Dubbo councillor Kevin Parker has been formally censured after an investigation into multiple Code of Conduct complaints.
An extraordinary meeting of Dubbo Regional Council was held on Monday night to deal with the Code of Conduct concerns.
The matter was held in closed council, preventing the community from witnessing the discussion but the resolution was made public.
It stated multiple Code of Conduct complaints were made by members of the public from February 27 in relation to a racist email sent from Cr Parker's Bank of Queensland email account.
Cr Parker told the ABC there was "no malice meant" when the email was made public in February. He said he was not racist.
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On Monday night, council sought to impose what was stated as the "maximum penalty" possible, censure.
It is an official statement of condemnation.
Cr Parker was found to have breached the Code of Conduct because his behaviour brought the council into disrepute and was "improper or unethical".
Council also determined to refer the matter to the Office of Local Government "for further disciplinary action" because it did not "have the power to remove a councillor from office".
The meeting, which was attended by all councillors bar Cr Parker himself and Dayne Gumley lasted just over 15 minutes
Councillor Anne Jones joined the meeting via the phone.
The councillors were not unanimous in their recommendations.
Cr Anne Jones opposed the decision to censure Cr Parker.
Dubbo Regional Council's Code of Conduct procedure was set under the Local Government Act.
The Code of Conduct says "councillors and staff must meet high standards of integrity and accountability when doing business with and delivering services to the community".
For someone to made a Code of Conduct complaint, it must show "conduct on the part of a council official in connection with their role as a council official or the exercise of their functions as a council official that would constitute a breach of the standards".
Council also determined that the documents and consideration in regards to the complaint will remain confidential.