There are calls for the state government to intervene, after allegations of bullying at a council in Melbourne's outer south-west, the ABC can reveal.
Two councillors at the City of Wyndham have written to Local Government Minister Melissa Horne, asking her to appoint an independent monitor to oversee the council.
In the letter, seen by the ABC, councillors Josh Gilligan and Mia Shaw said Wyndham's chief executive officer commissioned a report into claims of bullying involving a councillor towards council staff.
"This report, protected by privilege and deemed confidential, is alleged to contain damning findings of a councillor towards several council staff that is understood to be so serious that the councillor would face dismissal were an employee relationship present in the organisation," the councillors wrote.
But, they said the chief executive doesn't have the power to refer the report to the minister, the chief municipal inspector or a councillor conduct panel for investigation.
The councillors say the issue is one of serious workplace health and safety, and is causing paralysis at the council.
"Staff must have confidence that they will be protected from reprisal for bravely speaking out, and, most importantly, it must not be left to councillors to deliberate on the method or outcome in dealing with serious workplace health and safety matters that a colleague is responsible for creating."
In a statement, Wyndham's chief executive said the matters are confidential.
"Wyndham City does not tolerate bullying or harassment in any form," he said.
The Local Government Minister Melissa Horne is seeking advice on the issues.
"I've asked for urgent advice regarding the extent of the issues at Wyndham City Council," she said in a statement.
"Councils must maintain high standards, practice good governance for their communities and create an inclusive and safe culture."
Report finds issues with chief executive power
The developments at the City of Wyndham follow a review into culture in local government across Victoria which found "poor and unacceptable behaviour" is stopping councillors and staff from doing their jobs properly.
The report found there are issues with the relationships between councillors and chief executives, because councillors are responsible for appointing CEOs, and have the authority to end their contract.
Wyndham is not the only Victorian council facing issues around culture.
Last week, the state government appointed a monitor at Horsham Rural City Council, after a series of allegations of misconduct and toxic workplace culture.
The government-appointed monitors at Darebin, Wodonga and Moira councils in April to address issues of governance and conduct.