Clarence Valley Council has sacked its general manager with a $272,000 payout, just a week after a bungled mayoral election left the council without a permanent mayor.

Councillors voted at an extraordinary meeting today to terminate general manager Laura Black’s contract, with Ms Black to receive 38 weeks’ pay, worth about $272,000, plus entitlements.

The extraordinary meeting was called by Acting Mayor Cristie Yager after she received a request from two councillors to deal with what was initially described only as a confidential senior staff matter.

According to confidential council papers accidentally published online, councillors said the relationship between Ms Black and a majority of elected councillors had broken down and become “dysfunctional”.

The motion sought Ms Black’s immediate resignation, failing which her contract would be terminated.

The upheaval follows an extraordinary mayoral election mix-up last week.

Incumbent Mayor Ray Smith and Cr Peter Johnstone were tied 4-4 in the final ballot, forcing their names to be drawn from a hat.

Mr Smith’s name was drawn, but Ms Black, acting as returning officer, incorrectly ruled that meant he had been eliminated and declared Cr Johnstone mayor.

Under NSW local government rules, the name drawn should instead have been the person elected, meaning Cr Smith should have been declared mayor.

Cr Johnstone subsequently resigned as mayor after the error was discovered, leaving Deputy Mayor Cristie Yager acting in the role.

The council’s motion said the reason for seeking Ms Black’s resignation or termination was a “loss of trust” between the general manager and the majority of councillors, which it said had resulted in a dysfunctional council.

Ms Black (pictured) had been general manager since October 2022 and had about a year remaining on her five-year contract.

Council has appointed Environment and Planning director Adam Cameron as acting general manager for four weeks.

Councillors are expected to meet again next week to resolve the mayoral position.