Both long-time library campaigner Anne Turvey and South Dunedin Business Association president Jane Orbell said yesterday while they wished the project had not been deferred, they were confident it was a good idea, and its time would come.
Plans for a South Dunedin library have been in the wings for years, and construction was budgeted to begin soon.
But the Dunedin City Council pre-draft annual plan, which is due to be discussed by councillors at meetings next week, includes a budget for libraries showing the deferral of redevelopment of the city library, and construction of the South Dunedin library, for three years.
Under the proposed budget released on Wednesday, it is now to be funded over five years from 2015.
Mrs Turvey, a former Dunedin city councillor and St Kilda borough deputy mayor, has championed the cause of a South Dunedin library since an amalgamation of councils in 1989.
Responding to the news yesterday, she said she was "naturally disappointed, but ever hopeful".
"I'm disappointed, but certain it will go ahead."
"It must happen," she said, as when an idea was the right idea, "it has to happen".
Mrs Turvey said she would again take her views to the annual plan consultation hearings, due to be held in early June.
It would be the 22nd time she had done so, and she did not plan to give up.
The only "angle" she had not explored in her submissions so far was the cost of the library.
It had originally been close to $3 million, but that cost had risen over the years, something she said was "unfortunate".
"There is no need for it.
"People would have been content with a $3 million building with the possibility of extensions."
"They never asked for $10 million."
Ms Orbell said several people she had talked to yesterday were disappointed by the news.
The business association had lobbied for the library to be begun before 2017, which was "far too far away".
"A library is needed now."
She appreciated, though, that the council's budgets were stretched, and it was important people realised the project was only deferred, not cut completely from the budget.
"People read it wrongly and think it won't happen.
"I'm feeling hopeful.
"I feel that it will happen, but it won't happen overnight."
Ms Orbell said she, too, would write submissions to the council on the issue for hearings in May.