The state government’s proposed strategy for flood plain management went before council last week, with a plan to bill councils for flood mitigation measure raising the ire of the city’s mayor.

The plan involves splitting the cost between the federal, state and local governments.

Cr Cox said he would be urging the government to reconsider the move in light of plans to cap rates.

“It is nonsensical to be on the one hand demanding a rate cap while on the other proposing to shift significant costs onto local government,” he said.

“It is not fair and it risks alienating the very people who have been supporting the government's drive to keep costs down.”

After a number of areas in Bendigo were flooded in January this year, the council revealed there was a $48 million backlog of flood mitigation works in the city.

More than 150 projects were still to be completed at the time of the flood, while the council had already spent $22 million on works.

Bendigo has 12 kilometres of levee bank alongside Bendigo Creek.

The state government’s funding proposal could add millions of dollars onto the council’s bill, Cr Cox said, leaving councils to both fund part of the flood plain works and then pay for the maintenance.

This year’s floods were caused by a rare rainfall event, while flooding also occurred in early 2011.

Despite opposing the proposal, Cr Cox maintained his support of capping council rate rises to the consumer price index.

Buloke Shire mayor Reid Mather also warned his council would struggle with the extra cost burden.

“We don't have the capacity to raise a third, nor would we have the capacity to do ongoing maintenance,” he said.

A spokesperson for Environment Minister Lisa Neville said the government encouraged input into the proposal and Bendigo had been given $250,000 for a study into the city’s levee.

- with Darren Gray