Community groups are facing a steep rise in charges to use Elgin Town Hall as the local authority tries to recoup the money it spent refurbishing the venue last year.
Moray Council said the increased tariffs were being imposed to help cover the £1.25million investment in upgrading the hall building.
During a meeting of the local authority’s policy and resources committee yesterday, members heard the hall was generating less than half its target £100,000 in income.
But Elgin City South councillor Graham Leadbitter said the committee should aim to make use of the hall’s new facilities to attract private businesses – rather than asking local not-for-profit groups to pay inflated charges.
He said: “The investment in Elgin Town Hall was very welcome, but in very few other areas of the council would we invest that much money in something without a plan to increase revenue other than simply increasing charges.
“What’s required is a proactive sales strategy to clients who could hold conferences, concerts and events in the hall.
“This would be a spend to save approach, but if we paid out a few thousand promoting Elgin Town Hall as a venue I think we would ultimately generate more income.
“The charges seem to be increasing a huge amount and I feel it will have an effect on some of the smaller groups using the town hall.”
Ultimately, the increased charges were backed 7-5 in a vote, with Mr Leadbitter’s motion to defer a decision being defeated.
Moray Council leader Stewart Cree said: “The charges to smaller groups will be at a rate similar to those they would pay elsewhere.
“But I agree we should work to promote the hall more when it is not in use.”
Heldon and Laich councillor Allan Wright added: “There was £1.25million of work done to improve the hall, including a new roof and new interior decoration.
“The annual effect of that work on the revenue budget is close to £100,000 and the current income for the town hall is of the order of £45,000 – that’s why we need to increase charges.”
Under the newly-approved plans charges across the board will increase.
Standard rates for hiring the hall’s room, lounge and kitchen will increase from £13.50 to £25, and the fee for use of the main hall is going up from £29 to £40.
Commercial rates for the room, lounge and kitchen are to rise from £22.50 to £35 and the concessionary rate for day hire of the hall will increase from £307 to £350.
Elgin Community Council said it had not been consulted by Moray Council on the planned increases.
Secretary Gordon Methven said: “When the council last changed the charges they notified us and we were able to respond, but this time we have received no information.”