Inverell Shire Council has been given the money to spend on community projects as part of a $300 million plan announced by Prime Minister Kevin Rudd on Tuesday.

In his speech to the 565 mayors at the inaugural meeting of the Australian Council of Local Government in Canberra, Mr Rudd promised all councils a minimum payment of $100,000, depending on population.

Inverell Shire Mayor Barry Johnston said exactly where the money would be spent was yet to be decided, but it must be spent on community-based ventures, not on roads or bridges.

Projects that can attract funding include town halls, community centres, libraries, parks, sport and recreation facilities, tourist information centres, bus shelters, boat ramps and walkways.

The money needs to be spent by September and councils have been asked to submit proposals that are ready to go.

Cr Johnston said he was impressed with the outcome.

“I give Prime Minister Rudd full marks for going through with his pre-election commitment,” he said.

“It was very impressive of him to invite all mayors in Australia and there were some very worthwhile discussions during the workshops.”

He said the next step would be to look at the guidelines for spending the money and then consider where it should be spent.

“We have a number of long-term projects that can be looked at and also some of our infrastructure that is due to be upgraded,” Cr Johnston said.

“At the moment there are no projects jumping out at us because we weren’t expecting such a quick announcement.

“We also have to spend the money very quickly but this is a very positive step for all councils.

“The gratitude from us is very strong and we are looking forward to a continuing partnership with the Federal Government.”

Cr Johnston said council would be taking suggestions from the community about where the money should be spent.

“It will also be discussed further at our council meeting next week,” Cr Johnston said.

Councils are required to submit proposals for the funding and next year Mr Rudd will be talking to councils about infrastructure needs based on their asset and financial management plans.

Mr Rudd said where appropriate the government would consider making resources available for a long-term reform fund to support council as they improve their management plans.