Albury Council's draft budget has confirmed MAMA will cost ratepayers $1.3 million to operate in 2017-18 which is $346,097 more than originally forecast.

The blowout has resulted from “optimistic” income forecasts and costs associated with wages and salaries at MAMA which has been forced to find a replacement director and curator since officially opening in October 2015 and exhibition program expenses.

The council has budgeted for changes to income of $131,816 and expenditure of $208,188 in 2017-18.

MAMA cost $1.39 million to operate in 2015-16 with the figure blowing out by $250,000 in the final three months of the financial year.

The final figure was also impacted by a delay in MAMA opening.

But the budget re-adjustment has been offset by continued philanthropic support for MAMA which is more than the original $1.04 million to complete construction of MAMA.

It will receive $175,467 in 2016-17 and a further $172,667 in 2017-18.

Albury mayor Kevin Mack said MAMA’s success had exceeded expectations with an anticipated economic impact in the first 12 months more than doubling the projected $10 million.

It also had more than 100,000 visitors in its first 12 months.

“There’s been 50 exhibitions, more than 180 education programs and 145 new pieces of art acquired,” Cr Mack said.

“The $346,000 increase in MAMA’s operating costs for 2017-18 is a result of the previous income forecast being optimistic at this stage of the development of the business.

“MAMA’s commercial business units require more time to establish in the retail industry.”

Former MAMA director Jacqui Hemsley has been replaced by Bree Pickering and inaugural curator Bianca Acimovic has been recently succeeded by Michael Moran.

Council budget documents show the cost to run MAMA over the next four years to continue to be around $1.3 million.