Warrnambool City Council will rule on whether to bring in an expert over its credit card issue at a special meeting.
A short time ago the council revealed mayor Tony Herbert made the decision to hold the meeting after discussions with the city council's chief executive officer Peter Schneider earlier on Tuesday.
"The mayor has called a special meeting this Thursday for council to consider the engagement of an independent expert to assess the policies and governance procedures around council's credit card processes," council spokesman Nick Higgins said.
The decision comes after Ratepayers Victoria president Dean Hurlston sent a letter to the city's councillors calling for a financial audit.
The letter, sent on Sunday, followed revelations about a staff member's use of a ratepayer-funded credit card where thousands of dollars of expenses had to be repaid. The officer has resigned.
"I note your comments in response to this and respectfully find them out of step and lacking in context of the wider community view," Mr Hurlston said.
"Your community is not happy."
Mr Hurlston said councils could only succeed if they had public confidence.
"We do not believe that the Warrnambool electors share your belief that there is 'no case to answer'. Indeed, it is rather the opposite," he said.
"It is clear from all commentary and public statements that council is at a crossroads.
"Once a council has lost the public confidence and cannot regain it, the only viable option is an administrator."
The special meeting will be held at 5.30pm on Thursday.
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