Plans to scrap traffic wardens in Worthing and replace them with council attendants could be shelved.
Experts fear the £300,000 cost of starting up the scheme is too high.
West Sussex County Council has offered to pay 75 per cent of the bill in the form of an interest-free loan, which would take the town 11 years to clear.
The scheme would cost almost £1 million a year to run but experts estimate annual income would be about £1.2 million.
When inflation is added, Worthing Borough Council officers feared it would be risky and urged councillors to pull out.
Under plans to decriminalise parking enforcement, police would relinquish control and hand over to the borough council.
Consultants believe the town will need to employ at least 22 full-time staff in what will effectively be a new department.
A report being considered by councillors on Tuesday said the costs involved made the scheme a high-risk venture because it was unlikely to ever break even without a subsidy from the county council.
They have been advised to tell the county council Worthing is not able to support the scheme on a voluntary basis.
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