In an appeal of a Planning Commission decision, Dorene Coles of Chuck Coles Auto Sales asked the council to allow the lot to continue displaying colored pennants.
According to City Administrator Walker Ritter, pennants are considered to be "banners" under city rules, and banners may be displayed only two months a year.
Without the pennants, Coles said, "the place looks like a parking lot."
Councilman Charles Belba said the pennants should not be considered banners, but he also advised Coles to put up a sign in front of the business.
The council voted to allow the pennants to remain, with only Councilman Robert Hargrave dissenting.