Councillor Jess Jennings attempted to get the funds redirected to other projects last week, however only one other councillor, Kirralee Burke, was prepared to support his motion.

The $2.25 million loan sparked outrage when it was approved in late 2020.

Councillors walked into the October 21 ordinary meeting unaware that a mayoral minute would be placed in front of them recommending council source the loan for the go-kart track.

They had just a couple of minutes to read the document before the floor was opened for discussion, which lasted more than an hour.

Several councillors objected to the short notice of the proposal, but it still passed with a narrow five-four vote.

Cr Burke, who was not on council at that time, said the way the loan was approved in 2020 "doesn't sit okay with me".

She was open to giving the money to other projects.

"I do think that we can get better bang for our buck with better governance for that kind of money," she said.

Cr Jennings felt there were too many question marks over the go-kart track project to leave the $2.25 million loan attached to it, when there were other worthy projects in need of funding.

"There are just too many loose strings on this and it's just not holding together," he said.

But the question of timing was raised again and was what saw his motion fail.

With a section 10 application for land on and surrounding Mount Panorama yet to be determined, and council still awaiting the results of acoustic tests for a new go-kart track site, councillors felt decisions about the money should wait.

The same argument was made about Cr Jennings' failed notice of motion to put the go-kart track into the second circuit precinct.

"The reason that I'm hesitating is that we're spending to date I believe about $50,000 on these acoustic tests and other things to scope out the Rayner's Orchard site," Cr Marg Hogan said.

"... I just want to wait these next few weeks until we have that report in front of us and then I'll feel comfortable to revisit this."

Cr Ian North said Cr Hogan had hit the nail on the head, while Cr Warren Aubin also wanted to wait to see the results of the acoustic tests.

In addition to that, Cr Aubin said he thought the motion to transfer the loan to other projects was "hypocritical", as Cr Jennings was initially against getting a loan.

He was one of three councillors to lodge a rescission motion in 2020 to reverse the decision, which failed, and has previously referred to the decision to take out a loan as "absolutely dysfunctional, backward economic management".

In response to Cr Aubin's comments, Cr Jennings said he agreed that he did try to stop council taking out the loan, but now he thinks it could be a post-COVID economic stimulus measure if split between other projects.

"And if it was now to be decided, if we went down this path, how to use it and the decision was not use it and give it back and save the interest, I'd be totally comfortable with that, totally fine," he said.

"But, the reality is the loan's been taken out, interest rates are heading up, there's an opportunity now that all the costs have been occurred in setting up a loan - so do we really want to waste that?"