Eric Williams' termination takes effect immediately and he will not receive any compensation. He was placed on administrative leave earlier this month and an interim town manager was appointed.
According to documents obtained by ABC11, Town Clerk Debra Godwin received a 29 percent raise this fiscal year and Public Works Director Lenny Branch was given a 17 percent hike.
Williams is accused of authorizing the raises. About two dozen other employees saw much smaller salary increases.
The documents show Williams had no cost of living or merit based raises in his budget approved by the council.
Williams maintains he didn't give the okay for the salary increases.