Upper Lachlan Shire Council misses out on Bushfire money for Taralga dam

However, the $10 million ask will form the basis of another application under the same program, the Black Summer Bushfire Recovery Fund.

"We have been encouraged to apply in the next round," Cr Stafford said.

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General manager Colleen Worthy said missing out on the money had been "a blow."

"We had hoped to move quickly should this application have proven successful, so this will delay that process," she said.

"But having said that, we are actively in the process of applying for other grants and funding, and continuing to make our case to Water NSW, Department of Planning, Industry and Environment, and more broadly to the NSW and federal governments to increase water security at Taralga."

The $283 million Bushfire fund was oversubscribed.

Cr Stafford said the council would not be sitting back waiting for grants for what was regarded as urgent infrastructure. It will ramp up representations to state and federal members Wendy Tuckerman and Angus Taylor.

"The bottom line is that supplying water to the community is the most fundamental service a council supplies and as we go forward into the summer months there will be greater pressure on the storage," he said.

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Taralga's 30,000 megalitre storage was drained to one-third capacity late last year after an engineer's assessment found leaks and erosion in the structure that had been occurring for several years. The town was subsequently placed on water restrictions but these were lifted in March.

Cr Stafford said there was no current risk of dam failure given the 30 per cent level and no issue with water supply. Woolshed Creek, which supplies the dam along with town bores, is registering good flow.

While some questioned whether it was the appropriate program, the Mayor said the Bushfire Recovery Fund was the only one "remotely suitable" at the time. Taralga RFS also supported the application, especially given the water challenges in fighting the Green Wattle Creek fire in 2019/20.

The council has also flagged completing the project in stages if it doesn't secure all the money at once.

The project will triple capacity. A site has been identified near the current dam, which would require some land acquisition. Negotiations with landowners have been underway for some months.

The council has estimated a $10m cost.

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Mrs Worthy said the dam's replacement was time sensitive and a matter for "urgent attention."

Cr Stafford told The Post that while there was no current problem with supplying town water, it might not be the case in the future.

"It is our greatest concern going forward," he said.

Meantime, Upper Lachlan fared well with other projects under the Bushfire recovery fund. It scored $2.46m for a new visitors and community centre at Crookwell, $585,500 to upgrades Collector Memorial Hall and a slice of $1m for environmental recovery on the Great Eastern Ranges.

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