Queenstown Lakes District Mayor Glyn Lewers criticised those responsible, who were questioning the council’s dedication to inclusion and representation, he said.
The graffiti claimed one of the council’s "rainbow reading" sessions was "child grooming".
Mr Lewers said that was bullying and bigotry masquerading as concern about the extreme sexualisation of children.
"I was initially hesitant about including the specific wording of the graffiti ["child grooming"], but I think it’s important on this occasion to be up front in order to provide a full explanation of why I, on behalf of thousands of others, oppose it."
The incident comes during Winter Pride 2023, a 10-day celebration of the rainbow community, which has attracted thousands of people from across New Zealand and overseas.
Winter Pride co-director Martin King said he was disappointed by the incident but noted that Rainbow Story Time was otherwise a great success and was widely supported in the community.
"It reinforces why Pride is still so important here and around the world," he said.
"We know the police and council have taken this seriously and we are impressed by their response and support for inclusion."
Mr Lewers said inclusion, safety and visibility were important values at the council, for both employees and the community.
That was reflected in council activities, such as its sport and recreation department’s Pride week celebration classes, and events organised by library staff, supported by Te Hau Toka Southern Lakes Wellbeing Group, such as "Meaningful Conversations: Celebrating Infinite Colour".
He assumed those responsible for the graffiti took exception to the inclusivity and tolerance promoted by the council in general and specific services.
"From a council perspective, I respect everyone’s right not to engage, but I am firmly opposed to anyone who thinks they
have the right to take choice away from others.
"However much these people feel they are well-intentioned, vandalism — particularly that which is organised, pre-meditated and carrying divisive sentiment — will not and can not be tolerated.
"Whether it’s defacing or ripping down posters, trolling social media, hiding or stealing books that don’t align with your personal views, or spray-painting offensive statements on or around council facilities, these acts do not reflect the outlook shared by QLDC, myself or, I strongly believe, the vast majority of our community," Mr Lewers said.
He said direct threats to council staff or event volunteers were also unacceptable.
"As a country we have come a very long way, but these recent events should be a reminder that we all have a role to play in ensuring all members of our community can feel included, represented, respected and safe."
