Armidale Regional Council is set to be suspended for three months after it voted today not to fight the appointment of an administrator.
But it stopped short of acknowledging the "unacceptable" behaviour of councillors or that it had lost the respect of the community.
Local Government Minister Shelley Hancock issued a notice of intention to suspend the council two weeks ago.
She said it followed "serious concerns about the council's ability to function properly and effectively, following a breakdown of relationships between councillors and key council officers, and significant reputational, legal, and work, health and safety risks".
Today's extraordinary meeting of the council endorsed a motion welcoming the appointment of an administrator for three months.
The council said in the motion it was "committed to working with the administrator and any other available support ... to address the issues raised by the Minister in her notice."
Response to Minister amended
The first draft of the motion included clauses that described the behaviour of councillors as "unacceptable", and acknowledged the community had "lost respect for their elected representatives".
However, those clauses were removed in an amendment that narrowly carried six votes to five.
Cr Dorothy Robinson moved the amendment and said it was up to the administrator to assess the councillors' conduct.
"This amended motion clearly demonstrates our willingness to accept the administrator's findings, to resolve the issues and work together in harmony," she said.
But the Deputy Mayor, Libby Martin, said the amended motion did not address the substance of the Minister's concerns.
"We need to humbly acknowledge that there are a number of problems within the governing body," she said.
"We're not doing that by hiding some of them under the carpet."
The Minister is yet to formally suspend the council.
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