Wyndham City Council, which covers Melbourne's outer west, passed the motion on Monday night against Mayor Preet Singh over a character reference he wrote in 2024.
It was written in support of Kashyap Patel who was convicted of sexually assaulting a 15-year-old girl.
Ex-political candidate, Dinesh Gourisetty, also wrote a character reference for the same man causing him to be dumped from the Liberal Party ticket for the Victorian Upper House in March.
Singh had known the man for 13 years, while Gourisetty had been a "good friend" of the man for four years, according to court documents.
Regarding Monday's no confidence vote, Wyndham City Councillor Maria King said the council's actions reflected "community confidence".
"This was not a decision made lightly, and it comes with genuine disappointment," she said in a social media post.
"The role of mayor carries a high level of trust, integrity, and transparency. When that trust is impacted, it is our responsibility as councillors to listen to our community and act."
All 10 city councillors voted in favour of the no confidence motion, but are legally unable to remove Mr Singh, instead calling for him to resign.
On Thursday, Mr Singh said in a statement he had done nothing wrong and does not condone or support child sexual abuse.
Mr Singh said in a social media post the move against him was politically motivated and that he had made the character reference as a private citizen.
"I have been publicly labelled a criminal, a paedophile, and a threat to children and women," he said.
"These accusations are false. They are vile. They are entirely unjustified. I did not commit a crime. I did not endorse one."
City Councillor Susan McIntyre said the community is angry and that trust had been damaged.
"This motion is symbolic, but it matters. It sends a clear, unified message," she posted on social media.
"Our community deserves better. The role must come before the person."
After the character reference came to light, in early April the council called on Mr Singh to resign, saying supporting child sex offenders in any form is never acceptable.
"We firmly believe that following Monday's revelations and the mayor's refusal to resign, he is no longer fit to hold the Office of Mayor and will be unable to adequately perform the duties of the role," the council said in a statement.
"Only a resignation will give us the opportunity to restore stability and get on with the job of delivering services and infrastructure for Wyndham."