She argued animal control had acknowledged the dogs were not a threat.
"I think it must be pointed out that neither of the dogs is accused of attacking animals or humans." Miss McArthur said the dogs had been locked in but had broken the latch on a gate.
Steps had been taken to prevent the dogs chasing stock again, including nailing the gate closed and installing a kiddy gate inside the house to prevent the dogs' access to the front and back doors. A menacing classification would impact on her reputation and future breeding programme.
But animal control argued the dogs' owners were aware of the behaviour in March and let it happen again. In a report, senior animal control officer Matt Blythe said there was uncertainty the owners could remedy the dogs' behaviour, and they would continue to pose a threat to sheep.
A menacing classification places several requirements on dogs, including that they be muzzled in public.
The decision of the panel, which included Mayor Andy Watson and Councillors Tim Harris, Ruth Rainey, Rebecca McNeil and Nigel Belsham, should be released later this week.