Councillors will be presented with a report at its July meeting on Wednesday from the office of chief executive Mark Henderson recommending further consideration to its interest in acquiring the site when it becomes clear the property is on the market as a whole or in separate parts.

The analysis on the school site was conducted against the back-drop of council earlier this year putting on hold plans to build a new library at the town hall site which would have meant the demolition of an adjoining community hall to make way for the library.

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The site includes a state heritage listed court house and fire station and primary school buildings which both attract local heritage status, but purchase is further complicated by title boundaries.

Estimates for restoring the core buildings to useable form are "substantial" and if council was to secure the site it would need to budget around $3.3 million to make the site secure and carry out demolition, restoration and fit out on top of the acquisition cost.

This preliminary estimate doesn't factor in asbestos removal, service relocations, undisclosed white ant damage and any heritage restoration requirements.

"Given the reasonable expectation that other projects would not be jeopardised, the likely approach would be to fund the acquisition and restoration through loan finance which would more than double the council's current long term debt and significantly increase its debt servicing costs," the report stated.

The council is already committed to a $6 million Numurkah flood mitigation project with around $48 million of capital works also required to service Yarrawonga's growing population over the next decade.

The Yarrawonga figure doesn't include an indoor aquatic facility estimated to cost $15 million.

A report on the library project is also on the agenda on Wednesday.