The move was made to simplify the event, with a bar manager and staff already on-site at Club Metro, he said.
"We needed qualified volunteers. You have to have a bar manager, you have to have people there with food handling certificates, and you need to have equipment there too.
"It just made more sense."
Whanganui deputy mayor Jenny Duncan said after she saw the claims online, she contacted council chief executive Kym Fell, who confirmed there was never any suggestion of a charge.
"The council would never consider charging the RSA for that activity," Duncan said.
"We would always bend over backwards to do whatever we could to facilitate the service.
"We're really keen to see it back there next year. It is an RSA decision, but council fully supports [Anzac services]."