The motion moved to "stop the spend of all remaining money allocated for the Queen Elizabeth Park, riverside precinct development, CBD stage 2 and consider the relocation of funds to a cinema project."

But Mayor Tim Overall fought back against the move, rescinding the motion with the signatures of three other councillors, ensuring the issue is put back on the table at the council's next meeting.

Nearly $1 million has already been spent on studies and the design of Queen Elizabeth Park and works in Monaro Street, with the remaining work due to go to tender within weeks.

Councillor Jamie Cregan put forward the motion to stop funding with support from Cr Whelan, Cr Burfoot, Cr Brown and Cr Winchester. Cr Trajanoski was absent for the meeting.

But it was vehemently opposed by Cr Overall and Cr Taylor, Cr McLennan and Cr Bray, who after the meeting moved for the motion to be rescinded and discussed again next month.

Accusations flew across the room as each councillor present stood to have his or her say.

Cr Overall said he was staggered such a motion had come forward.

"If this goes through tonight, you are in fact shelving CBD stage 2 and if you do that the community can have no confidence in this council, no confidence in this four-year delivery program which is council's contract with the community," Cr Overall said on Wednesday night.

In addition, Cr Overall said from studies completed back in 2011 to 2013, the site of the proposed cinema complex on Morisset Street "wasn't financially viable."

"Shelving this [riverside upgrade] project would be a breach of public trust, a waste of resources and public money and reputational damage," Cr Overall said.

Cr Cregan said he didn't want to be in a position where the funds were allocated to something that was not a community priority.

"I think a cinema is a very high priority, the community has spoken," he said.

Seconder of the motion, Cr Kenrick Winchester, said the contract with the community was to upgrade Monaro Street at the entrances of Lowe Street and Collett Street, "not to spend $5 million on Queen Elizabeth Park".

He said the brochures and pictures that had been distributed to the community by council staff were misleading, as they pictured the concept design for a $12 million park.

At the conclusion of the discussion, a motion was put forward by Cr Overall to externally and independently review and investigate the entire process surrounding the cinema since discussions began in 2008.

The cinema project has been tied up in controversy after a majority of councillors decided against a decision to host cinema operator Metro at the former Queanbeyan nursery site last year.

The rescinded motion to divert almost $5 million in funds will be brought back to the Queanbeyan City Council meeting in September.