Voting against the proposal were councillors Charles Sturt, Glenys Searancke, Rob Kent, Peter Bentley and Mark Gould.
Councillor Karen Hunt abstained from voting saying she could see the merits of both sides.
However, the referendum decision will very likely be re-debated at the next council meeting on July 31.
Debate at this morning's committee meeting was robust with most councillors taking the opportunity to speak on the referendum proposal.
Mrs Raukawa-Tait, who supported the referendum proposal, said it was the "voice of the community" that councillors wanted to hear on the issue.
"They shouldn't be denied that," she said.
Opposing the proposal Mr Sturt said going to a referendum was "the soft way out."
"We can make the decision as we have done many times in the past," he said.
Council officers will now work on preparing a report to be presented to the next Strategy, Policy & Finance Committee meeting on August 13.
The report will provide information on timing options for holding the referendum, voting procedures and a range of other process details and information.
See tomorrow's Rotorua Daily Post for a full report on the meeting.