Wayne Herron officially submitted his resignation after the Monroe City Council meeting Tuesday night.
The two assistant city managers are now acting as the interim city manager.
The resignation comes after the fallout when Monroe’s police chief was denied a one-time performance bonus.
A Channel 9 investigation revealed that Herron was awarding thousands of dollars in bonuses to select city employees without telling city council about it.
Eyewitness News has learned because of the terms in his contract regarding termination, Herron will receive a large lump sum settlement payment.
Herron will receive a one-year salary of $150,654, will be compensated for any unused vacation days, and will retain his benefits, including life insurance, health insurance and disability, for the next year.
Monroe Mayor Bobby Kilgore released a statement late Wednesday which said, "I truly value all that Mr. Herron has done for the City of Monroe.
"As Mayor, I, along with the rest of City Council will continue to do what we feel is in the best interest of the City of Monroe. I do wish Mr. Herron well and appreciate his and every city employee's efforts to make Monroe a great place to live and work."