Labor's Leah Anderson has conceded defeat to incumbent Ryan Palmer in the neck-and-neck race to become Port Stephens mayor.
Cr Palmer, one of five independents on the new council, said on Monday that he was "extremely honoured and truly grateful" that voters had re-elected him.
"With over a 15 per cent increase in first preference votes from last election, the people of Port Stephens have shown they support a progressive and positive council," he said on social media.
Ms Anderson, the only woman elected to the new 10-member council, had a different take on the mayoral result after coming within 0.6 per cent of a surprise win.
"For too long our council hasn't been putting the interests of our community first," she said.
"Given the tight race for mayor, it's clear that locals are fed up.
"When almost half of the people of Port Stephens did not vote for Ryan Palmer, it should send him a strong message.
"Status quo isn't good enough. Our community wants leaders who will listen, care and act."
Labor grew its ward representation from one to four. The Liberals will have one councillor.
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