The Wongarbon facility's walls had holes kicked in them and toilet doors were ripped off at the private function on July 19, despite a requirement to have a security guard present.

It was the third consecutive birthday party to result in damage to the community asset, prompting owner and manager Dubbo City Council to act.

The council has temporarily ruled out taking any further bookings for birthday parties and will discuss policies for the future with its Wongarbon Hall advisory committee, comprising Cr Greg Mohr and residents.

Cr Mohr raised the issue of the damage at this week's council meeting, reporting holes had been kicked in walls, toilet doors had been ripped off, drinks spilt across the floor and smoking had occurred inside.

"I want to make it clear this is a community asset," he said.

"It's not there just to be trashed."

Yesterday he and advisory committee members Scott Woodley and John Kelly returned to the building that also serves as a gathering place for the village's school and old-time dancers.

Cr Mohr said the community had contributed to improving the hall over the years and he estimated the damage would total $4000 to $5000.

"Locals felt disheartened because they've worked on the hall to bring it up to standard and it's just gone," he said.

"Even the state government injected money into it through grants - the amount of money put into the place, just to trash it."

A list of 16 conditions is part of the agreement made between the council and anyone wishing to hire the Wongarbon facility, including that it be vacated by midnight and that security may be required, among others.

Council community services director David Dwyer said it was about the only hall available for birthday parties, after they were banned at halls in Dubbo.

He anticipated changes to the policy that had seen the hirer from the July 19 birthday party pay a $190 fee and a $260 bond.

"At the moment $260 is not going anywhere," he said.

The council had required a security guard be provided by the hirer at the July 19 function and a hirer at the previous birthday party, the director said.

Mr Dwyer said he had talks since the July 19 party with the hirer, who had family involved in the building industry and had pledged to fix the damage, which would avoid the council having to make an insurance claim.

The director reported being told just one party guest had put the holes in the wall, and he understood the hirer was intending to speak to police.

Further conditions and possible future restrictions on the hire of the hall would be discussed at the advisory committee meeting on August 13, Mr Dwyer said.

He said he was "torn" about ruling out birthday parties because he did not want "a few ratbags" to spoil it for everyone, and wanted the hall used, but he also did not want to "see the hall trashed every weekend".