The community has already seen its youth centre close earlier this month as a result of rising insurance premiums.

Now it may also lose its library, council agency and possibly its swimming pool.

The revelation came earlier this week at Walgett Shire Council's monthly meeting on Monday.

Earlier this month council passed a motion to try and create a $500,000 surplus in its budget for this financial year.

Among the proposal of taking between $50,000 to $100,000 from various departments including governance, services management, infrastructure management, council assets and roads, $200,000 was also proposed to be taken out of the $400,000 community services budget.

The two main areas council spends the $400,000 on is for youth services and the town library.

During Monday's meeting Councillor Robert Greenaway proposed to cut the budget in half, leaving only $100,000 each for youth services and the library.

But group manager for services and management Jo Wooldridge said if the proposal was adopted there would be no library service left as council had to pay a fixed cost of more than $160,000 annually to the Northern Regional Library Service.

However, mayor Peter Waterford said the costs could be cut if the State Government would pay council its $400,000 entitled share for community services.

It was then, that general manager Vic North revealed council had not been receiving this level of funding for some time, and that nothing had been done to rectify the situation.

In fact, only $240, 000 was received, with council paying the remaining $160,000.

He said council would write to the relevant Government ministers and departments as well as meet with Premier Bob Carr to retain the youth services and the library as both were critical components of the council.

But Cr Waterford said if no Government response was received by January services would be cut.

Also under the spotlight at Monday's meeting were the need and costs associated with council agencies.

At present council has three agencies in Lightning Ridge, Walgett and Collarenebri.

Council's records showed the Lightning Ridge agency cost $100,000 to operate per annum with the majority of this being employee related.

It was proposed that the Ridge agency would be closed.