OZARK, Mo. (AP) — The City of Ozark will pay its former human resources director $78,000 to settle a sex discrimination lawsuit.

The city says it is settling the case but denied all allegations against it.

Cara Borneman filed the lawsuit after her position was eliminated in May, shortly after she had complained that the mayor and an alderman were spreading false rumors that she was romantically involved with a superior. She said she was given no reason for the termination and no city officials had complained about her job performance beforehand.

Mayor Shane Nelson said Borneman's position was eliminated for budget reasons and has not been refilled.

The Springfield News-Leader reports (http://sgfnow.co/VV19uo ) Borneman will receive $46,000, with the rest of the settlement for attorney's fees.

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Information from: Springfield News-Leader, http://www.news-leader.com