AN application made by the Henley Skatepark Initiative for Â£1,890 was deferred.
The cash would be used to reimburse the group for a noise study it was asked to carry out as part of a planning application for the redevelopment at Makins recreation ground.
The committee recommended that the full council considers paying for the cost of the study from its professional fees budget instead.
Deputy Mayor Jeni Wood said: “I feel we have to honour this but that it’s taking away from our grants budget. It doesn’t need a grant, it needs the bill paying, which is a town council duty.”
Colin Brathwaite, chairman of the initiative, said it was “extremely reasonable” of the initiative, as a community volunteer group, to expect the council to pay for the study.
He said there was widespread support for the project with 139 letters in favour of the plans and only five against.
“We’d like to extend our thanks to those who support our programme,” said Mr Brathwaite. “We’re also fully aware that some of you do not.”
The planning application was approved by South Oxfordshire District Council last year.