Ottawa taxpayers could soon be on the hook for a $30-million shortfall of pension benefits over the next three years.

Coun. Peter Hume said if the city can't find the money, the shortfall could translate into a one per cent property tax increase each year, costing the average taxpayer about $28 each year.

"All of Ontario's municipalities and other partners in the (pension) plan knew that as a result of the financial meltdown in 2008, we were going to have pension challenges," Hume told CTV Ottawa on Tuesday.

Hume, who is also the former president of the Association of Municipalities of Ontario, said the pension plan only recently announced how it planned to deal with the shortfall. He said the city is just finding out what it will mean for Ottawa taxpayers

He adds the city can't opt out of the pension plan unless special provincial legislation allows the city to do so.