The job applicants were referred to only as Candidates 1, 2 and 3 in the report.
Councillors were briefed several times on the importance of keeping the application process confidential, particularly in relation to Candidate 3, who had expressly asked for his application to be kept completely confidential.
After council shortlisted five candidates in February, Kelly rang two of the candidates, which the report found he should not have done.
Candidate 1 revealed the call during a short-list interview, saying Kelly had called him the night before to tell him he was impressed with the candidate's CV and wanted the candidate to be successful.
Kelly told the person there was another candidate who was the front-runner in the process.
Candidate 2 told the investigator Kelly had also called him the night before the interview, told him he liked the person's CV, and said the outcome was likely to be between them and Candidate 1, who Kelly named.
Candidate 3 found out about the confidentiality breach from a friend who was a customer at Kelly's hair salon.
"Cr Kelly's customer said that they were told the first names and titles by Cr Kelly, who engaged in a long conversation about the strengths and weaknesses of the candidates, their backgrounds, and whether he thought council could work with each," the report said.
"Candidate 3 can recount names and titles of other candidates from this hair salon customer."
Kelly could not recall which of his customers he spoke to about the candidates, the report said.
"The fact that Cr Kelly cannot recall which of his customers talked to Candidate 3 about his conversation in the hair salon concerns this investigation.
"This suggests that there may have been more than one customer to have received the information."
In a letter to now-chief executive Sven Hanne, Mayor Neil Volzke said the breaches were "quite alarming".
Hanne has since said he was not one of the candidates involved.
The report writer said council "could potentially be at legal risk, particularly from Candidate 3".
Volzke brought up the breaches in an impromptu meeting of councillors, a fact Kelly was reportedly upset about as he believed the process could have been dealt with more privately.
"Cr Kelly says that he has taken legal advice pertaining to his options around a personal grievance for this action."
In an interview for the investigation, Kelly confirmed he had called the two candidates because he could not attend the short-list interviews.
He said he rang to apologise for not being able to attend.
He told the investigator he was passionate about the growth of Stratford and its future, so took a high interest in who was to get the chief executive role.
Kelly denied giving out names and titles of candidates, but the candidates were able to confirm to the investigator they had received such information.
The report found Kelly had committed multiple breaches and one instance of inappropriate behaviour.
A written apology was requested of Kelly, and he was suspended from his role on the Executive Committee, as well as the Policy and Services Committee.
Kelly has not yet responded to requests for comment.
•Stratford Press editor Ilona Hanne is the wife of chief executive Sven Hanne and took no part in the writing or editing of this story.
