Muswellbrook councillors were hesitant to be the "fun police" as they debated restricting balloons at council events and on community land.
The councillors were due to vote on a motion that would discourage event organisers from selling or giving away balloons on council owned-facilities, following environmental concerns raised by an anti-balloon group.
But at Tuesday night's meeting, Muswellbrook Shire Council deferred a decision on the balloons, stating they need more information.
"They deferred any decision as they felt the report was too one-sided and there were other aspects to be investigated," a council spokesperson said.
Triggered by a No Balloon Release Australia report, the motion would have dissuaded the use of all balloons on public grounds and stopped council staff from providing free balloons at council-supported events.
Councillors said a ban on balloons in parks and playgrounds balloons would be difficult to monitor, particularly at non-council events like birthday parties.
"Some councillors felt that the council is not the fun police," the spokesperson said.
As a potential alternative, the council suggested an educational approach focused on the harm of balloons in local waterways.
No Balloons Release Australia claim balloons have been found in calves' mouths and horses have been euthanised after helium balloons spooked them, causing serious injuries.
The Australian Marine Debris Initiative (AMDI) estimates that since 2013, balloons make up 80 per cent of "rubber balloons, balls and toys, elastic straps and bands" waste in marine debris collections.
The council will ask their sustainability unit to find diverse information and re-address the balloon issue in the future.
No Balloons Release Australia believe the fun, party gift can quickly turn into litter and hazards for local wildlife.
The national petition is hoping to ban the release of balloons, along with all helium balloons.
"All balloons are considered single-use plastic as they do not biodegrade and recycling is problematic," the petition said.
Petition founder Karen Joynes said they asked for Muswellbrook and other local councils' support in the NSW government's next steps for single-use plastic ban.
"Banning the use of balloons outdoors would prevent litter from air and water filled balloons," Ms Joynes said.
The anti-balloon group also campaigns to ban balloons outside at events, parks and reserves, along with foil balloons.
A number of Sydney councils such as, Woollahra and City of Sydney have completely banned balloons at their events, while some Hunter councils limited their use.
Maitland City Council bans balloons for stallholders at flagship community events, such as the Hunter Valley Steamfest, but does not limit balloon use on community land.
Upper Hunter Council banned the release of gas-filled balloons on council lands and does not use any balloons in council-run events.
The Lake Macquarie council bans balloons at all council-run events. They said they are also in the process of banning balloons for event organisers using council land.
Throughout NSW it is illegal to release 20 or more lighter-than-air balloons at the same time.
