Councillor Kylie Gaston has rejected calls for her immediate resignation by the Warrnambool Ratepayers Association who claim a leaked email about a council spending review breached legislation and the code of conduct.
Association president Brian Kelson said he would make an official complaint to the local government inspectorate and the Independent Independent Broad-based Anti-corruption Commission.
He said he would also write to Local Government Minister Adem Somyurek about Cr Gaston's email that referred to Cr Peter Hulin's September 2 motion calling for a full review by the minister into council spending for the past seven years.
The motion, with an amendment that the review would not cost council any money, passed despite Crs Gaston, David Owen and Mike Neoh voting against it.
Cr Gaston said she did not believe she had breached the code or the act by sending the email and that it was perfectly normal for councillors to caucus prior to debate.
"It was not necessary to go to the minister as it is proper process that he would leave the investigation to the appropriate body. This has proven to be exactly what has happened," she said.
The minister has said he would not intervene until the internal and external audits and reviews by the ombudsman and inspectorate were complete.
"It was purely a political stunt and this was the point I was making to the other councillors. I didn't want to make it personal with Cr Hulin and was just trying to point out common sense," she said.
"Unfortunately there was probably no point saying that to Cr Hulin as he was going to put it up regardless.
"I was blunt. I'm not interested in political stunts for their own sake."
In the email, which was sent by Cr Gaston to the five other councillors, before the vote she said she had not included Cr Hulin because he was putting the motion forward.
"I will be blunt. This is a political notice of motion," she wrote. "Who is going to second it? Why second it when it is only going to add to the political fire - no matter what the outcome?
"Let the motion lapse. Let the gallery yell at us. And let's get on with what we are elected to do without unnecessary cost to our ratepayers.
"This is a blip. It will pass. We need to focus on our values and keep moving our city forward."
Mr Kelson said Cr Gaston's email encouraged councillors to let the motion lapse and appeared to be trying to influence the outcome of the motion.
However, he said the place for debate was in the open council meeting.
Mr Kelson said he didn't believe the councillor who leaked the email breached the code of conduct because, it was not confidential.
He said it was clear that the councillors were divided. "It's imploding inside and I think it's getting very close to blowing up totally," he said.
"Councillors working against fellow councillors does not allow a democratic process to occur to the detriment of our city.
He said Cr Gaston's comments showed no respect to the gallery and he called for her to immediately resign.
Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.