Town residents were struggling to come to terms with the sudden death of the 36-year-old mother of three yesterday.

She was remembered as a "bright and happy" person who "had so much to give".

Coral Lane said she saw a "bright and bubbly" Ms Stamatov walking down the main street of Clunes on Monday afternoon.

"She was beaming from one side of her face to the other," Ms Lane said.

But less than 24 hours later Ms Stamatov died at her Clunes family home.

She is survived by her husband Chris and children Liam, Chloe and Kayla.

Hepburn Shire Council's chief executive officer Victor Szwed said the council's senior officers met with the new councillors on Monday night.

"They were so positive about their new roles," Mr Szwed said.

"Bernadette was very excited about being elected."

Mr Szwed said the council wished to express their sympathy to Ms Stamatov's family.

"We are deeply saddened; the loss will be felt throughout the community," he said.

Mr Szwed said Ms Stamatov had collapsed early yesterday morning and did not recover.

"Ms Stamatov had a young family and the loss of a young mother, wife and businesswoman, who also had so much to offer the community is terribly sad," he said.

Town residents said there had been no indications Ms Stamatov was sick.

Clunes Newsagency owner Margaret Gibson said she saw Ms Stamatov on Monday afternoon.

"It's hard to believe," Ms Gibson said.

"If she was sick, we had no idea."

Ms Gibson said she looked forward to seeing Ms Stamatov's smiling face each day.

"The whole town is in shock," Ms Gibson said.

Ms Stamatov was expected to take her Oath of Office at the council's statutory meeting on Friday night.

Mr Szwed said the council was waiting on advice from the Office of Local Government regarding the situation.

"The other four councillors will take their Oath of Office and assume their role of council on Friday," Mr Szwed said.