A draft lease agreement between the council and Amber Aviation Academy was meant to be finalised at Monday's June council meeting, but has been deferred to allow for further negotiations.

Federation council has been in discussions with the company since December 2018, but in a report to councillors general manager Adrian Butler said negotiations were "almost finalised".

He anticipated a lease would be presented at July's council meeting.

The training facility is expected to create 150 jobs, comprising of flight instructors, trainers and assessors, engineers, managerial staff, administration staff and support staff.

Last March, council resolved to enter into a long-term lease agreement with Amber Aviation Academy to establish a state-of-the-art aviation training facility at the Corowa aerodrome.

At the time of the announcement, mayor Pat Bourke said the creation of the facility would create employment and training opportunities as well as provide benefits to the region's economy and tourism sector.

The council is thrilled to be announcing our successful partnership with Amber Aviation Group, who we will work together with to achieve a long term economically sustainable future for the Corowa Airport supported by this expansion, he said.

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Amber Aviation Academy is currently based out of Essendon Fields Airport, Melbourne.

At Monday's meeting, Federation Council will also consider whether it will apply for a special rate variation as part of its ten-year financial plan to help with the running costs of new community facilities.

Since Urana and Corowa councils merged in 2016, Federation Council has received $10 million from the NSW government to improve community infrastructure and services.

In a report to the council, staff highlighted the opening of new facilities had resulted in increased operating and maintenance costs and poses a future financial challenge given the funding was a one off.

Council staff outlined three potential scenarios in a draft 10-year, long-term financial plan to help fund the increased operating costs.

In scenario one council would increase rates at the rate peg of 2.6 per cent for 2020-21, and then apply for a a special rate variation for the following two years.

After two years, council would revert back to the rate peg for the remaining seven years of the plan.

The report stated Federation Council rates were in the lowest ten per cent of NSW areas and would remain so even with a special rate variation between six and eight per cent spread over two years.

Alternate scenario one is consistent with the first scenario expect rate increases are limited to the rate peg for ten years.

While alternate scenario two factors in the risk of receiving less than expected level of grant funding of major projects.