Since the early 1990s, the council has funded membership to the club for its elected head.
Anyone joining the club, which has been at its Melville St premises since 1867, must be nominated by a sitting member.
At a council meeting this week, Cr Bryan Scott scoffed when the subject was raised, and Cr Trevor Kempton said perhaps it was time for the chairman to relinquish the perk.
Chairman Stephen Woodhead said he would not renew his membership this year.
Yesterday he said the council used to benefit by getting discount rooms for him and visitors from out of town.
"I have used it over the years for accommodation. I stayed there last night for example."
However, the council did not utilise the membership as it did in the past so it was not really worth it, he said.
"Also I've indicated I won't be putting name in hat for chair if I'm re-elected."
Council chief financial officer Nick Donnelly said the cost of the membership per year was $510, and no staff or other elected members had joined through the council.
As it was close to the council's Stafford St headquarters it was used historically for functions and meetings, and as occasional accommodation from chairs outside of Dunedin.
"With the chairperson holding membership the council is able to access rooms at a cheaper members' rate."
