Goulburn Mulwaree Mayor Bob Kirk says the council isn't taking sides, despite Liberal MP Angus Taylor using praise from a council executive in his election material.
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The energy minister used the comments to promote his local connections, drawing criticism from Mr Taylor's Labor opponent for the seat.
The council's general manager, Warwick Bennett, who is not an elected official, is quoted on election material circulated in Mr Taylor's federal seat of Hume, saying it was "a real pleasure to work alongside Angus".
But Mr Bennett denies the comments are a political endorsement.
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"I did not provide these comments as a political endorsement, but as a statement of fact regarding the relationship the council has had with Mr Taylor, relating to his dealings with Council about past performance," he said.
"This includes a $10m grant for the Goulburn Wastewater Treatment Plant, funding of at least four bridges, funding of a number of community facilities and funding for the Goulburn Performing Arts Centre to quote just a few.
"As an experienced local government general manager I do not endorse any political candidates but make statements of fact."
His office did not return requests for comment on whether Mr Taylor's office requested the testimonial and if it was explained it would be used for election material.
Goulburn Mulwaree Mayor Bob Kirk sought to distance the council from the comments, and said he had "no idea" where the quote had come from. Cr Kirk said the council wasn't taking sides in the election.
"We don't want to be dragged into this," he said.
The Labor candidate for Hume, Aoife Champion, criticised Mr Bennett's endorsement on Twitter on Sunday.
"GM of Goulburn Mulwaree Council endorsing Angus? Yeh, who even cares about the appearance of impartiality any more," Ms Champion said.
