Brigg Town Council has considered an invitation from the North Lincolnshire authority to take part in a highway grass cutting pilot scheme for 2018.
However, after discussing the offer it was decided not to sign up at the present time.
Under the proposed pilot, Brigg Town Council would have received a cash sum and arranged someone to undertake the cutting on its behalf, rather than North Lincolnshire Council assigning people to do the job at its expense.
Coun Mike Campion said he had several concerns, including the cost of insurance and whether the same sum of money would be on offer the following year.
"It's a path I don't think we should go down," he told fellow councillors.
Coun Penny Smith thought insufficient notice had been given to the Town Council.
Coun Brian Parker felt it might be too late to take on the work this year, but called for a small committee to be formed to look at the issue and detailed costings, including insurance.
Coun James Truepenny stressed the need to consult the public.
Coun Mike Storey said public liability insurance was not too costly. The idea of the pilot scheme was to localise services, devolve power and reduce bureaucracy .
"It's not a minefield, it's an opportunity," he added.
It is understood that six other parishes have been approached to take part in the pilot scheme, with one already in favour.