Salford council has produced a 'no cuts' budget for the next financial year despite the 'dramatic' impact of Covid – but council tax is expected to rise.
The local authority has balanced its budget for the year ending in April thanks to 'prudential financial management' and support from government grants.
No further cuts to day-to-day services are proposed in next year's budget.
However, council tax is expected to increase by 5 pc from April onwards.
Salford mayor Paul Dennett said the coronavirus crisis has had a 'dramatic' impact on the finances of the local authority, but he is 'heartened' that the city is not facing millions of pounds of cuts as some neighbouring councils are.
He said: "Looking at local government financing and the landscape in which we find ourselves at the moment, there is significant uncertainty.
"This is also against the backdrop of £211m being taken out of our revenue budget since 2010/11.
"53 pc of core funding from central government being taken away from the city of Salford, creating huge challenges for how we deliver services, how we grow our economy, and how we move forward as an organisation.
"Having said that, in terms of the context in which we find ourselves, I am heartened that things in the city of Salford certainly aren't as bad as some other local authorities not too far away from us."
Salford council will use £2.6m of its reserves to balance the budget next year as well as £1.8m of reserves held by Greater Manchester's waste authority.
The basic council tax bill is expected to rise by 1.99 pc in addition to a 3 pc rise in the adult social care precept which the local authority also controls.
But the city mayor said the government has assumed local authorities would raise council tax by this much in its calculations for council funding this year.
He has been lobbying the government to 'urgently increase' council funding, resolve the adult social care 'crisis' and progress with the fair funding review.
This comes after councillors called on the government not to 'shift the burden' on council taxpayers following a debate at a full council meeting in January.
Chief finance officer Joanne Hardman told councillors this week that a council tax collection deficit of £9.1m is creating financial pressures in future budgets.
There is also a £19.3m budget deficit in business rate revenue due to Covid-related business rate relief and a forecasted reduction in rateable values.
Ben Dolan, Salford council's strategic director for the place directorate, said Covid has led to a loss of income, resulting in a £4.41m departmental deficit.
This includes income from school and commercial catering, trade waste, parking, planning and building control and advertising on the highways.
Salford Community Leisure, which runs the city's sports centres, libraries and museums, will contribute an estimated deficit of up to £1.6m towards the total.
Legal services are also projecting an overspend position for this year, with children's services contributing to the increased demand in particular.
The public health department is forecast to achieve £900,000 of savings this year, having received a number of Covid-related government grants.
The final budget proposals, including any increases in council tax for the financial year 2021/22, will be decided at a full council meeting on February 24.
