It comes as the council revealed the acting CEO could be in the top job for up to 12 months and the state government said it would not interfere with the dismissal.

"You get to a point there is mistrust, a lack of confidence within the organisation and it becomes paralysing," Cr Mike Neoh said.

On Monday night Warrnambool city councillors voted 4-3 at a behind-closed-doors meeting to terminate the CEO's contract after 18 months.

Cr Neoh said it was "a really, really difficult situation".

"Any major decision like this is not taken lightly," he said.

"It's a decision made close to an election but if we did not think it was in the best interest of the community we would not go there.

"A key theme that kept running through the organisation was referring to the past, but it's clear not all the issues relate to previous terms of council.

"If you do have issues it's how you handle them that is the key."

Cr Neoh said an ombudsman's investigation into credit card use at the council and policies protecting public money was ongoing.

That investigation started last year after a senior officer resigned after mis-using a council credit card.

There is no suggestion that Mr Schneider had misused his corporate credit card.

Victorian Ombudsman Deborah Glass is expected to release her findings in coming months.

Cr Neoh has welcomed the investigation.

"If there were errors in decisions in the current administration we need to be open and frank about them and not play the blame game," he said.

"There are issues that should have been handled better and more transparently."

Mayor Tony Herbert had said after Monday's meeting "the councillors who voted in support of the motion also included a gag on releasing the cost details".

But Cr Neoh, a former mayor, said Cr Herbert had misrepresented the "gag order".

"It's known when you are dealing with staffing contracts that there are confidential details. It's best practice and a legal requirement not to release those details," he said.

"There's a standard confidentiality clause to protect the right of individuals.

"It's not just best practice but HR law."

Cr Neoh said he always wanted to look forward.

"It's frustrating, looking back is not helpful," he said.

"Once a decision is made, everyone, including the mayor, should act on that decision.

"Council and the mayor have a responsibility to act in the best interest of the council, the organisation and not from an individual's position."

Cr Neoh said he had always been happy to work for the best interests of the council.

"I think people need to put their council hats on and move on pretty quickly," he said.

"There has been one split vote but over a four-year term councillors make thousands of decisions. Each decision must be based on merit.

"If you can't accept the democratic process you have to consider whether council is right for you."

It was also revealed on Tuesday the newly sworn in Minister for Local Government would not intervene with Warrnambool City Council in the wake of the chief executive officer's sacking.

A state government spokeswoman said CEO employment and management was a matter for councillors.

On Tuesday a Warrnambool City Council spokesman said the acting CEO, which Cr Herbert revealed would be director Vikki King, could be appointed to the position for up to 12 months.

"A process is under way to formalise the appointment of director of community development Vikki King to the acting CEO position for a period of up to 12 months," the city spokesman said.

Mayor Tony Herbert did not respond to The Standard's request for comment on Tuesday.

Shaun Leane was appointed as the state government's Minister for Local Government after the sacking of Adem Somyurek last month due to allegations of bullying and branch stacking.

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