18, with the emphasis on making the authority more 'commercially focused', reducing costs and bringing in sustainable income streams.
Council leader Dave Conway said: 'I have always firmly believed that employees are our biggest asset and it is incredibly hard that these proposals mean jobs will be lost.
'I am doing everything I can to keep these losses as low as possible, and we are creating new job opportunities in social care.
'It is really important if we are to deliver the best services we can in the future that we keep as much of the knowledge, skills and experience of as many staff as possible.
'We have focused on redesigning services wherever we can, getting more value for money and looking at ways we can use the council’s expertise to generate income and become more commercially minded.'
