Salisbury Crematorium needs extra £390,000 for renovation
A further £390,000 is needed to fund the renovation of the crematorium in Salisbury.
The city council says it will finance the work, costing £2.3m including VAT, through a mixture of existing reserves and borrowing.
A report to councillors recommends they agree that the borrowing limit be set at £1.3m and that approval be sought from the government.
The report is to be discussed at a full council meeting on Monday.
The document says the authority will be unable to reclaim the £390,000 VAT on the capital cost of the project.
"This is extremely bad news as it adds the £390k to the project value which must be funded by SCC [Salisbury City Council]," it adds.
The work includes renewing two cremators, installing mercury abatement and emission control equipment to ensure the site complies with EU regulations, expanding the car park and creating an additional chapel space.