Queanbeyan-Palerang residents could face the prospect of paid parking, pools closing, libraries closing and reduced mowing and maintenance unless rates are increased by almost 100 per cent.
The Queanbeyan-Palerang Regional Council has also said it could be forced to sell the Queanbeyan Performing Arts Centre, stop funding all community halls and reduce the number of councillors.
The council has opened consultation on proposed increases to the general rate over the next three years, presenting three scenarios to residents.
Under the most extreme scenario, council has said there could be a 12 per per cent annual increase in the general rate for three years but this would result in dramatic cuts to services.
"The scenario does not fully fund current council operations and will require a strategy to find immediate savings of $12 million each year," a statement from council said.
The council said it could be forced to sell the theatre, stop funding to all community halls, cut heritage grants, close pools and libraries, stop the development of new sports and aquatic facilities, reduce the number of councillors and significantly reduce street sweeping, mowing, maintenance and cleaning, and introduce paid parking.
Under the second scenario, rates would increase by 18 per cent a year for three years.
This could include significantly increasing fees at the Queanbeyan Performing Arts Centre, reducing community funding by 50 per cent, cutting heritage grants, only keeping one pool, stopping the development of new sports and aquatic facilities, reducing street sweeping, mowing, maintenance and cleaning and introducing paid parking.
Under the third scenario there would be no cuts to services but rates would increase by 28 per cent in the first year, 25 per cent in the second year and 23 per cent in the third year, representing a total increase of 97 per cent.
Queanbeyan-Palerang Regional Council general manager Rebecca Ryan said the proposals only apply to an increase in the general rates and not charges such as sewerage, waste, water access and sewerage.
This means it would not affect the entire rates bill, as was noted in a council meeting last week.
"We're talking about the general rate here it's not your overall bill on the fridge, it's about half of the bill, we know some people don't get sewer and waste pick-up then it's all their bill but for the vast majority of rates payers it is the general fund," councillor Bryce Wilson told the meeting.
Earlier this month, Queanbeyan-Palerang mayor Kenrick Winchester issued a statement saying increases were needed to address the financial stability of the council.
He said the council has been unable to raise rates for four years following the controversial merger of the Queanbeyan and Palerang councils in 2016.
"Both the former Palerang Council and Queanbeyan City Council were considering options to increase revenue before the merger," Mr Winchester said.
"When the NSW government merged the two councils, neither were in a financially sustainable position. The legislation stopped us from increasing our income or making some decisions to reduce expenses, like consolidating administration offices or staff.
"We don't want to reduce staff, we don't want to cut services, we don't want to close pools or reduce our maintenance budgets but that's the reality unless we do something about the income we receive."
The council is in the process of constructing a new $74 million cultural precinct, which will include the new council chambers. The precinct will also include commercial, retail and community space.
Councillors also voted in June to increase their pay by 22 per cent, while the mayor's pay increased by 33 per cent.
People can provide feedback on the proposed options on the Queanbeyan-Palerang Regional Council website.
