The comhairle has voted through a series of budget cuts and savings to combat a £6.3 million deficit.
Council tax will increase by 3% for the second year running, meaning Band D properties will pay £1,086.36.
Councillors agreed to make 1% cuts across all departments to save nearly £700,000.
Removing the 10% discount on second homes will bring in another £52,000.
Some £59,000 is set to be saved from street cleansing, refuse collections and recycling disposal.
Funding for arts development projects and tourism promotion will be reduced.
But even these measures plus savings on loan fees as well as last minute extra funding of £1.2 million would still leave the authority short of £3.35 million.
Councillor Charlie Nicolson attempted to use the additional cash to refurbish the Stornoway Primary but his motion was narrowly defeated by 15 votes to 14.
Mr Nicolson highlighted the “challenges” over the state of the biggest primary school in the Western Isles, saying improvements were required in the playing grounds, accommodation, changing facilities and gym.
He added the council promised looking at improving the school back in 2011 when it closed Sandwickhill School and transferred pupils to Stornoway.
“That has not happened,“ he pointed out.
Education chairman Angus McCormack believed it was unfair to “single out” just one school with other across the islands also needing investment.
Council leader Roddie Mackay urged his colleagues to retain the £1.2 million to “cushion the blows” yet to come.
Cllr Crichton said the council will have no reserves to fall back on in three years thus that funding should not be spent now.
SNP councillors also sought to plough the additional money into the Stornoway Primary amongst a package of other measures.
They advocated stopping cuts to Lochmaddy and Barra abattoirs as well as awarding £500,000 to help retain dental services in Uist communities.
They also proposed a £193,000 fund for one-
SNP group leader Gordon Murray urged councillors to back his motion “if you want to make a different to the Stornoway Primary, Uist community and community empowerment.”
But he lost the vote 22 -
Council leader Roddie Mackay said: “We are fortunate that the extra money from the government means that we have some leeway this year but we cannot afford to relax or we will be faced with a much harder budget in 12 months’ time.”
The council also agreed to launch a long term restructuring plan seeking a 25% reduction in service costs over the next four years.
He pledged “extensive consultation” with communities after a priority list is drawn up.
“Rather than continuing to salami slice services we want to look at different ways of delivering them to try and secure as many of the same outcomes within the constraints of the resources available.
Council votes through budget cuts
7 February 2018