(a) (1) (A) The initial board of directors, as promptly as possible after effecting its organization, shall employ a city manager.

(B) However, in cities with the city manager form of government having a population of more than one hundred thousand (100,000) persons according to the most recent federal decennial census, the mayor may be authorized to employ a city manager. The mayor may be authorized by:

(i) An ordinance of the initial board; or

(ii) An initiated measure, adopted pursuant to Arkansas Constitution, Amendment 7, authorizing the mayor to employ a city manager. If the authority is vested by an initiated measure, the board shall not have the power to rescind the authority.

(2)

(A) The city manager's employment shall be for an indefinite term.

(B) Thereafter, subject only to such interruptions as are unavoidable, a city manager shall be maintained in the employ of the city.

(3) The appointment and continued employment by the board or mayor of a city manager shall be mandatory.

(b)

(1) It shall not be essential that the city manager, at the time of his or her employment, be a qualified elector of the city or of the State of Arkansas or a resident of the city or of the State of Arkansas.

(2) However, the city manager shall be a person found by the board or mayor to have special qualifications in respect to the management of municipal affairs.

(3) During his or her employment, the city manager shall reside in the city and devote his or her full time to the business of the city.

(4) Notwithstanding the provisions of subdivision (b)(3) of this section regarding the residency requirements for city managers, the city manager of a city with a city manager form of government and with a population of fewer than six thousand (6,000) persons, upon approval of a majority of the board, may reside outside the city during his or her employment as city manager.

(c) A member of the board may not be appointed city manager nor acting city manager during the term for which he or she shall have been elected nor within three (3) years following the expiration of the member's term of office as director or mayor.

(d) The city manager shall receive a salary in such amount as may be fixed by the board.

(e) The board, on the vote of a majority of its elected membership, or the mayor, if authorized pursuant to subsection (a) of this section, may terminate the city manager's employment at any time, either with or without cause.

(f)

(1) The city manager shall furnish a fidelity bond, the premiums on which shall be paid by the city, in such amount, on such form, and with such security as may be approved by the board.

(2) The bond, in no event, shall be less than twenty-five thousand dollars ($25,000).