He has held the top job since 2014, which he said had been a career highlight, but will move into a Melbourne-based position with Local Government Victoria to look into reforms and innovation within the sector.

“That was too good an opportunity to pass up,” Mr Smith said.

“I really am privileged to have been appointed in this role, but I have been separated from my family for this year and I actually found that much more difficult than I anticipated.”

He said the main highlights of his time in the job were attracting government funding for big projects such as rail trails, the Chiltern placemaking project and Rutherglen revitalisation project.

Mayor Jenny O’Connor said she was still “shell-shocked” after finding out about the resignation on Monday.

“Gerry embraced the opportunity to work in a rural setting and worked tirelessly with enormous commitment across all areas of council,” she said.

“I have really enjoyed my time working with Gerry and found him to be both supportive and highly professional in his approach to the role.

“Council and staff wish him every success in his new role and thank him for his leadership and service to Indigo Shire.”

Mr Smith will finish in his role on September 22.

The council’s corporate services director Greg Pinkerton has been appointed interim CEO for up to 12 months until a permanent replacement is found.

Councillors at Tuesday’s meeting also signed off on a revised plan to develop a family beach area at Lake Sambell, despite concerns the 45-centimetre retaining wall and a bike path near the playground were hazards for children.

Only Cr Bernard Gaffney voted against the plan.

Cr Larry Goldsworthy said he did “not think we’ll see any added injuries occur as a result of where it is”.