Well-known hymns and poems will mark Baroness Thatcher's funeral on Wednesday, Downing Street says.
Mr Mellor, a former colleague of Baroness Thatcher's told BBC London the posters were "totally inoffensive".
The suggestion comes a day after the death of 87-year-old Baroness Thatcher as a result of a stroke.
However, Ulster Unionist Party leader Mike Nesbitt said Baroness Thatcher was "a colossus of conviction politics".
The council's AGM will take place on Wednesday, the same day as Baroness Thatcher's funeral.
She offered condolences to Baroness Thatcher's family but said a precedent would not be set.
As we approach Baroness Thatcher's funeral, people will continue to clash about her legacy.
Alongside Gordon Brown in Westminster Abbey were former prime ministers Sir John Major and Baroness Thatcher.
Baroness Thatcher's time in office was marked by some of the Troubles' darkest episodes.
Welsh mezzo-soprano Katherine Jenkins is to attend the funeral of Baroness Thatcher, Downing Street has announced.
Secondly, many believe that the Tory collapse in Scotland began and ended with Baroness Thatcher.
But Tony Caldeira, chairman of the Liverpool Conservatives, said the country should remember Baroness Thatcher's achievements.
Critics of Baroness Thatcher have marked her funeral by holding a "party" in a former pit community.
BBC: Margaret Thatcher funeral marked by pit community 'party'
Tuesday's papers are given over, almost entirely, to tributes and analysis of Baroness Thatcher and her legacy.
BBC: Newspaper review: Margaret Thatcher's legacy considered
How have commentators in the UK and around the world reacted to the death of Baroness Thatcher?
However, some used it as an opportunity to express critical views about Baroness Thatcher's time in Downing Street.
However, Baroness Thatcher, who has died aged 87 after suffering a stroke, was a divisive figure on Merseyside.
Speaking on BBC Breakfast, he said the world was going to be "a sadder place" without Baroness Thatcher.
BBC: Baroness Thatcher: A 'decisive' leader says Simon Weston
The SDLP MP Mark Durkan said Baroness Thatcher had made a "controversial impact" on political life and "divided opinion".
Arthur Scargill reacted to news of Baroness Thatcher's death by telling a friend he was "alive", it has emerged.
Baroness Thatcher's funeral is to be held at St Paul's Cathedral on Wednesday.
Prime Minister David Cameron is leading tributes in the Commons to Baroness Thatcher, who died on Monday aged 87.
Focusing on the current banking crisis, Ken Clarke and Ken Livingstone disagree on whether Baroness Thatcher could be blamed.
They duly opted to debate the issue of the legacy of Baroness Thatcher.
Baroness Thatcher's son Mark said his family have been "overwhelmed" by messages of condolence from the public after her death.
He has been trying to change the rules so that the statue could go on display before Baroness Thatcher's demise.
Baroness Thatcher was a close ally of Reagan who shared many of his conservative views and staunch opposition to communism.
Both Baroness Thatcher and Mr Blair refashioned the cabinet system, as previous premiers have done, to suit their particular temperaments.
Exeter Chiefs' decision to hold a one-minute silence in memory of Baroness Thatcher has been criticised by the city's Labour MP.
Further details of guests invited to attend the funeral of Baroness Thatcher at St Paul's Cathedral on Wednesday have been released.
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