Cr Houlihan was suspended for two months on December 20 after Local Government Victoria's Councillor Code of Conduct Panel ruled he had committed one count of serious misconduct and another of misconduct.

He resumed his duties on Thursday, having maintained he had done nothing wrong when his suspension became public knowledge.

At its meeting on Wednesday, councillors saw a report detailing the costs of convening the panel, accommodation for panel members and its own earlier failed mediation process.

Read the council agenda and the ruling on Cr Houlihan here

Director Corporate and Community Services Ashley Roberts told councillors the municipality would wear these costs. "We will be looking at budget revisions and savings in other areas so we can cover that," he said.

The motion was carried unanimously.

During the meeting, mayor Bruce Meyer said: "I have no intention of public statements making if anyone wishes to do they can read the report on the website and make their own judgments".

Mr Roberts told the Mail-Times Cr Houlihan's allowance was suspended during his suspension, and this would help cover the cost. Across two months, based on allowance information in the council's most recent annual report, this could amount to a $3507 saving for the council.

Mr Roberts said: "There are other other areas where we will look at making smaller savings. We might buy a bit less stationery for the rest of the year, there might be some lower phone costs we might be able to absorb. I'm quite comfortable we will be able to absorb that $30,000 in terms of other savings."

He said the failed mediation process cost $9,900 partly because the council obtained the services of a Melbourne barrister.

"They are a specialist in government law and registered mediator," he said. "We went out to market and got a few quotes, he was the best value quote we were able to find.

"It's a shame that process didn't come with a final resolution, but it is one of the steps we need to take as part of the Councillor Code of Conduct.