Tauranga City Council's elected members will decide next Tuesday whether to approve an additional $1.27 million this financial year for the Durham St and Durham Lane upgrade.
An additional $2.01m for next financial year (2019/20) is being sought through the Annual Plan process.
Council staff yesterday told the Finance, Audit and Risk Committee the project needed additional funds due to timeframes and construction challenges, including a lack of knowledge of sub-surface conditions and of some services, and the absence of a contingency plan to address these unforeseen challenges.
The committee recommended the council approve the overspend so the new spaces could be delivered to the community.