Breeza Progress Association has asked Gunnedah Shire Council for permission to manage the town's waste facility so it can use the income to benefit the community.
The association ran the facility until November 2018 but, at Wednesday's ordinary council meeting, planning and environmental director Andrew Johns recommended the council take over, to achieve "the same quality service and environmental standards implemented across the shire".
Councillors voted to defer the decision so a workshop can be held to "flesh out pros and cons with all the information" and a new report put forward to council at a future meeting.
At Wednesday's meeting, association member Gail Taber said it had run the facility for 13 years and "have always wanted to keep the facility".
"The Breeza Progress Association would like to manage the facility and undergo any training necessary to keep the tip," Mrs Taber said.
"I would like to be shown how to do the book work and be the go-to person for the tip.
"The money made from the waste facility is permanent income by which we can do the village up with."
Councillors asked Mrs Taber what projects had been carried out with the funds and whether the community was united in its desire to manage the facility, to which she replied, "Definitely."
Mrs Taber said funds had been used to install toilets and fencing at the park, plant trees around the cenotaph and upgrade community hall facilities.
Councillor Gae Swain asked Mr Johns what the council's responsibility was in regards to the Environment Protection Agency's guidelines for waste facilities and he said: "While Breeza isn't a licensed facility" there "could be issues".
"It is difficult to oversee levels of service when it's operated by a third-party operator," Mr Johns said.
"There are risks we can't mitigate because we're not out there.
"Essentially no other waste facilities are operated by anyone other than council."
They have certainly indicated and shown in the past that there is a very active group out there trying to make the most of their community.Councillor Rob Hooke
Councillor Rob Hooke moved to defer the decision, saying it was "worthwhile" to hold a workshop because the association had "shown a willingness to be retained".
"We're dealing with people's lives out there, in what they see as being quite a remote location," Cr Hooke said.
"There may be a way forward to mitigate council's responsibility and provide a source of income for the community of Breeza.
"They have certainly indicated and shown in the past that there is a very active group out there trying to make the most of their community.
"We can make an informed decision and the people of Breeza know clearly why we've made the decision one way or the other."