The City of Greater Bendigo must find $10.3 million to help top up the Local Authorities Superanuation Fund which is underfunded by $450 million.
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Mayor Alec Sandner was advised of the official amount today.
The amount is five times greater than the previous amount the council provided to the fund in 2010.
Cr Sandner said the impost was unfair and that state and federal governments should step in and change the legislation.
"State and federal governments can fix this problem by changing legislation that requires this scheme to be fully funded," he said.
"State and federal governments are not required to fully fund their equivalent schemes so why are we?
"What's good for the goose is good for the gander, especially if it means that ratepayers will no longer have to be burdened with this ridiculous and costly impost."
He said the council had put considerable funds aside to help cover the cost but they hadn't expected such a large amount. The $10.3 million is the equivalent to Bendigo's total annual roads budget or double its annual spending on drainage.
The $10.3 million is the equivalent to Bendigo's total annual roads budget or double its annual spending on drainage.
In July the council discovered it would owe between $10-$11 million to the benefit scheme which operated between 1982 and 1993.
Councillors unanimously voted to lobby the state and federal government to reform the scheme to prevent further funding blow-outs.
Victorian Minister for Local Government Jeanette Powell said she would consider what action the government could take. “I have received a briefing on this matter and a number of options have been canvassed which are currently under consideration,” she said.
“The superannuation scheme is managed by the Local Authorities Superannuation Fund, governed by Commonwealth legislation and regulated by the Australian Prudential Regulation Authority.
“The Commonwealth legislation requires that the Fund must be fully funded to ensure that it can meet its liabilities as members retire and councils are aware of this.”
Councils across the state have vowed to lobby for reforms after discovering the depth of the shortfall, expected to be $450-$460 million across the state.
The CoGB has sought meetings with Ms Powell and federal Finance Minister Penny Wong and wrote to the Prime Minister, Victorian Premier and Bendigo politicians stressing the seriousness of the matter.
The CoGB will also write to the Municipal Association of Victoria requesting “strong representation” about the matter.
A federal government spokeswoman said management of the scheme was a matter for the state government.
The spokeswoman said the federal government would assess a request for assistance from the CoGB once it received it.
