Halifax regional council approved a revised budget for 2020-21 on Tuesday that includes millions of dollars worth of cuts made necessary because of the impact of COVID-19.

After being reduced by $45 million, the total operating budget is now $955 million.

The capital budget was decreased by about $100 million to about $150 million. Some of the projects that will still go ahead include upgrades to the Woodside ferry terminal, work on the Windsor Street exchange and improvements to the Halifax Common.

The municipality plans to borrow $130 million from the province, take $12 million from a reserve fund to help pay for any cost-sharing projects and use $12.6 million from last year's surplus to help balance the books.

Chief administrative officer Jacques Dubé said he was reluctant to dip into any more savings for this budget because he thinks the money may be needed for the next two budgets.

"We are recommending a budget that is prudent and we have built in a contingency plan to protect against further economic impacts of COVID-19," he said.

There will be a 1.4 per cent increase to the average tax bill, both for residential and commercial properties. That remains unchanged from the original budget developed before the pandemic. It means the average single family home tax bill will go up by $27. The average commercial tax bill will go up by $585.