The NSW Government has extended the suspension of Armidale Regional Council for an additional three-months.
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On Friday, the Minister for Local Government Shelley Hancock announced the extension after consultation with the interim administrator, Viv May.
Mr May has been leading the council since early-June when the council was suspended.
Mrs Hancock said the extension followed a recommendation from Mr May for more time so "he can continue to restore the proper and effective functioning of the council".
"I am satisfied that this extension is necessary to allow Viv May to continue his efforts to restore stability, address reputational, financial and organisational issues as well as appoint a new general manager and boost morale for council staff and the community," Mrs Hancock said.
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"Mr May has done an outstanding job to date and I thank him for his efforts in very challenging circumstances.
"The NSW Government is committed to ensuring the Armidale community has a council that is serving its best interests."
Under the Local Government Act, the minister can extend the suspension period for up to three months if she believes it is necessary to restore the proper or effective functioning of the council.
The current three-month suspension period expires on September 12.
Mrs Hancock said, as required by law, notice has been served on the council and suspended councillors will be advised of the intention to extend the period of suspension.
A council spokesperson said the additional time under administration "will allow further review of processes in the day-to-day management and governance of council".
Acting General Manager John Rayner said it was essential that the team spends the next three months "restoring effective management of council".
"My role as Acting General Manager is to guide the organisation through this period and provide some stability to ensure a solid platform is in place for the new general manager," he said.
Northern Tablelands MP Adam Marshall - who called for the council to be suspended because of ongoing infighting between councillors and the then general manager Susan Law - backed the suspension extension.
"I fully support this decision and note it was made following a request from councils interim administrator Viv May PSM," he said on Friday.
"This three month extension will come as no surprise to anyone in the community."
An announcement on the future of the council will be made later this year, before the suspension expires.
"As evidenced by reports and public statements by Mr May, there are some significant issues plaguing council that require considerable time to work through and resolve," Mr Marshall said.
"I look forward to continuing to work with Mr May and new acting General Manager John Rayner to help in any way I can and ultimately restore the community's confidence in its local council."
