Mayor Dave Cull said the win galvanised the city's residents and businesses.
''I think we have a responsibility to signal to the community we are still in there,'' he said.
Councillors were debating a report from the council's economic development and city marketing arm Enterprise Dunedin, which said the city should provide $250,000 for the initiative, including funding for two full-time equivalent jobs.
The call for an extra $185,000 of funding, on top of $65,000 funding that has gone to the city's Digital Office, came late in the day, because Dunedin was named the winner only in November.
Dunedin won the Chorus competition after a massive online push from residents and supporters.
The win means Dunedin will get 1 gigabit per second broadband at a cheaper rate for three years, and funding for $700,000 of UFB-related initiatives.
Cr Richard Thomson asked if the Gigatown win could be advertised to a national audience, after the city did not take advantage to do so during the weekend's cricket games.
He suggested the message Dunedin had 1 gigabit per second broadband could be advertised during Highlanders games.
''Is this part of what we're going to do?'' he asked.
Enterprise Dunedin director John Christie told him the question was whether the city was prepared to fund getting such branding on to the field.
Deputy mayor Cr Chris Staynes said the council invested in Gigatown because of the economic opportunities it offered.
''We have to invest to getthat advantage.''
The Digital Community Trust would work to find funding partners, and the council should include the funding in its draft budget.
Cr Jinty MacTavish said: ''In an ideal world, this would go into my budget.''
However, the amount of the budget may need to be trimmed.
''I'm signalling my provisional whole amount,'' she said, although not necessarily for the whole amount.
The meeting voted unanimously for the funding to be included in the budget.
