Deputy mayor Amanda Cohn had a motion altered on Monday night to include funding in next year's council budget to erect two extra flag poles at the site for Indigenous flags.

The original motion had only proposed funding two fresh masts outside the council's offices to bear the Aboriginal and Torres Strait Islander colours.

"We have a number of official flags in Australia and I think people expect those to be flown at significant civic sites in the city, that includes Monument Hill," Cr Cohn said.

Past mayor Alice Glachan objected to the step, which was raised in the context of the council's draft flag protocol which will now be subject to community feedback.

Her opposition was tied to the Aboriginal and Torres Strait Islander flags coming into existence decades after the Great War and construction of the monument.

IN OTHER NEWS:

"I am simply speaking against, to flag my concerns that we would be trying to impose something retrospectively that is not consistent with that period of World War I or indeed the creation of our war memorial," Cr Glachan said.

The motion passed on Monday night states that any changes to flags at the memorial will be done in consultation with the Albury RSL sub-branch.

Also on Monday night, councillors refused to support a plan to alter two existing units and to demolish and build a new third unit at 656 Jones Street in the Bonegilla heritage precinct.

The move followed strong opposition from neighbours irked by the development's look and impact.

The proposal had previously been brought to a council meeting in November and snubbed with the developer urged to consult with nearby residents.

Cr Glachan, who moved the proposal be rejected, said the applicant had "not seriously addressed aesthetics" and changes had worsened the impact on neighbours.

Councillors were upset the proponent had not spoken to objectors recently.