Cr Brian McLachlan, also a member of the committee, believes the project was a clear case of "champagne and caviar tastes".
"We are continually spending on the latest new and shiny thing that takes our eye, and ignoring the basics of routine replacement."
He said the council needed to look at "unnecessary expense" to avoid a rates hike.
"The ... extension is $2.5 million of discretionary spending which we just don't need at the moment."
Committee chairman Phil Halse said the extension to the Town Basin and CBD facelift would also safeguard the ratepayers' buildings at the Town Basin by attracting shoppers and tourists to that area. He said council's budget focused spending on 80 per cent hard infrastructure, such as roads/sewerage, and 20 per cent soft infrastructure, such as parks and recreation.
Cr Halse said the plan had already been through the public consultation.
"I have sympathy for what Cr McLachlan is saying, but this is part of the Long Term Plan, which was subject to public consultation".
Cr McLachlan said he could "see this becoming a $2.5 million white elephant ... "