The assets include numerous firefighting sheds, surf life saving clubs a State Emergency Service shed and the Tathra Wharf.

During the meeting Mayor Kristy McBain said council could no longer manage the assets on the government's behalf.

"They have to be better funded to make sure we don't lose these assets into the future," she said.

"We don't have an income stream to manage Crown assets."

Mayor McBain said council's position could change if Crown Lands provided an asset management income.

She said the buildings had significant benefits to the community, highlighting the significant role the Tathra Surf Life Saving Club played during the March 2018 bushfire tragedy.

Councillor Russell Fitzpatrick said all the facilities had a cost of maintenance, with only some receiving a minor income.

He wanted to "allay everyone's fears" as all that was being divested under the motion was management rights.

"The case here is we need to negotiate to get a proper return to manage these assets in the proper way," he said.

Council's general manager Leanne Barnes said all the properties' occupiers had been notified about council's intentions.

"We will continue to have negotiations to ensure things will be as seamless as possible for the occupiers," Ms Barnes said.

Councillor Cathy Griff said more context was needed around the communication strategy for the motion, and said the community would have benefited from more information and better historical context.

She said she had been contacted by many members of the public incorrectly concerned council was "giving the wharf away".

Councillor Sharon Tapscott said she wanted to clarify the motion was just the start of the negotiation process.