The Mount Alexander Shire says bringing local infrastructure back up to standard is the primary focus as it recovers from recent floods.
The floods of February this year damaged 115 houses, 20 local businesses, dozens of roads and bridges throughout the Mount Alexander Shire.
The towns of Castlemaine, Fryerstown, Guildford, Chewton and Campbell's Creek were the worst affected.
The shire had estimated the damage bill would amount to $4.9 million but in a revised report presented to last night's council meeting, that total has jumped to $7.2 million.
The council says it has contacted VicRoads about the increase in costs.
Most of the damaged infrastructure has been repaired.
The shire says the remaining local roads and damaged drains affected by flooding will be restored by early next year.
© ABC 2012
20:13 EST Several homes were damaged when a storm tore through Keysborough, in Melbourne's south-east.