Chairwoman Gretchen Robertson also declined yesterday to engage with criticism from Cr Michael Laws, who said the council had not been honest or transparent around the departure of Sarah Gardner.
Mrs Gardner left after giving the council only one week’s notice last May.
She told the Otago Daily Times her relationship with councillors had nothing to do with her departure and she was not asked to leave the organisation.
Then-chairman Andrew Noone lauded her contributions to the council and said she was well-respected and would be "sorely missed".
This week, the ODT was alerted to the money she received on her departure.
The council’s latest annual report said Mrs Gardner received her regular remuneration package and an extra $313,785 on her departure, which included "accrued annual leave of $73,978 and $25,000 as severance".
While the annual report listed the payments as "termination payments", the council said Ms Gardner was not terminated and instead resigned.
Mrs Gardner, who has moved to Wellington, could not be reached for comment.
Cr Noone did not respond to a request for comment.
Despite the complimentary nature of the statement issued by the council, at the time of Mrs Gardner’s departure, tensions between staff and councillors had disrupted normal operations, and councillors had ordered an investigation by retired High Court judge Sir Graham Panckhurst into council affairs.
Cr Laws, who at times clashed with Mrs Gardner in public meetings - and who initiated the Panckhurst investigation - said this week the atmosphere at the council had changed for the better since her departure.
Around the time of the Panckhurst investigation, he said he could not trust any of the advice he was provided, was wilfully blocked from getting "straight answers to straight questions" and it was revealed there had been a major investigation of the council itself by the Environmental Protection Authority, without any of the councillors being made aware.
"I had long reached the conclusion personally that this state of affairs could not continue and I believed that, and uttered at the time, and said to my colleagues that this person [Mrs Gardner] had to go ... as soon as possible.
"I also warned my council colleagues that you can conduct these affairs and negotiations in private but the ratepayer is entitled to the information and it has now been published as to what that cost the council.
"I think the ... lesson here is no matter what the legal niceties, honesty and transparency, which is supposed to be a byword of the Otago Regional Council — and one of its primary values — was not observed in this matter.
"And that’s just the honest truth."
Cr Robertson said the council declined to provide a breakdown of the termination payments "as this would amount to a breach of confidentiality".
"This is distinct from the lawful obligation to include this information in the annual report.
"ORC’s response to Cr Michael Laws’ comments is that the views he has expressed are his personal views and not representative of council’s views.
"In relation to the other questions asked about Mrs Gardner, the council is unable to comment as these matters are personal to the employment relationship.
"As a general rule, the council does not take lightly its responsibility to provide transparency and accountability to ratepayers and the public.
"We do this through numerous plans, annual reports, council meetings and by providing regular and timely responses to numerous information requests."
The council is led by interim chief executive Pim Borren at present.
His replacement, regulatory and communications general manager Richard Saunders, would take over on June 1 after Mr Saunders "returns from a time of prearranged leave", Cr Robertson said.
