Colleen Lawry was fired after a City Council vote on Tuesday and was arrested around 10 p.m.
Lawry, whose spending was questioned by the state auditor has been fired, and she has been arrested on a separate allegation.
Investigators say she took anywhere from $500 to $1,500 from the Gretna Senior Citizen Fund. A Sarpy County jailer says Lawry remained in custody on Wednesday morning.
State Auditor Mike Foley last week said his auditing team found several instances in which Lawry used her city card for personal purchases. Foley says Lawry paid back the city but the purchases were barred by state law.
The audit didn't cover the senior citizen fund.