Every councillor at the NSW Central Coast Council has been sacked after a damning report into its financial mismanagement.
Local Government Minister Wendy Tuckerman on Thursday tabled a report on the public inquiry into the council and terminated all the councillors effective immediately.
The council was suspended in October and an interim administrator appointed after the council reported its deficit had blown out from $41 million to $89 million over a seven month period.
The NSW government was subsequently forced to cough up $6.2 million in emergency funding to ensure thousands of council workers and suppliers were paid.
The report by Commissioner Roslyn McCulloch raised concerns about the financial management of council and made eight recommendations to improve accountability.
She recommended an administrator be appointed to serve until an election is held, at a date to be determined in consultation with the NSW Electoral Commission.
The government accepted the commissioner's recommendations in principle.
"The community rightly expects that its elected council officials adhere to the highest standards, and this report makes strong recommendations to help improve the council's performance moving forward," Ms Tuckerman said.
"Central Coast ratepayers deserve a council operating in the best interests of its community and this report puts in place recommendations to continue the road to recovery," Ms Tuckerman said.
Interim administrators, Dick Persson and Rik Hart, were helping oversee the council's recovery, and Mr Hart had been asked to continue in the role to ensure continuity in the recovery.