The latest quarterly payment to Port Macquarie-Hastings Council of $2.2 million is part of $8.9 million in Financial Assistance Grants allocated to the council in 2014-2015.

The $661,297 local roads component is allocated to road maintenance.

The remainder of the $2.2 million Port Macquarie-Hastings Council quarterly payment is the general purpose component which is allocated into general revenue.

Financial Assistance Grants are untied grants and therefore not tied to any specific project or works.

The anticipated funds have been budgeted for funding operating expenses for the current year.

Lyne MP Dr David Gillespie said the great thing about the funding was councils were free to spend this untied grant money according to local priorities, including for infrastructure, health, recreation, environment, employment and roads projects.

Financial Assistance Grants are a vital part of all councils' revenue base and local government this year will receive $2.3 billion from the federal government through the scheme.

Australian Local Government Association president Troy Pickard said all councils welcomed the payments as it assisted to provide essential local services and infrastructure.

lisa.tisdell@fairfaxmedia.com.au