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Cllr Paul Murphy told Granada Reports the policing operation at the Worsley Marriott will cost £30,000 a day.
It includes 28 constables and four sergeants. G4S should have had 58 of their staff on the site, but only about a third turned up for the lock-down.
"Failures of G4S have impacted upon day-to-day policing in GMP as officers are being dragged away from normal duties.
"It is a disgrace that thanks to G4S, Greater Manchester Police's communities are losing their local police officers.
"Our officers are being sent at a moment`s notice to underpin a security operation that is rapidly achieving the status of a farce.
"I am only glad we have still got enough officers to plug the gap for G4S Olympics staff who didn't turn up to Manchester venues."
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Greater Manchester Police say they were drafted in to cover a shortfall in Olympic security at a Worsley Hotel.
"On Saturday 14 July 2012, Greater Manchester Police became aware of a shortfall in security services for athletes participating in the 2012 Olympic Games.
"On Sunday 15 July 2012 a policing operation was set up by GMP officers to assist with the security operation to protect athletes staying at the main Olympic team hotel in Worsley.
"At no point was their a failure to provide security for the athletes.
"We have worked closely with the security contractor and the London Olympic Games Organising Committee (LOCOG) in relation to this matter, as we have throughout the planning phase of the Olympic Games.
"Extra policing resources have had to be called in, but there has been a minimal impact on policing the local communities that we serve on a daily basis."
Police in Greater Manchester have been drafted in to boost security for Olympic athletes staying in the city.
The officers were called in after a "shortfall" in security services was discovered.
They were posted at the Worsley Marriott Hotel, where some athletes are staying.