Just days after offering to resign over a questionable loan she made out of the city treasury, newly minted Groveland City Manager Gwen Walker’s defiantly asserted her innocence and rescinded her resignation.

The City Council placed Walker on administrative leave while it conducts an audit to see if other financial irregularities occurred on her watch.

Walker, who was promoted to city manager Nov. 7, resigned last week over a $3,500 check she issued to a struggling city employee when Walker was the city finance manager in 2014.

Walker has admitted issuing the check and publicly took responsibility.

She said former Police Chief Melvin Tennyson, who resigned recently over allegations that he misused a city credit card for personal hotel stays, asked her to cut the check for one of his police officers.

After nearly two hours of contentious debate and public comment, the council was preparing to vote on whether to accept Walker's resignation when the meeting took a turn.

Councilman Mike Radzik, who had made a motion to accept Walker's resignation with an effective date of Dec. 28 and no additional severance pay, asked her to consider rescinding it because citizens asked her to do so.

Walker did rescind her resignation. City Attorney Anita Geraci-Carver said since the council had not voted on the matter, Walker was within her rights.

“I think it’s very clear that this whole thing was pre-planned. I don’t think I was given a fair shot and I feel like all this is more about bringing Redmond Jones (former city manager) back and not really about getting rid of me,” Walker said after the meeting.

Walker was elevated to city manager after former City Manager Redmond Jones was terminated in September.

Walker believes the new council, with a brand new mayor, wants Jones back in.

Many citizens who spoke Monday also believe Jones was unfairly terminated but said the point at hand Monday is that Walker was wrong for issuing a city check to serve as a personal loan for an employee.

“She’s a lovely lady. She’s always been courteous to me. I’ll always say that, but procedure is procedure,” Groveland resident Ed Meyer said.

Other citizens said since the money was paid back by the officer in two weeks, and that it happened so long ago, it is a non-issue. Some also said that as finance director, the judgment call Walker made was her prerogative, especially considering it was requested by Tennyson.

Resident Chris Walker said: "Show me proof."

“No harm, no foul,” Councilwoman Dina Sweatt said.

Mayor George Rosario said he feels Walker misappropriated funds and should be held accountable for misusing taxpayers’ money.

“It is an oath we as council members all took, to protect city funds, and she admitted to it,” Rosario said.

Radzik said Rosario is on a “witch hunt.”

In the end, Walker was placed on paid administrative leave, effective immediately, pending a complete financial audit of all checks issued against city funds to any city employee and a forensic investigation of Walker’s city-issued technology and office records, dating back to 2012.