It's ridiculous and a bad case of prejudgement. I think the private life of an employee isn't a town government's business at all.
If that town manager's work had suffered from the marriage, maybe it would have been justified, but that apparently didn't happen.
After my own experience at the Detroit Airport (see Travel thread) it doesn't come as a too big surprise to me, though.
But I don't want to start a political morality thread. If I wanted to do that I'd throw in the name Berlusconi, but I don't.