Around £30,000 was spent on bunting and decorating the town for the Olympic torch relay and Tennis Week last year.
Eastbourne Borough Council has defended its decision to pay for some of the cost and says much of it was paid for through grant funding.
The Olympic torch passed through the town from Kings Drive to the official live site in Princes Park last summer.
A Freedom of Information request has revealed £30,000 was spent on decorating the town with £20,000 coming from the Greater London Authority to meet the cost of bunting and flags to celebrate the event and £10,000 coming from the council coffers.
Liberal Democrat councillor Carolyn Heaps, portfolio holder for tourism and leisure, said, “We were thrilled to win the opportunity to host the Olympic torch relay after many months of campaigning, and to host an official live site in Princes Park at which we showed the opening and closing ceremonies plus all the key events.
“As part of this hosting duty, we received a grant of £20,000. I am sure I speak for all residents when I say the Olympics were a truly fantastic time here and the council was absolutely right to celebrate this once in a lifetime event in the best possible way and getting a grant to pay for the town dressing was the icing on the cake.
“In line with our work to raise the profile of Eastbourne and demonstrate our commitment to the Aegon International tennis, the council last year contributed £10,000 to dressing the town. This fund was matched by the Lawn Tennis Association and used to fund the large white flagpoles and station dressing that properly promotes this premier event and shows players, sponsors and visitors that the town really gets behind this event and values our partnership with the LTA.”