A report by Michael Farmer, a barrister brought in last year to guide the council through recommendations by the district auditor, says the authority now operates more transparently than before.
But he warns that the findings of two damning reports by the district auditor Ceri Stradling in April and July 1998 are still reverberating through the island's communities.
'It would be naive to assume that the changes in attitude and political culture in the Isle of Anglesey which were noted as being necessary in the July report have been wholly achieved,' said Mr Farmer in a review of progress almost a year after the auditor's first report.
'This dissatisfaction is most often about how decisions are made rather than with the result of the decision-making process.
'It has a corrosive effect on staff morale in particular, and does not assist in conducting the positive and forward-looking debate about the future, which is necessary.'
He said that although changes in attitude would not occur overnight, significant momentum had been built up.
He added: 'Structures are now in place which are more transparent and answerable than those which existed previously, and the focus of debate about local government on the island has moved on. There are now new structures in place and new procedures ready to be used. Those procedures are alreadty being used.'