Another infrastructure project in Launceston has crept over budget, however the council says it has the money already in the bank.
The final two stages of the Transport and Road Safety Centre project need an extra $1.09 million in order to be completed.
This will bring the total budget to $3.8 million.
The shortfall will be covered through money received in the Local Roads and Community Infrastructure grant program, currently sitting in the City of Launceston council's accounts.
Councillors will be given the option of increasing the project budget at their December 14 meeting, and mayor Matthew Garwood said he was anticipating robust discussions around the table.
Cr Garwood said this was another case of the drawn-out effects of the COVID-19 pandemic, which had put pressure on construction prices globally.
"As with a lot of projects worldwide, this redevelopment has been significantly impacted by the COVID-19 pandemic and the contractor availability, logistical and supply chain issues, and the escalation in construction costs associated with it," he said.
"As a result, there is a discrepancy between the original budget for the project and the final anticipated cost."
The new amount includes a 10 per cent contingency buffer to prevent further shocks.
Upgrades to South Launceston's Transport and Road Safety Centre, otherwise known as the Bike Centre, began in 2019 after it was closed due to a landslip.
Work to fix the damage was finished in 2021, and further works giving the old water reservoir a large-scale overhaul were completed in 2023.
The final two stages include adding new play equipment, mock roadways and seating, and installing CCTV cameras and lighting.
If the adjustment to the project budget is approved, the release of the money will be put to councillors at a later date.