Royse City City Manager suspended over serious shortfall in funds

Royse City City Manager Karen Philippi was suspended from her duties at the Royse City City Council meeting Aug. 12 after a potential shortfall in funds was discovered that had not been reported.

“It was due to concerns raised in executive session that are not for public record yet,” said Royse City Mayor Jim Mellody, when asked about her suspension.

The council also voted unanimously at the meeting to hold investigative hearings into whether or not Philippi broke her contract in her capacity as city manager. During the interim, the City appointed a two-man team of Larry Lott and Jason Day to act as city manager. Lott is the director of the Royse City Economic Development Corporation and Day is the city’s full-time attorney.

At Tuesday night’s meeting, Lott briefed the council on a serious shortfall in funds for the running of the city.

More details are forthcoming.

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