The council was on Tuesday considering an "art work in outdoor public places policy" proposed by Forrester Gallery director Warwick Smith.
Mr Smith had said good public art needed to be controlled and monitored by people who were knowledgeable in the area.
The policy followed a public outcry when an Oamaru stone statue of a penguin was removed from the centre of town earlier this year.
However, councillors had some concerns and decided to refer the policy to a workshop, where it will reconsider the policy wording, as well as membership of the committee.
At a public forum before the council meeting, Waihemo Community Board member Ken Wheeler expressed concern about membership of the committee.
The committee was made up of "arty farty" people, he said.
An independent lay person - "a general member of the public not into art things" - needed to be included so there was "a grounded point of view".
When the policy was considered by the community services committee last month, Cr Kathy Dennison also questioned who should judge what was art and wanted the policy to go through a public consultation process before being approved.
The committee recommended the council adopt the policy after community consultation.
However, when councillors considered the committee's recommendation on Tuesday they raised some concerns about the wording of the policy and decided to refer it to a workshop, which will also examine representation on the committee selecting and siting the art.
The council seeks a policy which will set criteria and a process for collecting and siting art work to enhance the district's identity and promote the district as a centre of artistic and cultural excellence.
The committee should make a judgement on the merits of art works and where they should be sited.
The existing committee is heavily composed of arts people.
The policy should avoid "bad public outdoor art", detracting from the distinctive Victorian-heritage brand of Oamaru.
