The council was responding to a 298 signature petition recently submitted to the council with Yarram youth calling for a skate park to be built in the town.

Wellington Shire Mayor Darren McCubbin told the meeting the $140,000 project was listed in the draft capital works program for 2010-11.

He said council was well aware of local support for the initiative.

"We are working hard to get this to happen, but it's in next year's budget,'' Cr McCubbin told the meeting.

"It requires an amount of $60,000 from Sport and Recreation Victoria (in the form of a grant) which is what I believe Heyfield and Stratford also had to rely on.''

Cr McCubbin said the council was contributing $60,000 to the project but the Yarram community would also have to fundraise $20,000.

"Perhaps in the interim the Yarram community can begin working on the community contribution,'' he said.

"The community of Yarram is very community orientated so we call on the community of Yarram to give generously.''

The report to council also states young people could have input into the project as a youth based consultative group was likely to be established during the planning, design and implementation of the park.

But Cr Malcolm Hole warned it was risky to rely on the grant funding to get the project off the ground.

He cited the case of a Stratford youth who raised a lot of community money for their skate park while waiting for the grant money to come through.

"Stratford didn't get a guernsey for five years and the young person had since left the region and headed off to university,'' he said.

"We ask the young people of Yarram to please be patient, but keep in mind that it may not come in the year when they expect it.''