The depot, under construction on council owned land on the Daylesford-Trentham Rd, had an estimated cost of $1.45 million in the 2008-09 budget.

But it has emerged that $1.83 million will be needed to complete the project.

The depot is expected to be completed by early December.

"This has been a major construction project and once fully completed will operate as the council's main maintenance depot," shire chief executive officer Kaylene Conrick said.

"Around 25 staff will operate from the depot, which will house our mechanics' workshop, machinery wash bay, parks and gardens operations and plant and equipment storage."

The project was first costed in May 2004 at $1.24 million.

The council allocated $1.45 million in its 2008-09 budget to construct the new depot.

But since then, extra works have been identified.

A new fuel bowser, a water-catching system and a state-of-the-art electrical system have been added to the project to increase "efficiencies".

The council was required to fund an additional hoist, which was not included in the original estimate.

Other changes include additional concreting and relocating one of the sheds to prevent 300 trees from being removed.

Ms Conrick said that council practices had changed since the project was costed.

She said that rather than leaving projects in isolation in one department, they would now be in the hands of a multi-functional team.

As to where the extra funds would come from, she said the bottom line of this year's budget would not change.

"We do a mid-year budget review and look at what has gone under and what has gone over," Ms Conrick said.

"This is now underway and is an across-the-board process that looks at all projects to ensure we deliver our 2009-10 capital works and service commitments to the community as part of a balanced budget."