Hutto City Council was standing room only June 2 when the city manager's contract was on the agenda. Hutto City Council was standing room only June 2 when the city manager's contract was on the agenda.[/caption]

Embattled Hutto City Manager Karen Daly resigned June 2, and the City Council voted to accept her resignation following a meeting in executive session.

The Hutto City Council took a vote of no confidence in Daly Jan. 7 by a vote of 4-3. At the time, a city spokesperson said the council would need five votes to move forward to terminate Daly. In May two council seats as well as the mayor, who publicly supported Daly, were replaced after those council members declined to run again.

In a statement, Daly said, "I am grateful for the opportunity to serve the citizens of Hutto and become part of the 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."

Residents before the meeting spoke both in favor of and against Daly as city manager.

Hutto resident Mike Cooper said the city had developed an "us versus them" attitude during Daly's tenure.

Max Yeste, a Hutto resident and former City Council member, said Daly took on the biggest economic development projects in the city's history and helped bring H-E-B to Hutto.