Barry Williams apologised for his actions and Dunedin Mayor Jules Radich said that was the least he could do.
"Council is appalled by your behaviour, which is a clear breach of the code of conduct and a serious failure to uphold the standard of behaviour expected of an elected community representative," Mr Radich said in a letter of censure.
The letter to Mr Williams, on behalf of the Dunedin City Council, said: "We invite you to consider resigning as chair of the Strath Taieri Community Board".
This followed an independent investigation into his "behaviour involving a racist slur towards a member of the public".
The council yesterday considered investigator Steph Dyhrberg’s report, after she had concluded there was a material breach of the code of conduct.
The council upheld this finding.
It was considered in the non-public part of the council meeting to protect the identity of the victim.
The investigator’s report and further details will not be made public.
In partial unconfirmed draft minutes released yesterday, it was shown the council agreed unanimously, 11-0, there had been a material breach of the code and that the mayor should send a letter of censure to Mr Williams.
Mr Williams declined to speak at the meeting.
The content of the letter of censure was approved by the council in a 10-1 vote.
Cr Lee Vandervis voted against.
