Ocala City Council Reappoints City Manager Pete Lee, 3-1, With Hilty Voting No

The Ocala City Council reappointed City Manager Peter "Pete" Lee on Tuesday, Oct. 20, 2026, by a 3-1 vote. According to the roll call in the city's Legistar record, Council President Ire Bethea Sr., Council Member Barry Mansfield and Council President Pro Tem Jay Musleh voted yes, Council Member James Hilty Sr. voted no, and Council Member Kristen Dreyer was excused. Mayor Ben Marciano is a non-voting member. The vote is in the city's Oct. 20 council meeting record and its minutes synopsis, which the city had posted as a synopsis, not final minutes, as of Oct. 25. This article is based on those city records, the signed employment agreement and earlier council records. For the rest of that evening, see our Oct. 20 meetings recap.

At a Glance

• Item: Reappointment of City Manager, Peter Lee (File No. 2027-0186, agenda item 6o)


• Result: approved 3-1 on a motion by Musleh, seconded by Mansfield; Hilty voted no and Dreyer was excused


• Base salary: $267,608 a year, effective Nov. 1, 2026, under the agreement dated Sept. 15, 2026


• Earlier vote on the contract: council approved the renewed employment agreement on Sept. 15, 2026, by a 4-1 vote, with Hilty voting no


• Term: the agreement ties the appointment to the City Charter, which allows two-year extensions; the manager serves at the council's pleasure

How Did Council Vote on Pete Lee's Reappointment?

The reappointment was one of five charter-officer reappointments on the Oct. 20 agenda. The police chief, city attorney, city clerk and internal auditor reappointments were on the consent agenda. According to the minutes synopsis, the city manager item was held for discussion under "Consent Agenda Items Held for Discussion," and the city's action record lists it as approved on a motion by Musleh, seconded by Mansfield, with Bethea, Mansfield and Musleh voting aye and Hilty voting nay.

The council's clerk recorded Hilty's remarks in the minutes. According to the synopsis, Hilty explained that he asked for the item to be pulled from the consent agenda because he had previously voted against the contract, and he noted further concerns about transparency, management and communication.

What Did Council Decide on Sept. 15?

The contract itself came before council five weeks earlier. On Sept. 15, 2026, council took up the "Renewal of Employment Agreement for City Manager, Peter Lee" (File No. 2026-2191) and approved it 4-1. Musleh, Dreyer, Mansfield and Bethea voted aye and Hilty voted nay, according to the roll call in the city's Sept. 15 meeting record.

The minutes for that item summarize the discussion. Hilty said he was concerned that the city manager received an "exceeds expectations" evaluation despite problems he believes reflect weak leadership, cited delays in getting answers to council members' requests and downtown business closures, and suggested exploring new leadership options as the city grows. Mansfield said he sees departmental problems, particularly in Code Enforcement, but believes Lee is performing well. Musleh voiced strong support and said Lee has earned an extension. Dreyer said she raises concerns with the city manager directly and urged the council to also acknowledge citywide successes. Mayor Marciano said Lee has acted to address problems in Code Enforcement. Those statements are as summarized by the city clerk, not verbatim.

What Does the Employment Agreement Say?

The City Manager Employment Agreement attached to the reappointment item is dated Sept. 15, 2026. The signature page and the e-signature certificate show it was signed Sept. 24, 2026, by the city attorney, the council president, the city clerk and Lee. Its main terms:

• Salary: an annual base salary of $267,608, paid biweekly, effective Nov. 1, 2026. The city's 2024 agreement set the base salary at $258,558 effective Nov. 1, 2024, so the new figure is $9,050 higher, roughly 3.5%.


• Term: the manager serves at the pleasure of the council. The agreement says the term may be extended two years at a time under Section 4.01 of the City Charter, and that the city must give at least 90 days' written notice if it does not intend to reappoint him. The agreement states an effective date of Nov. 1, 2026, and no end date.


• Severance: if he is terminated without cause, a lump sum equal to 20 weeks of compensation, plus three months of credited administrative leave and 20 weeks of continued insurance benefits or until similar coverage begins elsewhere. A termination for cause pays only accrued compensation and benefits.


• Retirement and car allowance: the city contributes 21% of salary to a 401(a) retirement plan, and pays a car allowance of $750 a month in lieu of a city vehicle.


• Reviews: council is to evaluate the manager normally no later than Oct. 1 of even-numbered years and may increase salary and benefits at that time. He also receives any cost-of-living increases granted to other employees.

Lee's Tenure and Contract History in City Records

City records show how the position reached this point:

• May 3, 2022: council approved an employment agreement for Lee as interim city manager (File No. 2022-0718).


• Sept. 6, 2022: council approved the appointment of Peter Lee as city manager 4-1, with Hilty voting no (File No. 2022-1381), and on Sept. 20, 2022, approved an addendum removing the words "acting" and "interim" from his agreement (File No. 2022-1523).


• Oct. 18, 2022: council reappointed him 5-0 (File No. 2023-0023).


• Sept. 17, 2024: council approved a new employment agreement 5-0 (File No. 2024-2198).


• Oct. 15, 2024: council reappointed him 4-0, with Dreyer absent (File No. 2024-2303).

The council's agenda also lists a service award for Lee for 15 years of service to the city (File No. 2024-0579, introduced Jan. 3, 2024). Hilty also voted no on Lee's Sept. 6, 2022, appointment as city manager, according to the city's vote record; he voted yes on the other 2022 and 2024 items listed above.

What Happens Next?

The Oct. 20 minutes synopsis lists Nov. 3, 2026 as the date for second and final readings of the ordinances introduced that night, so Nov. 3 is the next regular council meeting date referenced in the city's records. The city posts agendas and times on its meetings page. Council meets in the second-floor council chambers at Ocala City Hall, 110 SE Watula Ave. The Oct. 20 meeting began at 4 p.m. Contact information for council members is on our Ocala City Council page, and how local decisions are made is covered in our local government guide.

Sources: City of Ocala Legistar records for the City Council meetings of Oct. 20, 2026 (action record, roll call and minutes synopsis; File No. 2027-0186 and the attached City Manager Employment Agreement), Sept. 15, 2026 (File No. 2026-2191 and attached agreement), Sept. 17 and Oct. 15, 2024 (File Nos. 2024-2198 and 2024-2303 and the 2024 agreement), and Sept. 6, Sept. 20 and Oct. 18, 2022, and May 3, 2022. Council members' remarks are quoted or summarized from the city clerk's minutes, which were still a synopsis for Oct. 20. Checked Oct. 25, 2026.