The community services committee debated a recommendation to approve the concept design for the $500,000 upgrade.
Six public submissions were lodged in support and two were against.
The council "Playground Development and Renewal" report recommended that the Queenstown Bay playground be upgraded to "destination" status, given its proximity to shops, the lakefront, tourist attractions and toilets.
Cr John Mann asked if six people's support was a mandate for spending $500,000.
Cr Cath Gilmour asked community services general manager Paul Wilson if there had been any attempts to make the playground cheaper, but Mr Wilson said no.
Cr Gilmour said she was "increasingly uncomfortable" about the cost.
Mr Wilson said the Wanaka playground cost $350,000 in 2003 and was well-received.
He said it was common for New Zealand playgrounds to be about the $1 million mark.
Cr Vanessa van Uden said public consultation had not provided resounding support for the playground.
"It's dangerous to base things purely on a submissions process.
"The overwhelming comments from people is that $500,000 is a lot of money and I don't think we can go forward willy-nilly."
Mr Wilson said the matter had been debated during an annual plan workshop and that the community services committee had to make a recommendation.
Cr Gilmour said questions on the costs had been raised at the workshop, along with questions on whether Frankton was a better location for a destination playground, given its residential population.
Cr Mann said there was sufficient concern about the location and cost.
He asked Mr Wilson what the negative effect would be on deferring the playground development.
Mr Wilson said it would have a positive effect in terms of meeting weekly targets to complete projects, but a negative impact for the present playground because it needed replacement equipment.
