A town outside of Lincoln is reconsidering its ban on horses within city limits. The controversy surrounds a 32-year-old horse named Peter Rabbit who currently lives within Hickman's city limits.

City officials say they have received thousands of letters, e-mails and phone calls in favor of keeping the horse at his current home. They say roughly 98 percent of the calls and letters they received came from people who live outside the state, or even as far away as Australia.

On Tuesday, the Hickman City Council voted two to four against passing a city ordinance which would have allowed horses within city limits.

If you drive down south 68th Street in Hickman, you will notice a peculiar sign which sums up one side of the issue in three simple words. "Save the Horse."

Kari Jones lives across the street from Peter Rabbit, the horse. His owner gave him the name because of his ability to hop around during his younger years.

"It's kinda nice. I grew up on a farm, so it's nice to have him around," Jones said. "I understand in a city you don't want animals or people to have chickens. I think they should make an exception."

But regardless of how residents like Jones may feel, the City said his owner is breaking a city municipal code.

The code bans all livestock within city limits.

According to Council President Doug Hanson, the process has been difficult.

"It's been really frustrating, because how do you weigh the benefits of serving one person and meeting the needs of a larger number? How do we do a special interest exception. Do we look at other ordinances and say I guess those aren't important either," said Hickman.

Hanson said Peter Rabbits fate may simply be a cost of growth in Hickman.

"We're trying to recruit and attract businessses and retail services. Does a pasture ground in the middle of town promote that. I'm not so sure," Hanson said.

But for Peter Rabbit's owners, it's a price they're not willing to pay.

We spoke to the landowner, Jack Scott whose father owns Peter Rabbit.

He feels the horse should be grandfathered in because its been there so long.

Now that the ordinance has failed, the Scotts have until Sept. 15 to comply with the City's Municipal Code.

But the Scotts say they're going to keep on fighting.