![The biggest expense increase has come from refurbishing 474 Peel Street. Picture by Gareth Gardner The biggest expense increase has come from refurbishing 474 Peel Street. Picture by Gareth Gardner](/images/transform/v1/crop/frm/150521478/5dc080a1-d226-494d-96f5-d4e4bd119bc8.jpg/r0_0_5029_3274_w1200_h678_fmax.jpg)
RELOCATING staff out of the asbestos-riddled Ray Walsh House has caused a bigger blow to council's wallet than first expected.
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Refitting and refurbishing buildings across the city to accommodate more than 280 Tamworth Regional Council staff has set the organisation back $287,407 more than originally budgeted for.
A report, which will be presented to councillors at a meeting on Tuesday, reveals the extra costs and braces staff for future expenses.
Turning 474 Peel Street into the new customer service hub is the main reason for the extra cost, the report says.
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An additional $215,111 was forked out at the council-owned building after contractors identified an electrical wiring issue, "which was not in line with current standards".
Replacing ceiling tiles and improving insulation and IT infrastructure is also to blame for the blowout.
But the report reveals council could be forced to fork out even more funds for the Peel Street site.
"It is anticipated to be in the region of $60,000," the report says.
It is hoped a portion of this could be recovered from rebates for lighting upgrades.
A budget of $2,235,723 was set aside for the entire relocation project in September last year.
From this, $1,339,620 was to go towards building works, and $896,103 was budgeted for furniture costs.
But the most recent report says "costs were unknown" when council first put the funds aside.
Staff have been relocated to six sites across the city; four council-owned buildings and two that are being commercially leased.
The original budget for IT works has come back $40,201 more expensive, and refurbishing the old Northern Daily Leader building has cost an extra $27,429.
Moving staff into the Parry Building, located next to the library on Peel Street, was $36,498 more expensive than first anticipated.
An extra $82 had to be spent to relocate staff to the Sports Dome.
In February, the Leader revealed setting up the new council chambers, in the Nemingha Room of the old Lands Building on Fitzroy Street, set council back $19,000 alone.
Whether or not council staff will move back into Ray Walsh House once it's stripped and remediated is still up for debate.
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