Mearns councillors have put forward plans that would see free short-stay parking introduced in Stonehaven.
If the move is approved, it would mean people could park for free at Market Square for 30 minutes before being charged.
They believe it will encourage more people to Stonehaven but it would also hit cash-strapped Aberdeenshire Council with an extra £12,000 bill.
Aberdeenshire Council is carrying out a review of parking and councillors on the Kincardine and Mearns area committee have made recommendations.
The Stonehaven recommendations were also to endorse efforts being made to try to provide additional parking at the old gas works.
Councillor Peter Bellarby said: “If we look back at when car parking chargeswere first introduced into the Market Square, the prime reason for this was to encourage turnover to the benefit of local businesses.
“It was never intended that this would be an income generating activity. Recently a survey of the income from parking charges across Scotland was published in the press.
“This shows that some local authorities are making a considerable amount of money out of their car parking charges. This is primarily the big cities but we are in a situation where the net income we make is relatively modest.
“I think the idea of a 30-minute free period is a good one and something that would be of benefit for the local businesses.
“However, if the infrastructure services committee don’t agree to this, then I would suggest a small charge for the first 30 minutes.”
Councillor Wendy Agnew also gave her backing to the suggestion.
She said: “I think people would park there to nip to the chemist to pick up a prescription or nip into the post office to buy stamps and post a letter.
“I have to agree with Councillor Bellarby as I think it would help the businesses in the town.I think there would be a quick turnover of spaces and I don’t think many people would overstay the 30 minutes.”
A council officer said Stonehaven has 72 parking spaces subject to charges in Market Square, with a further 187 free of charge in public car parks.
In the last financial year Stonehaven generated £57,000, which was 9% of the total income of £629,000 from car parking charges across Aberdeenshire.
If free parking is to be introduced for 30 minutes, it is estimated the loss to council coffers would be £12,000 per annum.