LAUNCESTON Aquatic's operations will be scrutinised after it ran significantly over budget in the last three months of 2010.
But Launceston City Council general manager Robert Dobrzynski has ruled out staff cuts.
He told aldermen at yesterday's council meeting that staff numbers would not be cut but every aspect of the popular centre's operations would be scrutinised.
Mr Dobrzynski described the centre's nearly $75,000 budget overrun as an extreme loss.
He said there needed to be a reassessment of energy costs in particular and described the budget overrun as unacceptable.
There were suggestions of a gymnasium being constructed in a dry area of the centre to complement the water activities and become another money- earner.
Aldermen received the council quarterly financial review, which also revealed overspending on Aurora Stadium and the Queen Victoria Museum and Art Gallery.
The review showed that there had been a growth in the amount of rates collected while balances and interest rates were higher than anticipated.
Review author and council finance manager Rod Fraser also reported that the original $39 million set aside for land acquisition and levee construction as part of the city's flood levee project was inadequate to meet the projection of costs.
Mr Fraser said that a review of design options was happening and discussions with the state and federal governments regarding funding were progressing.
Launceston Flood Authority chairman Martin Renilson said last week that the authority was determined to stay within its new $62 million budget.
He would not reveal how much of that money would be needed for land acquisition.
He said that negotiations over compensation on three of the Lindsay Street properties acquired were not finalised.