Devon County Council is in danger of going bust according to County Councillor and Leader of South Hams District Council Cllr Julian Brazil.
Should this happen, South Hams District Council, all eight district authorities are likely to disappear and Devon would become a unitary authority such as Plymouth and Torbay.
Despite the council balancing its £630m budget for 2022/23, financial concerns remain.
Last summer, the authority faced a £30.5m overspend, with a further £10m risk identified relating to in-year inflationary pressures.
Cllr Brazil would like to bring car parks and other assets brought under the control of town and parish councils to secure them from any changes.
Cllr Brazil says: ‘’Local government reorganisation is not the plan, but it may be thrust upon us if County goes bankrupt. That is a very real threat.
‘’The reason to devolve assets to towns and parishes is to protect them for local residents.
‘’A larger unitary may not have the same priorities as a district one.
''These assets belong to local residents and we don't want to lose control of them.''