The Launceston City Council will decide on Monday whether to drop its contribution to the regional body to $80,000, which is $84,376 short of what had been requested.
In council documents, Launceston City Council general manager Robert Dobrzynski said NTD's methods of working out funding contributions were inequitable compared with equal voting power shared by its seven member councils.
He said the council alone had managed to attract more funding and do more regional advocacy work than NTD.
West Tamar Mayor Barry Easther criticised Launceston for not discussing its drastically reduced funding contribution with the councils before the matter came up for decision.
``I think this is very bad practice and it is almost like they have set the organisation up to fail,'' he said.
``Launceston is reducing their funding contribution to such an extent that it has put a question mark over its viability.
``I would ask that the aldermen think seriously about this matter.
``If they vote in favour, they will have the whole region in uproar.''
Northern Tasmania Development vice-president Craig Perkins agreed there would be complications with regional collaboration between Launceston and the other councils if the funding decision was adopted.
Cr Perkins, Meander Valley's Mayor, said voting had never been raised as an issue among NTD councils.
``If you are working collaboratively, then voting isn't an issue because you are working on shared priorities,'' he said.
The council threatened a complete withdrawal from NTD in 2008 when it and several councils believed it was underperforming.
The organisation has since been restructured.
Launceston Mayor Albert van Zetten serves as president of NTD.