The Tomaree Ratepayers and Residents Association (TRRA) first called for an independent inquiry after it was revealed Port Stephens Mayor Bruce MacKenzie contributed to the campaigns of several other candidates in the 2012 local government elections.

The group has since renewed the call for an ICAC investigation following Cr MacKenzie's public support for the former Newcastle mayor.

"Bruce MacKenzie has been suspended from public office twice, first in '95 and then in '96," TRRA's Dick Appleby said.

"The whole outfit should be investigated by ICAC, especially its ties to Buildev."

Cr MacKenzie was quick to shoot down the idea of an investigation, saying ICAC has "bigger fish to fry".

"ICAC have more to do than come to Port Stephens," he said. "The TRRA are only whingeing because the wrong people got elected. They have run candidates in the last three elections and haven't succeeded.

"But if ICAC want to they can investigate me any day of the week."

The call for an ICAC investigation was echoed by Port Stephens state Labor candidate Kate Washington, who said she could see parallels between the two council representatives.

"I agree with the TRRA," she said. "I welcome the findings of ICAC so far . . .

"If he thinks handing around $30,000 cash is a pimple on a pumpkin, our community should be questioning what Cr MacKenzie has done because it's all relative," she said.

Cr MacKenzie had a very direct response.

"Kate Washington is a second-rate candidate and a one-time defeatist," he said.

"I wish you luck, Kate Washington, because you will still be standing in elections for the next 20 years."

The mayor's previously strong influence in council has recently taken a sudden decline, with councillors opposing him in three agenda items at the August 12 meeting.

"The cracks are starting to show," Mr Appleby said.

"It is the first time we have seen him rolled in a long time.

"Some of them must be starting to get really worried."