Central Otago District Council corporate services manager Heather Kinsey presented a report on the overspending to the Cromwell Community Board at its meeting this week.
Mrs Kinsey said project management of the swim centre was "dogged by problems" throughout the redevelopment, which was first mooted in 2000.
Because of circumstances at the time, three project managers were used over the years it took to build the complex, which led to a breakdown in communication among all involved.
Increasing cost estimates also added to the board's growing commitment of funds for the project, she said.
In 2000, the board was quoted $1.5 million to extend and upgrade Cromwell's existing pool complex, although that figure jumped to $2.8 million in a 2005 feasibility report.
Despite the cost increase being well beyond what the board had initially budgeted for, it resolved to continue with the upgrade.
Funding of $1.2 million was secured from the Central Lakes Trust in 2006, leaving the board with a shortfall of $666,000.
Estimated costs of the development increased again and effectively the board ended up committing $1.286 million to the project - up $786,000 from its original plan to commit $500,000 in 2000.
Tenders for the redevelopment were $920,000 over budget, but the board eventually resolved to approve a $3.9 million upgrade, which was completed and officially opened in May last year.
One month later, the pool was extensively smoke-damaged during a small electrical fire, and reopened in November.
Insurance covered most fire-associated costs.
Mrs Kinsey said, as of May this year, the board had spent $254,000 more than anticipated.
Additional to that were costs of enhancing the complex (yet to be paid), as well as $45,000 to change an electricity transformer and additional costs of replacing or repairing parts of the building, she said.
An extra $73,000 was spent sealing car parks, $21,000 on landscaping, and $35,000 replacing front doors.
"You have an asset to be proud of and hopefully you've learnt from your mistakes and will apply those lessons to your next big project," Mrs Kinsey said.
