Charlottetown council has determined that Coun. Bob Doiron breached the city's code of conduct bylaw and its workplace harassment policy.
The resolution was voted on during a special meeting of council Monday. Council voted in favour of the resolution. Three councillors were not present for the vote.
The city hired a third-party investigator in November to look into a complaint made against Doiron.
Doiron would not do a full interview with CBC News, but said Monday's resolution was related to his repeated questioning of the city's use of finances.
He said he was reaching out to his lawyer.
"This is quite shocking to me," Doiron said. "This is quite upsetting, quite shocking."
In a statement, the city's human resources manager John Mooy said, "the matter which led to this resolution of council pertains to a confidential personnel matter and as such, the policy of council is to not discuss such matters in public."
Council resolved to suspend Doiron's pay for 90 days, request that he give an oral and written apology to council and the complainant, and that Doiron be provided with "relevant training with regard to a councillor's obligations pursuant to the code of conduct bylaw and the City of Charlottetown harassment in the workplace policy."
The resolution could be appealed or go to a judicial review.
More from CBC P.E.I.