Hull City Council has hit out at its provisional landfill allowance, claiming it will cost residents £2 million.
Local authorities have been sent their projected quotas under the Landfill Allowance Trading Scheme (LATS), which will start in April 2005.
Hull was allocated 86,058 tonnes for 2005/6, but reckons it will have to send 10,285 extra tonnes to landfill that year.
And with the Government planning to fine councils £200 for each tonne they landfilled beyond their quota, that would leave the Yorkshire city with a £2m fine.
Councillor Daren Hale said: I find the situation we are facing as a council very disturbing.
Hull predicts it will be fined up to £11m in 2009/10, with its total waste disposal costs rising to £30m by 2020.
Hale added: £30m is a huge penalty for the city council to bear. It equates to 22% on the Council Tax, or more likely, service cuts.
LATS was designed as a means to meet the targets set in the Landfill Directive. The first of those is to be met in 2010, when the UK must divert from landfill 25% of the biodegradable municipal waste it produced in 1995.
The scheme allows local authorities to trade landfill space, which should be cheaper than the set fines.
The Government is collecting responses to the allocations until October 8.