Libby Hall was one of three councillors who on Monday night rejected a move to fund the project at Hunchback Hill.

"It is irresponsible in considering that there is lead contamination on the site, it also could lead to more burnt-out cars and therefore greater risk of bushfires in what is already a very high bushfire risk area," she said.

"A car park will not discourage (vandalism)...but in fact will possibly encourage more of this behaviour."

Retired plumber Kos Kleefman, who is having a house built in a new estate near the hill, echoed Cr Hall's concerns in an email he sent to councillors before Monday night's monthly meeting.

"If a fire started as a result of this development and it....spread to the houses in the housing estates approved and encouraged by the Wodonga Council it could well be that legal action would result in the council being held responsible for the damage caused," Mr Kleefman wrote.

Councillor Danny Lowe, who moved a motion to build the car park and complete a mountain bike climbing track, said he was appalled by vandalism, but said it will lessen due to the work.

"There's lots of people that want to be stupid and they will be stupid anywhere, it doesn't matter what we put where," he said.

"But with the more people that are going there the less it will happen, it's just the way it is....the more people that we have there less likely that any damage will happen."

Cr Lowe won the support of acting mayor Kat Bennett and former mayor John Watson, while Ron Mildren and Brian Mitchell joined Cr Hall in opposing the works.

Cr Bennett decided the fate of the motion with a casting vote.

The council's planning and infrastructure director Leon Schultz said a 48-bay car park was envisaged, but conceded there was "no science behind that number".

He estimated it would cost $150,000 and up to $120,000 was needed to complete the bike track.

Mr Schultz said a purchase or leasing arrangement with the Department of Environment, Land, Water and Planning would have to be considered with the area not owned by council.

The resolution on Monday night noted that approvals and agreement of DELWP and Parklands Albury Wodonga would have to be negotiated before any work.

Cr Mildren queried the council's approach, noting parts of tracks at Hunchback Hill had been built without approval.

Cr Mitchell spoke of his general opposition to the hills strategy, saying it was based on a "compromised rationale" which would hurt flora and fauna.