The Albert Lea City Council on Thursday approved a severance agreement with the city’s former finance director.

The city will pay former director Terry Berg the equivalent of three months salary, along with the entire employer and employee share of her insurance costs through Sept. 30.

Berg has been on paid leave since May 16 after city officials received an allegation about her from another employee.

“This is a tough situation for our city, and I want to see it move forward,” said 3rd Ward Councilor George  Marin.

City officials continue to decline to release the specifics of the allegation against Berg. The agreement says the city waives claims it may have against her. The officials emphasized it was nothing criminal and did not involve financial management.

The allegation launched an investigation into Berg. City Manager Chad Adams said the investigation was never finished before the city and Berg reached the separation agreement.

He said officials stopped the investigation based on some of the results they saw and agreed between both parties that the city was not going to be able to employ Berg. He described the two parties as having “irreconcilable differences.”

Adams stated in an earlier interview that four people had quit under Berg’s management.

“My concern is those who were leading up to this situation,” Marin said. I feel very badly on that and that weighs heavily on my heart.”

The agreement passed 6-0.

First Ward Councilor John Schulte V was absent.

Berg had worked in the public sector since 1985, starting as a city administrator. She had since served as finance director die the city of Lake Elmo and Faribault before coming to Albert Lea.