A proposal to set aside an initial $300,000 to be spent over the next three years as a "hook" to attract to new investment was included in the council's draft budget approved last week.

But an updated economic development policy, which included the incentives, was sent back to staff for further refinement.

Mayor Kevin Mack said he supported incentives in light of Albury missing out on the XLam timber laminate factory to Wodonga last year when the Victorian government came to the party with financial incentives and the NSW government didn't.

But Cr Mack wanted council to tick off the incentives rather than the general manager as proposed in the policy.

"I don't agree the delegation should be left to staff," he said.

"The carriage of that $100,000 as stated should be left to the councillors to decide.

"That process could easily be called with an extraordinary meeting."

As part of the policy a confidential report will be presented to councillors in March each year outlining the financial assistance offered.

Deputy mayor Amanda Cohn said council shouldn't be in the business of "picking winners", but Cr Henk van de Ven unsuccessfully urged council to adopt the policy.

"We've been arguing for sometime in this council that the NSW government is doing nothing for this border area," he said.

"It is being done all the time by state and federal governments and why should we be the exception?

"Here is an effort by council to put a policy in place to have some targeted incentives to bring businesses Albury to make sure our city continues to grow and prosper."

Cr David Thurley described as "pathetic" the reason given by the NSW government for not funding projects in Albury was the proximity to the Victorian border.

"They are worried a few bucks might flow into Victoria when we do a project in Albury," he said.

"The fact of the matter with a project in Wodonga the money flows back here as well.

"This policy will eventually get up and there will be a positive.

"The problem I have is we are in part filling in gaps left by the state government."