He had spoken to Giddens after the sentencing and said she was "in good spirits".
"She said she feels very sorry for the victim and her family and she wished she could bring it all back.
"She has to take the punishment. That's just the way it is."
Mr Kane praised Giddens' passion for her work.
"A little half-page of negativity in the paper doesn't weigh up to the amount of work that she has actually done for the youth and the community."
He and Giddens plan to marry after her release from prison.
Rangitikei District Council chief executive Ross McNeil echoed Mr Kane, saying Giddens was "well respected" by the council and community for her work.
Mr McNeil said Giddens resigned as the council's youth development manager in March, citing "family reasons".
Giddens pleaded guilty to the fraud charges on March 26.
"I have been aware for some time that there were issues being addressed through the courts," Mr McNeil said, adding he could not say quite when it had come to his attention but it was not a concern to the council.
"These matters related to events that took place well before Toni joined us.
"I think it's fair to say the work she did for council and the community ... she was very well respected both in the council and community for that."
Giddens had no further relationship with the council, he said. She owes the victim $205,905.91.