The majority of that amount - $190,096 - was approved to finish the basement portion on an extension being added to the original section of the former Normal College, which is undergoing an extensive makeover.
The new work is necessary in order to convert that portion of the basement - about 5,000 sq. ft. - into useful space, town CAO Mike Dolter told council.
The work will involve the construction of a cement floor in that portion of the basement, in-floor heating and the addition of two public washrooms and two storage rooms that will be shared between the town and the library.
The move will also free up two storage rooms on an upper level, which now can be used for meeting rooms that can be rented to the public.
"We actually need the extra meeting space in town right now," Coun. Tom Chisholm said.
"I think it's a brilliant move," he said, of the conversion. "It's an awful thing to say but there's not much you get for $200,000."
Council also agreed to spend $37,500 for engineering fees and preparation work for a future spire - or steeple - on the building.
The existing roof is not designed to handle a spire and not doing the engineering and preparation work now would increase costs later. The current estimate for adding the spire at a later date is $60,000.
"The project is expected to be completed in November although the transfer to the new building likely won't occur until next winter," Mayor Bill Mills told the Truro Daily News.
"They've made some pretty good advances," he said of the construction progress.
The original $7.1-million cost of the project is being split between the town and Colchester County. The county has agreed to pay 40 per cent of the cost, to a maximum of $2.2 million, based on a space consisting of 18,750 sq. ft.