Mr Zaknich originally joined the council in 2013 on an initial four-year deal as the permanent replacement for Les Tomich, who retired for health reasons.

His contract was extended for three years in 2015 at a time when council mergers were taking place across NSW.

But the reduced length of tenure was decided in a closed session of council on Monday night when Mr Zaknich;s annual performance review was also tabled for councillors' consideration.

The motion that council offer Mr Zaknich a contract extension of only 18 months on the same terms as his present contract was moved by Cr Darren Cameron and seconded by Cr John Stuchbery.

IN OTHER NEWS

Also voting for the reduced length of tenure were mayor Kevin Mack, deputy mayor Amanda Cohn and Cr Murray King.

Councillors who voted against the motion and wanted their vote made public were Cr Henk van de Ven, Cr David Thurley, Cr Alice Glachan and Cr Graham Docksey.

The tight vote highlights a clear division within council ranks on its most senior employee.

Cr Mack was approached for comment by The Border Mail last night.

The council's highest paid officer's fate has to be determined within six months of their existing contract expiring.

His latest contract, if accepted, will expire early in the term of the next council with local government elections due to be held in September next year.

It also coincides with a recently completed senior management review which included Mr Zaknich's title changing from general manager to chief executive and the appointment of two deputy chief executives to replace the former four-member director model.

Meanwhile, the council voted down a notice of motion from Cr Murray King calling for a further layer of reporting on major projects to the value of $250,000 or more be undertaken by council at both their commencement and completion.

"The purpose of this motion is to get a bit more of a clearer understanding of where the residents and ratepayers money is being spent in the works department," Cr King said.

Cr Thurley said he wasn't opposed to the "principle of the motion", but the information sought by Cr King was readily available and wasn't a great use of council staff time.

"When we asked council staff to write more and more reports, and we did this once with delegations of (development applications), we shot ourselves in the foot," he said.

"Asking for this report on all of these projects will simply add another burden to council staff and not do one thing for productivity and more efficiency."

Deputy chief executive Brad Ferris said project costs and timeframes, as requested by Cr King, were already based on industry standards.

Councillors will be receiving council more detailed information in quarterly reviews and the imminent creation of a project management office will also provide them with increased oversight on projects.