South Holland District councillors say residents should not be left to pick up the bill.
The area is one of the last in the country to see wheelie bins introduced to boost recycling rates.
Local authorities in Hull and Lincolnshire have each been given £220,000.
About 200,000 bins are being delivered to South Holland in Lincolnshire, replacing plastic bags.
Volunteers at Vernatt's Nature Reserve in Spalding say they feel "helpless".
South Holland District Council says it will ask the county council not to introduce it in Spalding.
South Holland District Council says there is "no realistic prospect" of recovering the money.
South Holland District Council says it will work with local groups to plant more trees and hedges.
The Grade 1 listed Lutyens memorial in Spalding's Ascoughfee Hall Gardens is 103 years old.
