New details in ex-Hutto city manager exit deal

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

HUTTO, Texas (KXAN) — When former City Manager Karen Daly resigned her post earlier this month, she got a retroactive pay raise and more, according to a city spokesperson and city records.

The pay raise, which was part of her separation agreement, appears to be one piece of a generous exit deal with the city of Hutto.

Daly’s tenure in Hutto ended June 13. Her original employment contract with Hutto pegged her pay rate at $150,000 per year. However, Daly’s separation agreement stated she would paid based on an annual salary of $158,362.

“Ms. Daly’s pay was retroactively increased (effective April 11) in the agreement and will be paid from June 13 – Dec. 13, [2016],” spokesperson Christina Kane-Gibson said in an email.

Despite being out of the job, Daly will also receive her vehicle and cell phone allowance until Dec. 13. According to her agreement with the city, those benefits are worth $7,200 per year.

The separation agreement also says Daly is eligible for professional development expenses. According to her contract, the city agreed to pay for travel and expenses associated with local and national management conferences.

Daly took the city manager position March 3, 2014. Her tenure was marked with some turmoil; a slim majority of the City Council passed a vote of no confidence in Daly on Jan. 7, 2016.

KXAN previously reported Daly’s entire separation agreement appears to be worth more than $100,000. She will be paid through December, as a city employee. The city will also continue to pay her full family medical coverage premiums through June 17, 2017, unless she gets another job with medical benefits before that date.

The city also dropped an extra $15,000 into Daly’s retirement account, as part of the separation agreement.

Daly previously submitted the following statement:

I am grateful for the opportunity to serve the citizens of Hutto and become part of this community. It has been an honor to work alongside the professional City employees who truly care about the community they serve. I am filled with pride over the accomplishments the employees have achieved during my tenure. I am also appreciative of the community support I have received and wish the best for the City of Hutto.” 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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