Whanganui District Council has ditched plans to develop a 60-bed four-star hotel as it finalises its Long-Term Plan.
Mayor Andrew Tribe said the council had decided to scrap the plans in order to keep average rates increases to 11.2 percent.
"I'm pleased we've managed to keep our rates rise lower than the current national average and the big increases proposed by some other centres, such as 17 percent in Hamilton and Wellington, 25 percent in Hastings and 27 percent on the West Coast," he said.
The community had strong opinions for and against various issues in the Long-Term Plan, Tripe said, and he knew the outcome would not please everyone.
"Elected representatives worked hard to listen to the community and this can be seen where we adjusted our positions or found new options to suit the community's needs.
"We take community feedback very seriously but in some cases there are other important factors to take into account when making decisions."
Plans for a crossing at Pākaitore had also been scrapped, and service cuts would have to be made to reduce the immediate rates rise in year one.
"We will be focussing on doing the basics well so we can keep our pipes and treatment plant in good condition and maintain roads and footpaths as our community asked, as well as starting the business case to replace the Dublin Street Bridge," Tripe said.
About 80 percent of council spending in the next decade would go on stormwater, wastewater, drinking water, and roading, he said.
Community projects the council would be putting money towards included Wanganui Surf Lifeguard Service's new operations centre and tower facility, enhancing the Splash Centre, the North Mole rejuvenation, a new running track, improved lighting and drainage at Cooks Gardens, and investing in playground replacements across the district.
Tripe said marae played a crucial role during civil defence emergencies and they would be getting funding for repairs and improvements from 2027.
The LTP will be formally adopted on 16 July.