A public inquiry into Armidale Regional Council has been recommended by the administrator.
Interim Administrator Viv May announced his recommendations at Wednesday's council meeting in Guyra delivering an Interim Administrator Minute outlining his observations as to what led to his appointment.
"I advised the minister that in my view the community has lost trust in their elected representatives and staff are confused and demoralised by a lack of leadership and direction and political infighting," Mr May said.
"I have had the opportunity of hearing wide ranging and varied opinions of what led to the suspension of ARC. There was a consistent theme that deep divisions existed and that council was not providing a proper and safe place of work for its staff.
"ARC in my view has failed its community and needs a fresh start that focuses on the fundamentals of sound local government. This will ensure that ARC will be an effective and well respected council into the future and take its rightful place as the lead Council in the New England region."
The council was suspended by Local Government Minister Shelley Hancock in June after a breakdown of the relationship between councillors.
In early September, Mr May was given a second three-month appointment to administrate the council.
Four of Armidale's 11 elected councillors have resigned since the council was suspended, including former mayor Simon Murray.
Mr May submitted his report to the Minister for Local Government Shelley Hancock recommending a Public Inquiry under s438U of the Act into the council be held as well as a review of the councillor structure following community consultation.
In accordance with his statutory obligations the Interim Administrator was required to submit a report to the Minister for Local Government no less than 14 days before the end of the initial period of suspension of councillors.
The act requires the interim administrator include in his report any recommendations in relation to improving or restoring the proper and effective functioning of council.