Red tape is causing issues at Culcairn's only preschool and childcare centre with concerns it may be forced to close.
The Culcairn Early Childhood Centre has provided services for many years, but a report to be considered by councillors on Wednesday states government intervention is needed to keep it running.
Greater Hume Shire corporate and community services director David Smith said volunteers were struggling.
The entire committee will resign at a meeting planned for March, and the council is considering taking over the service if a government funding model can be introduced.
"The volunteers on the committee have struggled for some time with the increasing complexity and regulatory obligations associated with running a community based preschool and childcare service and, in simple terms, the current committee members are feeling overwhelmed and there is no one volunteering to replace them," Mr Smith said in a report.
IN OTHER NEWS:
"In simple terms, no committee means no incorporated association resulting in the imminent collapse of the service and the loss of the only early childhood education and care service in Culcairn.
"The importance of early childhood education and care services in small rural towns cannot be overstated.
"Quite simply, without a viable childcare service, small rural towns like Culcairn will struggle to retain young families already attracted to opportunities presented in the larger regional centres"
Mr Smith said the council would have to take over the service by July, provided a government subsidy model could be introduced.