Central Coast councillors will fight a move to suspend the council over an $89 million financial blowout.
The state government was forced to step in on Wednesday and advance the council $6.2 million after it was revealed more than 2000 staff would not be paid this week.
Local government minister Shelley Hancock also moved to suspend the mayor, Lisa Matthews, and the 14 councillors as a result of the blowout.
"There is no question that council needs to be held responsible for these failures," Ms Hancock said.
The minister must wait seven days to consider any submissions against the suspension before taking further action.
At an extraordinary general meeting following the dramatic events of Wednesday councillors voted to show cause as to why the council should not go into administration.
Councillors said they only discovered the full extent of the problem earlier this week.
In addition to costs associated with 12 months of natural disasters and COVID-19, several councillors said the government's forced amalgamation of Gosford and Wyong councils had contributed to their predicament.
"I feel very disgusted," former Wyong Shire Council Bob Graham told ABC radio.
"The state government got us into this mess and now it's up to the state government to bail us out."
He said the only way forward was to separate the two councils again after an administrator was appointed.
The council has committed to a 100 Day financial recovery plan.
"Our Central Coast community expect us to address these financial issues as urgently as we can and we intend to do that," Ms Matthews said.
"All decisions taken during this period of rapid change will ensure essential services are maintained and the impact on our community is minimised."
"Long term, this is about the financial stability of council operations to deliver effective and efficient services to meet community needs and aspirations."
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