Generous pay and benefits for Hutto city manager, after quitting

(City of Hutto Photo)
(City of Hutto Photo)

HUTTO, Texas (KXAN) – Karen Daly, who recently resigned her position as Hutto city manager, will receive a generous salary and benefit package totaling about $100,000 after she leaves the job.

Daly’s resignation will be effective June 13, 2016, but her pay and benefits won’t end at that time, according to a voluntary exit agreement and release obtained by KXAN.

Though she won’t be working, Daly will receive roughly $79,181 in salary payments through Dec. 13, 2016. Daly has a yearly salary of $158,362, or $13,196 per month, according to the agreement.

Daly will continue to receive her regular salary, as if on the city payroll, through Dec. 13, 2016. The salary will be paid on a normal biweekly basis, and “will also include all items stipulated in the Contract and all benefits, including but not limited to, vehicle allowance, health insurance, retirement contributions and professional development expenses,” the agreement states.

Hutto announced Daly’s resignation June 3, 2016. She had a rocky two-year tenure in Hutto, including a 4-3 city council vote of no confidence on Jan. 7, 2016.

In addition to salary, Daly will also continue to accrue vacation and sick leave at her contract rate.

“The payment of accrued but unused vacation and sick leave hours shall be without regard to any city policy placing a cap on paying a terminated employee and be provided in a lump sum, “according to the agreement.

In addition, the city of Hutto will make a $15,000 contribution to Daly’s retirement account, according to the agreement.

The city will also continue to pay all Daly’s family medical coverage premiums through June 17, 2017. The city will stop paying those health benefits, if she finds another full-time job with benefits in the meantime. The city also agreed to reimburse Daly for any legal expenses arising from the execution of the agreement, and both sides have agreed not to sue each other.

The city of Hutto did not immediately have an answer for why Hutto agreed to these terms, but a spokesperson for the city said the terms of the agreement likely hinged on her employment contract. provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Users who violate these terms, including use of vulgar language or racial slurs, will be banned. If you see an inappropriate comment, please flag it for our moderators to review.

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