Alyth Show is scheduled to take place on June 17 for the first time since before the pandemic.
On Wednesday, May 24 Alyth Common Good Fund Committee was asked to consider a funding application for £1200 to help the show go ahead.
The show is set to return with a slightly new format and aims to be a real community event.
It will feature farrier demonstrations, chainsaw art, flyball demonstrations and music from Blairgowrie and District Pipe Band.
The Alyth and District Agricultural Show will take place on Bogles Field, Essendy Road, Blairgowrie where the show has previously been held.
However Strathmore Independent councillor Colin Stewart raised concerns about Alyth Common Good Fund money being used for an event held in Blairgowrie.
He said: "I think one of the concerns that had been raised previously was to do with allocating the Common Good Fund money from Alyth to an event that happens outside."
Strathmore councillor Hugh Anderson highlighted the financial issues. The report put before councillors stated the agricultural show had taken a break "due to the COVID-19 outbreak and a consequential lack of funds".
The Conservative councillor said: "It's not on a knife-edge as such but I spoke to one or two of the event organisers.
"They are having an auction sale next week to raise funds for the show. Some of the Blairgowrie and District Pipe Band members come from Alyth anyway. It's quite a wide area. Agricultural shows draw people in from a reasonable area and it's taking place where it took place previously."
Cllr Anderson moved to grant funding of £1200 to the Alyth and District Agricultural Show.
Cllr Colin Stewart suggested some events might take place on a different date within the Alyth area and proposed the committee reject the application and fund these events instead.
Cllr Colin Stewart said: "Given the response from the committee five years ago to say we might not be able to support the event in future years. Given the concern raised at the time and I think now that it's not just held outside Alyth but outside Strathmore ward and that some events might take place later in the year within the Alyth burgh and there may be other funds the organisers can bid into I think it would be appropriate to refuse the application on this occasion but with a commitment we can point to other sources of support ."
Cllr Jack Welch was torn. He said: "I'm minded the fund has significant assets in at the moment and I'm not aware of any other applications at the event.
"At the end of the day because of COVID and them looking to change the format of the event - albeit it's not within Ward Two and I understand it does not deem it ineligible - I would be minded to support the funding application."
Cllr Welch said he would be "happy to second" with the proviso "a letter is written confirming they should seek other funding options for next year and provide some support for them to do that".
There was no support for Colin Stewart's amendment to reject the application and the grant of £1200 was agreed.
