Here is the full story that ran in the The Anchorage Daily News on February 1, 1997:

City librarian Mary Ellen Emmons will stay, but Police Chief Irl Stambaugh is on his own, Wasilla Mayor Sarah Palin announced Friday.

The decision came one day after letters signed by Palin were dropped on Stambaugh’s and Emmon’s desks, telling them their jobs were over as of Feb. 13.

The mayor told them she appreciated their service but felt it was time for a change. “I do not feel I have your full support in my efforts to govern the city of Wasilla. Therefore I intend to terminate your employment…” the letter said.

Palin said Friday she now feels Emmons supports her, but does not feel the same about Stambaugh.

As to what prompted the change, Palin said she now has Emmons’ assurance that she is behind her. She refused to give details about how Stambaugh has not supported her, saying only that “You know in your heart when someone is supportive of you.”

The three met briefly at Wasilla City Hall Friday afternoon, and Palin called them twice at Stambaugh’s home before making the decision.

Palin said she asked Emmons if she would support efforts to merge the library and museum operations. Emmons said she would, according to Palin.

Her conversation with Stambaugh was short, both said. He asked: “What’s the basis for this?” and she gave no details.

The actions have caused a stir in Wasilla, a town of about 4,600. City Councilman Nick Carney, who has been an outspoken critic of Palin, said he received several calls at his home Thursday night and Friday from outraged citizens.

The sudden personnel shift is part of bigger problem of mismanagement in the city, he said, and may prompt a recall petition.

“Before, I told (people) to hold off, but now all bets are off,” he said. “I fail to see what good this is doing for Wasilla.”

But Councilwoman Judy Patrick said people voted change when they elected Palin and part of that is changing who is in charge.

Reached at home, Stambaugh said he still doesn’t understand why he’s been fired. “There never was an appropriate response,” he said. “How did we not support the administration?”

Now he’s talking to an attorney. While both Stambaugh and Emmons serve at the mayor’s pleasure, Stambaugh said he has a contract that prohibits the city from firing him without cause.

Both Stambaugh and Emmons publicly supported Palin’s opponent, long-time mayor John Stein, during the campaign last fall. When she was elected, Palin questioned their loyalty and initially asked for their resignations. But Stambaugh said he thought any questions had been resolved.

Stambaugh has headed the Wasilla Police Department since it was created in 1993. Before that, he worked 22 years with Anchorage Police Department, rising to the rank of captain before retiring.

Emmons, who has been the city’s library director for seven years, would not comment about the affair.

Time magazine:

At some point in those fractious first days, Palin told the department heads they needed her permission to talk to reporters. “She put a gag order on those people, something that you’d expect to find in the big city, not here,” says Naegele. “She flew in there like a big-city gal, which she’s not. It was a strange time, and [the Frontiersman] came out very harshly against her.”

Stein says that as mayor, Palin continued to inject religious beliefs into her policy at times. “She asked the library how she could go about banning books,” he says, because some voters thought they had inappropriate language in them. “The librarian was aghast.” That woman, Mary Ellen Baker, couldn’t be reached for comment, but news reports from the time show that Palin had threatened to fire Baker for not giving “full support” to the mayor.

St. George, however, points out that Palin couldn’t have seen everything through an Evangelical lens. She did, he says, notably resist calls to restrict operating hours for the bars in town. And even if faith did play an unusually large role in her decision-making as mayor, it may have only reflected the continued rise of Evangelicalism in the valley, a growth that continues to this day.

Biden ran for president but withdrew after the first caucuses in Iowa, where he competed with 8 other Democrats.

Newsweek fact check:

Finally, Huckabee told conventioneers and TV viewers that Palin got more votes when she ran for mayor of Wasilla than Biden did running for president. Not even close. The tally: Biden, 79,754, despite withdrawing from the race after the Iowa caucuses. Palin, 909 in her 1999 race, 651 in 1996.

On September 10, USA Today reported:

In 2000, Alaska lawmakers learned that rural police agencies had been billing rape victims or their insurance companies $500 to $1,200 for the costs of the forensic medical examinations used to gather evidence. They quickly passed a law prohibiting the practice.

According to the sponsor, Democrat Eric Croft, the law was aimed in part at Wasilla, where now-Gov. Sarah Palin was mayor. When it was signed, Wasilla’s police chief expressed displeasure.

(Before the 2000 legislation passed), local law enforcement agencies in Alaska could pass along the cost of the exams, which are needed to obtain an attacker’s DNA evidence. Rape victims in several areas of Alaska, including the Matanuska-Susitna Valley where Wasilla is, complained about being charged for the tests, victims’ advocate Lauree Hugonin, of the Alaska Network on Domestic Violence and Sexual Assault, told state House committees, records show.

In 2000, there were 497 rapes reported in Alaska, FBI statistics show. That’s a rate of 79.3 per 100,000 residents, the highest in the nation.

Wasilla’s newspaper, The Frontiersman, reported that Charlie Fannon, the Wasilla police chief appointed by Palin, opposed the prohibition:

While the Alaska State Troopers and most municipal police agencies have covered the cost of exams, which cost between $300 to $1,200 apiece, the Wasilla police department does charge the victims of sexual assault for the tests.

Wasilla Police Chief Charlie Fannon does not agree with the new legislation, saying the law will require the city and communities to come up with more funds to cover the costs of the forensic exams.

“In the past we’ve charged the cost of exams to the victims insurance company when possible. I just don’t want to see any more burden put on the taxpayer,” Fannon said.

As mayor of Wasilla, Palin hired a city administrator, as Salon wrote:

When Palin ran for mayor, she dismissed concerns about her lack of managerial expertise by saying the job was “not rocket science.” But after a tumultuous start, marked by controversial firings and lawsuits against the city, Palin felt compelled to hire a city manager named John Cramer to steady the ship.

“Sarah was unprepared to be mayor — it was John Cramer who actually ran the city,” said Michelle Church, a member of the Mat-Su Borough Assembly, who knows Palin socially.

….

Other officials in the borough government — the equivalent of county government in other states — point out that Palin actually had very little executive responsibility, since the borough oversees many of Wasilla’s vital functions.

“After all her boasting about her executive experience, what did she do?” asks a longtime borough official, who, like many in local circles, requested anonymity because of Palin’s reputation for vengeance. “The borough takes care of most of the planning, the fire, the ambulance, collecting the property taxes. And on top of that she brought in a city manager to actually run the city day to day.”

The Anchorage Daily News reported about the city administrator position:

(Palin was) reworking the city budget to find money for the $50,000-a-year position, which had been empty for several years. Critics said it showed she wasn’t up to the job, but Palin defended it as necessary for the fast-growing city.

The Washington Post reported more on Wasilla’s government:

The universe of the mayor of Wasilla is sharply circumscribed even by the standards of small towns, which limited Palin’s exposure to issues such as health care, social services, the environment and education.

Firefighting and schools, two of the main elements of local governance, are handled by the Matanuska-Susitna Borough, the regional government for a huge swath of central Alaska. The state has jurisdiction over social services and environmental regulations such as stormwater management for building projects.

With so many government services in the state subsidized by oil revenue, and with no need to provide for local schools, Wasilla has also made do with a very low property tax rate, sparing it from the tax battles that localities elsewhere must deal with. Instead, the city collects a 2 percent sales tax, the bulk of which is paid by people who live outside town and shop at its big-box stores.