A £25 annual charge will be introduced in East Lindsey for the collection of green waste from April next year.
East Lindsey District Council members voted to have a year-round green waste collection service, but it will cost £25 for each household.
Green Waste collections are currently only available between Easter and November.
The service will be an 'opt-in' so that only people using the scheme will be required to pay.
The changes to green waste collections along with other changes to recycling services agreed with Boston Borough Council will save £1.25million per year from the council's budget as it tries to save £2million for 2014/15 due to cuts in Central Government support to councils.
At tonight's council meeting in Manby portfolio holder for the environment, Councillor Steve Newton, said: "We expect a good level of take up for the service and there will be plenty of time for people to decide whether they want to opt-in."
Residents can go online or register over the telephone once officials have the new system in place.
Those who do not want to pay the £25 can compost their green waste or take it to the tip.