An extra $4.7 million is needed to complete the Bridge Mall redevelopment.
A quarterly financial report that will go to council at its meeting next week will request additional funds to complete the project.
The City of Ballarat have cited a number of issues during construction, including challenging ground conditions, the need to remove more contaminated material than expected and disposal costs.
The new funds will go towards fees for a technical consultant and rectifying issues found during construction.
If approved, the project budget would rise to $23.3 million, with the redevelopment expected to be completed by the middle of this year.