Councillors have voted to reduce the cost of disposing of garden rubbish in their brown bin to £36 a year.
But the local authority still has to find £26.9 million in savings over the next two years to balance the books.
The figure has jumped from £20.9 million in September.
An increase in the cost of gas and electricity is one of the reasons for the sharp rise in the budget gap.
In a report before members at a meeting this week, officers recommended an increase in the permit from £40 to £44.
However, Labour councillor for Elgin South John Divers gleaned enough support to reduce the cost to £36.
It did need the casting vote of chairwoman and Conservative council leader Kathleen Robertson to secure the cut.
SNP member for Elgin South Graham Leadbitter initially proposed an increase of 5% raising the permit to £42.
But that was shelved. A suggestion to freeze the cost at £40 by Conservative councillor for Keith and Cullen Donald Gatt was also withdrawn.
Brown bin permit cost cut
A proposal to defer the decision by Mr Leadbitter secured the same amount of votes as the cut put forward by Mr Divers with 13 each.
The £36 permit was passed by Ms Robertson’s casting vote.
Deputy chief executive for economy, environment and finance Rhona Gunn warned members of the growing budget gap, up from £20.9 million in September to £26.9 million.
And head of environmental and commercial services Nicola Moss told the meeting it was not a statutory requirement for the council to collect garden waste.
She said: “This is a discretionary service.
Budget gap grows to £26.9m
“There are a significant amount of other councils that do not collect green waste.”
The council’s gas and electricity costs are expected to rise by £1.5 million in 2023-24 and a further £900,000 in the following financial year.
Mr Leadbitter found it “concerning” that members of the Conservative administration voted for the brown bin permit cut.
He said: “What is the vision for the budget in February?”
Council gas and electric bill hike
While admitting there had been delays at the beginning of the current council term, Ms Robertson said work on the budget was ongoing.
She added: “This is a difficult decision.
“Taking into account the cost of living, I vote for the motion.”
An increase to £44 would have resulted in a budget saving of £97,460.
Food waste can be deposited free of charge in the council’s brown bin.
But if householders want to use it for garden waste they need to have a permit or the bin will not be emptied.
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