The White Settlement city manager remains on the job after facing allegations he used racial slurs to refer to city residents.
City Council members met behind closed doors for about 50 minutes Monday night to discuss the accusation against Jeff James.
The city's former fire chief, Russell Shelley, says the city manager used the "n-word" several times in a meeting to broadly describe people who live in White Settlement.
"If I get into this, it's two wrongs don't make a right," James said after council members decided not to take any action on the matter. "I am not going to justify any of this."
"As far as I know, and as far as I'm concerned, it's over for now," Mayor Ronald White said. "I don't know that it wouldn't come up again, but I don't think so."
More than two dozen city employees and residents attended the open session of the council meeting to support the city manager.
"I feel blessed that all these people were here today came out, and I really appreciate the show of confidence, and I'm happy to be the city manager of the city of White Settlement," James said.
The former fire chief, who resigned from the part-time position after three months on the job, says he's disappointed the city won't investigate his claim.