A supplementary budget is additional budget approval sought during the fiscal year for expenditures not anticipated or not adequately funded in the original budget. Municipalities may bring supplementary budget requests to council when unexpected needs arise that exceed contingency provisions—emergency repairs, legal settlements, new provincial requirements, or changed circumstances. Supplementary budgets require council approval, demonstrating fiscal oversight. Funding for supplementary budgets may come from reserves, operating surpluses, reallocated funds, or additional borrowing depending on the nature and size of the need. Frequent or large supplementary budgets may indicate budgeting problems. Good practice involves realistic initial budgets with appropriate contingencies to minimize supplementary budget requirements.