Wyndham Mayor Cr Shane Bourke yesterday cited an ­unworkable relationship between the council and Mr Marshall as the basis for the decision to terminate his tenure from the helm of the council, on the western outskirts of Melbourne.

“This decision has been a very difficult one for councillors, however we no longer feel that a productive relationship exists between the council and the CEO,” Cr Bourke said.

“A strong partnership between councillors and the council organisation is vital and we are confident we will now be able to move forward in achieving the best outcomes for the city.”

The Border Mail believes Wyndham Council chose to terminate Mr Marshall’s ­employment during a confidential session at a council meeting on Monday night after he refused an earlier request by councillors for his resignation.

Mr Marshall last night issued a statement, saying said his former role at Wyndham — on the western outskirts of Melbourne — had been “challenging, stimulating and rewarding” during the past year.

Mr Marshall’s sacking comes at the end of a ­tumultuous few months for the council, with ratepayers baulking at increases in rates, fees and charges proposed in the 2009-10 budget, including a 21.54?per cent rise in the industrial rate and a 6.34?per cent residential rate rise.

The objections culminated in a June council meeting where Cr Bourke, his deputy, Cr Heather Marcus, and a third councillor, Cynthia Manson, voted against the draft budget, arguing that ­individuals, families and businesses would not cope with the additional ­expenses during the financial crisis.

Mr Marshall told that meeting the proposed rate increases would be the first of many required to raise $2.8?billion over the next 10 years.

He said that money would be required to pay for infrastructure and provide services for the city’s population boom, tipped to reach 277,000 by 2026.

Last night, Mr Marshall said the range of strategies he had advised and was helping to implement were necessary for the council to meet the challenge of growth, remain financially viable and deliver necessary community infrastructure and services.

Last month, Wyndham Council adopted its 2009-10 budget, reducing its residential rate increase to 5.25?per cent and its industrial rate to 12.78?per cent.

It proposed the city spend $66.6?million on major projects and $93.2?million on service delivery.

But Laverton North company chief and chairman of the Wyndham Industrial Liaison and Development Committee, Barry Harvey, said yesterday he believed the 12.5?per cent increase in industrial rates was still too high.

Mr Harvey said last week he and his colleagues met with Mr Marshall, three councillors and other staff to discuss a wish-list for infrastructure in the industrial precinct, given their annual contribution of $11?million in rates would rise to $26?million within 10 years under the increases proposed.

He said he was unaware of Mr Marshall’s sacking and was surprised by the news.

Mr Harvey said he didn’t believe the business community held any animosity towards Mr Marshall.

“We saw our dispute as an overall situation; there are the councillors and there is Peter as CEO.

“We never targeted Peter at all. In fact I had a couple of meetings with him and found he was pretty up front with us.

“He called a spade a shovel and I call a spade a shovel also.”

Mr Marshall resigned from Wodonga Council in April last year after 13 years at the city’s helm.

He took up his new position at Wyndham on June 10 last year.