Sutherland Shire councillors appear to agree the special rates levy applied to business property owners in the Cronulla CBD should be axed.
However, a proposal by council staff to make up the lost revenue of $600,000 a year by adding $6.80 to all shire rates was not supported at last week's council meeting, and an alternative model was requested.
The special rate was introduced in the 1980s, initially to fund promotion of the mall.
In 2016, the purpose was controversially changed to funding infrastructure projects associated with the area.
About $2 million is held in a special fund and would be used to help pay for the upgrading of the mall.
An extraordinary meeting of the council, to be held next week, will consider the implications of removing this revenue stream and any proposed changes to services or projects.
The draft 2021-22 budget and works program will then go on public exhibition.