Financial mismanagement has seen cash reserves decimated by 70 per cent in the time between the merger with Guyra Shire Council to June, 2018.

A report on the tenuous situation that warranted "urgent attention" wasn't actioned in December 2019 and since his appointment Mr May said he has been told "very disturbing" reports about councillors and staff.

Mr May detailed numerous issues that would need to be dealt with to get staff morale and the general functions of the council back on track in a lengthy mayoral minute.

"The appointment of a new general manager [chief executive officer] will be one of the most important tasks that I will have to undertake during my term of interim-administrator," he said.

"I would be less than honest if I did not inform the ARC community that this will be a difficult assignment as unfortunately the council does not have a good reputation for general manager longevity."

There's a hefty to-do list on Mr May's desk, he will need to find a new general manager and someone to sit at the helm until acting general manager John Rayner starts in mid-August.

A new director will also need to be appointed after second-in-charge Kim Bryan joined the list of five others who have handed in their resignations.

The council will use Local Government Management Solutions to find appropriate replacements for the general manager and director roles.

Any potential restructures of the council's management process have been put on hold and Mr May has asked for details and reports on all restructures that have taken place since May 2016.

Mr May said that he did not endorse a wholesale restructure of the council but that he was concerned with the complexities of what had taken place since amalgamation.

That includes the deterioration of the council's reserves and unrestricted cash, he said.

"A high level report was made to council in December 2019 in relation to the matter that was simply received, when in my view it warranted the urgent attention of the elected body," he said.

"The newly formed council was obviously living beyond its means and unsustainable financial decisions were made that have now dramatically effected the council's cash position."

Available cash has been cut by 70 per cent since the merger to June 2018, which means some works that are underway and in the strategic plan can't be completed.

A legal battle between former chief executive Susan Law, ARC and five councillors in the NSW Land and Environment Court has left the council with direct costs in excess of $155,000.

The council and Ms Law were ordered to pay the legal fees of the five councillors when the case was dismissed, and Mr May said the council agreed on legal advice to compensate Ms Law in the matter.

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Mr May said he has spoken to many people in the community to try to understand how the council came to its current situation.

"I would never breach the trust of confidentiality that has led so many residents to make contact with me and what I have been told about suspended councillors and staff both past and present," he said.

"Some of what has been told to me is very disturbing but is the basis of me forming a preliminary view."

Mr May is required to submit a report to Minister for Local Government Shelley Hancock with his recommendations to restore the council.

He said the community deserves nothing short of a fresh start.