Mr Funnell, 58, stepped down yesterday from his position as one of the Wagga City Council's nine councillors, effective immediately, because of serious concerns about his health.

He did not rule out running for council again but said his first priority would be his medical treatment and spending time with his family.

The colourful councillor was known for his conservative social views and his libertarian beliefs in the role of government, which manifested in passionate, sometimes controversial speeches in the council chamber.

Earlier this year he served a one month suspension following an incident at a council workshop in which he was found - by an Office of Local Government investigation - to have abused fellow councillors and staff.

Mr Funnell announced his resignation in an emotional speech to reporters yesterday morning.

Mayor Greg Conkey served for almost nine years with Mr Funnell, after both were elected for the first time in 2012.

Cr Conkey and Mr Funnell often disagreed on social issues such as the declaration of a climate emergency in 2019, which Mr Funnell played a key role in overturning.

Nevertheless, Cr Conkey said he appreciated his outgoing colleague's service to the community.

"It hasn't been an easy decision of his. I've been aware of his poor health for quite some time," he said.

"On behalf of the council and also the City of Wagga, I thank him for his service over that period of time and I wish him well as far as his health situation is concerned."

Councillor Tim Koschel said he became aware of Mr Funnell's resignation yesterday when he read about it in The Daily Advertiser.

"It did come as a shock to me. Because Paul and I do get on well and we do work well together. But obviously family and health come first. I wish him well with his health," Cr Koschel said.

"He was a great advocate for Wagga. He always puts the people first which I think is one of his best assets. We didn't agree on everything but we did agree on the majority of things."

Councillor Kerry Pascoe said Mr Funnell was a "conscientious councillor" who had been committed to the people of Wagga.

"Right across the broad community, from our citizens in the city to the farming sector and the villages there and beyond, he always took on the issues that individual people required of him and made sure that they got an answer whether it be favourable or not," he said.

"I think the community's going to miss Paul."

Councillor Rod Kendall said: "I wish Paul all the best and hope his health issues can soon be overcome."

Councillor Dan Hayes also wished Mr Funnell well in looking after his health.

Cr Hayes, one of Wagga's two Labor councillors, said he didn't mind that he and Mr Funnell had disagreed in the past but that he didn't "like when it becomes personal".

"But when we were able to focus on the issue and debate that I thought that was always worthwhile," he said.

Mr Funnell, who served on council as an independent, has been staunchly against political parties running candidates in local government elections.

However, he is a former president of the anti-communist, pro-Catholic Democratic Labour Party, which he ran for at both a state and federal level.