A number of residents have been fined for parking in the new bus zones, which did not go through council's usual community consultation and traffic committee approval processes before their installation.

The bus stops have been rolled out as part of a statewide program and each have a total no-standing zone of 30 metres that is not clearly marked by signage yet applies 24 hours a day, seven days a week.

Mr Thompson said he had written to Transport for NSW asking them to remove the signs and accused them of providing council with contradictory advice.

He said they had earlier assured council the zones would be "non-regulatory", meaning there would be no enforcement or financial penalties for people who parked within them.

"However, they've now realised that in fact they are regulatory signs," he said.

A Transport for NSW spokesman said the department "is committed to working with council and other key stakeholders to ensure the issue is resolved as quickly as possible".

"All signs will be covered in the meantime to ensure parking restrictions are not enforced," the Transport for NSW spokesman said.

"Once a resolution is reached, Transport for NSW will continue to work with council and other key stakeholders to ensure the best outcomes for our customers and the wider community."

NSW Regional Transport and Roads Minister Paul Toole announced the new B-Pole signage for Wagga in July 2020 after 240 additional weekly services were added to the city's bus network.

Mr Toole said the signage, which features braille wayfinding, would be rolled out across the state as part of the government's "16 Regional Cities" bus program.

Councillor Paul Funnell raised the bus stops at Monday night's council meeting, saying he had been contacted by some residents who had received fines for parking vehicles outside their own homes.

Speaking to The Daily Advertiser yesterday, Cr Funnell said it was a "serious issue" that council approved the signs without councillors knowing about them.

"Councillors have been kept in the dark on this, completely and utterly," he said.

"Had these people not reached out to me, I would have just looked at them and wondered what they were."

Cr Funnell said some of the blame for the bus stop issue lay with what he described as council's "lack of governance".

"They knew about it. They allowed [Transport for NSW] to install them. Now they're going to turn around and say, 'Oh no, we're not happy with that. No, pull them out'," he said.

"They're going up in front of residences and councillors, the so-called decision makers, didn't even know about it."

Mr Thompson said there had been "no process followed to install them following the correct procedure" only because of Transport for NSW's earlier assurance the bus stops wouldn't lead to fines.

"The sheer number that Transport for NSW were envisaging I don't think will work in this city," he said.

"I wouldn't like to predict the outcome, and no doubt Transport for NSW will do a community engagement and form a view from there."

Mr Thompson said he had asked council staff to write to Transport for NSW again to ask them to give council a date for when the signs would be removed.