After missing out in both races Sir Tim issued a statement wishing the new council "all the best".
"There are some big decisions ahead and they carry a heavy weight of responsibility and expectation.
"I feel surprised not to be re elected as a councillor and it will take some time to digest that I will not be part of the decision making process as the city progresses.
"I note that the results have not brought about the radical change that was expected with eight sitting councillors re elected. It seems that the I have personally borne the brunt of the last three years of angst on council.
"I will continue to promote the City and I thank all my supporters over the last 27 years. I have been honored to serve the city."
Progress results delivered to Invercargill City Council today showed sitting councillors Nigel Skelt, Darren Ludlow, Ian Pottinger and Allan Arnold would remain on council.
They will be joined by new Councillors Tom Campbell and Grant Dermody.
It comes after it was earlier announced Nobby Clark was elected as mayor with 6537 of the votes according to the progress results. He was followed by Marcus Lush with 3785 votes.
Progress results include all votes cast up to late Friday, however, it does not include votes cast late on Friday or on Saturday, and does not include special votes.
Invercargill City Council Deputy Electoral Officer and Manager Governance and Legal Michael Morris said with 2104 ordinary votes and a number of special votes still to be counted, some candidates were too close to call at this stage.
Those candidates are Ria Bond, Trish Boyle, Lesley Soper, Peter Kett, Alex Crackett, Graham Lewis, Barry Stewart, Terry King, Kerry Hapuku, Rebecca Amundsen, Lisa Tou-McNaughton and Rick Murrell.
Sir Tim Shadbolt will not be returned as Mayor or Councillor.
Preliminary results are expected on Sunday morning and will include 2104 votes that were cast late on Friday and on Saturday, but not special votes.
"Our preliminary results should provide a clearer picture but it’s likely it won’t be confirmed until our final results are provided in the coming days, after special votes have been counted."
The Bluff Community Board results show, at this stage, that the members Tammi Topi and Ray Fife will be returned, and joined by new members Justin Sutherland, Terina Stockwell and Sam Graham. These results are subject to change after further votes are counted.
The Invercargill Licensing Trust results are also subject to change after further votes are counted.
Morris said he was pleased with the turnout and the interest the community had in this election.
"We have a passionate and vocal community who were also motivated to cast their vote and help guide the city through the next three years," he said.
