Cr SAM Rowland has voiced his concerns about a potential cost blowout on the performing arts facility.
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He was among three councillors at Tuesday's meeting to question the adequacy of the $8 million budget.
It followed a report to councillors stating that all tenderers had indicated the budget would be "tight" and require "rigorous monitoring".
"I know we're only signing a contract for the design stage, but I'm concerned; and it's highlighted in the 'budget implications' that we'll come close [to $8m] or likely exceed it," Cr Rowland said.
The council report stated that project costs excluded geotechnical information, interaction with adjoining structures, contingency, power upgrades, specific heritage considerations, underground parking and site contamination.
"The cost implications of these components will become known as the project progresses," operations director Matt O'Rourke stated in his report.
Councillors also authorised general manager Warwick Bennett to incorporate a 10 per cent contingency on the tender price.
Deputy Mayor Bob Kirk said he, too, was "very conscious of the $8m spend," given the additional costs, and had spoken to Mr Bennett before Tuesday's meeting.
"We'll need to ascertain those further and get a quantity surveyor to run their eye over this," he said. "I don't want to see this get out of hand. If it does then we'll have to pull the plug or reassess and maybe not build exactly what we wanted."
Mayor Geoff Kettle told the meeting that if it looked like blowing out come September, the council could "pull the pin".
However, he has also pledged to seek State Government funding to either off-set or add to the council's $7m contribution.
On Wednesday he said if a blowout was on the cards, he wouldn't be averse to borrowing more if he were elected to the new council.
"The general fund is in great shape and there's so much cheap money around through low-interest State Government loans," he said.
The council will also apply to the Veolia Mulwaree Trust for funding.
Performing arts working party chair Cr Alf Walker was confident the budget wouldn't bust.
"It will be tight, but with Council, the quantity surveyor and the (design) team keeping an eye on it as we go along, I think we can keep it on track," he said. "I'm sure there are some things we can also be flexible on."
