The NSW Local Government (LGNSW) conference will hear concerns over what Kiama Council believes is an "unreasonable" burden placed on the community to deal with old dams being transferred to council ownership.
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Kiama Council has started work on a $700,000 decommissioning of Jerrara Dam, a dam transferred to the council's ownership in 1975.
The council has ownership of two ex-water supply dams, Jerrara Dam and Fountaindale Dam, which are classified as "prescribed dams" by the NSW Dams Safety Committee.
In a report to be presented to Kiama councillors on Tuesday night, the council says the categorisation of the dams as proscribed dams results in "an extensive amount of studies" to ensure the dams have the capacity to manage the one-in-100,000-year flood level.
The council said the cost of these studies has so far exceeded $330,000, with a further $200,000 now required for studies into Fountaindale Dam.
"In cases such as this ... it is considered unreasonable for the local community to have to meet these costs," the report said.
It recommended that LGNSW seek help for all NSW councils for studies and ongoing works.
Kiama Council's acting general manager Bryan Whittaker said the council was already seeking state government support to fund studies and the potential decommissioning of Fountaindale Dam.
Mr Whittaker said while Jerrara Dam had potential as a recreational area, Fountaindale Dam - built more than 100 years ago - today served no purpose at all.
He said ratepayers should not have to pay for it.