Sutton Coldfield's historic Town Hall faces closure or being sold off to developers unless a £1.4 million repair bill can be met.
A survey has revealed that people could be at risk of injury from falling masonry and already pieces of the parapet lining the rooftop terrace have been removed.
Staff at the Birmingham City Council-owned building ordered the survey after picking up pieces of masonry from the path and it was decided that action should be taken before someone got hurt.
That survey has now highlighted a range of problems - brittle cement, cracked stonework, brickwork needing re-pointing, sagging ceilings, leaks and windows badly in need of replacement - with an estimated £1.4 million repair bill attached.
The Town Hall was built in 1906 and is locally listed at Grade A - giving it a degree of protection from development.
It is attached to former council offices which were built in 1863 and have recently been sold off.
It is mainly used for functions, civil weddings, council meetings and the occasional theatre production or show. It is run at a loss, supported by the council's district committee.
Chairman of Sutton Coldfield District Coun Anne Underwood (Con Sutton Four Oaks) said that they simply do not have the money to restore the building.
She said: "The Town Hall is an integral part of the heritage of Sutton Coldfield and the original building urgently needs to be protected for the future.
"We have reached a situation where the district faces a £1.8 million overspend for the year, and now this unforeseen problem regarding the fabric of the Town Hall has hit us with an additional bill of at least £1.4million.
"Add this to the fact that the Town Hall runs at a loss every year and this financial year is projecting a £103,000 overspend."
On Monday the district committee meets to discuss the future of the Town Hall and is looking at several options - including selling to a developer, looking for an outside operator to renovate it and run it on the council's behalf or mothballing the venue.
Officials and councillors will spend the next few weeks consulting residents and businesses over the future of the historic building. They will also explore the viability of the various options.
The council offices next door, the older part of the town hall complex, was sold earlier this year to Gethar Ventures.
This part is being converted into 18 luxury flats. The company is also developing a new restaurant and flats on land next to the building.
Ten years ago the Town Hall clock tower was restored and re-pointed.
Coun David Barrie (Con Sutton New Hall) said: "Our first priority is that of preserving our heritage buildings.
"Clearly we are faced with some very difficult decisions. We have to look at the long term stewardship of the building, and although in the past a great deal of money has been spent on the building, particularly the clock tower, but due to heavy budget cuts handed down to Sutton Coldfield, we are no longer in a position to carry out such works."