On Monday night, Wagga City Council will sign off on a decision to slash parking fines from $114 to $82.

While the decision was made last year, an "administrative error" means the new policy, which was due to come into effect on September 1, has been pushed out to December 1.

The 28 per cent decrease equates to a loss of up to $95,000 for the council - 45 per cent of its total parking fines revenue - according to a report from December last year.

Labor councillor Vanessa Keenan said she is still uncomfortable about the council's original decision to support NSW Treasurer Dominic Perrottet's campaign to reduce the mandatory minimum for level two parking fines.

She said, in her opinion, it was just another example of the Coalition government's "cost-shifting" that the council could either bear the burden of reduced revenue or face the consequences of making an unpopular decision.

"It is important to note for parking fines, a portion of the revenue goes to the state government," Cr Keenan said.

"The state government has not reduced their revenue and instead are calling on Wagga City Council to do so.

"It is a case of you're damned if you do, you're damned if you don't. If this was not passed, then the community would have been upset with us.

"But the community are still paying and the council has few revenue sources and it has been reduced."

Cr Keenan said the issue is about illegal parking, not expensive fines. However, she supports the 10-minute grace period that allows more flexibility that rangers did not previously have.

"I appreciate that members of the public don't want to be receiving expensive fines, but these fines occur when people park illegally. I would recommend they try and remember to park within the guidelines," she said.

"But we are a busy city and I know many rush back to their cars so they won't be hit with a fine.

"Our rangers are working within the state government's rules and regulations and have been limited to these process. So, this change allows them to implement a grace period."

Cr Keenan believes there will be community members who will ignore the time limits because the cost will be cheaper.