Napier City Council has spent $9.2 million more than its budget for the 2018/2019 year.
Despite this, the city remains in surplus, albeit a smaller one than the planned surplus.
The figures were released as part of the city's annual report.
Chief financial officer Caroline Thomson told councillors at a meeting on Thursday the extra expenditure was on water, roading, recycling and "weather-tightness".
However, she said the expenditure was partially offset by some reduced costs at the council's Parklands residential development.