Former Mayor Dave Claunch was present to express his support for Wood, who served West Lake Hills since 2007.
"We want to express our appreciation and thanks for his 12 years of work," Mayor Linda Anthony said, adding the council feels it is time to go in a new direction.
Council did not provide a reason for the termination of Wood's contract. City officials have also not yet divulged plans regarding a search for Wood's replacement, nor when that information would be forthcoming.
Anthony sid the council plans to adhere to all contractual agreements with Wood, which they entered into in good faith.
"Thank you for making West Lake Hills the city that it is," Anthony said.
Wood's last day is scheduled for Aug. 30.