That's despite the council facing a $4 million shortfall in short-term revenue in the wake of the pandemic.

General Manager Paul Bennett revealed TRC has frozen hiring and flagged potential "hard conversations" about future service cuts, while announcing its budget and operational plan on Monday.

Cr Mark Rodda said council should accept yet more financial pain by keeping rates stagnant, adopting a 0 per cent increase to help business keep afloat.

"Considering the unprecedented times we're in, I would prefer 0 per cent increase," he said. "An unequivocal 0 per cent rate increase.

"I know that that will come at the expense of other things, potentially."

READ MORE:

He said TRC should also consider cuts to tourism budgets but maintain "front line" services like roads and water, since nobody can go on holidays anyway.

"Let's face it, tourism won't recover straight away anyway. The people who might likely visit us are probably busily trying to recover from the coronavirus pandemic, fires, drought elsewhere."

Cr Glenn Inglis, a former TRC general manager, agreed the council should look to reduce the rates burden during the economic downturn.

He said the state government is considering legislation that would allow councils to catch up deferred rates rises in future years by permitting increases above the rates cap.

The 2020-21 budget, to be adopted in June, will be an "almighty balancing act", and will have to change from the version presented to the public on Monday, he said.

But everyone agrees the long-term budgetary impact of COVID-19 is still unknown

"One thing we do know is it's going to have a negative impact, we just don't know the degree of that," Cr Inglis said.

"As far as service levels go, I'm of a view, subject to the severity of the fiscal impact on us, we need to look at service levels.

"For me, if we need to decrease service levels for a period of 12 months for the sake of managing the budget and giving the community the slack that they need to get back to normality, I don't see that as a problem."

Want more local news? Subscribe to the Leader to read it here first

Monday's budget and operational plan includes a $90 million capital works program, including $27.6 million spent maintaining roads and bridges alone.

TRC would also spend $21 million to develop the new Tamworth Global Gateway Park in Westdale; including $3 million to start the Taminda Ring Road project; and $8m for a new country road roundabout; plus $4.8 million to "expand airport services and the aviation industry".

Mr Bennett ruled out redundancies, but said TRC has started a formal review of its organisational structure to reduce management overhead.

Cr Rodda also called on TRC staff to take a pay freeze "in solidarity" with the hundreds of thousands of Australians out of work because of the pandemic.

Tamworth Regional Council last month adopted a COVID-19 relief scheme designed to soften the blow of the coronavirus crisis on the city's residents and business.

Cr Inglis said at the time staff need to prepare an option for a zero rate increase for next year's budget, even if that means service cuts.