Tenterfield Council and National Trust working together to decide future of school of arts with it set to close on July 30

The council made the decision in July as it seeks to reduce costs.

It comes after the council requested an 86 per cent increase for two consecutive years, but only had it partially approved in the June 15 announcement from the Independent Pricing and Regulatory Tribunal.

READ ALSO:

Residents filled the cinema over the weekend with the facility "temporarily closed" from July 30.

Rich in history, the building is home to a museum showcasing its place as the location where Sir Henry Parkes made the first public calls for Australia to have a federal government.

The School of Arts holds the honour as the first museum included on the National Trust register.

Council met with representatives from the National Trust in June.

"We both recognise how important the building is locally and nationally, however Tenterfield ratepayers cannot continue to foot the entire bill to operate a building which is of national significance and owned by the National Trust," Tenterfield mayor Bronwyn Petrie said.

"Fortunately Tenterfield Shire Council and the NSW National Trust are working collaboratively together towards a solution.

"However while that is being worked through, if the Officers recommendation is adopted at the Council meeting then due to the economic and financial challenges the council is currently dealing with the museum and theatre would be temporarily closed from 30th July until further notice."

National Trust NSW CEO Debbie Mills said they'd consider the future for the Tenterfield School of Arts at their next meeting in August.

"There are complex practical, legal and operation areas that need to be looked at. The National Trust is a non-for-profit charity, with no recurrent government funding and a small number of paid staff supported by volunteers," she said.

"Currently there are no National Trust staff based in Tenterfield, with the majority of our staff over 600km away."

Ms Mills said they would work with the council to help find a solution in a timely but thorough way.

"Council maintains the responsibility for the maintenance and care of the museum and its contents under the lease agreement," she said.

"Sir Henry Parkes National School of Arts in Tenterfield is of national significance. It's important that local, state and federal governments work together to ensure its conservation for generations to come."

Make sure you are signed up for our breaking news and regular newsletters